Theoretical framework of state incentives for renewable energy sector development
DOI:
https://doi.org/10.37772/2518-1718-2026-1(53)-5Keywords:
incentive, renewable energy sources, economic policy, risk, effectiveness, control, state regulation, legal frameworkAbstract
Problem setting. The critical importance of energy generation from renewable energy sources amid contemporary challenges necessitates the need for state incentives for the development of this economic sector. Analysis of recent researches and publications. More than thirty scientific works that directly or indirectly investigate the issues of state incentives for the development of the renewable energy sector have been analyzed. It is concluded that while the description of specific incentive instruments prevails in scholarly literature, there is a lack of systematic study regarding the theoretical foundations of state incentives for the development of renewable energy sources. Purpose of the research is to generalize the theoretical provisions of state incentives for the development of renewable energy and to substantiate directions for improving state policy and legal framework in this field. Article’s main body. The conceptual framework of state incentives for economic development are considered, specifically: the essence of state incentives as a component of state economic policy, the classification of incentives, potential risks and causes of inefficiency of incentives, and control mechanisms. The national legislation regulating the processes of development and implementation of the state incentive policy is analyzed. The specific features of the renewable energy sector are highlighted. Provisions that should be integrated into the legal framework for renewable energy incentives are formulated. The directions for stimulating the renewable energy sector are identified, and the main incentive instruments within these directions are listed. The primary risks of state incentives for renewable energy development are considered. The reasons for the gradual transformation of incentive mechanisms are substantiated. The regulatory acts defining the state policy for stimulating renewable energy and regulating incentive measures are listed and categorized. It identifies gaps in control procedures and performance criteria within state target programs that hinder the prevention and controlling of risks. Furthermore, the research proposes legislative improvements aimed at ensuring policy transparency, enhancing the effectiveness of oversight procedures, and establishing the responsibility of officials for ineffective decisions. Conclusions and prospects for development. The presence of effective incentive mechanisms is one of the fundamental elements of state policy for renewable energy development, which aims to achieve goals of energy security, environmental sustainability, and economic effectiveness. Further research will be directed towards improving the legal mechanisms of state incentives, taking into account the control over their effectiveness.
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