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The Era of the "Active Consumer" and the End of the N-1 Barrier: Yurii Podoliak on New Realities of the BESS Market in Ukraine

27.02.2026

On February 25, the closed online meeting “BESS Insider” took place, bringing together 32 representatives of Energy Club member companies. This event was organized as a platform for open exchange of experience. The goal of the meeting was to give club members an opportunity to openly discuss real cases, technical connection challenges, and the economics of energy storage system (BESS) projects.

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During the meeting, Yurii Podoliak, director of IKNET, shared his deep market expertise. He noted that the energy storage market in Ukraine received a powerful boost due to three factors: the emergence of a regulatory framework (Energy Storage Units became a separate type of electrical installations), the launch of auctions, and a significant drop in equipment prices (from 200 to 100 thousand euros per MWh).

Analyzing the market, the expert emphasized that today the most interesting and promising segment is the “active consumer.” Ukrainian business has undergone a rapid evolution: from purchasing conventional diesel generators to building solar stations and gas piston units. However, these capacities are unable to operate stably without balancing. It is the energy storage system that becomes that very “technical conductor” that unites generation and consumption into a single reliable ecosystem.

Yurii also shared positive developments for investors:

  • First, banks already understand this segment and are actively financing such projects.
  • Second, just a few days ago, the biggest systemic barrier to connecting Energy Storage Units was removed. The Ministry of Energy decided to temporarily (until 2027) not apply the strict N-1 reliability criterion to storage systems, which opens up opportunities for connection to a much larger number of substations.

At the same time, the expert warned companies against a typical mistake — excessive savings on procurement. Purchasing cheap, chaotic equipment without guaranteed service maintenance, local engineers, and integration with management systems (EMS/SCADA) ultimately leads to the investment simply not working.

Responding to a question about the popular “black start” function (autonomous startup), Yurii Podoliak noted that in most current projects, investors do not include it. This is due to additional costs for specific equipment and the lack of commercial incentives from the state for providing this service.

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