ІНСТИТУЦІЙНІ ПРІОРИТЕТИ СТРУКТУРНОГО ТРАНСФОРМУВАННЯ ЕНЕРГЕТИЧНОГО РИНКУ УКРАЇНИ

Abstract

In the study devoted to the identification of priority areas for structural transformation of the energy market of Ukraine, a sectoral analysis of production and consumption of energy sources was conducted. It is substantiated that the development of the domestic energy market of Ukraine is characterized by significant sectoral inequality. It is noted that the demand and supply of energy in 2014-2019 decreased, mainly due to the reduction of production and consumption of fossil fuels. It was found that the state monopoly in most energy market sectors has a negative impact on the production, transmission, supply and distribution of energy resources. Total energy production decreased, mostly due to decarbonization, while non-energy consumption of fossil fuels increased. It is shown that the satisfaction of market needs in energy resources of domestic production is insufficient due to insufficient investment, low level of technological re-equipment, lack of pricing, loss of human resources and significant market opacity. There is a high probability of insufficient supply of energy resources, which could lead to a crisis in the domestic market for energy consumption. The main obstacles to the effective development of the energy market are over-regulation, significant monopolization of generation, supply and distribution of resources. The rapid technological renewal of enterprises in the industry is affecting the rapid change in the structure of their costs, which highlights the corruption risks associated with government subsidies. Insufficient substantiation and unsystematic structural transformations of the industry, lack of funding sources and legislative gaps were noted, which negatively affects the competitiveness of domestic market operators. There is an urgent need for institutional provision of conditions of fair competition, liberalization of pricing, growth of energy efficiency and security of energy supply, the issue of Ukraine’s accession to the Fourth EU Energy Package is acute. The target of market stabilization is to reduce the gap in the balance of supply with the simultaneous growth of the share of domestic production, which will improve Ukraine’s foreign trade balance, increase contributions to the budgets of various levels and create new jobs.