06.10.2025
On November 20, in Kyiv, Energy Club will organize the forum “Energy of Freedom: Resilience and New Opportunities for the Energy Storage Systems Market in Ukraine.” It will be dedicated to technologies that are key to energy security and are a guarantee of stability and the construction of a decentralized, modern grid.
The forum’s partner is IKNET, an expert in managing investment projects in the energy sector. It is a team with over 14 years of experience that transforms complex technical schemes into understandable and effective business models. Their portfolio includes large industrial energy storage systems in Ukraine and large-scale solutions for business and the country’s power system. With IKNET, energy becomes understandable, and investments become effective.
In an interview with the Energy Club media department, Yurii Podoliak, the head of IKNET, shared his vision for the development of the battery energy storage systems (BESS) market in Ukraine. He spoke about why ESS are becoming critically important for the stability of the United Power System (UPS) of Ukraine right now, which business models are already working, what barriers still remain, and what strategic role these technologies will play in the post-war reconstruction of the Ukrainian energy system.
– Mr. Podoliak, you were one of the main initiators of this forum. Why has the topic of battery energy storage systems (BESS) become so critically important for Ukraine right now?
– Russia’s missile and drone attacks have led not only to systemic outages in the UPS of Ukraine but also to the destruction of dispatchable generation, namely thermal power plants (TPPs) and hydroelectric power plants (HPPs), which, accordingly, complicates the balancing of the power system. Under such conditions, energy storage systems (ESS) become essential for stabilizing and further modernizing the power system. They can be implemented at all levels: in households, in industry, and in the energy sector, as there are comprehensive solutions for implementing BESS at various scales.
– As an initiator, what was the main goal you set for this event? What key idea do you want to convey to the market and the authorities?
– The key idea is that the ESS market in Ukraine is already functioning; we already have implemented pilot projects that confirm its effectiveness. Therefore, it can be developed, and in several directions at once. Moreover, it is already bringing real benefits in all these areas. With our event, we aim to send a clear signal to investors, industrial consumers, and the authorities: the ESS market has a practical foundation, it is working, and it is ready to support the energy stability of both individual enterprises and the country as a whole. However, it requires competent regulation, investment, and scaling.
– How would you describe the current state of the BESS market in Ukraine? Have we already passed the idea stage, the first pilot projects, and are now on the verge of mass implementation?
– The idea stage was passed by DTEK back in 2021 when a 1 MW ESS was built as part of the Zaporizka TPP. The first large industrial project was implemented by the OKKO group of companies in early 2025. By the way, IKNET was directly involved in these projects. So, we can confidently say that we are now on the verge of the mass implementation of such systems in various segments of this market.
– What are the main barriers holding back the development of storage systems today: technological, financial, or regulatory?
– ESS technologies are already well-developed and widely used in the world, particularly in Europe. The legislative framework in Ukraine was developed during 2023-2025 and, accordingly, provided the opportunity to implement such projects – both in the consumption and RES (renewable energy sources) segments, and as separate facilities. The high price difference between cheap and expensive electricity, and the ability to save and even earn with ESS, created an economic incentive. So, for now, only one barrier remains – the understanding that it is possible and necessary to work in this market. I hope our forum will help to finally overcome it.
– Which business models for BESS do you consider most promising in the Ukrainian context: operating in the balancing market, providing services to DSOs/TSOs, or ensuring autonomy for industrial consumers?
– There are three segments of this market, namely the implementation of ESS:
These segments are at different stages today. The first is already actively developing: thanks to “Ukrenergo” auctions, over 500 MW of ESS have been built or are under construction. The second is just at the beginning of this path but has enormous potential, which we estimate at thousands of MW, as the need for stable power supply and cost optimization for businesses is always high. The third segment is currently “stalling,” but the first project of installing an ESS as part of an existing solar power plant has already been implemented. I consider each of these areas promising; they all have high potential for development in the Ukrainian context – so there is more to come!
– From an investor’s perspective, how “bankable” are BESS projects in Ukraine today? What needs to change to attract significant capital to this sector?
– The payback period for such projects is 2-5 years, which is quite bankable. There are currently no regulatory obstacles either – much has been done at the legislative level in recent years for this. There are proven, reliable companies that professionally develop and integrate such systems – IKNET is among the leaders here, so I can state this with confidence. To attract capital and further develop this sector, it is necessary to conduct information campaigns (such as this forum) so that investors and consumers believe in this market.
– What strategic role will energy storage systems play in the post-war reconstruction of Ukraine’s power system? Will they become a standard element of the infrastructure, like substations, for example?
– ESS are already becoming a standard element of the United Power System! Dozens of projects are already being connected to the TSO or DSO networks – and this is just the beginning! I am confident that in the future, they will play a strategic role in stabilizing and ensuring the flexibility of the UPS as a whole.
– What specific aspects or practical case studies from IKNET’s experience do you plan to focus on in your presentation at the forum on November 20?
– I will talk about the three above-mentioned market segments for energy storage systems and the economic effect within each of them. I will also demonstrate successful cases of ESS implementation in Ukraine – including those with our direct participation. I plan to focus not so much on technical nuances as on justifying the investment attractiveness and the overall advantages of this market. Because I am sure, and I have every reason to be: our common energy future lies with it!
