11.09.2026
On September 17 in Kyiv, Energy Club will host the “Energy of Freedom: Resilience and New Opportunities in the Ukrainian Energy Storage Market” forum. The event focuses on a key aspect of Ukraine’s energy sector transformation: the development of energy storage systems. Discussions will go beyond technology to address how to turn Battery Energy Storage Systems (BESS) into economically viable businesses—examining operational models that ensure a return on investment, barriers to investment, and the regulatory and financial conditions needed to scale the market.
One of the forum’s speakers will be Vitaliy Khrypun, Head of Direct Sales at Solar Stalkonstruktsiya LLC. SOLARsk has been active in the solar energy market since 2012, integrating in-house manufacturing, engineering solutions, design, installation, and the implementation of solar power plants. Today, Solar Stalkonstruktsiya is developing not only solar generation but also energy storage systems, tracker solutions, and comprehensive energy projects. According to the company, its systems and solutions are utilized in projects across more than 30 countries.
For SOLARsk, the topic of energy storage is not merely theoretical. The company possesses practical experience in operating energy storage systems and working with various storage usage models. Ahead of the Energy Club forum, we spoke with Vitaliy Khrypun about the current investment appeal of Battery Energy Storage Systems (BESS), the factors that will shape their economics in the coming years, and why the market’s future may lie in integrated projects combining generation, storage, and consumption.
Our conversation focused particularly on the practical aspects of BESS development—ranging from payback models and technological solutions to grid connection, financing, and market readiness for scaling. We also discussed the prospects of combining solar power plants with energy storage systems for the industrial and agricultural sectors, as well as the changes needed to make energy storage accessible to more than just major energy players.
– Mr. Khrypun, SOLARsk has experience implementing its own industrial energy storage project, which has been providing ancillary services for nearly a year. What practical conclusions have you drawn since the facility’s launch, and what has this experience revealed about the prospects for energy storage in Ukraine?
– Our pilot project began with a concept back in 2024, though actual operation commenced in January 2026. This timeline was driven by two main factors: the use of cutting-edge technology at the design stage and the need to navigate various legal and technical approval processes with Ukrenergo. We had to meet the requirements for operating in a highly demanding mode to support grid voltage levels—a process that involved obtaining certification and winning a tender. A facility utilizing large modular systems—with a total capacity of 1.21 MW and 5 MWh of storage, integrated via a proprietary EMS—operates simultaneously across multiple market mechanisms: arbitrage and aFRR (automatic Frequency Restoration Reserve) ancillary services (from 00:00 to 14:00). Such diversification of operating modes boosted projected profits and minimized the risk of revenue loss. However, given the current situation, this operational combination is effectively unfeasible in the energy market; consequently, a private investor is left relying solely on the Day-Ahead Market (DAM), which is subject to price fluctuations.
In summary, I would advise a potential investor to note that, without on-site generation, standalone energy storage systems (ESS) represent a rather risky venture; given the volatility of electricity prices on the DAM, the payback period could extend from 4.5 years to six years or more.
– What is the primary factor determining the economic viability of energy storage systems in Ukraine today: electricity price differentials, the ability to operate in the balancing market, integration with solar power plants (SPP), or a business’s need for backup power?
– It is a combination of factors. In practice, however, everything depends on the specific investor’s needs. For one investor, the main priority might be profiting from electricity price differentials; for another, it could be the ability to avoid production downtime, lost output, or even product defects. For critical infrastructure, however, backup power may be even more crucial, as the shutdown of such facilities would impact the functioning of entire sectors of essential activity.
That is why I believe every investment should be evaluated not merely from an accounting perspective, but more broadly—in economic terms. This means considering not only the direct revenue generated by the energy storage system but also avoidable opportunity costs and the project’s entire lifecycle.
Looking at specific factors, the spread in electricity prices is indeed significant. We observe a rise in solar generation during the day that drives prices down, whereas the evening deficit pushes them up. This creates a more pronounced and predictable price spread that energy storage systems can capitalize on.
– How, in your opinion, should the business model for BESS projects evolve to make them attractive not only to major energy companies but also to industrial and agricultural businesses?
– Integrating on-site generation with BESS can make these projects significantly more attractive to industrial and agricultural enterprises. This model allows for more accurate financial forecasting, helps lock in the projected payback period, and simultaneously mitigates risks associated with tariff fluctuations.
At the same time, state-subsidized lending for energy projects involving BESS—offered at 0% or reduced interest rates—would be highly beneficial. Currently, the primary mechanism in place is the “5-7-9%” program, which, unfortunately, is not accessible to everyone and has limits on usage.
Given the upcoming heating season and constant enemy attacks on industrial facilities, the development of small-scale industry equipped with decentralized power sources could be a key factor in strengthening the country’s industrial and economic resilience. For businesses, this is no longer just a matter of cost savings or return on investment; it is about the ability to continue operations when the centralized power supply is unstable.
– You work with both solar generation and energy storage systems. How economically viable is it today to build a new solar power plant (SPP) together with a battery energy storage system (BESS) right from the start, rather than installing the storage unit separately?
– As of today, standalone BESS projects are already quite common in Ukraine. At the same time, those planning to build solar power plants can hardly imagine them operating without storage systems. This is logical, as combining solar generation with BESS offers investors additional opportunities to manage energy flows and project economics.
What are the benefits of building an SPP and BESS together? First, the storage unit can be charged using the plant’s own generation at cost price, rather than purchasing electricity from the market for charging. This lowers the operating cost of the BESS cycle and can accelerate the payback period.
Second, a combined project often yields operational and permitting synergies: a single grid connection point and shared infrastructure can be used, and grid connection costs can be optimized.
Currently, the payback period for an SPP+BESS setup or a standalone BESS—depending on construction complexity and project scale—is approximately 4–6 years. However, there is an important nuance here. If electricity prices on the Day-Ahead Market (DAM) change, or if certain regulatory restrictions are introduced in the future, the payback period for projects lacking their own generation source would, in most cases, increase.
An exception might be a situation where an investor deliberately plans to operate exclusively on the balancing market or the ancillary services market. We are already aware of projects where investors are implementing BESS facilities with capacities exceeding 500 MWh. These are large-scale, system-level projects. This raises a logical question: how will the deployment of such large-scale storage capacities affect prices and potential price drops on the Day-Ahead Market (DAM) once they are commissioned?
That is precisely why we are building projects that include on-site generation.
Many are aware that negative electricity prices already occur in Europe—meaning that, during certain hours, producers effectively have to pay to generate electricity. Many predict that a similar situation could arise in Ukraine.
However, my personal view differs: thanks to the development of BESS (Battery Energy Storage Systems), we can skip this phase and move directly toward greater price stabilization on the DAM, avoiding such significant price drops. The combination of generation and storage will be a key factor in shaping this market.
– A wide range of technological solutions for energy storage is emerging on the market. Which characteristics of these systems are critical for Ukrainian conditions—duration of operation, cycle life, charging speed, safety, or the ability to operate within an unstable grid?
– The market is currently maturing, entering a “mid-adolescence” phase. Proof of this is that, when processing recent inquiries regarding the construction of energy storage facilities, the question “How will I maintain it?” is being raised with increasing frequency.
This marks a fundamental shift from the market assessment of a few years ago, when price was the sole deciding factor. Today, we see that some facilities selected based on that criterion alone are sitting idle due to a lack of proper service support or limitations in EMS (Energy Management System) configuration. Therefore, when discussing the characteristics of an energy storage system, it is important to look beyond just operating duration, cycle count, charging speed, or equipment cost. Equally important are the availability of quality maintenance, the configuration of the control system, and the supplier’s overall willingness to support the facility throughout its entire lifecycle.
This brings us back to the need to evaluate the investment project not only from an accounting perspective but also from an economic one. What might seem like a minor detail during the first year of operation could, in 5 to 10 years, become…
…and is one of the key factors determining the project’s efficiency.
We face further issues ahead, such as battery pack replacement, maintenance, and other lifecycle costs for the equipment. The market is currently learning to calculate not only the initial acquisition cost of the BESS but also the long-term cost of its ongoing operation.
– What are the biggest obstacles to implementing BESS projects today: regulatory requirements, grid connection, financing, equipment access, or market unpredictability?
– I would highlight three key factors.
The first is the poor condition of the grid infrastructure, which leads to high connection costs. Consequently, finding suitable locations for BESS projects becomes a challenge. For instance, the Zakarpattia region—while generally considered a safe zone for industrial investment—has specific local regulations that significantly drive up project costs. We observe this both with our clients’ projects and during our own grid connection processes for land plots.
The second factor is market unpredictability, which creates additional risks for investors. At the same time, some find this attractive; under favorable conditions, BESS projects can offer a relatively quick payback period—though this depends on a wide range of factors.
The third factor is limited financing options. In practice, only one main mechanism remains available—the “5-7-9” program—and its resources are limited. We know of many instances where clients had a complete set of project documents and were ready to begin construction but could not secure sufficient financing.
– One of the forum’s topics concerns price arbitrage and the operation of energy storage systems in the electricity market. To what extent can these mechanisms currently ensure an acceptable payback period for a BESS project in Ukraine?
– As I mentioned earlier, my personal view—and that of our company’s investment division—is that it is currently not advisable to base the projected payback of a BESS project in Ukraine solely on price arbitrage.
Yes, some projects currently demonstrate positive and quite attractive economics. However, an investor needs to look beyond the current situation and consider the outlook for the coming years. What will happen to prices and arbitrage opportunities once the number of energy storage facilities in Ukraine increases? How will project economics shift after the “green” tariff expires and producers potentially transition from it to the Day-Ahead Market (DAM) by retrofitting their facilities with energy storage systems?
Therefore, I would not build a BESS investment model based exclusively on price arbitrage today. It is necessary to consider a comprehensive operational model for the storage system and factor in multiple revenue streams to ensure the project remains economically viable—not only under current market conditions but also after the market becomes more saturated.
– SOLARsk develops solutions for agrivoltaics, solar power plants, and energy storage. Do you see the agricultural sector as one of the largest potential markets for integrated “solar PV + energy storage” projects?
– Yes, the agricultural sector is one of the most promising segments for integrated solutions, because:
Many companies have even treated energy projects as a separate line of business and are successfully investing their own capital in them.
– How has the attitude of Ukrainian businesses changed in recent years? Do they now view solar generation and storage as an investment asset, or primarily as a way to protect themselves against outages and rising electricity costs?
– We are seeing a gradual but noticeable evolution here: just a few years ago, solar generation and storage were viewed primarily as a safeguard against outages and rising electricity prices—essentially, as an insurance policy. Today, an increasing number of businesses—particularly medium-sized and large enterprises—are beginning to view these solutions as full-fledged investment assets generating returns independent of the company’s core business operations.
The market itself reflects this trend: in 2025, Ukraine entered the top five markets for energy storage systems in Europe by volume of new installations (nearly 3 GWh annually)—such growth would be impossible based solely on……motivation based on a “just-in-case” approach, it indicates that investors are already calculating project profitability.
At the same time, both motives—protection and investment—currently coexist and often reinforce one another: a decision initially made for the sake of business resilience is subsequently re-evaluated as a profit-generating asset.
– In your opinion, what decisions must the state and market participants make in the near future for Ukraine to transition from isolated BESS projects to the large-scale development of energy storage systems? And what do you expect to hear and discuss at the “Energy of Freedom” forum on September 17?
– Key requirements include:
From the “Energy of Freedom” forum, I expect a substantive discussion focused precisely on these systemic issues—regulatory conditions, real-world payback scenarios, and the practical experience of market participants—which will help new investors make informed decisions.
The Ukrainian energy storage market is just entering a scaling phase, and alongside new opportunities, expectations regarding the quality of investment decisions will rise. For BESS, it is no longer enough simply to have the equipment and capitalize on favorable price spreads. A model is needed that can withstand changes in the market, regulations, and energy costs. It is precisely the speed at which business, the state, and the financial sector learn to operate within these long-term rules that will determine whether energy storage becomes a distinct, promising segment of the energy industry or remains merely a collection of isolated projects.
