Volten has been operating in the energy market for over 16 years and is well-known to Distribution System Operators (DSOs) as a key supplier of high-voltage equipment (from 6 to 330 kV). The company has its own production of ceramic insulators, disconnectors, and power line fittings, and is also a direct importer of circuit breakers and glass insulators, maintaining one of the largest warehouses in Ukraine. However, two years ago, the company scaled its operations and entered the “turnkey” gas generation market.
Why is gas generation beneficial not only for business but also for DSOs?
The installation of local gas piston power plants at enterprises creates synergy between the consumer and the network operator:
- Economics for the enterprise: The cost of electricity from a gas generator starts at approximately 6 UAH/kWh, while the market price (including VAT and delivery) often reaches 14–15 UAH/kWh.
- Benefits for the DSO: Most enterprises with gas generation have an inconsistent consumption cycle and sell surplus energy to the grid. The DSO receives revenue from the transmission of this electricity.
- Local balancing: The overall load on the network in a specific region is reduced. This decreases the likelihood of applying outage schedules by order of NPC Ukrenergo, allowing DSOs to operate more stably.
Cogeneration — the key to maximum efficiency
Alexander Suslov emphasized that the most profitable format for operating a gas station is cogeneration (simultaneous production of electricity and heat). The electrical efficiency of European gas engines is 40–48%. At the same time, the station generates almost the same volume of thermal energy (from the cooling system and exhaust gases).
If this heat is utilized—converted into hot water or steam for production needs (for example, in paper mills or pharmaceuticals)—the overall fuel efficiency increases dramatically, making the energy cost highly competitive. Furthermore, such units have high fuel flexibility: they can operate not only on natural gas but also on biogas, landfill gas, or mine gas.
Technological features and advice for investors
The expert drew attention to several critical nuances that should be considered when designing gas generation:
- Operating mode: Gas generation is designed for 24/7 operation. It is not intended to function like an emergency diesel. Its capital repair is scheduled only after 60,000–80,000 operating hours (which is 8–10 years of continuous operation).
- Load: It is advisable to load the engine to at least 50% of its nominal power. A drop in load below 30% leads to system errors and increased wear. Therefore, one should not purchase a generator with an excessive “reserve” that will not be used.
- Startup currents: A gas station requires a gradual load increase (in steps of 10–20%). If an enterprise has powerful electric motors, they must be equipped with frequency converters; otherwise, a direct start can simply “stall” the generator.
- Combination with BESS: The optimal solution for load balancing is combining gas generation with Battery Energy Storage Systems (BESS).
Volten implements projects based on leading global brands: MTU, MWM (Germany), Jenbacher (Austria), Cummins, and Bergen. Thanks to the availability of preferential lending programs (5-7-9%) and grant support from international donors, the payback period for such projects is currently extremely attractive for Ukrainian businesses.