Energy is the foundation of the economy. The continuity of energy supply affects the entire functionality and quality of modern life. What challenges can we expect in October-November 2023 in this context? And how can we strengthen energy security at both industrial and national levels today? Energy experts Oleksandr Dombrovskyi and Vitalii Nikolaienko, who implement energy resilience projects during wartime, share their insights.

Expectations for the Coming Fall

According to NEC “Ukrenergo”, due to massive attacks on the Ukrainian energy system, the loss of installed capacity has increased to 27 GW. Given the blackouts experienced last winter, experts believe it is too early to relax.

“From October-November, the enemy’s key target will again be critical infrastructure. However, the problem is that the energy system’s resilience reserve is much lower today than it was a year ago,” says Oleksandr Dombrovskyi, President of PJSC “MHP Eco Energy” and Chairman of the Board of the “green” platform Global 100% RE Ukraine.

Against this backdrop, energy security becomes more critical. According to Dombrovskyi, Ukraine faces a crucial task: quickly transitioning from a centralized Soviet energy system—comprising 55% nuclear generation, 35% thermal generation, and 10% hydro generation—to a functionally decentralized energy system using renewable resources.

The Key Idea

The main idea is to make as many consumers as possible simultaneously producers of energy resources for both their own needs and the energy markets. This process should involve enterprises, territorial communities, regions, small and medium-sized businesses, and even homeowner associations.

One of the key elements of the new system is Energy Storage. The state’s task in this regard is to support and create favorable “rules of the game” for energy market participants.

International Experience Worth Adopting Nationally

Today, Energy Storage is a global trend in renewable energy. It opens new opportunities for decarbonizing the global energy sector and transitioning to a more sustainable format. This is facilitated by:

• EU Policy: The world’s strongest regulatory framework for transitioning European energy systems to clean energy.
• Global Trend: Decreasing costs for energy storage systems, primarily due to falling costs of lithium-ion batteries.
• Business Adaptation: Energy Storage is a crucial part of business strategies for long-term growth. According to Diversified Communication, it’s increasingly rare to find a developer who doesn’t include Energy Storage in their service offerings.

The Value of Energy Storage Systems

According to Vitalii Nikolaienko, CEO of Voltage Group, the value of Energy Storage systems manifests in several ways. Firstly, they provide power during external grid outages. Secondly, they allow for the storage of cheaper electricity during surplus hours and its use during peak hours when it’s more expensive. Thirdly, they can support and restore frequency in the energy system. Fourthly, they store excess electricity from solar power plants, enhancing overall system efficiency.

Energy Storage in Ukraine: “Through Thorns to Stars”

While Energy Storage is seen globally as a way to reduce energy import dependence and increase energy system reliability, activity in Ukraine remains low.

Currently, modern energy storage systems are not produced in Ukraine. However, Voltage Group, in collaboration with international initiatives by PJSC “MHP Eco Energy” and partners from the UK, EU, and USA, is seeking solutions to energy security issues today.

This led to the creation of the Smart Storage Grid for Ukraine energy consortium in June 2023 in London. The consortium includes “MHP Eco Energy” (Ukraine), Voltage Group (Ukraine), MSP Technology Ltd (Great Britain), fifthVOLT GmbH (Austria, EU), and EPC Corporation (USA). This collaboration aims to implement industrial projects in energy storage technologies and create innovative electricity distribution systems from decentralized “green” generation. Dombrovskyi notes that the collaboration aims to create Ukraine’s first hybrid system, enabling self-generated solar power.

“The new system will also solve the problem of energy consumption and storage and allow the sale of excess energy on the market or export it in the future.” He believes that Energy Storage technologies will strengthen Ukraine’s energy resilience and help balance the energy system during peak consumption hours.

Ensuring Stable Energy Resilience in the Future Energy System

According to experts, future energy systems development must inevitably be based on distributed generation with storage to achieve balance.

“Currently, Ukraine has four nuclear power plants with mostly 1000 MW power units,” notes Vitalii Nikolaienko. In other words, such large generation capacities are concentrated in four locations. The electricity is then transmitted through NEC “Ukrenergo’s” main networks to distribution companies (oblenergo), and from there, it is distributed to residential and industrial consumers.

“If there are a large number of smaller generation facilities with energy storage systems across the country, the energy system’s resilience will significantly increase. The likelihood of entire regions being without power due to missile attacks is almost nullified with distributed generation across the country.”

He adds, “With the liberalization of the energy market and the adoption of bill 9011-d, the most favorable context for launching Energy Storage technologies has been created since the market’s inception. We now have all the technical and practical prerequisites for such projects, and we implement them ‘turnkey’. Our 14 years of successful energy project engineering, construction, and design of electrical networks up to 150 kV, and renewable energy facilities (over 100 MW of PV power plants built, around 300 MW designed) enable us to do this efficiently, professionally, and responsibly. It is important for us to continue strengthening and modernizing the Ukrainian economy in the era of global energy transformations with our activities.”