Theoretical and applied aspects of developing the energy services market in Ukraine

Abstract

The article focuses on the nature, content and interconnection between the main categories of the energy services market. The purpose of the research paper is to substantiate theoretical and applied aspects of developing the energy services market and put forward proposals for their further implementation into practice in Ukraine. Based on a systematic analysis and methods of analysis and synthesis it is proved that efficiency, viewed as an economic, technical and technological category, is an essential factor in the sustainable growth of the national economy.It is pointed out that increasing energy efficiency is linked with energy modernization in the basic sectors of Ukraine’s national economy as well as the application of brand new technologies, non-conventional and renewable energy sources, which can be implemented in the framework of market relations. The energy services market may serve as an organizational, economic and institutional form of such relationsThe research paper highlights the essence and content of the main categories of the energy services market: energy services, market structure and its basic characteristics, market actors and their interaction.The concept of an efficient industry market is applied for theoretical rationalizing of market structure and its basic features, which makes it possible to identify interdependence between all its components and address the peculiarities of energy services.It is found that the basic terms of supply in the market of energy services are limited due to the imperfection of the institutional and economic environment. The basic conditions of demand are characterized by high price elasticity on personal income and contradiction of behavior depending on the government’s social policy and costs of fuel and energy resources. High elasticity of demand and lack of substitute services result in the impossibility of developing a clear pricing strategy and affect the efficiency of market actors. The market structure is characterized by a high level of market barriers, caused by the peculiarities of providing energy services, which require the availability of high-tech equipment, special mechanisms, highlyskilled personnel, and the availability of a license.It is emphasized that market behavior is a marketing complex that requires flexibility in choosing a pricing strategy, advertising products, market research, engineering and technology research, and service delivery. Institutional provision requires an adequate state policy and informal imperatives of civil society in the field of energy efficiency of the national economy. The scheme of interaction between actors of the market of energy services is developed and functional interrelations between them in business operations are defined.