State Support of Energy-efficient Investments of Business Subjects to Ensure the Sustainable Development of Ukraine

Abstract

The utilization of alternative energy sources is a crucial component of Ukraine's "green transition" towards sustainable economic development. Furthermore, it represents a pressing necessity for the survival of industries and the population amidst the devastation of the energy sector. The domestic energy system has suffered significant damage, undermining its capacity to flexibly respond to fluctuations in electricity consumption. Therefore, in addition to installing uninterrupted power supply systems, a shift towards renewable energy sources, modernization of industrial equipment, and building insulation for enterprises is required. These measures will ensure the stable operation of businesses, minimize harmful environmental impacts, and conserve resources. The objective of this article is to illuminate the measures of government support aimed at stimulating investment by enterprises and the population in the development of renewable energy sources. Based on a systematic analysis and dialectical approach, the current trends in grant financing and preferential lending for the restoration of Ukraine's energy infrastructure are examined. The most promising and rational methods and forms of financing investments in energy efficiency are systematized. It is revealed that the issue of financing investment activity lies within the realm of external assistance. The article demonstrates that an increase in investment inflows is possible through the activation of all available forms and methods of financing, including participation in international programs of grant, technical, and other special assistance, mechanisms of state and municipal budgetary aid, the creation of special credit products in the energy sector, and the activation of self-financing. The research results regarding government support for investment in energy infrastructure and the development of renewable energy sources can be used to improve the financial and investment policy in the energy sector at the level of state and municipal authorities, economic entities, and individual and institutional investors. Based on the research findings, the article concludes that to ensure the development of renewable energy sources and improve the level of energy security, it is necessary to mobilize financial and investment resources from all available sources, develop various forms and methods of financing investments, and continue to develop ties with foreign donors, promote the stabilization of operating conditions for investors in the energy sector, and strengthen their motivation to invest in the development of renewable energy sources.