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.

Scientists are focusing on the introduction of various types of renewable energy sources and the liberalization of energy markets in the regions of the country. The problems of preventing the achievement of goals and various strategies to achieve maximum energy conservation and overcoming the current economic and environmental crisis in Ukraine also remain unresolved. We can observe the experience of the leading countries in the electricity sector, which proves that reforming the electricity sector in Ukraine is inevitable. This, in turn, is a critical factor in stimulating economic and social growth and improving the competitiveness of the regions of Ukraine. Given the above, the necessity for the study of the level of efficiency (competitiveness) and the functioning of the regional energy markets of Ukraine is obvious.
This study shows that the efficiency of electricity in the western region is relatively low due to the lack of competition, the presence of an ineffective system of subsidizing the population with cheap resources, the non-transparency of trade operations, excessive regulation of state generation, the lack of a “balanced” system of market functioning, etc.