Concession Mechanism For The Development Of Innovative Activities Of Electric Power Organizations

Abstract

The electrical power sector is a socially and strategically significant economic area which provides all sectors of the economy and the population with electric power resources. Currently, the industry is characterized by a high level of worn-out fixed assets and an ever-increasing technical and technological backlog. The innovative development path is crucial for the electric power industry. It ensures the use of alternative energy sources, improves quality and reliability of power supply. In order to move the country from the export economy to the resource-innovative one, the interaction between the government and private electric power companies is required. To solve existing problems, it is necessary to improve mechanisms and forms of state participation in financing innovative and investment projects in the electric power industry in order to ensure their attractiveness. The authors developed a concession mechanism based on public-private partnerships, contributing to innovative activities of electric power companies. The main purpose of the electric power company is to reduce costs by implementing innovative technologies and maximizing profit. The government aims to protect public interests of consumers. The article provides a diagram of the procedure for concluding a concession agreement for performing innovative activities in the electric power industry. It allows studying a competition procedure. The purpose of the concession mechanism is to achieve social and economic effects of investment and innovation processes in the electric power industry (improvement of quality of services, reduction of electricity tariffs, implementation of energy-efficient and resource-saving technologies, etc.).