The purpose of the work is to analyze state of the art of Ukraine’s energy crops sector, as well as to develop recommendations for creating favorable conditions for the implementation of respective projects in the country. Energy crops are plants that are grown to obtain biomass as a fuel or feedstock for the further production of energy, biomass fuels or biofuels. Their advantage is the possibility of cultivation on marginal or low-quality lands, that is those that are unsuitable for the cultivation of common agricultural crops. Wood and grass energy crops have good fuel characteristics, which are close to those of forest wood. As for chlorine content and ash melting point, these indicators are much better than those of straw. In Ukraine, as in the EU, the potential for growing energy crops is determined mainly by the available area of unused agricultural and low-productivity land on which respective plantations can be created. Experts of the Institute of Engineering Thermophysics of the National Academy of Sciences of Ukraine estimate the current economic potential of energy crops for obtaining various types of biomass fuels in Ukraine as 5.44 Mtoe/yr (2021). By 2050, this potential may more than double, reaching 11.20 Mtoe/yr. In the current Ukraine’s biomass potential, the total share of energy crops is 21%, approximately equally divided between wood/grass crops (solid biomass biofuel) and corn silage (biogas). By 2050, this share may increase to 26%, the largest contribution being from wood/grass energy crops (16%) intended for solid biomass fuel production. Projects on the cultivation of energy crops are quite difficult for practical implementation as they are sensitive to many factors, which affects their economic performance. Usually, the payback period of such projects is 7...9 years, which is on the verge of profitability and economic feasibility. The Bioenergy Association of Ukraine has elaborated several tools to stimulate the development of this sector in the country. Implementation of the suggested support mechanisms will significantly increase the attractiveness of projects on energy crops cultivation for investment.