Energy Co-ops as a Driver for Bio-Energy Sector Growth in Ukraine

Abstract

The paper deals with the assessment of economic benefits from biogas projects realization within energy co-operatives in Ukraine. The implemented state support tools for renewable energy growth in Ukraine caused significant disparities in the various renewable energy technologies development, where the bio-energy sector, in particular electricity generation based on animal waste, takes the last position. Based on the analysis, it has been proved that the main barriers for biogas sector development are the need for significant initial investments to construct profitable biogas plants and a large amount of raw materials for their uninterrupted operation. In order to eliminate these barriers, it is proposed to combine the financial and raw material resources of small farms within energy co-operatives. The results of the research prove that the realization such biogas projects makes economic sense and can provide significant financial benefits for the farms’ owners.