Consistency of trends in the economic and energy development of Ukraine: Assessment and analysis

Abstract

Reforming Ukraine’s energy sector is targeted at the implementation of European legislation into national practice. However, the lack of a vision of the country’s energy model, coordinated with trends and priorities of its economic development, is creating a number of problems with its energy supply. The aim of the presented study is to assess the consistency of trends in the economic and energy development of Ukraine. To achieve the goal, a methodological approach to assessing the consistency of trends and structural changes in the economy and energy sector was developed. It was proposed to carry out the assessment based on the analysis of the resource / commodity and production / consumption chains of the electric power industry, and the conditions of the electric power market. It was proved that the trends and structural changes in the economy of Ukraine were not accompanied by corresponding changes in the energy sector of the country. Such inconsistency conditioned: a low level of utilization of installed power generation capacities and, consequently, a high level of unused power generation reserves; a high level of power generation reserves that determined a significant level of non-productive costs and, consequently, a high total cost of power production.