This article is devoted to an analytical review of the situation in the energy sector of Ukraine, taking into account constructive changes in the connection of the Ukrainian energy system to ENTSO-E and the destructive situation caused by industrial infrastructure failures and economic renewal. It focuses on Ukraine in the context of the principles of decentralization in the direction of significantly increasing the net cost of microgeneration, decarbonization and the transition to “green” energy. The national resource potential of energy-efficient and energy-saving technologies is systematized and the applied recommendations are provided to support state and local trends in energy sector development, namely energy storage projects, distributed generation and microgeneration based on Net Energy Metering to support small projects that solve energy problems. Included are institutional proposals for the establishment of the Agency for Decarbonization in Ukraine for the “green” transition, with broad powers of communication and the ability to make decisions on reducing carbon emissions in all areas. The possibility and expediency of using the concept of innovation is considered both from the global point of view of Ukrainian industry (with the potential prospect of using Ukraine’s industrial and logistics infrastructure as a mega-industrial park for the EU) and in the local sense of national energy, including improvements to the EU’s energy balance. It has been proven that the use of the nearshoring mechanism in Ukrainian industry in general, and in the energy sector in particular, can improve Europe’s energy balance, which has deteriorated over the past five years. Thus, the negative trend of the EU energy balance in thousands of tons of oil equivalent and in percentage terms was demonstrated. To improve the situation, the forecast of energy prices for individual EU countries was calculated taking into account Ukraine’s integration into the European energy system. The analysis and calculations revealed a potentially possible level of price reductions in some EU countries up to 20%. Recommendations are for improving energy-management efficiency at the regional level in particular, ensuring transparency in the development of renewable energy sources, using significant national potential of biofuels and increasing natural gas production, developing a business model of gas distribution center in Western Ukraine, which will be part of national gas distribution system and the European energy market.

The aim of the article is to consider current global and European trends in ensuring a sufficient level of energy efficiency, to provide an analysis of the institutional environment for energy security, and the development and justification of a conceptual and analytical model of energy generation and consumption at the regional level in decentralization reform in Ukraine. The current trends of world energy consumption are illustrated, the forecast of renewable energy development is built and an analysis of energy efficiency of the national economy is performed. The article presents a study of the formation of an integrated municipal energy-management system of Ukrainian communities and municipalities depending on their urbanization and offers the use of conceptual analytical model of generation-consumption. A number of normative and organizational-institutional proposals on the standardization of energy-efficiency improvement processes are provided. Analysis of the energy efficiency of communities can be modeled at the conceptual level with the study using an analytical model: a) energy-efficiency factors of this model, financial instruments for its effective functioning as a mechanism of interest budget revenues and specialized funds functional dependence of the target function of the energy generation-consumption model, taking into account the generation methods and the main consumers at the appropriate levels; b) the risks and shortcomings of this process, which propose a number of regulatory and institutional changes to improve the effectiveness of effective energy efficiency policies of communities and energy security of the state on the basis of energy cooperation and organization of the biofuel exchange. The model of organization and functioning of the cooperative for generation and consumption of solar energy, which is based on the regulatory framework, is represented as a model structural and functional solution. This allowed the development of scientific and applied recommendations for improving the legal provisions, which would allow the community to become an effective player in the wholesale energy market, selling it at a “green” tariff.