The Ukrainian energy sector’s crucial problems, in particular, the outmoded equipment, the power

infrastructure shortcoming and a significant backlog in the energy supply quality from the European

one, based on the SAIDI (System Average Interruption Duration Index) indicator comparison,

has been disclosed in this article. A considerable break in the energy supply quality in both

rural and urban settlements has been also revealed. The current state of the alternative energy development

has been described, the energy generation structure, as well as the rates of development

of the renewable energy sources’ usage have been analyzed. Some challenges in the imbalance of

the renewable energy sources’ usage and their analyzed consequences have been identified, among

others, the generation volume abruptness by both SPP and WPP, requiring maneuvering with the

traditional sources’ employer. The negative effect of the “green” tariff as the main priming stimulus

for the renewable energy facilities’ construction has been proven. Generally and particularly, the

financial influence level on the state has been analyzed, being manifested in the debts’ accumulation

to energy producers. The residual capability of solving the problems of alternative energy

development has been considered, in particular, the “green” auctions announced by the state, the

formation of the optimal predicted level of energy generation by SPP and WPP in order to prevent

sharp disparities in both electricity demand and supply. The biogas plants’ facilities as a ponderable

choice to both solar and wind generation have been analyzed.

The article reveals the problems of the formation and implementation of Ukraine’s energy policy

from the beginning of its independence to the present day. The specificities of the fuel and energy

sector of the country’s economy, the main stages of formation, macroeconomic conditions and the

problems of its transformation were analyzed. The slow and contradictory processes of reforming

Ukraine’s fuel and energy complex throughout the period of its independence and the fact that the

inconsistency with the main directions of the economic policy did not ensure its effective transformation

have been proven. The results of the OECD assessment of progress towards the main

objectives implementation of the Ukraine’s Energy Strategy have been presented. It was noted that

the results of the research suggest that the progress in achieving the goals of Ukraine’s Energy Strategy

is ambiguous, therefore the strategy needs to be refined accordingly. There are two main factors

moving away from the formal and declarative nature of Ukraine’s energy policy to its realistic model.

Firstly – an international factor associated with Ukraine’s extending involvement in international cooperation

within the energy sector, Ukraine’s international commitments to reform the energy sector

towards increasing energy efficiency, green energy, etc. Another – the crisis factor – as a result of the

energy policy of the Russian Federation. It was noted that the role of these factors in the future will

remain determining. The need to improve Ukraine’s energy policy, taking the current trends in the

development of the world energy system, new challenges and threats to politico-military and energy

confrontation with the Russian Federation into account, has been proven.