Renewable energy is actively developing both on the global market and within individual regions and countries. Alternative energy sources, particularly solar and wind, guarantee a stable and safe energy supply. Such systems ensure a reliable supply of energy in everyday life and in extreme situations, such as natural disasters or breakdowns in the operation of the energy infrastructure. The transition to alternative energy sources generally contributes to creating a stable, ecologically clean and environmentally friendly energy system, which has many advantages for society. The article aims to study the prerequisites and dynamics of the development of alternative energy. The article found out that the use and introduction of alternative energy sources is an important factor for restoring the ecological balance during the decarbonization of the economy. As of the end of 2022, wind power plants, solar power plants, home solar power plants, and small hydroelectric power plants are gaining popularity. The leaders in the number of new facilities installed from renewable energy sources in Ukraine are the Mykolaiv, Odesa, Kherson, and Zaporizhia regions. The analysis carried out in the article proved that the most common alternative sources in Ukraine and Europe are solar panels, wind power plants and smart energy. The authors systematized the advantages of solar panels, which define them as sustainable and stable energy sources for the future. The work concludes that wind power plants have more limitations due to the nature of the conditions, but with the development of technology, they have become more and more efficient. In addition, a promising direction for developing the modern energy system is using smart energy, which includes artificial intelligence, data analytics, and a system for collecting energy resources. Modern smart energy allows you to provide energy planning effectively and to warn of power outages.