Economic efficiency of integrating renewable energy sources into regional economies

Abstract

The article examines the economic efficiency of integrating renewable energy sources into regional economies, accounting for techno-economic, innovative, socio-regulatory, and environmental factors. The analysis is conducted at the regional level using open national and international statistical sources, enabling comparisons of electricity generation volumes, installed capacity, and capacity utilization factors across Ukraine's regions. Comparative, correlational, and statistical analyses, along with elements of economic and mathematical modeling, are applied to provide a quantitative assessment of economic efficiency and the relationship between the level of renewable energy integration and the profitability of energy projects. It has been established that better economic indicators of the functioning of renewable energy facilities and more efficient use of installed capacities create the prerequisites for increasing the volume of electricity production from renewable sources at the regional level. The positive impact of digitalizing energy processes on the productivity of renewable energy sources is demonstrated by increased generation volumes and improved efficiency in energy infrastructure management. It is revealed that tax incentives for investors, state grants for households, and targeted local support programs stimulate the growth of installed renewable energy capacities and increase the profitability of relevant projects, thereby facilitating accelerated investment inflows into regional energy systems. In addition, the impact of renewable energy use on CO₂ emissions reductions and improvements in decarbonization indicators is assessed, confirming their importance for ensuring sustainable development and environmental security in regions. It is shown that the combination of economic incentives, digital management tools, and regional characteristics of energy systems yields distinct models of renewable energy integration, differing in economic efficiency and investment attractiveness. The results emphasize the expediency of a comprehensive approach to assessing the efficiency of renewable energy sources and can be used to shape regional energy policy, plan green energy investments, and develop strategies for sustainable regional development.