BESS (Battery Energy Storage System) – a technological step towards energy security.
Voltage Group implements BESS projects to enhance energy security for industrial enterprises. We discussed this with Vitaliy Nikolaienko, CEO of the company.
- Could you tell us about the first industrial BESS project implemented by Voltage Group in Ukraine?
- Our first industrial energy storage project in Ukraine was for MHP, which adheres to principles of innovation, technology, and green energy. In addition to the 832 kWh BESS, we also launched a 1 MW solar power plant on site. Clean kilowatt-hours are stored in BESS and used when necessary—during grid outages or peak electricity pricing.
This project shows how innovative technologies utilizing renewable energy sources and storage systems contribute to energy independence, security, and economic efficiency. Thanks to initiatives like this, Ukraine takes confident steps towards a future with renewable energy.
- How does BESS improve energy security and economic efficiency for industrial enterprises, particularly during outages and the use of renewable energy?
- BESS also functions as an industrial UPS, preventing uncontrolled shutdowns of equipment during outages. The energy storage systems can switch in just 10-20 milliseconds, maintaining the operation of sensitive equipment and preventing the loss of set parameters. Unplanned outages can not only disrupt settings but also damage expensive automated systems, making continuous operation critical.
BESS stores cheaper electricity during surplus periods and uses it during peak times when prices are higher. This reduces reliance on diesel generators, ensuring process continuity while improving efficiency by storing excess solar energy.
- How has the availability of BESS changed for Ukrainian companies over the past year, and what factors have accelerated the adoption of these technologies?
- Energy storage systems have become more accessible to Ukrainian companies. The destruction of energy infrastructure and power restrictions have emphasized energy security for top managers and shareholders. Decisions favoring BESS have become swift due to advancements in technology and reduced costs of storage systems—from €400-500 per kWh last year to €250-300 today. However, project design, network connections, and potential system upgrades also contribute to the overall investment.
- How do you implement BESS projects for different clients, including industrial and commercial properties? What challenges arise in integrating various energy sources into a single system?
Currently, we are implementing several BESS projects with a total capacity of over 10 MWh, mainly for industrial companies. Additionally, commercial properties such as office centers, logistics warehouses, and shopping centers with capacities ranging from several hundred kWh to several MWh are emerging. Most of these projects are integrated with solar power plants for self-consumption. Some add storage to existing solar generation, while others combine it with cogeneration units.
Each project is unique. Our engineers work closely with the client’s operations team, conducting in-depth analysis to determine the optimal technical solutions and safe operating modes. The overall system involves many interacting elements—grid connection, solar power plant, BESS, diesel generator, and cogeneration unit (CGU). Balancing parallel and off-grid operations seems simple in theory but is complex in practice. We often need to persuade investors not to push this generation mix to its limits to ensure safe and reliable operation. In the balance between economics and safety, safety must always take precedence.
- Why has the path to BESS implementation in Ukraine been so long, despite discussions over the past 5-7 years? How has the integration of renewable energy sources created a need for BESS in the energy system?
- Yes, indeed, the need for energy storage systems arose with the integration of a large number of renewable energy facilities, particularly solar projects. The most active period for implementing “green” projects was between 2016-2019. Instead of creating rules and conditions for BESS investments, we faced only debates and criticisms until 2022. Investors in solar and wind generation were blamed for creating imbalances and benefiting from an inflated “green” tariff, which was later retroactively reduced at the legislative level. Generating stations were disconnected due to the need for energy system balancing, when the solution should have been to create conditions for BESS integration as a key element for the development of renewables.
I believe the approach could have been different: “We have a problem with the lack of balancing capacity due to the new RES generation, so let’s create conditions for BESS investments to solve this issue.” The philosophy should have been: the problem is not the emergence of renewables but the lack of tools to balance the energy system. It’s not just about the amount of resources but their efficient use.
There has been a shift in the understanding of energy security. Many business leaders are willing to invest in BESS and other equipment for uninterrupted operations. This is a major motivating factor, especially when large companies set an example, showing that Ukrainians are resilient. Solving energy issues is often not about economics or profitability but purely about energy security.
Significant strides have now been made in energy storage projects. A regulatory framework has been established at the legislative level. Transmission system operators can sign ancillary service contracts for up to 5 years, allowing investors to secure financing. The cost reduction of energy storage systems has lowered CAPEX, making the payback period more acceptable. The energy market still faces challenges with debt and rule adherence, but there are enough willing investors even under tough conditions. Trust remains the highest value for investment.
- How do you assess the role of skilled energy professionals in restoring Ukraine’s energy infrastructure amid attacks on energy facilities, and what role should the state play in supporting these specialists?
- There are no more skilled energy professionals in the world than ours. They know exactly what to do and how to do it. Amid the barbaric attacks on energy facilities, they are showing through their actions how professionally and selflessly they can restore the grid, bringing power back to businesses and homes. The state’s role is to ensure that energy work is handled by qualified professionals, not by those who merely claim to be experts.
The architect of our energy system is NEC Ukrenergo. No one else understands better what type of generation is needed, where, and when. Clearly, Energoatom will push for the construction of new nuclear units, Centrenergo will advocate for the restoration of thermal blocks, Ukrhydroenergo will focus on its hydro units, and RES representatives will push for more clean energy. The system operator must remain the most objective player. They’ve already identified the necessary generation capacities, and I believe we should follow their vision.