MECHANISMS FOR ENSURING THE ECONOMIC DEVELOPMENT OF RURAL AREAS THROUGH THE FORMATION OF THEIR ENERGY DEPENDENCE BASED ON THE INTENSIFICATION OF BIOFUEL PRODUCTION

Abstract

The article is dedicated to the study of the mechanisms for ensuring economic development in rural areas of Ukraine by promoting energy independence and intensifying biofuel production. The subject of the research is the use of renewable energy sources, in particular biomass, as a tool for achieving energy autonomy and economic stability of rural communities. This is especially relevant in conditions of energy dependence on imported energy carriers. The study examines biomass as a resource with significant potential to meet local energy needs, create additional jobs and stimulate economic growth in rural areas. The paper discusses key aspects of the use of renewable energy sources, particularly biomass, in agriculture as an effective tool for local economic development, reducing dependence on traditional energy resources and increasing the country's energy security. The purpose of this article is to study the mechanisms of economic development of rural areas through energy independence and development of the biofuel sector. To achieve this goal, the article discusses the theoretical aspects of energy independence, analyzes current practices of biofuel production, and provides recommendations for their further implementation. Particular attention is paid to the role of bioenergy in reducing environmental risks and implementing sustainable solutions in rural hromadas (communities). The study analyses international experience in the development of the bioenergy sector and its adaptation to Ukrainian conditions, taking into account the natural and economic characteristics of rural areas. Key factors that facilitate the effective implementation of biofuel production projects are identified, including innovation, investment and government support. The methodological basis of the study includes the application of methods of comparative analysis, systematisation and statistical data processing. This comprehensive approach enabled an in-depth analysis of the opportunities and limitations of bioenergy in Ukraine, in particular by comparing biomass use practices in developed countries and identifying effective strategies for the Ukrainian context. The article also discusses the prospects for improving the regulatory framework to create favourable conditions for bioenergy development, the need for infrastructure improvements and the involvement of local communities in renewable energy projects. The economic and social benefits to rural communities of implementing bioenergy solutions are examined separately. The study puts forward a series of proposals for the advancement of Ukraine's bioenergy sector. These include the enhancement of financing mechanisms and the promotion of private initiatives. Furthermore, the paper explores the potential of agricultural waste as a foundation for biofuel production. It is hypothesised that this could enhance the economic efficiency of the agricultural sector and reduce reliance on imported energy resources. The primary findings demonstrate that the development of biomass-based bioenergy has the potential to contribute significantly to the enhancement of economic stability and social well-being within rural hromadas. In order to implement energy independence in an effective manner, there is a necessity to improve the legislative framework, encourage investment in biomass storage and transportation infrastructure, and foster collaboration between local governments and state institutions. The implementation of these measures will facilitate a gradual transition of rural regions to sustainable economic development by reducing dependency on external energy sources and supporting local biofuel production.