Green Tariff Research Articles

The Rise of Green Trade Policy and Its Impact on the International Market

With the increasing severity of global environmental issues, governments and international organizations are gradually recognizing the key role of green trade policies in promoting environmental sustainability. Green trade policies aim to facilitate a green transition in global trade through the formulation and implementation of environmental protection measures. These policies include carbon pricing mechanisms, green tariffs, environmental subsidies, and international coordination of environmental standards. This paper systematically analyzes the definition and development of green trade policies and explores their impact on the international market. The main content covers the reshaping of international trade flows and patterns, changes in global competitive dynamics, and the optimization and adjustment of global supply chains. The study reveals that green trade policies not only drive increased demand for eco-friendly products and technologies in the international market but also reshape global competitive dynamics and promote the greening and smart transformation of global supply chains. In the future, with the further refinement of green trade policies and strengthened international cooperation, the global economy is expected to achieve more sustainable development.

Exploring the effect of Guarantees of Origin on the decarbonization of corporate electricity procurement: A case study of Germany and Norway

AbstractIncreasing social, economic, and political pressure causes many companies to pledge to decarbonize. A common measure involves the use of Energy Attribute Certificates (EAC), such as the European Guarantees of Origin (GO), to reduce emissions from electricity procurement (Scope 2). However, previous studies find no effect on additional renewable energy capacity. Focusing on Norway and Germany as dominant contributors to net GO exports and imports, this study examines the GO trade alongside corporate carbon accounting data to answer the research question: Does the decarbonization of corporate electricity procurement using Guarantees of Origin contribute to the expansion of renewable electricity generation capacity in Norway and Germany? The analysis of CDP and Association of Issuing Bodies data reveals Norway's consumption mix is more carbon intensive than Germany's because Norway exports GO and imports fossil electricity attributes. German companies report predominantly market‐based approach, mainly using green tariffs and GO for zero emission claims, while Norwegian companies favor the location‐based approach. The largest share of GO issued in Norway comes from hydropower plants aged 41 to 70 years. The results highlight the urgency to revise corporate carbon accounting standards. GO lack additionality due to double counting of renewable attributes. Potential solutions include additionality criteria, GO trade restrictions based on physical capacities, and age limits for eligible power plants. This study's novelty is linking CDP data with GO trade, to assess the integrity of corporate decarbonization strategies. It contributes valuable insights to ongoing discourse on the role of EAC.

ENERGY EFFICIENCY AS A KEY FACTOR IN ENHANCING THE POTENTIAL AND COMPETITIVENESS OF ENTERPRISES IN THE CONSTRUCTION INDUSTRY THROUGH THE APPLICATION OF GLOBAL PRACTICES

The article substantiates the importance of energy efficiency as a key factor in enhancing the potential and competitiveness of enterprises in Ukraine's construction industry through the application of global practices. The article demonstrates how the implementation of advanced energy-saving technologies and renewable energy sources, which are widely used at the international level, allows enterprises to reduce energy costs, increase environmental responsibility, and strengthen market positions. It is proven that the integration of global practices in energy efficiency, including the modernization of production processes and the implementation of automated energy management systems, significantly enhances the economic efficiency of enterprises. The example of «DZBM» LLC, which reduces production costs and generates additional income from selling electricity at the «green tariff» through the construction of a mini-CHP plant running on biofuel, confirms the effectiveness of this approach. The relevance of the topic lies in the need to adapt global energy efficiency practices in Ukraine's construction industry, which is particularly important in the context of rising energy costs and economic instability. The article lays the foundation for further research in this area and proposes ways to optimize energy use to enhance the competitiveness of enterprises.

Особливості управління тарифоутворенням у контексті «зеленої» економіки

The article determines that modern energy is mostly based on non-renewable primary energy sources. Therefore, the formation of renewable energy plays an important role today. It is noted that Europe and the world have identified a green economy and climate-neutral energy as a benchmark for their development. Attention is focused on the consideration that under such conditions of development, the issue of tariff setting in the context of the green economy plays a key role in the transformation of the energy system and support of the green economy, since effective tariff setting helps to attract investment in green technologies, ensures the economic attractiveness of renewable energy projects and stimulates energy efficiency. Based on the carried out analysis of scientific publications, it is concluded that tariff setting in the context of the green economy is considered through the prism of economic incentives, environmental benefits, political support and social perception, highlighting its relevance in the context of global efforts to transition to sustainable energy. It is determined that today the problems of instability of tariff policy, in some cases economic inefficiency of tariffs, social inequality, complexity of regulation and administration and a number of others remain unresolved. Addressing these challenges is critical to ensuring an effective and sustainable tariff policy that promotes the development of a green economy and renewable energy sources. It is determined that due to the imperfect, but effective at the moment model of the green tariff, the number and capacity of renewable generation in Ukraine has been steadily growing over the past 10 years. A number of problems that exist today in tariff setting in the context of the green economy from the point of view of its management in Ukraine have been identified and specific features of tariff setting in the context of the green economy have been formulated. Each of the identified specific features of tariff formation of the green economy is characterized and the authors’ own mathematical model of formation of the general tariff of the green economy is proposed. It is concluded that the features of tariff setting in the context of the green economy require an integrated approach to management, and promising in this direction are studies on clarifying each component of the base tariff, determining the basis for calculating each component, further adjustment of the tariff taking into account regional features and other aspects of pricing in the field of renewable energy sources.

Solar on-grid power plant and its connection to the electric network

The network solar power plant and its connection to the electric network are considered. This system of autonomous alternative power supply belongs to the network type. The main focus of the system is the supply of generated electric power to the consumer's network and the transfer of the surplus to the city network according to the “Green Tariff”. The expected electrical capacity of the solar power plant is 860 kW. The system is a multi-branched star consisting of the following elements: solar batteries; network inverters; systems for monitoring network solar power plant mode parameters; electricity meters; power lines. The necessary number of solar panels to cover the power of consumers has been determined. The distribution of energy generated by solar panels is uniform between phases. Solar panels are placed on special metal ground structures. Inverters are selected to connect the panels to the three-phase alternating current network. Three-phase inverters are installed at this electrical station. The inverter is equipped with additional protective devices to guarantee safe operation in any conditions. Fuses are installed in the inverters to protect the equipment from short circuit and overvoltage. Inverters are installed on metal structures that are placed under tables with solar panels. All direct current wiring is made of specialized solar single-core cable with double polyvinyl chloride non-flammable insulation. The cross-section of the cables is selected according to the permissible current loads and checked for voltage losses. Tiles are laid in metal trays and open on structures. The connection of the solar power plant to the 10 kV network is transferred using a complete transformer substation of the external installation.

Role of greener default options on consumer preferences for renewable energy procurement

As options for renewable procurement have proliferated to meet consumer demand, it is more complicated for consumers to navigate the available choices. In addition to installing distributed energy resources (e.g., solar PV), consumers can subscribe to green tariffs. Depending on the electricity supplier, the default amount of renewable content will vary (e.g., Community Choice Aggregation vs. investor-owned utilities). There are also options to purchase greener electricity, up to 100%. It is unclear how this context influences household-level decisions to install solar and vice versa. This study uses a discrete choice experiment to estimate the influence of renewable content, solar PV installation, change in electricity costs, engagement level, and procurement duration on household-level decisions. Data were collected from 600 participants randomly assigned to either a 15% or 30% renewable default option. The results suggest that (1) effort is a relatively minor factor in renewable procurement decisions even when comparing PV adoption versus green electricity, (2) relative perceptions of renewable procurement options change as the default renewable content increases, and (3) some consumers are more sensitive to the default level and will shift their behavior accordingly. This research may improve program design to encourage adoption of multiple kinds of renewable energy.

Port sustainability initiatives: a study of brazilian public ports

The paper aims to identify the environmental sustainability initiatives applied in Brazilian public ports. The survey was conducted with twenty port managers located along the Brazilian coast, and the results revealed that sustainability initiatives in Brazilian public ports are consistent with international practices. The study observed a trend in which ports integrate management indicators with sustainable development goals. Brazilian ports have demonstrated a commitment to publishing sustainability reports, although only eight ports currently use the GRI guidelines to prepare these reports. Therefore, there is room for improvement in aligning with international standards and improving external communication. Companies and stakeholders can compare sustainability reports more easily using a common international standard, facilitating benchmarking and identifying best practices. The enhancement of port resilience to the impacts of climate change requires continuous monitoring, and ports have access to various databases and tools for this purpose. According to the study, the most commonly used databases by the surveyed ports are meteorological/climatological and oceanographic/hydrological. Only 5% of all ports had green tariff incentives to reduce emissions in port regions. Furthermore, nearly 40% of all ports monitored CO2 emissions through emissions inventories, and only two ports employed solar energy. The paper outlines the main environmental sustainability initiatives in Brazilian public ports and provides insights for promoting more sustainable ports and cities.

Consumption Forecasting and Economic-Financial Evaluation of a Brazilian Company in the Free Market

The essential difference between the Free Contracting Environment (FCE) and the Regulated Contracting Environment (RCE) is the possibility of freely negotiating energy terms and prices with suppliers. Disconnected from the tariffs regulated by the government, in the FCE, consumers bear the costly difference between the contracted energy and that consumed. This cost can be reduced with accurate knowledge of the consumer profile, based on the analysis of historical data. In this article, a methodology is proposed to evaluate the migration of consumers to the FCE. In a case study, graphical statistical techniques help identify the profile of a consumer in the city of Rio de Janeiro, subgroup A4 and with green tariff modality, in the period from 2016 to 2019. Then, classical and artificial neural network-based methods are used for consumption forecasting twelve months ahead. In particular, Long and Short Term Memories (LSTM) networks performed better than Autoregressive Integrated Moving Average (ARIMA) models. At the end, it is demonstrated with economic and financial indicators, the right decision of this consumer to migrate to the FCE, prior to the analysis performed in this case study.

Green Economy as a Prerequisite for Sustainable Development: Analysis of International and Ukrainian Experience

Abstract
 The article reflects the approaches to the essential content of the concept of green economy in the context of the implementation of ecologically-oriented production, ensuring the welfare of society and achieving sustainable development goals, the expediency and socio-economic need to transition to a system of management based on the principles of green economy concept, identifies priority activities to ensure an effective and progressive transition to sustainable development and green economy. The key challenges facing the global economy at the present stage are presented, and the possible options for an effective response to such problems through the prism of sustainable development and implementation of the principles of green economy are considered. The experience of countries of the European and Asia-Pacific regions in developing national strategies for transition to a green economy, which are based on ensuring the life of society in harmony with nature, the promotion of natural biodiversity and the growth of human well-being through the promotion of conservation, is analyzed. The organizational and legal aspects of the formation of green economy in Ukraine are considered, the problematic issues of implementation of the ideas and principles of the concept of green economy on the way to ensure progressive development are given. According to the approved strategy of the state ecological policy of Ukraine the directions of development of green economy, providing introduction of the effective financial tools, in particular, green bonds, green crediting, creation of funds of financing of green projects, optimization of green tariffs are offered and proved.
 Key words: green economy, sustainable development, globalization, global challenges, rational economic management, social justice.

EFFICIENCY OF A WIND PLANT IN REAL CONDITIONS WITH ADDITIONAL COSTS AND THE MARKET PRICE OF ELECTRICITY

In its development, the global energy sector is constantly demonstrating the growth of electricity consumption. Traditional power plants in this process ensure an increase in greenhouse emissions and aggravation of climate problems, which are becoming more relevant every year. Against this background, modern alternative energy sources, namely wind power plants, contribute to reducing the impact of traditional power plants and encourage solving environmental problems. The development of global wind energy is accompanied by the growth of unit capacities of generators of wind power plants. The paper analyzes the efficiency of a wind power plant based on modern wind generators for predetermined location conditions, taking into account operating costs based on operational experience and based on the assessment of the power plant's participation in the balancing market of electricity with a waiver of the "green tariff". Calculations of the technical and economic indicators of an imaginary designed 4-unit wind power plant with various wind generators under the wind conditions of a predetermined industrial site located in the Carpathian region of Ukraine were carried out. The calculations take into account the modern typical characteristics of wind generators, additional operating costs and the estimated cost of electricity purchase of the station under the "green tariff" and in the conditions of a balancing electricity market to compare economic efficiency. In order to make an optimal design technical decision with a comparative assessment, three types of wind generators were determined for installation at an imaginary wind farm - Enercon E-175 EP5, Vestas V136-4.5 MW and Vestas V172-7.2 MW. In the conditions of the predetermined construction site of the projected wind farm on the Carpathian ridges of Ukraine, the measured and calculated annual probability distribution of wind speed according to the analytical Weibull distribution is applied, and the characteristics of the annual productivity of the 4-unit wind farm for the adopted three types of wind generators are given. The technical and economic characteristics were obtained in the work: capital investment, operating costs, characteristics of electricity production, the gross profit during the annual operation of the wind power plant with three options for installing wind generators was calculated, making it possible to estimate the payback time of the investment in the construction of the wind plant. So, for a 4-unit station with generators of the Enercon E-175 EP5, the payback period is 3.3 years, and with wind generators of the Vestas V136-4.5 MW - 3.4 years, as well as for the Vestas V172-7.2 MW in operating conditions of the "green tariff" and, respectively, 2.9 years, 2.9 years and 3.0 years under conditions of sale of electricity at balancing market prices. Additional operating costs for the disposal of worn wind turbine blades do not have a significant impact on the overall cost indicators and amount to 5-7% of the total costs.

Вплив відновлюваних джерел енергії на енергоефективність розподільних електричних мереж

The total installed capacity of renewable energy sources (RES) in 2021 reached almost 10 percent of the installed capacity of UES of Ukraine. This became possible due to state incentives in the form of a “green tariff”. However, the lack of a reasonable approach to determining the point of connection of RES to the electric network (EN) and its power has led to the decreae of the effectiveness of the EN operation. Due to the incommensurable capacities of RES and consumers connected to one feeder, losses of active power increase, indicators of the quality of electric energy (voltage deviations) deteriorate, and elements of the electric network (power transmission lines, power transformers) are overloaded. All this is aggravated by the fact that ENs were designed and built according to the principles of centralized power supply, for which the appearance of counterflows of electricity is an abnormal mode. Photoelectric plants, which make up almost 80 percent of RES in Ukraine, have the technical possibility to realize the impact on the flow of reactive energy in the network. This possibility was confirmed by analyzing the results of field experiments on operational objects and mathematical modeling by means of Simulink Matlab. Optimization of the reactive power flows is the most effective means of reducing active power and energy losses and improving electrical energy quality indicators. Therefore, the paper proposes a method for determining the amount of reactive power generated by a photovoltaic plant depending on its connection point and network configuration.

USE OF ENERGY-SAVING TECHNOLOGIES IN HIGHER EDUCATION INSTITUTIONS

The article examines the requirements for the creation of an autonomous university, considers alternative measures to solve energy saving problems, shows the effectiveness and necessity of conducting an energy audit of the institution, indicates the actions performed by Khmelnytskyi National University in the framework of energy saving. The methodology for evaluating the effectiveness of measures is similar to the calculation of current energy consumption and energy consumption for the previous representative period. The difference is that when evaluating energy-saving measures, it is necessary to predict how the situation will change after their implementation. This entails a change in many coefficients, such as the rate of energy consumption, the power utilization coefficient, the duration of equipment operation during the year. To save energy, Khmelnytskyi National University built its own boiler house with a capacity of 3,900 kW, which made it possible to disconnect several buildings from the city-wide heat supply network. Solar power plants were put into operation, solar panels were placed on the roofs of the buildings of the educational institution, educational and production bases, sports complex The implementation of the latest technologies for the production and consumption of energy resources, as well as technologies involving the use of alternative energy sources, is possible on the basis of a previously conducted comprehensive energy audit. The feasibility of building an autonomous heating system, which made it possible to disconnect the main buildings from the city-wide heat supply network, has been proven. Taking measures to insulate walls, replace the water supply system, and use heating points increases the energy efficiency of resource use. In addition, the introduction of alternative energy systems, the creation of own solar power plants and modern control systems for them allows you to optimize lighting costs per hectare, reduce costs for electricity needs, and even make money from sales using the “green tariff”. In this way, any higher educational institution can organize and conduct its own measures to increase the energy-efficient consumption of energy resources, conduct information campaigns, involving students and teachers. This will not only improve the energy situation at the university, but will also help save energy at home.

Simulation Modeling of an Autonomous Power Supply System Based on Solar Panels in Real Time

During the last decade, solar energy showed rapid development. So, in 2021, production volumes increased by 19 percent, which is the highest rate among renewable energy sources, and in the last ten years, by 714. And this growth will continue. And according to forecasts, similar development will continue in the coming years, the projected growth of total capacity over the next five years is from 112 to 188 percent, and the growth of investments until 2050 will be 68 percent. This, as well as the introduction of green tariffs, which encourage the use of renewable energy sources by purchasing surplus energy obtained with their help, increases the number of installed solar power plants and power supply systems based on them. But the use of renewable energy sources obliges users to report on the projected level of production. Computer modeling is one of the methods of analyzing processes in electrical systems in real time and is less complicated than mathematical calculation methods. The work presents a structural diagram of an autonomous power supply system based on solar panels, as well as a description of its main elements. The stability of the solar panel-boosting pulse-width converter system was investigated using the Nyquist criterion. A block diagram of the method of selecting the maximum power from the solar panel based on the current at the output of the solar panel, which is used in the simulation, was also given, a set of positions of the maximum power points depending on the insolation with a discreteness of 50 W/m^2 is shown, the function of the dependence of the current on insolation using the cubic interpolation method, compared the results obtained using this dependence with previous data, estimated the average absolute error of the method. A model of the stand-alone power system is assembled in MATLAB Simulink, which can be used for real-time forecasting. Simulations were carried out using data for a day from a real household and insolation data from the LARES laboratory in Zagreb with a discreteness of 1 min, oscillograms of the output power of the solar panel, power consumption, as well as an oscillogram of the change in the state of battery charge during the day with such data are given. The simulation results were analyzed and recommendations were given regarding the behavior of users of such an autonomous power supply system during certain periods of the day when the generation capacity exceeds consumption or vice versa, affecting the state of battery charge.

Challenges in Implementing Renewable Energy Sources in Azerbaijan

The gradual reduction of fuel resources, their depletion, as well as volatility of fuel prices led to a growing interest of countries in the use of renewable energy sources. Despite the fact that energy production in Azerbaijan currently largely depends on development of hydrocarbon reserves in the country, nevertheless, development of renewable energy sources is certainly one of the strategic priorities of the government. The main objective of the research is to study the economic problems and institutional aspects of introduction of alternative energy in Azerbaijan and develop recommendations to stimulate production of renewable energy. With the help of methods of comparative analysis and dynamic comparisons, the state of development of alternative and renewable sources in Azerbaijan was analyzed. The results of the study show that in order to increase the production of renewable energy it is necessary to take a number of measures in this area: improve legislation, introduce state incentives for consumers of alternative energy, apply a green tariff to attract investment, ensure transparency and consistency of energy policy.

Do green electricity tariffs increase household electricity consumption?

ABSTRACT In this paper we investigate whether households change electricity consumption after they switch to a green electricity tariff. Using metered data of household electricity consumption from a large provider of green electricity in Germany, our quasi-experimental analysis finds that household switching to a green tariff leads to a non-monetary renewable rebound effect of around 7.7%. Further, our findings imply that this renewable rebound effect is persistent over at least four years. These findings are observationally consistent with moral licencing effects which induce households to permanently change their habitual behaviours and/or to acquire additional electricity-consuming technologies. Thus, failure to account for a renewable rebound in policy evaluation may lead to systematically underestimate the costs of achieving energy and climate targets.

GREEN BANKING IN THE MECHANISM OF CLIMATE ADAPTATION OF UKRAINE’S ECONOMY

Abstract. The purpose of the study is to reveal the role of green banking in the mechanism of climate adaptation of the national economy of Ukraine. The objectives of the article are: to clarify the essence of green banking, to reveal its role in the mechanism of climate adaptation and tools, to get acquainted with foreign experience in the formation and operation of green banks and their regulation. The results of the study showed that the banking sector plays a critical role in supporting a country’s adaptation to climate change and enhancing its financial resilience to climate risks. Especially, the role of central banks and financial regulators is key as they have the power to change and control dynamics and landscape of the financial sector. Prospects for further research on this issue are the study of international and European experience in implementing incentives for the green economy, namely a number of fiscal and financial instruments, including such as: green tariff s, CO2 (carbon) tax, environmental taxes, green bonds, etc. Keywords: banks, green banking, green bank models, green financial products and services, legalization and capitalization.

Solar Energetics in Ukraine and the Experience of the Visegrad Group Countries

The urgency of investigating the improvement of solar energy industry efficiency in Ukraine is conditioned upon the exhaustive nature of conventional energy sources and their polluting effect, the availability of the potential for efficient use of solar energy and lower than possible level of its implementation, and by the opportunities of applying the practices of V-4-countries, which are connected with Ukraine geographically, economically, and naturally. The purpose of this study was to identify the main positive elements of the said practices and devise possible development vectors for solar energy industry in Ukraine. The main methods employed in this study are general methods (analysis and synthesis combined with scientific abstraction and generalisation, induction) and special economic and statistical methods (analysis of dynamic series, indexes, comparison). The main results of this study: the author identified the methods for obtaining and using solar energy, established its advantages and disadvantages, trends, rates, and potential of branch development; identified the share of solar energy in the structure of renewable energy on the level of 10%; outlined the importance, state, and trends of solar energy development in Ukraine, its leading role in greening the entire economy using the available favourable conditions, and how this development is relatively low and hampered by the lack of national support, energy accumulation and storage systems, clear and understandable national strategy of its development, outdated practices of green tariffs, instability of public investment policy in the industry, high level of wear of electric networks. In this regard, the aforementioned practices concern the consolidation of the solar energy market to increase its level of regulation; the normalisation of national energy policy and investment climate; the development of the practice of creating solar parks and systems of cogeneration of different types of energy and energy storage systems; replacement of green tariffs by the mechanism of green auctions and other schemes

European Union Renewable Energy Strategy

The renewable energy sector is becoming increasingly important in the global energy balance. This process can be explained by the depletion of fossil resources and the global environmental concern. Economies need more energy-efficient technologies to meet the growing volume of energy consumption. In the last quarter of the century, the European Union has seen a rapid development of renewable energy sources. Its aim is not only to diversify energy consumption, but to switch to renewable sources in order to reduce its dependence on traditional energy imports. The article examines the strategy of the European Union in the field of renewable energy technologies and their prospects. In the European Union, the renewable energy sector is regulated both at the organizational and national levels. The current regulatory framework is being improved; it establishes uniform requirements for all member states. However, each country has adopted its own national plans for renewable energy development. The European Union countries can independently determine the measures of state stimulation and support of renewable energy development. The most effective of them are: tax incentives, green tariffs, grants and loans. Despite certain difficulties, including those associated with the current level of technology development, renewable energy has a very high potential for further development, and the share of energy generated from renewable sources is increasing every year.

Prediction of Load Capacity in Microgrid by Multiple Regression Method

The article presents the results of load power forecasting in Microgrid systems by multiple regression with a forecast range of one day. energy sources, as well as tools for storage, redundancy and load management. The design and construction of such systems is cost-effective, as these systems are powered by renewable energy sources, which is attractive due to subsidies and discounts on energy distribution - the so-called "green tariff". depends on weather conditions, such as temperature, pressure, humidity, wind speed and direction, cloudiness, etc., the task of predicting the load capacity depending on environmental parameters is relevant. Therefore, a forecast model of load capacity based on environmental data is developed and its software implementation is given. The daily curves of changes in load power with a discreteness of one hour are presented. Daily curves of load capacity changes on weekdays and weekends are also provided. A free resource has been selected to download the environmental database. A specific day is set for load forecasting. Hourly values ​​of environmental data (temperature, pressure, humidity) for a given day are given. The criteria for finding such days according to the environmental data are selected and the allowable percentage difference of mathematical expectation and variance of the relevant data is established. The parameters of mathematical expectation and variance of a given day are calculated. The statistical dependence between load data and environmental data is calculated. Regressive equations of the found similar days are constructed, on the basis of which the regressive forecast equation of loading capacity for days ahead is received. The daily curve of the forecasted load is presented and the comparative schedule of the forecasted with the real value of the load is constructed. The accuracy of the prediction is estimated using the average absolute error of MAPE. The algorithm and results of work of the developed program on which search of a similar day and calculation of forecast value for forecasting of power of loading for days ahead are represented are resulted.

Формування концептуально-аналітичної моделі підвищення енергоефективності на місцевих рівнях в умовах децентралізації

The purpose of this article is to develop and substantiate a conceptual and analytical model of the structure of energy generation and consumption at the local level in the context of the decentralisation reform in Ukraine on the basis of an analysis of current world-wide and European trends as to ensuring a sufficient level of energy efficiency. The current trends of world energy consumption are illustrated, the forecast for the development of renewable energy is built, the energy efficiency analysis of the national economy is carried out. In order to form a holistic system of energy management on the local grounds, a model of generation and consumption for use at the local level is proposed, the financing of which is provided for by the results of the use of a comprehensive mechanism. A number of normative and organizational-institutional proposals on the normalization of energy efficiency improvement processes are suggested. The factors of energy efficiency of this model, financial instruments for its effective functioning in the form of a mechanism of interest-making budget revenues and specialized funds are disclosed; organizational and institutional support of such reform is proposed; the functional dependence of the target function of the model of energy generation and consumption is detailed, taking into account the methods of generation and the main consumers at the appropriate levels. The analysis of the main risks is carried out and the flaws of this process are defined; a number of regulatory and institutional transformations are proposed to improve the effectiveness of the implementation of an effective policy of energy efficiency of hromadas thus ensuring the energy security of the State. It is recognized as expedient to adopt a package of bills and resolutions on energy cooperation, organization of a biofuel exchange. The model of organization and functioning of a cooperative for the generation and consumption of solar energy, which is based on the regulatory framework, is presented. The above mentioned allowed to develop scientific and applied recommendations for improving regulatory provisions, which will enable the hromada to become an effective player in the wholesale electricity market, marketing the energy according to the green tariff.