Concessionary Agreement as a Tool for Performing Innovative Activities by Electric Power Companies

Abstract

The electrical power sector is a social and strategical 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 way 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. The author has developed a concessionary mechanism based on public-private partnerships, contributing to innovative activities of electric power companies. The article provides a diagram of the procedure for concluding a concessionary agreement for performing innovative activities in the electric power industry. It allows us to study a competition procedure. The purpose of the concessionary mechanism is to achieve social and economic effects of investment and innovation processes in the electric power.