INVESTMENT ACTIVITY IN RENEWABLE ENERGY AS A COMPONENT OF ECONOMIC SECURITY

Investment in renewable energy strengthens economic security by diversifying energy sources, reducing dependence on imports, and fostering sustainable development. The transition to renewable energy sources (RES) is a priority for many countries, ensuring energy independence and mitigating environmental harm. Green investments have gained importance amid global energy instability, climate change, and economic risks. Developing RES requires substantial financial resources, making an attractive investment climate and effective financial mechanisms essential. Global challenges such as the energy crisis, geopolitical tensions, and resource depletion accelerate the search for alternatives. Governments, financial institutions, and private investors play a key role in expanding the sector, but investment levels depend on regulatory policies, tax incentives, and technological advancements that improve efficiency and cost-effectiveness. This article examines investment trends in renewable energy and their impact on economic security. It analyzes global and national investment dynamics, highlighting key drivers and obstacles. The main sources of financing—state subsidies, private capital, international grants, and public-private partnerships—are explored. Special attention is given to investment stimulation mechanisms, such as preferential loans, green bonds, and carbon credit systems. Key factors influencing investment growth, including government policies, tax incentives, and technological innovation, are identified. State support, such as feed-in tariffs and investment guarantees, significantly impacts investor decisions. Advancements in energy storage, smart grids, and hydrogen energy enhance RES attractiveness. The role of financial institutions in sustainable investment, including green funds and ESG criteria, is also discussed. The article examines debt financing in the energy sector and sustainable financial structures. The growing share of green bonds and climate-related financial instruments reflects increasing commitments to renewable energy. The risks and benefits of financing models, such as project financing and venture capital, are assessed. Investing in renewable energy reduces environmental impact while enhancing social security and economic stability. This sector fosters social entrepreneurship, creating jobs and supporting sustainable development through innovation and international cooperation. The findings support strategies to attract investment and strengthen Ukraine’s energy security. Expanding RES and adapting international best practices are crucial for a resilient and sustainable energy system.