Not just energy independence: how energy storage facilities help “do” business
9 March 10:12
ANALYSIS FROM In determining the country’s energy needs for the coming winter, the Ukrainian government is focusing not only on developing renewable energy sources and introducing flexible gas generation, but also on the importance of installing energy storage systems. Komersant investigated how these systems help the Ukrainian power grid.
Energy storage facilities (ESFs) allow electricity generated from various sources, including solar and wind power plants, to be stored. They ensure the stability and reliability of electricity supply.
For example, last year, a large 200 MW energy storage complex, built by DTEK in partnership with the American company Fluence Energy B.V., began operating in Ukraine. It consists of six facilities in the Kyiv and Dnipropetrovsk regions.
“The new facilities increase the reliability and flexibility of the system, reduce the risk of emergency shutdowns, and allow for effective preparation for the autumn-winter period. It also opens up new opportunities for the development of renewable energy and the decentralization of the energy system,” the Ministry of Energy explained at the time.
The total capacity of the energy storage facilities installed, including last year, is, of course, much greater. As he said in a recent interview with
The creation of hybrid facilities, where energy storage facilities are built directly in conjunction with wind or solar power plants, is not the only area where such systems can be used effectively.
It is also worth considering that energy storage facilities are not only about energy independence and autonomy, but also about business. And this is an important option for “active consumers.” Yuriy Podolyak, an expert in the field of energy and CEO of the engineering company IKNET, explains how it works.
“There are two segments in the energy sector. First, there is the professional segment – the UZE operator. It takes energy from the grid and feeds it back into the grid. In other words, it accumulates energy when it is cheap and releases it when it is expensive. The other, very important segment is industrial consumers. The state has introduced a number of preferences, such as active consumers. This is when a company builds a power plant or a UZE, which provides its own electricity consumption and feeds any surplus into the grid. This is the second segment, the potential of which is currently being realized very slowly,” the expert notes.
At the same time, as Yuriy Podolyak clarifies, this is not because the state has not provided preferences here, but because companies that have never been involved in energy cannot objectively become energy storage operators or energy producers overnight: they simply lack the professional knowledge. The expert explains what exactly the installation of energy storage facilities gives the enterprise.
“First, the enterprise gains autonomy. Second, it balances electricity generation and consumption. But few people know about the third factor—payback. And when the payback period is 2-4 years, it’s also about business,” the expert emphasizes.
And this is a business that Ukrainians who have taken care of their own energy independence and set up a home solar power plant can join. Yuriy Podolyak continues.
“The state has allowed the creation of aggregated groups. In simple terms, it is possible to unite any electricity producers or RES operators of any capacity within a region and create an aggregated unit. An aggregated unit can operate as a single system, even if it is geographically dispersed across the region. The main task now is to combine small energy storage and generation projects that have already been implemented into such aggregated units,” the expert emphasizes.
As with any relatively new venture, there are still many problems with the installation of energy storage facilities. According to Yuriy Podolyak, CEO of the engineering company IKNET, what is currently lacking in this area is the systematization and optimization of all processes involved in the implementation of energy storage facilities.
“Difficulties arise at the intersection of work between local authorities, banks, power companies, equipment suppliers, etc. And now the relevant ministry is trying to understand where the problems lie in terms of interaction with the participants in the process and how to solve them. For example, our legislation prohibits project financing. Banks cannot finance a power generation or energy efficiency project against the collateral of the project. And that is a problem. Although banks are already creating lending programs where you can get a loan against the collateral of the main equipment,” the expert notes.
There is another fairly common situation that demonstrates the inefficient use of small distributed generation facilities in particular. This, in turn, prevents companies and communities from becoming “active consumers,” says Yuriy Podolyak, CEO of the engineering company IKNET.
“Many private, state, or municipal companies have implemented a number of distributed generation units with the help of international funds or loans. These include solar power stations, gas piston units, and micro-hydroelectric power plants. However, these systems are only used when there is a power outage, and then they operate in island mode to ensure the operation of their electrical installations. For example, water supply or boiler rooms. That is, only for self-sufficiency. We work with communities and see that these stations and installations are idle. This trend must be changed. All available generation reserves must be used as efficiently and productively as possible. But often communities do not know how to become “active consumers,” notes Yuriy Podolyak.
He states that while energy used to be only for energy specialists, now everyone must learn and become energy specialists to a certain extent.
Author: Serhiy Vasilevich