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Renewable energy is a type of energy that can be used continuously regardless of the source that can be consumed as it is used. Renewable energy is derived from "natural resources" that can be continuously or repeatedly extracted from the natural environment. Since these resources are self-existent and inexhaustible over time, they take their place in our lives as alternative energy. Today, the world energy industry is influenced by new global trends and tendencies, which cause changes in market structure, increased competition at sectoral and intersectoral levels, and dynamic growth in innovative technologies in energy production. This article highlights the important features of sustainable energy supply in Azerbaijan. Unlike other countries, Azerbaijan has enough reserve resources to meet its energy needs. However, the recovered energy sources in Lankaran-Astara economic region are not widely spread. Nevertheless, this region has potential profitable recovered energy sources such as solar energy, small river and stream energy, wind energy, geothermal water energy, and biomass energy, and significant work needs to be carried out in the relevant field in the future. Purpose: The purpose of the article is to emphasize the problems related to energy efficiency and to highlight scientific innovations related to the application of sustainable energy sources necessary for modern development. Methodology: The article is based on energy efficiency problems and related experiences that are necessary for sustainable development. It is prepared by using research conducted by many states and international organizations and various scientific sources. Scientific novelty: The article focuses on energy efficiency issues. The latest innovations such as the application of innovative technologies in the energy sector and the efficient use of sustainable energy sources are discussed. [ABSTRACT FROM AUTHOR]

The aim of the article is to develop the theoretical foundations of mechanism based on tradable green certificates system to stimulate development of domestic renewable energy sector. Study results. Literature review of the market tradable green certificates system is carried out. The current state of renewable energy development and shortcomings of feed-in tariff in Ukraine are analyzed. The paper justifies the need of the implementation of mandatory quotas for electricity consumption from renewable energy resources, system of issuance and circulation of green certificates at the national level to promote renewable energy deployment. Theoretical foundations of the tradable green certificates system for Ukrainian electricity market are proposed. The paper describes peculiarities of price formation for electricity from renewable energy resources and green certificate in order to ensure the same conditions for different renewable energy technologies development. Organizational stages of the tradable green certificates system for its implementation in Ukraine are developed, which include: accreditation of renewable energy plants; the establishing of annual quota quotas for green electricity consumption; determination of the economic entities, who will be obliged to consume electricity from renewable energy resources and to purchase green certificates; creation of register and participants’ accounts of the tradable green certificates system; rules of purchase and selling of green certificates, fine formation under the tradable green certificates system etc. The combination of the sale of electricity from renewable energy sources by feed-in tariffs with the tradable green certificates system is proposed. The wholesale and retail electricity markets functioning scheme with combination of electricity selling by feed-in tariff and the tradable green certificates system is given. The article describes the positive effects from the tradable green certificates system introduction at the national level. In particular it will let to provide a stable demand for electricity from renewable energy sources; to form a system of reliable monitoring of generation and consumption of green electricity, which will increase the reliability of statistical information regarding indicators of renewable energy development; to create a competitive environment for economic entities, which are obliged to purchase green certificates; to create the precondition for usage of green certificates in additional mechanisms to stimulate renewable energy development outside the main tradable green certificates system. Conclusions and directions of further researches. The tradable green certificates system is a new support scheme for Ukraine, which is more difficult to implement than feed-in tariff. However, with careful assessment of criteria, which underlie in the basis of its pricing and competitive environment formation, tradable green certificates system may be a more effective economic lever that will be able to provide dynamic development of the domestic renewable energy sector. Results of the study are the basis for the development of methodological approaches for evaluation of electricity generation cost from renewable energy resources under tradable green certificates and optimal level of annually mandatory quota for electricity consumption from renewable energy resources in order to minimize the financial burden on electricity consumers. [ABSTRACT FROM AUTHOR]