BUSINESS MODELS FOR FORMATION OF DECENTRALIZED AUTONOMOUS ELECTRICITY GENERATION

Keywords: decentralized power generation, renewable sources, business model, EU, power generation, ESCO model, energy cooperatives

Abstract

The war with Russia emphasized the need to create and use decentralized autonomous power generation systems that can strengthen Ukraine's energy system during crisis situations. These systems, based on the use of renewable energy sources, promote energy independence, reduce greenhouse gas emissions and contribute to the economic development of regions through the creation of new jobs and a reduction in dependence on imported energy resources. The article analyzes six key business models that can support the development of decentralized electricity generation: energy cooperatives, Pay-as-you-go (PAYG), equipment rental, energy services (ESCO), crowdfunding and public-private partnerships (PPP). Each of these models has its own features, advantages and disadvantages, which allows you to choose the optimal options depending on the specific needs and conditions. The model of energy cooperatives allows local communities to participate in the production and use of renewable energy, contributing to their energy independence and economic development. The Pay-as-you-go (PAYG) model lowers the economic barriers for consumers, allowing them to access electricity without a large upfront investment. Energy Services (ESCOs) offer integrated solutions to improve energy efficiency, reducing financial risks for users. Collective financing (crowdfunding) attracts funds from a large audience to support projects, stimulating innovation and raising awareness about them. It was stressed that in the context of continuous missile attacks on Ukraine's energy infrastructure, business models of decentralized autonomous electricity generation are becoming vital. Such decentralization reduces dependence on large energy facilities, which are the main targets of attacks, ensuring the stability of the energy system and reducing the risks of major failures in the event of their damage. Rapid deployment of decentralized systems makes it possible to adapt to changing conditions and ensure energy supply to the most vulnerable areas and facilities. Autonomous generation is able to provide electricity to critical facilities to support government functions during a crisis.

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Published
2024-08-06
How to Cite
Kyshakevych, B., Nastoshyn, S., Zvarych, B., & Volynskyi, O. (2024). BUSINESS MODELS FOR FORMATION OF DECENTRALIZED AUTONOMOUS ELECTRICITY GENERATION. Sustainable Development of Economy, (3(50), 94-99. https://doi.org/10.32782/2308-1988/2024-50-15