Yesterday, on April 22, 2019, a meeting was held with the management of TSO State Enterprise National Energy Company “Ukrenergo” (SE NEC “Ukrenergo”) regarding the energy system’s ability to connect new renewable energy projects and balancing their electricity production. At the meeting on behalf of the SE NEC “Ukrenergo” participated Temporary Acting Director – Vsevolod Kovalchuk, Deputy Director – Operation Director – Olexii Brecht, Director of the Department of Renewable Energy Sources and for Connection of New Renewable Energy Facilities – Maxym Zorin . On the part of the European-Ukrainian Energy Agency were companies – members as, Guris, D2Consult, Scatec Solar, iC consulenten, Ukrwindinvestments Ltd, IMEPOWER, Indian Solar, Avenston, Sinnalba Group Ltd, Smart Energy, EUEA Director – Oleksandra Gumeniuk. Financial institutions (IFC, Ukrgasbank), the State Agency for Energy Efficiency and Energy Saving, Ukraine Invest have also joined the meeting.
The meeting topic and the meeting itself was initiated by the EUEA Solar Energy Working Group and the EUEA Wind Energy Working Group. The participants prepared their own questions for fruitful discussion. The main speaker was Vsevolod Kovalchuk, who emphasized the following points:
Regarding the connection to grid: Mr. Kovalchuk advised to focus on the Map of connections atUkrenergo website, adding that much more complicated is connection in the South of Ukraine, in the West (Burshtyn Island). It is possible to connect in the South of Ukraine and in Western Ukraine, but additional costs will be required for the development and modernization of the network to help network accept a new generation of RES. In other regions there are no serious restrictions. In some cases, joining will require the upgrading of networks or even the construction of new power lines, which will affect the cost of joining. Important resources: 1. Single sign-up window – https://ua.energy/for-customers/single-window/ , Connection map – https://ua.energy/connection-map/
Concerning the issue of technical terms for joining NEC Ukrenergo networks: today it is issued for 10,5 GW and NEC “Ukrenergo” continues to issue technical specifications, however, the cost of joining is growing and involves investments in the development of the network.
Regarding the balancing: NEC “Ukrenergo” with consultants made a study according to which the current generation structure without introducing restrictions already working stations, Unified Energy System Ukraine is able to accept 4 750 MW (of which correlation of solar and wind energy must be 3 to 1, respectively). After reaching this limit, for system balancing, it may be necessary to introduce restrictions for some stations at some times, in the first place for traditional generation. So, the question arose not only the possibility of balancing, but also its value for the consumer.
As of the beginning of March 2019, 3.1 GW of RES has already been put into operation, at the end of 2019, in total 5 GW of commissioned projects are expected to be put into operation. For the first half of 2020, it is forecasted to be put into operation an additional 2 GW of RES by different market players. Despite the fact that there are currently no economic incentives for producers of RES for more accurate forecasting, Ukrenergo encourages investors to work on this process for the future.
According to Ukrenergo’s calculations, for every 1000 MW of RES it is necessary to build 250-300 MW of balancing capacities to make energy system work sustainably.
Regarding the regulatory framework for attracting investment in the new flexible production and means of energy accumulation. The work of accumulation capacity in the creation of such a market will be considered as one of the auxiliary services. At present, this mechanism is provided for in the Draft Order of the Contest for the construction of generating capacity and the implementation of demand management measures. The draft order is under consideration by the Ministry of Energy and Coal Industry, which has not yet been approved by the Cabinet of Ministers of Ukraine.
According to Urkenergo, based on the current technical realities of the Ukrainian Energy System, there can not be more than 40-42% of RES. However, while the cost of RES for Ukraine is 27 Euro per 1 Megawatts, there are no economic grounds for developing RES.
Problem 1. Energy System of Ukraine without investing in the infrastructure can not accept more RES than 5 GW .
Problem 2. The price of 1 KW of balancing RE is 12 Euro cents. The cost of 1 KW of energy from the sun is 15 Euro cents. A total of 27 Euro per 1 MW for generating solar energy is too high for Ukraine. As a result, there is a risk, that Verkhovna Rada may decide to stop state support for RES and cancel the green tariff.
Problem 3. Weak coordination and cooperation of the authorities in solving the above-mentioned problems.
- Improving the accuracy of prediction of electric power generation by private investors and companies.
- Introduction of liability for imbalance with the application of a certain transitional period.
- Adoption and implementation of the mechanism of economic incentives in the Procedure for holding a tender for the construction of generating capacity and implementation of demand management measures.