IMPROVING ORGANIZATIONAL AND ECONOMIC MECHANISMS FOR THE FORMATION OF ENERGY COOPERATIVES IN THE PRIVATE HOUSEHOLD SECTOR OF UKRAINE

Introduction. Decentralization of the energy sector is one of the key trends in EU energy policy. This direction could be particularly beneficial for Ukraine, considering the existing war-related risks and the high vulnerability of large-scale energy infrastructure. Energy cooperatives can become one of the elements supporting energy decentralization, while also encouraging direct participation of citizens and communities in strengthening their own energy independence. In this context, renewable energy sources may receive an additional boost for development. Material and Methods. This study applies a combination of general scientific and specialized methods, including analysis, comparison, and synthesis of information, which allowed the identification of key barriers and opportunities for the development of energy cooperatives in Ukraine. A graphic-analytical approach was also used to ensure the validity of the conclusions. The research is based on the regulatory frameworks of both the EU and Ukraine. Results and discussion. The study shows that amid the growing interest in decentralized energy, energy cooperatives in Ukraine hold significant development potential but face a number of barriers. Key challenges include legal uncertainty, lack of financial instruments, distrust of the cooperative model, and low public awareness. At the same time, the availability of technical prerequisites—such as access to renewable energy technologies—along with the need to strengthen energy security and the growing interest of communities in achieving energy independence, create favorable conditions for the expansion of energy cooperative models. Conclusions. Due to the full-scale invasion by the Russian Federation, Ukraine’s energy system has faced serious challenges. In this context, the development of energy cooperatives becomes an important tool for ensuring greater autonomy and stability in energy supply. For cooperatives to operate effectively, it is necessary to combine legislative support, financial incentives, the application of modern renewable technologies, and citizen involvement in decision-making. The proposed strategy for the development of energy cooperatives in Ukraine envisions the launch of pilot cooperatives in different regions and the creation of conditions for their expansion through participation in European platforms. The development of energy cooperatives can also contribute to more active citizen participation in sustainable development processes and to strengthening national security.