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Strategy and priorities of development of the bioenergetics in Ukraine

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  • Bondar, Volodymyr
  • Fursa, Anatolii
  • Humentyk, Mykhailo

Abstract

The purpose of the article is to substantiate basic conceptual foundations and real indicators of bioenergetics development in Ukraine for the period up to 2030 and directions of creation of its material and technical base, as well as to calculate costs for production of various types of biofuels, profitability and payback periods for investments in bioenergetics. Research methods. In the research process have been used the common scientific methods, in particular: the system analysis of trends in bioenergetics development in the world and in Ukraine; the series of dynamics of production and usage of biofuels in Ukraine in the period between 2007 and 2016; the expert estimates of actual production of biofuels in the world and in Ukraine; the computer processing of the sown area plots, yield and gross volume of bio-raw materials; the forecasting of biofuel production for 2020, 2025, and 2030 and costs for development of material and technical base. Research results. It has been analyzed the current trends of bioenergy development in Ukraine. It has been established, Ukraine was an energy-dependent state, which imported 35% of the total amount of energy imported from abroad. Meanwhile, it has economically affordable potential for RES production at the level of 20 million m3 of oil equivalentper year, and produces only 1,47 %, or 1374 gigawatts of the total, of which 81 % are bioenergy. The very slow pace of bioenergy development in the previous years prompted the plenty of researchers and scientific institutions to predict an extremely pessimistic version of the bioenergy development by 2030 – at 2,2 million of TOE per year. However, the revival of bioenergy development in the last 2-3 years, expressed in the construction of a number of large bioenergy complexes of European level and hundreds of medium-sized and small bio-enterprises, as well as the overall growth of the country’s economy, provide the basis for more realistic forecast of bioenergy development in Ukraine by 2030, namely – at the level of 8,5 million of TOE, including for the production of solid biofuels – 4,5, liquid – 1,0, biogas – 3,0 million of TOE. It is concluded that for this purpose it is necessary: 1) to create a solid material and technical base for the production of raw materials and its processing and usage, as well as to significantly improve regulatory, scientific, technical and financial support; 2) to build factories for the production of solid fuels, individual and large boiler houses; it should be used existing alcohol, breweries and sugar factories for the production of liquid fertilizers; more than 500 thousand hectares of undeveloped land – for the production of raw materials; 3) to invest into the development of bioenergy; 4) to attract funds not only from the state budget, but also private capital, to introduce the preferential mechanisms of lending, the stimulation of attracted funds from stock markets and corporatization, as well as the insurance of bioenergy products. Such a project will not be possible without the involvement of large foreign investments and the implementation of radical reforms in Ukraine. Elements of scientific novelty. The scientific novelty of the article lies in the proposed conceptual bases and concrete indicators of bioenergetics development in Ukraine for the period up to 2030. Practical significance. Research results can be used by public authorities for planning and forecasting the bioenergetics development strategy in Ukraine and ways of creating its material and technical base that will ensure increasing of economic efficiency and competitiveness of the industry. Tabl.: 3. Refs.: 15.

Suggested Citation

  • Bondar, Volodymyr & Fursa, Anatolii & Humentyk, Mykhailo, 2018. "Strategy and priorities of development of the bioenergetics in Ukraine," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 25(8).
  • Handle: RePEc:ags:sereko:411562
    DOI: 10.22004/ag.econ.411562
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