Creating balancing capacities is a promising direction for investments in the electric power industry of Ukraine

1On March 11, with the initiative of the European-Ukrainian Energy Agency, a meeting was held with Olga Buslavets, Director General of the Energy Markets Directorate of the Ministry of Energy and Coal Industry.

The topic of the meeting was devoted to discussing of the actual state of the energy system of Ukraine and important measures that could increase the volume of integration of RES in the Ukrainian electricity system (UES).

Olga Buslavetrov intensified the meeting of the participants on the key technical problem of the integration of RES in the UES of Ukraine - the lack of maneuverable capacities for balancing the alternating generating of SPP and WPP. She also outlined the ways of solving it. It was a question of the need to attract investments in the sector of high-power generation - both in market conditions and in the framework of the forthcoming tender procedure for the construction of generating capacities, the procedure for which is currently being developed by the Ministry of Energy and Coal Industry. These may be small modular power plants, gas-pumping generating units that are successfully implemented in other countries. Also, alternative means of strengthening the balance sheet reliability of the UES, in particular, - demand management systems, energy storage, more precise predictive models of power generation of SPP and WPP.

It was emphasized that in order to reduce the technological losses of electricity in the network and to increase the power system's potential for the integration of RES objects, during their construction, it is necessary to take into account the parameters of the transmission / distribution system and the regional balance of production and consumption of electricity. In particular, it is important to avoid excessive concentrations of SPP and WPP in energy-deficit regions with limited capacity for transit of excess capacity.

Olga Buslavetz stressed that ensuring the reliability of the UES of Ukraine in conditions of increasing the share of RES is a key challenge on the way of integrating Ukraine's energy system into the ENTSO-E European network. And the solution to this issue is possible only by the joint efforts of all participants in the energy market and a responsible, pragmatic approach to the new model of support for RES.

For reference from previous statements, the United Electricity System of Ukraine has an uneven distribution of generating capacities and is characterized by the presence of both surplus in terms of energy balance of the regions (mainly in the south and west) and scarce (center and north). The concentration of SPP and WPP facilities in the southern region leads to an increase in the transit of electricity, and hence to its technological losses in the network. Unfortunately, it is this trend that has taken place over the last four years, and the amount of technological losses increases by an average of 0.1% per year.

Therefore, it is important in the future model of RES support to provide flexible mechanisms that would allow, if necessary, to announce a competition for the required generation on separate land plots, as implemented in auction models, in particular Denmark or Kazakhstan. This will optimize the flow of resources, involve local communities in a competition of local communities in scarce energy districts, or the state fund, including the exclusion zone, the territory of the loss-making mines, the shelf. That in its turn will allow to increase the circle of participants, to increase competition and to lower prices. And it provides control over the development of generating capacities and optimization of the grid regimes.

By the way, the parliament members of the Fuel and Energy Committee on February 27 voted for the proposed amendments to the draft law 8449-d, namely, for the proposal within the framework of the general quota, the Cabinet of Ministries may offer land plots for the construction of RES objects with certain technical parameters and technical conditions for joining the electric network to participate in the competition on the general terms.

According to the results of the meeting, the parties agreed that EUEA together with investors will work out the proposals of the Ministry of Energy and Coal in support of renewable energy and the development of balancing capacities in Ukraine and later will publish Position Paper of EUEA members.

The meeting was attended by:

Magnus Johansen, Co-chair of Solar Energy EUEA subgroup, Business Development Manager of Scatec Solar

Tetyana Kovalenko, Managing Director of Indian Solar LLC,

Max Lebedev, Board member of EUEA, Co-chair of Solar Energy EUEA subgroup, Partner of GOLAW,

Mykhailo Chulkov, Lawyer of EuroCape

Oleksandr Kudin, Project Manager of Avenston

Olexander Bosak, Co-chair of Wind Energy EUEA subgroup, Country Manager of Acciona,

Yuriy Kubrushko, Board member of EUEA, Co-chair of Wind Energy EUEA subgroup, Managing Partner of IMEPOWER

Oleksandra Gumeniuk, EUEA Director,

Olga Romanchenko, EUEA Analyst.

The Ministry of Energy side was represented by Olga Buslavets, Director General of the Energy Markets Directorate, Oleksandr Martynyuk, Head of the Expert Group on Renewable Energy Development.

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