State and prospects of development of energy service companies in Ukraine

Djedjula Vyacheslav
Doctor of Economics, Professor, Associate Professor of Finance and Innovation Management, Vinnytsia National Technical University, Vinnitsa, E-mail:djedjulavv@gmail.com

Yepifanova Iryna
Doctor of Economics, Associate Professor, Professor of Finance and Innovation Management, Vinnytsia National Technical University, Vinnitsa, E-mail:djedjulavv@gmail.com

Cite this article:

Djedjula V., Yepifanova I. (2020) State and prospects of development of energy service companies in Ukraine. Ed.: D.V. Zavadska (ed.-in-ch.) and others [Stan ta perspektyvy rozvytku enerhoservisnykh kompanij v Ukrayni; za red.: D.V. Zavadska (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 3-2(276-277), pp. 124-131.

Abstract

Investing in energy saving projects is a prerequisite for the effective development of most energy saving projects. Effective implementation of energy saving projects often requires the involvement of energy service companies that perform work on the implementation of energy efficiency measures. Today, the activities of energy service companies need further improvement. The purpose of the article is to form proposals for improving the activities of energy service companies based on an assessment of their current state of operation. In modern conditions, the energy service market in Ukraine has significant potential in the budget, housing and industry due to thermal modernization. Peculiarities of energy service companies financing are analyzed. To protect the customer from subjective errors of the energy service company and reduce the risk of objective factors, it is proposed to use the direction of performance contracts. It was found that energy service companies do not have state financial support programs. Existing lending programs are mainly targeted at energy consumers, but are not available to energy service companies as borrowers and do not encourage energy consumers to work with energy service companies. At present, the activities of the energy service companies are complicated by the insufficient level of financial support. To protect the customer from subjective errors of the energy service company and reduce the risk of objective factors, it is proposed to use the direction of performance contracts. A rather urgent issue is the introduction of non-traditional financing options, including forfeiting, guaranteeing loans for long-term financing. The settlement of the issue of financing energy saving projects with access of economic entities to cheap financial resources remains a topical issue at the legislative level. It is also important to solve such a problem as the availability of long-term financing at adequate interest rates, which will ensure the return on investment.

Keywords

energy service, energy service company, performance contract, energy saving.

JEL classification: O13, Q43

UD classification: 334.72

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