Energy Storage Stations
STEM Capital — innovative solutions in the areas of energy storage installations
Implemented projects
Sector Overview
The rapid development of renewable energy generation in Ukraine is creating a problem of excess energy. There is a growing demand for energy storage facilities (ESFs), which can help balance the grid and ensure market reliability.
Energy storage facilities are used to balance or manage overloads, buy and/or sell electricity on the electricity market. STEM SOLAR is developing energy storage projects in Ukraine and promoting investment in the industry.
Opportunities
Increasing demand for installation of systems
- Ukrenergo forecast predicts the need for at least 0.8 GW of energy storage systems within 10 years
Lack of competition in the Ukrainian market
- Lack of competition in the Ukrainian market is a favorable condition for investments in BESS
Current situation in Ukraine's energy market dictates rapid development of energy storage systems
- The state needs new solutions for balancing the energy system
Investor can build BESS and partiipate in Ukraine’s electricity market as follows:
Intraday market
Day-ahead market
Ancillary services market
Bilateral contracts market
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The lack of competition in the Ukrainian market is a favorable condition for investments in BESS
On February 22, 2024, an online conference “Energy storage installations in the power system of Ukraine. Status and development prospects” was held, organized by the UN Global Compact in Ukraine and ExPro within the framework of the Ukraine Energy Initiative. NEC Ukrenergo, KNESS, DTEK, MHP Eco Energy, Concern Galnaftogaz, Huawei Ukraine, Voltage Group and CMS took part.
Despite different approaches to market development, the participants agreed: that energy storage systems in Ukraine have great potential. The market is just beginning to develop, but this makes it possible to take into account the experience of other countries. Ukraine already has some experience in using such technologies, which is critically important in the context of the development of renewable energy.
On August 15, 2024, NEC Ukrenergo held the first auction for the procurement of auxiliary services for balancing the power system. The winners received the right to sign 5-year contracts. Among the winners is DTEK, which plans to invest €140 million in energy storage facilities.
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War prompts rapid development of energy storage systems
About 70% of the Ukrainian generation has been damaged, destroyed, or occupied. In contrast, the number of solar and wind power plants has increased. Such changes are forcing the country to look for effective ways to balance electricity consumption. Ukrenergo’s development forecast predicts the need for at least 0.8 GW of energy storage systems over 10 years.
According to Bloomberg New Energy Finance, the global market for energy storage systems will double by the end of 2023, adding about 28 GW/69 GWh of storage.
The state promotes the development of electricity storage facilities at the legislative level:
– Private consumers and producers of electricity from alternative sources have the right to conduct electricity storage activities without obtaining licenses. In addition, the construction and operation of UES is allowed on any land plots.
– Enterprises (or entrepreneurs) that plan to develop a business in the field of electrical energy storage, through the sale of stored energy on organized electricity markets or through special auctions of ancillary services.
STEM Capital develops projects in the area of renewable energy, please visit the page to review active projects
Go to projects
The state promotes the development of energy storage systems at the legislative level:
- The construction and operation of electric charging stations and energy storage facilities are allowed on any land plots and/or by their intended purpose (according to the Law of Ukraine).
- Until January 1, 2025, a temporary regime for calculating the connection fee to the electrical networks of transmission and distribution system operators for energy storage facilities has been established, where only the component of the fee for the creation of electrical networks of the linear part of the connection is paid.
Risks
Lack of long-term contracts in the ancillary services market, the contract is concluded for no more than a year based on the results of auctions.
The need to modernize part of the energy storage system after 5-6 years of operation.
STEM Capital is your reliable partner in the energy sector
We support the investor at every stage of project development. We specialize in all aspects of energy construction, including contractual support, design, installation, and operation.
Our experienced team of engineers, managers, and consultants works closely with partners to ensure timely project implementation within budget and by the highest quality standards.
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