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Jurii Podoliak: "A Comprehensive Approach is the Key Condition for Successful Energy Decentralization"

14.05.2026

On May 26, Energy Club and Kyiv Global Expo will host the energy forum “Energy Decentralization 2026: Generation, Storage, and Financing.” The event will take place at the International Exhibition Centre in Kyiv as part of the International Specialized Exhibition Green EnerTech – 2026.

The forum will focus on the practical aspects of building proprietary generation, energy storage systems (BESS), and hybrid energy models for businesses. Participants will discuss technical solutions, grid connections, cooperation with Distribution System Operators (DSOs), the payback of energy projects, financing instruments, and opportunities for attracting investment into decentralized energy.

One of the keynote speakers at the event will be Jurii Podoliak, CEO of IKNET, who will address the development barriers and necessary solutions for energy decentralization in Ukraine.

In an interview with the Energy Club media department, he discussed where the construction of a company’s own energy model should begin, why businesses are moving from “temporary fixes” to comprehensive hybrid systems, and the most common mistakes companies make when implementing such projects. Additionally, the IKNET CEO shared his vision for the BESS market development in Ukraine, outlined the main barriers for investors, and explained why energy independence has become a core component of strategic business resilience today.

– Mr. Podoliak, today businesses are increasingly talking about more than just backup power; they are discussing their own energy models. Where should such a project start: with consumption analysis, technology selection, finding an investor, or assessing connection feasibility?

– It starts with an energy audit and “the math.” It is essential to analyze the consumption profile: how much energy the enterprise needs under various scenarios and how much it can feed back into the grid. The main risk is an error in capacity calculation. For example, an incorrectly selected capacity for a gas piston unit (GPU) will cause the entire system to collapse in island mode, leaving you without power despite having your own generation. Only after an audit and all calculations are complete can you move on to equipment selection.

– IKNET has experience in implementing projects in both traditional and alternative energy. Which solutions are currently of most interest to Ukrainian businesses: solar power plants (SPPs), GPUs, BESS, hybrid systems, or switching to a different voltage class?

– We are observing a qualitative transformation: businesses are actively moving from buying “temporary solutions” to creating full-scale autonomous energy hubs. Today, the highest demand is for comprehensive hybrid systems. This is a combination of an SPP, which provides the cheapest kilowatt-hour, with a GPU for guaranteed base capacity. BESS has become an essential element, acting as “first aid” that instantly stabilizes the system when switching to autonomous mode. This approach allows a business to not just “wait out” blackouts but to optimize the cost of energy in the long run.

– In public comments, you’ve noted that investors are ready to fund solar plants, storage units, and GPUs, but they need favorable conditions. What exactly is holding back investors from energy projects in Ukraine the most right now?

– Experience from previous years has proven that energy deficits and system instability are long-term challenges, so the willingness to invest exists. However, the primary “stop signal” remains the unpredictability of the regulatory environment. Constant changes to the “rules of the game” in the market make it impossible to build a reliable financial model even for the short term. An investor is prepared for technical risks, but they want assurance that investment recovery mechanisms won’t change in the middle of project implementation.

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– Regarding industrial energy storage systems, what stage is the Ukrainian market currently at: is it still primarily for business redundancy, or is it already a tool for balancing, arbitrage, and participation in the ancillary services market?

– We have already passed the stage where BESS were perceived only as large “power banks” for backup. Today, they are full-fledged assets for operating in various segments of the electricity market. We are talking about arbitrage and the provision of ancillary services, as well as balancing the power system. In other words, businesses are starting to see energy storage not just as a safety measure but as a tool for generating additional profit.

– IKNET participated in the implementation of Ukraine’s first industrial energy storage system—from the initial idea to full project launch. What main lessons from this case could be useful for other investors and companies?

– The main lesson is that project success depends not only on the “hardware” but also on technological support and service. BESS is a complex, intelligent system, so direct support from equipment manufacturers and EMS (Energy Management System) developers is critical at all stages of construction and operation. The availability of qualified service in Ukraine is not a preference but a necessity to minimize the downtime risks of an expensive facility.

– In practice, many companies want to combine solar generation, the grid, batteries, and perhaps gas generation into a single system. What technical and organizational mistakes most often occur in such complex projects?

– The most common mistake is “chaotic” equipment procurement without a unified technical concept. Often, businesses try to save money by ordering components from different suppliers based on the lowest price. As a result, the characteristics of the elements do not align at the software or technical level. The problem of “how to integrate all this” arises at the installation stage, leading to project cost overruns and wasted time. A comprehensive system works effectively only when all its elements are selected from the start as a single, coordinated mechanism. Ultimately, this saves both time and money.

– One of the forum topics is grid connection and interaction with DSOs. In your opinion, what changes in the connection procedure would best accelerate the development of distributed generation in Ukraine?

– The state has taken a step forward by simplifying the connection for distributed generation objects, but in practice, we still hit bureaucratic barriers. The key problem is an outdated regulatory framework. We are still forced to work according to the 2014 norms for the technological design of 35 kV networks and above! There have already been several drafts from NPC Ukrenergo to amend this document, but the final version is still missing. This stalls the implementation of new technologies, particularly BESS. There is also the acute issue of the procedure for transferring built networks to the DSO’s balance sheet—it remains opaque and complicated. For a real breakthrough, we need not just updated norms, but a unified, standardized approach by all DSOs for connecting generation facilities with BESS.

– You also talk about selling surplus electricity through the active consumer mechanism. How attractive can this model be for business, and what should be considered before including it in a project’s financial model?

– The active consumer model is a win-win strategy. For an enterprise, it is an opportunity not only to cover its own needs and save money but also to turn its energy system into an additional source of income by selling surpluses. Moreover, this model opens doors for third-party investors. For example, an investor can install generation or BESS on the consumer’s territory and lease it to them. This allows the business to get a modern solution without massive CAPEX, and the investor gets a quick project launch without the bureaucracy of connecting to external grids. Given that the capacity of such equipment is often not very large, it becomes more versatile—if necessary, the investor can use it at any other facility. This results in high mobility and liquidity of assets.

– How should the payback of an energy project be evaluated in 2026: solely through electricity savings, or also through production continuity, lower downtime risks, and potential additional income from market operations?

– In 2026, payback is not just the mathematical difference between the price of purchased and generated kilowatt-hours. Today, we evaluate projects through the lens of comprehensive business resilience. This includes savings and income from the ancillary services market, but most importantly—the price of production continuity. Every owner must set their own priorities, but it’s worth remembering: even a single factory downtime due to a prolonged power outage can pay off a significant portion of the investment in a proprietary energy system. Energy independence has become part of risk management, not just an expense item.

– What is the main practical advice you would give to forum participants planning to invest in their own generation, energy storage, or a comprehensive energy system for their enterprise?

– The main advice: involve professional engineering expertise at the idea stage. Energy does not forgive planning errors, and fixing them during the construction phase is many times more expensive. A proven, qualified engineering company is your partner that will help you avoid unnecessary costs, “marry” complex equipment together, and minimize the path from the project to the first generated kilowatt-hour, saving you time and money.

Thus, successful energy decentralization today requires comprehensive approaches rather than point solutions—from high-quality energy audits and correct technical concepts to professional engineering, predictable market rules, and a well-thought-out financial model. It is the combination of technology, expertise, and strategic planning that will form the basis of energy resilience for Ukrainian businesses in the coming years.

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