Actual problems of innovative economy and law

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Institutional framework for the implementation of the mechanism of functioning and development of the sphere of generation and distribution of energy generated from renewable sources in the western region of Ukraine

# 23 92-96 Download/view full article

УДК: 621.311

DOI: https://doi.org/10.36887/2524-0455-2025-1-23

Svitlana Bortnik
PhD in Economics, Associate Professor, Associate Professor of the Department of Economics and Trade
Lesya Ukrainka Volyn National University
https://orcid.org/0000-0003-2687-7866
Anna Mokhniuk
PhD in Economics, Associate Professor, Associate Professor at the Department of Economics and Trade
Lesya Ukrainka Volyn National University
https://orcid.org/0000-0001-5583-6698
Nelia Chorna
Doctor of Science of Economics, Professor, Professor of the Department of Business Analytics and Innovative Engineering
West Ukrainian National University
https://orcid.org/0000-0001-9719-6043
Oles Kramar
Postgraduate student of the Department of Economics and Trade
Lesya Ukrainka Volyn National University
https://orcid.org/0009-0000-9217-8604

The current stage of development of the electric power industry, particularly generated from renewable sources, is marked by a pressing issue- the need to ensure the reliability and quality of electricity supply. The escalating impact of external and internal threats necessitates bolstering the resilience of green electricity transportation and distribution systems. Thus, the region’s energy system faces systemic challenges. It is crucial to implement a comprehensive Strategy for developing a renewable energy generation network, protecting the interests of producers in related industries, creating conditions for attracting investment in innovative projects, and ensuring compliance with international standards. Effective development of the regional renewable and conventional energy sector is hampered by imperfect organizational and economic management mechanisms at the national and regional levels. Insufficient attention to social aspects and the lack of clear strategic priorities complicates the decision-making process. Developing the energy market and energy sector enterprises requires developing evidence-based strategies considering long-term forecasts and trends. Continuous monitoring and adaptation to changing conditions are not just important, but critical to ensuring sustainable development in the ever-evolving energy sector. The specifics of the Volyn region’s power system are low electricity generation and consumption levels. Limited financial resources result in the need to operate obsolete and physically outdated TPP equipment destroyed by the enemy, significantly limiting the possibilities for large-scale modernization. The problem of uneven daily load schedules requires implementing energy-saving measures. In addition to introducing energy-efficient technologies, strict adherence to energy-saving regimes in all sectors of the economy and everyday life is necessary. Developing solar and wind energy requires significant modernization and expansion of the power grid infrastructure. This includes repairing existing and building new renewable energy generation points, high-voltage substations, distribution points, and cable lines to ensure reliable connection and transmission of electricity.

Keywords: institutions, institutional framework, institutional mechanism, mechanism of functioning, mechanism of ensuring market efficiency, renewable energy generation, renewable energy distribution, efficiency of implementation, mechanism of functioning of the renewable energy sector, efficiency of renewable energy sources.

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The article was received 15.02.2025