On March 2, the European-Ukrainian Energy Agency (EUEA) held a round table on the topic “The future of energy storage systems (ESS) in Ukraine”. During the discussion, the following issues were considered: the existing legislative framework of ESS, international practices of ESS implementation and recommendations for Ukraine, as well as practical experience of installing batteries in Ukraine.
Oleh Zahnitko, a partner of the law firm INTEGRITES, who participated in the development of the regulatory package for energy storage (Energy Storage Installations (ESI) in the current version) in 2022, presented an overview of the legal framework of energy storage installations. The current regulatory package includes changes to the Law of Ukraine regarding the development of energy storage facilities; changes to the Procedure for setting tariffs for electricity distribution services; licensing conditions for carrying out business activities related to energy storage; amendments to the Code of the transmission system and amendments to some resolutions of the NEURC (amendment of market rules) taking into account the Clean Energy Package (EU), namely Directive 2019/944 and Regulation 2019/943 of the European Parliament.
Regarding the benefits of the law and bylaws that were adopted during 2022, Mr. Zahnitko noted the following:
- energy storage installations received service characteristics;
- Distribution System Operators (DSOs) and Transmission System Operators (TSOs) have been separated from Energy Storage Facility Operators (ESFO) and from the ownership of such facilities. Open tenders/consultations with market participants should be held to establish additional elements of DSO or TSO. If the participants cannot get ESI services on the open market, they need to contact the Regulator. Such permits are reviewed every 5 years;
- the licensing threshold is set at 150 kWt or more, but there is no licensing for “internal offloading” to balance output;
- consumers are given the right to unite to participate in the market of auxiliary services and in the balancing market;
- renewable energy producers have been given the opportunity to transfer electricity production schedules without a license.
Mr. Zahnitko noted the following negative points:
- there are no restrictions on the ownership of electric charging stations by DSO;
- less separation of DSO from ESI ownership than provided for in the Directive 2019/944;
- exemption from tariffs for distribution, transmission and dispatch management is contrary to the principles of the EU acquis;
- keeping the electricity price restrictions in place will not contribute to investment decisions;
- lack of synchronization between different laws coordinating the enforcement of regulations.
More details in the webinar video: https://www.facebook.com/EUEA.UA/videos/699737271933475 and spiker’s presentation: INTEGRITES_OZ_020323
Ihor Petryk, Director of European Market Development at Wärtsilä Energy Business, expressed his opinion on the energy transition and shared the key stages that are taking place in all countries of the world. He also noted that in addition to batteries, balancing generation is also needed. At the first stage, the renewable energy sector (RES) in the power system is being built. The second stage involves the addition of balancing capacities, in particular highly maneuverable gas engine stations and energy storage systems. At the third stage, which is already taking place in more advanced countries, inflexible stations are removed. The next stage is the transition of balancing generation capacities to renewable fuel. Accordingly, a market for renewable fuels is expected to be established by the early 2030s. At the last stage, the final abandonment of fossil fuels is envisaged.
Mr. Ihor also noted the advantages of the Plexos software complex, which allows highly accurate modeling and optimization of power systems. It can be used both for energy systems of entire countries and for heat systems of cities. This complex allows you to consider various options and find the best combination of capacities to optimize the energy system.
Using the example of power system transition modeling, the expert noted that it is important to apply the principle of prudence and correct calculations of the final cost of 1 MW/h of the total investment cost. Based on the scenarioof a gradual transition to carbon-free energy, it is possible to achieve 76% of renewable energy in combination with gas-piston stations at the optimal cost of produced e/e. It is this option that currently prevails in many countries that have started the energy transition. This stage can last 10-15 years and is the most reliable and economically attractive configuration from the point of view of investors. In the future, on the basis of such a system, electrolyzers for the production of hydrogen can be completed and 100% carbon-free energy can be achieved, also with a significantly lower cost than in the case of a transition without intermediate stages.
In addition, Mr. Petryk emphasized the relevance of thermal batteries for the construction of a decentralized energy system as part of a dynamic system of centralized heat supply. Such a system consists of a combination of heat pumps, an electric and gas boiler, wind turbines, a gas piston engine and a heat accumulator. Such a system has a number of advantages due to the multiplicity of sources of electricity and the functions of supporting the power grid. These complex systems have an efficient economic model of operation and will create a reliable network of decentralized units of the energy system.
An example of such a system can be viewed in the video recording of the webinar: https://www.facebook.com/EUEA.UA/videos/699737271933475 and in Mr. Petryk’s presentation: Wärtsilä solutions
Vadym Utkin, innovation manager and project manager for the construction of ESI at DTEK Energo, shared his experience of building a pilot energy-saving battery in Energodar with a capacity of more than 1 MW. Mr. Utkin reviewed the typical diagram of an energy storage installation, the method of its connection and the operating model in the market of auxiliary services. He also highlighted the main challenges and difficulties encountered during the implementation of the project, including the following:
- Selection of remanufactured installations.
- Selection of the accuracy class of power transformers: there are clear requirements of the NPC.
- Inter-container distance for installing parts in containers.
- Sufficient supply of parts for replacement during system start-up.
- Adjustment of battery conditioning systems: to achieve long-term and reliable operation of the system, it is important to ensure a temperature range of 19 to 30 degrees Celsius.
- The difference between the ESI business model and the “green” energy model; the need to identify the target market to work, and apply active trading for optimal battery performance.
More details: https://www.facebook.com/EUEA.UA/videos/699737271933475