Prerequisites for Regulatory Innovations in Ukraine under Renewable Energy Sector Development

Abstract

One of the key problems of regulation and decision-making in the energy sector is meeting the requirements of the global trend of decarbonizing energy systems and liberalizing electricity markets. The rapid development of renewable and SMART technologies requires the support of appropriate regulatory innovations as responses to changes caused by innovative technologies. Following the global trends, Ukraine's energy sector is undergoing a large-scale transformation including regulation. The primary objective of the research is to identify and analyze the prerequisites for regulatory innovations in the energy sector of Ukraine. A methodological approach of the systems theory was applied to regulatory innovations. The time series analysis was used for the assessment of dynamic indicators of the renewable energy sector development. This assessment was provided by estimating the absolute and relative dynamic indicators of interval time series. The installed capacity and the electricity production were taken as absolute annual indicators of time series. As the renewable energy sector in Ukraine is innovative and fast-growing, the changes in this sector have been identified using a chain technique, which is more appropriate in this case than calculations on the fixed base. Indicators of the relative dynamic were used for comparative analysis of electricity production from renewable sources in the European Union and Ukraine. The applied methodology of the system approach can be used for further analysis of regulatory innovations that will be implemented in the energy sector.