Energy infrastructure renovation investment as economic growth driver

Abstract

The article deals with the prospects of energy infrastructure projects investment within current condition of the global economic growth driven by transition economies. Economic growth heavily relies on energy consumption, so under the limits of the sustainable development paradigm, economic development must take into account the consequences of environmental pollution in order to preserve the ecological system. Balancing between economic growth and preservation of ecology is one of the key global problems and technological development, the step of renewable energy projects partially solves this problem, but the question arises about the infrastructure for the new sources of energy generation. New sources require new energy transmission grids and intelligent systems of coordination and control – the so-called smart grid.

Developed countries are gradually shifting to new energy management systems, but transition economies face the problem of access to capital and scarcity of resources to carry out large-scale projects.

The paper analyzes technological readiness and economic reason of transition to new generation energy networks for transition economies. The financial expediency of infrastructure projects is a particular problem for the renovation of infrastructure.

Having considered the international experience and evaluating the factors of productivity growth based on the restored infrastructure, it was concluded that the renovation of energy networks is a sound and reliable driver of economic growth and a prerequisite for ensuring long-term growth of the national economy.