Institutional content of innovation and investment processes in the functional structure of the electric power industry: regional aspect

Abstract

In the current scientific literature, there is a glaring gap in the study of investment and innovation processes in the electricity sector. This issue, which is often relegated to the internal economic activities of energy companies, urgently requires comprehensive scientific analysis. In the context of globalization and the increasing significance of electricity resources, it is crucial to determine the organizational and economic priorities of the national electricity strategy. The systematic analysis of investment and innovation activities in the electricity sector at the regional level is of paramount importance and should be a top priority.

Purpose. This article aims to conduct an in-depth analysis of the institutional aspects of the implementation of innovation and investment processes in the structure of the region's electricity sector. The study focuses on identifying specific features that affect the effectiveness of these processes in the context of regional development.

Results. The article underscores the strategic importance of the electric power industry as a key resource for ensuring sustainable socio-economic development in the region. A detailed analysis of the goals of reforming the electric power industry is carried out, and three main directions are identified: optimization of tariff policy, stimulation of innovations to increase the competitiveness of the industry, as well as ensuring innovative reproduction and development of electric power facilities. A structured interaction scheme between the subjects and objects of the region's electricity market has been developed and presented, reflecting the flows of financial funds, electricity resources, and managerial influences. The prerequisites for the emergence and consequences of the functioning of the "single buyer" model in the electricity market are analyzed, and the functional purpose of key institutions and market participants is revealed.

Conclusions. Priority investment and innovation development areas in regional electricity markets are identified and substantiated. Promising ways of further energy modernization and synergistic interaction in the region's electricity sector are proposed.