Specifics of Pricing Policy in the Global Energy Market in Context of Energy Transitions

Abstract

Identifying price fluctuation patterns between traditional, alternative energy resources of raw material origin and the systemic world transformations is vital in understanding the variability of stable and effective functioning of relevant assets at different stages of economic waves in the context of global environmental challenges. This study was aimed at examining the dynamics of irregularity in the prices of various energy resources derived from raw materials in the global economy as investment assets within the framework of global economic changes. The price pattern of conventional and alternative energy resources on the global market were also examined alongside the connection between them and the price of electricity. The study made use of the monitoring method and the comparison method of various energy resources in terms of costs, availability, the influence they have on the market, and how they differ from each other. Secondary data was also collected from monographs and publications by Ukrainians and international experts on the subject matter. The analysis of the structure of energy resources was done in a retrospective manner following the reporting format of international organizations chosen as a base. Results revealed that the price dependency of traditional and renewable energy sources differs. While traditional energy is connected to economic cycles, the price of renewable energy is more influenced by technological advancements and less by global economic cycles. It is interesting to note that the price of renewable energy is mostly unaffected by global challenges and crises. The study recommend the results to be applied in national strategies for forecasting prices and modelling market conditions and consumer demand.