THE IMPORTANCE OF FINANCIAL LEVER IN THE MANAGEMENT OF ALTERNATIVE ENERGY DEVELOPMENT
The use of renewable energy in Ukraine is steadily increasing year by year. This is facilitated by the annual doubling of financial investment in energy production using alternative sources. There are many tools to manage the development of alternative energy. But the most influential are financial...
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| Format: | Article |
| Language: | English |
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FINTECH Alliance LLC
2021-01-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
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| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/2984 |
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| author | V. Metelytsya O. Gubar V. Chaban O. Perederii Y. Hryhorenko |
| author_facet | V. Metelytsya O. Gubar V. Chaban O. Perederii Y. Hryhorenko |
| author_sort | V. Metelytsya |
| collection | DOAJ |
| description |
The use of renewable energy in Ukraine is steadily increasing year by year. This is facilitated by the annual doubling of financial investment in energy production using alternative sources. There are many tools to manage the development of alternative energy. But the most influential are financial and credit instruments. The improvement of technology reduces the cost of capital and operating costs. But the issue of tariffs, benefits, availability of bank loans and their rates is in the hands of state regulators. The paper also analyzed the prospects for market development. The projection results for the period 2020—2035 presented in the article indicate significant changes in the consumption of fuel and energy resources by their types. The analysis of the forecast data proved that the predicted results can only be achieved by doubling the use of renewable energy during this period. This result can be achieved if alternative energy development management is applied. The need to manage the development of alternative energy in its different forms requires the use of appropriate methods and tools of public administration. Therefore, the classification of ways, tools and methods of development management has become extremely important. This classification proposed in this paper allows us to apply a systematic approach to the selection of effective tools, ways and methods of managing the development and modernization of efficient production and use of energy using renewable energy sources. It is established that the average profitability of alternative energy projects is ~ 20% and the payback period is 5-6 years. To compensate for the technological and economic shortcomings of certain types of energy production, it is proposed to optimize costs by investing in their integrated use. To encourage investment in alternative energy projects, it is proposed to introduce competitive energy purchases in the market. According to the calculations, it is possible to reduce the «green» tariff by 10% and then reduce it by 2.5% annually for three years. The combined «green» tariff for solar and wind energy installations of households should be 0.1228 EUR / kWh.
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| first_indexed | 2024-03-12T06:47:55Z |
| format | Article |
| id | doaj.art-15199ca81deb4677a87dd96eeeed51c6 |
| institution | Directory Open Access Journal |
| issn | 2306-4994 2310-8770 |
| language | English |
| last_indexed | 2024-03-12T06:47:55Z |
| publishDate | 2021-01-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj.art-15199ca81deb4677a87dd96eeeed51c62023-09-03T00:27:53ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702021-01-0123310.18371/fcaptp.v2i33.206687THE IMPORTANCE OF FINANCIAL LEVER IN THE MANAGEMENT OF ALTERNATIVE ENERGY DEVELOPMENTV. Metelytsya0O. Gubar1V. Chaban2O. Perederii3Y. Hryhorenko4Doctor of Economics, Senior Researcher, Professor, University of the State Fiscal Service of UkrainePh. D. in Economics, Associate Professor, Zaporizhzhia Polytechnic National UniversityPh. D. in Economics, Associate Professor, Kyiv National Economic University named after Vadym HetmanPh. D. in Law, Associate Professor, V. N. Karazin Kharkiv National UniversityPh. D. in Law, Associate Professor, V. N. Karazin Kharkiv National University The use of renewable energy in Ukraine is steadily increasing year by year. This is facilitated by the annual doubling of financial investment in energy production using alternative sources. There are many tools to manage the development of alternative energy. But the most influential are financial and credit instruments. The improvement of technology reduces the cost of capital and operating costs. But the issue of tariffs, benefits, availability of bank loans and their rates is in the hands of state regulators. The paper also analyzed the prospects for market development. The projection results for the period 2020—2035 presented in the article indicate significant changes in the consumption of fuel and energy resources by their types. The analysis of the forecast data proved that the predicted results can only be achieved by doubling the use of renewable energy during this period. This result can be achieved if alternative energy development management is applied. The need to manage the development of alternative energy in its different forms requires the use of appropriate methods and tools of public administration. Therefore, the classification of ways, tools and methods of development management has become extremely important. This classification proposed in this paper allows us to apply a systematic approach to the selection of effective tools, ways and methods of managing the development and modernization of efficient production and use of energy using renewable energy sources. It is established that the average profitability of alternative energy projects is ~ 20% and the payback period is 5-6 years. To compensate for the technological and economic shortcomings of certain types of energy production, it is proposed to optimize costs by investing in their integrated use. To encourage investment in alternative energy projects, it is proposed to introduce competitive energy purchases in the market. According to the calculations, it is possible to reduce the «green» tariff by 10% and then reduce it by 2.5% annually for three years. The combined «green» tariff for solar and wind energy installations of households should be 0.1228 EUR / kWh. https://fkd.net.ua/index.php/fkd/article/view/2984alternative energyrenewable energyutility criterionfinancial levergovernance |
| spellingShingle | V. Metelytsya O. Gubar V. Chaban O. Perederii Y. Hryhorenko THE IMPORTANCE OF FINANCIAL LEVER IN THE MANAGEMENT OF ALTERNATIVE ENERGY DEVELOPMENT Фінансово-кредитна діяльність: проблеми теорії та практики alternative energy renewable energy utility criterion financial lever governance |
| title | THE IMPORTANCE OF FINANCIAL LEVER IN THE MANAGEMENT OF ALTERNATIVE ENERGY DEVELOPMENT |
| title_full | THE IMPORTANCE OF FINANCIAL LEVER IN THE MANAGEMENT OF ALTERNATIVE ENERGY DEVELOPMENT |
| title_fullStr | THE IMPORTANCE OF FINANCIAL LEVER IN THE MANAGEMENT OF ALTERNATIVE ENERGY DEVELOPMENT |
| title_full_unstemmed | THE IMPORTANCE OF FINANCIAL LEVER IN THE MANAGEMENT OF ALTERNATIVE ENERGY DEVELOPMENT |
| title_short | THE IMPORTANCE OF FINANCIAL LEVER IN THE MANAGEMENT OF ALTERNATIVE ENERGY DEVELOPMENT |
| title_sort | importance of financial lever in the management of alternative energy development |
| topic | alternative energy renewable energy utility criterion financial lever governance |
| url | https://fkd.net.ua/index.php/fkd/article/view/2984 |
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