The development of energy cooperatives based on biogas towards the decentralization of energy supply in Ukraine

Abstract

The article is devoted to the prerequisites for of energy cooperatives development in Ukraine based on international and Ukrainian experience, with a focus on agrobiological energy cooperatives that use biogas as their main fuel for self-sufficiency and the sale of energy to other consumers. The problem of creation of institutional and economic conditions for maximizing the participation of such energy cooperatives in the electricity market has been further developed. The obstacles following the development of these entities in the electricity market have been studied. The financial and economic parameters of bioenergy cooperatives were assessed, and appropriate regulatory policy measures were proposed to improve them. The importance of creating incentives for the sale of surplus electricity on the market and strengthening the business activity of energy cooperatives by expanding their activities was proven. As biogas has all the prerequisites to deliver significant long-term socio-economic benefits, thereby contributing to the transition to a sustainable and circular economy, it is important to create conditions for future operators of biogas plants to overcome barriers to market entry. With regard to the parallel operation of energy technologies by energy cooperatives, a review of foreign experience and best practice has shown that such cooperatives are more efficient than single-technology operations. A comparative analysis of bioenergy cooperatives using straw for biogas production was conducted. The payback period was calculated for various indicators of a biogas plant, which is an economically attractive indicator for a state project. The importance of expanding the energy mix and, at the same time, combining activities within the energy cooperative (energy production, sale of surplus raw materials, energy services, provision of system services and energy system maneuverability services, etc.) has been proven. Proven is the need of justification of energy policy instruments aimed at restoring energy potential by promoting the development of agrobiological energy cooperatives.