23.10.2024
Voltage Group is implementing BESS projects to improve the energy security of industrial enterprises. You can learn about this from a conversation with Vitaliy Nikolayenko, CEO of the company.
Mr. Vitaliy, can you tell us about the first industrial BESS installation project in Ukraine implemented by Voltage Group?
The first case of an industrial energy storage installation in Ukraine was the project we implemented for the MHP company, which adheres to the principles of innovation, technological feasibility, and the use of green energy to create its product. Now, in addition to the 832 kWh BESS, a 1 MW photovoltaic plant has been launched at the facility. The net kWh can be stored in the BESS and used when needed. This can be during outages or when electricity from the grid is most expensive.
This project demonstrates how innovative technologies with environmentally friendly energy sources and energy storage facilities contribute to increasing energy independence, security and economic efficiency. Thanks to such initiatives, Ukraine is taking confident steps towards a future with renewable energy.
How does BESS contribute to increasing energy security and economic efficiency of industrial enterprises, in particular in the case of emergency shutdowns and the use of renewable energy sources?
Energy storage installations (BESS) are key to the transition to the use of renewable energy sources (RES), such as solar and wind power plants, which operate with different efficiencies depending on the weather, time of day and season. To balance intermittent generation in the power system, the dispatcher needs a tool, and BESS is exactly the effective solution for this task.
BESS also performs the function of an industrial UPS, preventing uncontrolled emergency shutdowns of equipment at enterprises. Energy storage systems can switch in 10-20 milliseconds, which is enough time to ensure that sensitive equipment in technological processes does not turn off and does not lose its set parameters and settings. Emergency shutdowns sometimes not only mess up settings, but also cause expensive equipment in automated systems to fail, so continuous operation when the external network is disconnected is critically important.
BESS allows you to accumulate cheaper electricity during surplus hours and use it during peak hours, when the cost of electricity is much more expensive. This also allows you to partially replace diesel generators, which is more economically beneficial. Instant switching to power from BESS ensures the continuity of technological processes, and the accumulation of excess electricity from solar modules increases the efficiency of the station.
How has the availability of battery-powered energy storage (BESS) for Ukrainian companies changed over the past year, and what factors contributed to the rapid adoption of these technologies in the context of energy security?
Today, energy storage has become more accessible to Ukrainian companies. Due to the destruction of energy facilities and the challenges of outages and power consumption restrictions, the issue of energy security has become particularly important for top managers and shareholders. Decisions in favor of BESS are being made quickly and boldly, thanks to the development of new technologies and the reduction in the cost of storage systems. A year ago, their specific cost was about 400-500 euros per kWh, and today it is already 250-300 euros. It is also important to take into account the associated costs of design, connection to networks and possible reconstruction of existing power supply systems.
How Do you implement BESS projects for different types of clients, such as industrial companies and commercial real estate? What challenges arise when integrating different energy generation sources into a single system?
We currently have several BESS projects in the process of implementation with a total capacity of over 10 MWh, mainly for industrial companies. Commercial real estate projects such as office centers, logistics warehouses and shopping malls are also emerging, with capacities ranging from several hundred kWh to several MWh. Most of them are implemented in conjunction with solar power plants for their own consumption. Some add Storage to the already installed solar generation, others separately, and some even in combination with a cogeneration plant.
All projects are individual. Our engineers, together with the client’s operation service, conduct thorough analytical work to determine the most optimal technical solutions and safe operating modes of the equipment. An algorithm is drawn up for the operation of the system as a whole, where many elements interact – an external network, a solar power plant, BESS, a diesel generator, a CHP. Parallel operation mode and Off-grid mode seem simple until practical implementation begins. All these elements need to be “made friends” with each other, which often requires convincing on our part to investors in order to protect them from the temptation to use this generation mix to the maximum and to secure their work. It is clear that investors always want “EVERYTHING + a little more”, but in the balance between economy and safety, the latter should prevail.
Why is the path to starting to use storage systems in Ukraine so long, after all, they have been actively talking about it for 5-7 years? But how has the integration of a large number of renewable energy facilities (RES) affected the need for energy storage facilities (BESS) in the Ukrainian power system, and what steps have been taken to support investments in these technologies?
Yes, indeed, the need for energy storage facilities arose with the integration of a large number of RES facilities, especially solar projects. The most active period of implementation of “green” projects was in 2016-2019. Instead of creating rules and prerequisites for investments in BESS, by 2022 we faced only disputes and reproaches. Investors in solar and wind generation were accused of creating imbalances, an overestimated “green” tariff, which was later retrospectively reduced to the legislative level. Generating stations were disconnected due to the need to balance the power system, although it was only necessary to create conditions for the integration of BESS as a key element for the development of RES.
The approach could have been different, I think: “We have a problem with the lack of balancing capacities due to the new generation of RES, let’s create conditions for investments in BESS to solve this problem”. That is, the philosophy is different: the problem is not in the emergence of RES generation, but in the lack of tools for balancing the power system. Not only the amount of resources is important, but also their efficient use.
The concept of Energy Security has been rethought. Many businessmen are ready to invest in BESS and other equipment for uninterrupted operation. This is a great motivating factor, especially when large companies show an example that Ukrainians are invincible. Solving energy issues is often not about economics or payback, but exclusively about energy security.
Now decisive steps have been taken towards Energy Storage projects. The developed regulatory framework is enshrined at the legislative level. The transmission system operator can conclude contracts on the ancillary services market for a period of 5 years, which allows investors to attract loans. The cheaper storage systems have reduced CAPEX, and the payback period has become more acceptable. It remains to improve the situation on the electricity market with debts and comply with the rules. There are enough people willing to invest even in difficult languages.
Trust is the highest value for investment.
How do you assess the role of professional energy engineers in restoring Ukraine’s energy infrastructure in the face of attacks on energy facilities, and what role should the state play in supporting these specialists?
There are no more professional energy professionals in the world today than ours. They know what and how to do it. In the face of barbaric attacks on energy facilities, they show with real-life examples how professionally and selflessly you can restore networks, restoring power to enterprises and homes. The state’s task is to ensure that only energy professionals, not those who call themselves that, are engaged in energy.
The architect of our power system is NPC Ukrenergo. No one can understand better than them what generation we need, in what places, and at what time. It is obvious that NNEGC Energoatom will lobby for the construction of new units at Ukrainian nuclear power plants, Centrenergo will advocate for the renovation of thermal units, and Ukrhydroenergo will advocate for its own. data-ccp-charstyle=”normaltextrun”>hydropower units, and representatives of renewable energy will stand on the position of more clean energy. The system operator should be the most objective. They have already determined the necessary generating capacities, and I believe that we need to move according to their vision.
