An ESS is an electrical installation connected to the Ukrainian Unified Power System (UOPS) that includes at least one electrical energy storage device, along with engineering structures, energy conversion equipment, and associated auxiliary equipment. ESS functions to store electrical energy for later use, convert electrical energy into a different form for storage, reconvert stored energy back into electrical energy for delivery to the transmission system, distribution system, power plant network, or consumer network
At the same time, in accordance with the requirements of NCSREPU Resolution No. 1958 dated 30.12.2022, during the period of martial law in Ukraine and until the end of the calendar year in which martial law is terminated or canceled, prices for ancillary services are determined at the level of prices for ancillary services formed for the planning period in the calendar year preceding the year in which martial law was introduced in Ukraine
According to the official website of NPC “Ukrenergo”, the marginal price for SP for 2023 is as follows:
| Product |
Marginal price (excluding VAT), EUR/MW |
| FCR |
2355,62 |
| aFRRs |
2355,62 |
| aFRRl |
1711,37 |
| aFRRu |
644,25 |
Taking into account the above, the current marginal price for SP is as follows:
| Product |
Marginal price (excluding VAT), EUR/MW (taking into account the requirements of NCSREPU Resolution No. 1958 dated 30.12.2022) |
| FCR |
1339,82 |
| aFRRs |
1339,82 |
| aFRRl |
973,39 |
| aFRRu |
366,43 |
ESS can be connected to the transmission system (NPC Ukrenergo) at:
- 110 kV voltage level, with a capacity of > 20 MW
- 110 kV voltage level and above, with a capacity of ≤ 20 MW in accordance with the feasibility study (FS)
ESS are connected to distribution systems in accordance with the requirements of the Connection Agreement and Technical Conditions.
Users also have the right to connect ESS to their own electrical networks.
Benefits and Challenges of ESS in Ukraine
The Law of Ukraine “On Amendments to Certain Laws of Ukraine on the Development of Energy Storage Systems” grants the operator of an energy storage facility the right to:
- Purchase and sell electricity on the electricity market
- Receive funds for sold electricity in a timely and full amount in accordance with concluded contracts on the electricity market, for ancillary services and balancing services
- Gain access to the transmission system and distribution systems on fair, non-discriminatory, and transparent principles in accordance with the requirements of the transmission system code, distribution system code
- Obtain access to information on activities in the electricity market in the manner and scope determined by the market rules, rules of the “day-ahead” and intraday market, and other regulatory legal acts that regulate the functioning of the electricity market
The implementation of energy storage technology is just beginning in Ukraine, which creates an environment without competition among manufacturers and makes this area attractive for potential investors who intend to become market leaders.
Against this backdrop, it is worth noting that large Ukrainian companies, including DTEK and Ukrhydroenergo, have begun implementing energy storage facility projects:
– On May 21, 2021, DTEK officially launched the first industrial lithium-ion energy storage device in Ukraine, installed at the Zaporizhzhya Power Plant in the city of Energodar, with a capacity of 1 MW/2.25 MWh
– The CEO of PJSC Ukrhydroenergo, Igor Syrota, also stated that the company plans to start construction of the largest energy storage in Europe in 2024 with a capacity of 212 MW at a hydroelectric power plant (HPP)
Challenges in Legislatively Stimulating the Development of Technology in Ukraine
Owners of solar or wind power plants have the opportunity to install ESS at their facilities, according to recent legislative changes. However, this is not economically feasible due to the long payback period of the equipment – up to 15 years, as well as the need to replace part of the ESS equipment after only 5 years. To make the ESS market viable, the state needs to establish an additional tariff for RES facilities that use ESS.
Technically, it is feasible to utilize ESS to purchase electricity at night and resell it in the morning. However, the payback period for such a project could extend up to 20 years. This market could become viable if electricity prices in Ukraine increase or ESS prices decrease.
ESS can provide valuable grid flexibility benefits to the country. However, there are currently no government financial mechanisms in place to attract investors to this sector. Legislative changes and more stable market conditions are needed to make ESS investments more attractive.
