Page 70 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 2, 2013, pp. 67-79

especially in view of the available biomass exploitable for energy purposes. Obviously, the current

framework conditions do not encourage a more active use of alternative energy sources.
2. Energetics and Energy Policy in Ukraine

2.1. General Overview
Similarly to most other European countries, Ukraine is dependent on energy imports. Annual

energy consumption (currently 190 to 200 MTCE (Mega Tonnes of Coal Equivalent)) is satisfied
only at 43 to 45% using its own resources. In 2011, approximately 50% (about 182.6 MTCE) of the

primary energy consumption was imported (see Figure 2). The share of renewable sources (solar,

wind, biomass, geothermal) was, as already mentioned, less than 1% in 2010. Taking into account
large hydroelectric power plants (they can also be considered conventional energy suppliers), the

renewable energy sources increase to almost 3% of primary energy consumption. In contrast, the

proportion of non-conventional energy sources is over 10% in Germany, approx. 8.4% in Denmark
and approximately 7% in Italy.

A closer look at the energy import of Ukraine also shows that about 30% of its total gas
imports come from Russia. In recent years due to increasing gas prices and severe restrictions

during difficult price negotiations with Russia, the issue of energy saving and incentives to
expand the use renewable energies has become extremely urgent. In particular, the issue of

supply security is viewed with increased public interest. For most countries this is currently the

main reason to focus on renewable energy sources more closely.

Primary energy consumption of
Ukraine, 2010
3%
17% natural gas

coal
38%

cruid oil
11%

nuclear energy

renewables (incl.
Hydroenergy)
31%
Figure 2: Primary energy consumption of Ukraine 2010 (see National Statistics
Office of Ukraine (2010))

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