The essence of energy cooperatives and their value in a power system of the country is investigated in this article. The aim of this article is to investigate the role of “green” cooperatives in the institutional mechanism of alternative energy development in the agrarian sector of the Ukrainian economy. The object of the study is the green cooperatives of alternative energy in Ukraine. The subject of the study is green cooperatives and their role in the development of the alternative energy in Ukraine’s agrarian sector. The methodology of this study is to use the institutional approach in the study of green energy cooperatives as an integral part of the institutional mechanism for the development of alternative energy in the agrarian sector. The basic concept “cooperation” and derivative “power cooperative” from the point of view of various authors are studied and our own explanation of the term “green power cooperative” is given. The condition of the development of alternative power engineering in Ukraine is investigated. Production and use of alternative energy sources in Ukraine have begun since 2007. In Ukraine, there operate 432 objects of the renewable power industry in Ukraine, to which the green tariff with a general power of 1534 MW is established. The most energy consumed is biofuel and waste, while the second place is the consumption of hydropower and the third is the consumption of wind and solar energy. The agrarian sector of the Ukrainian economy has considerable potential for the development of renewable power as a rather developed branch of poultry farming and livestock production is favourable for the development of bioenergetics. Researches have shown that at this stage of development, it is possible to construct 1425 biogas installations on livestock and poultry-farming farms. For the last few years, there is an active construction of solar power stations. The biggest number of solar power stations is in the Kyiv, Dnipropetrovsk, and Ternopil regions. In this article, the institutional mechanism for the development of alternative power engineering is investigated. The main normative legal acts known as formal institutes which regulate renewable power in the country, namely laws, orders, strategy are considered. Such elements of the institutional mechanism as the organizations controlling and structuring the development of alternative energy sources, including the agrarian sphere of the national economy are analysed. The need for creation of green power cooperatives is proved and also an example of the successful experience of foreign countries in green power cooperation, namely such countries as Great Britain and Germany, is given. In Ukraine, such a form of the organization of activity as green power cooperation only begins to develop. In difficult economic and ecological conditions and conditions of the volatility of creation of green power cooperatives, it will allow solving a number of problems which are present now, including in the agrarian sector. However, there are barriers of institutional character which don’t allow the population to create power cooperatives fully. In this case, only the state due to the creation of the effective institutional mechanism can help solve a difficult situation. Besides, there is a need for simplifying the process of creation of green power cooperatives and releasing from the statement of a lot of tariffs. Increase in the number of green power cooperatives in the agrarian sphere is a basis for overcoming volatility of the population in rural areas, increases in their profitability and reduction of expenses. Conclusions. Green cooperatives play a major role in shaping the institutional mechanism of alternative energy development in the agrarian sector of the Ukrainian economy. Because rural people are only able to ensure their energy independence through the creation of green cooperatives, reduce the cost of purchasing energy resources, and also earn money selling produced energy and fuel. This will help not only increase the production and use of alternative energy sources in the agricultural sector of the country but will also greatly affect the development of rural areas.

How to Cite

Shpykuliak, O., & Bilokinna, I. (2019). “GREEN” COOPERATIVES IN THE FORMATION OF AN INSTITUTIONAL MECHANISM OF DEVELOPMENT OF ALTERNATIVE POWER ENGINEERING IN THE AGRARIAN SECTOR OF THE ECONOMY. Baltic Journal of Economic Studies, 5(2), 249-255. https://doi.org/10.30525/2256-0742/2019-5-2-249-255
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green energy cooperative, institutional mechanism, renewable energy sources, agrarian sector, institution


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