Kulyk O. Economic and Legal Groundwork of the Stimulation of the Alternative Energy Production

In Chapter 1 «Theoretical and legal bases of economic and legal groundwork of the stimulation of the alternative energy production» it is proposed to determinate alternative energy production as an object of stimulation as an economic activity of energy production using alternative energy sources to the electricity or heat energy on alternative energy objects with the purpose of its realization. Additionally, it is grounded that the definitions concerning the alternative sources of energy need to be unified, thus it is proposed to insert the definition «non-conventional» energy sources to «alternative» energy sources; to insert the definition «inexhaustible» sources to «renewable» sources. The notion of economic and legal tools of stimulation of the alternative energy production is defined. The types of economic and legal tools of stimulation of alternative energy production are specified based on the analysis of domestic and foreign legislation. The legal base of economic and legal groundwork of stimulation of the alternative energy production is summarized. That base includes general and special rules regulating relations between energy companies in the field of energy and alternative energy in particular. The directions of improvement of the legislation concerning the stimulation of alternative energy production are specified. In Chapter 2 «Subjects, conditions and procedure of the stimulation of the alternative energy production» it is specified and classified the range of subjects incenting alternative energy production, that includes: authorized state bodies; local governments; banks and other enterprises, institutions, organizations. It is argued that entities to be applied economic and legal tools of stimulation of electricity production using alternative sources are economic entities producing electricity from alternative sources and consumers of electricity (energy cooperatives and private households); in the field of heat energy production – only economic entities. It is grounded the division of the conditions of the stimulation of the alternative energy production into general and special ones. It is concluded that the general conditions are common for all of the economic and legal tools of the stimulation of the alternative energy production; meanwhile, the special conditions for each economic and legal tools of stimulation are established separately. It is emphasized on the dependence of the procedure of the stimulation and the economic and legal tools of stimulation of such energy production; the procedure of applying of each of the tools of the stimulation of the alternative energy production is specified. In Chapter 3 «Termination of the stimulation and liability for violations of legislation on the alternative energy production» it is specified that termination of the stimulation of the alternative energy production may have objective essence (expiry of the feed-in tariff), subjective essence (will of the stimulated subject) or may be the result of the application of legal liability measures, which may effect the refunding of the stimulation in the form of repaying the incentive or charge of taxes, fees, and payments being chargeable without the tax benefit. It is argued that caution is not an economic sanction, so it is proposed to exclude it from the list of sanctions prescribed in the legislation. And at the same time, it is proposed to envisage its application as one of the preventive mean and to clarify the procedure of its application. It is hereby recommended the reasons for applying the administrative-economic sanction in the form of cessation of the license for the entities operating in the sphere of alternative energy sources. The definition of non-flagrant breach of legislation on energy industry as well as the conditions and rules for business operation of the electricity supply as a basis for administrative and economic sanction, in the form of the cessation of the license, is proposed. The practical bearing of the obtained results lies in the expending of the theoretical understanding of the essence of the economic and legal groundwork of the stimulation of the alternative energy production; in the possibility of using of theoretical provisions and conclusions of the research in the legislative process with the purpose of improvement and systematization of the legislation of Ukraine on economic and legal groundwork of the stimulation of the alternative energy production; in the practical activity of the entities producing alternative energy.