Development of energy cooperatives in Ukraine: scale, energy mix and business models

Abstract

The paper explores the prerequisites for the expansion of energy cooperatives as a market-based form evolutioning from self-sufficiency of electricity supply to the wide range of models of the energy and energy-related business activity, basing on the international and Ukrainian experience. We assume that a cooperative size and energy technologies combination are important parameters that determine their efficiency. The insufficient per capita household income as the barrier of the energy cooperatives development hinders the development of sustainable energy and market transitions. To provide the investments that are able to cover the cost of purchasing and installing of generating units for self-sufficiency and active consumption, it is needed to align the share contribution and the needed installed generation capacity sufficient for the number of participants united with the appropriate amount of the share contribution and to define the optimal cooperative size. Maintaining the individual interest for each participant creates a driving force for increasing the number of energy cooperatives.