Kudrytsky: To create energy storage, you need to run in three ways

Ukraine should consider alternative ways to create electricity storage systems, while we are waiting for investors. In particular, to develop a system of incentives for this sector, and also to allow regional gas distribution companies to build such systems.

Volodymyr Kudrytsky, First Deputy Chairman of the Board of NPC Ukrenergo shared his view at the forum “Balancing the power grid and energy storage system”, Kosatka.Media reports.

“In order to receive electricity storage systems as quickly as possible, we need not only to rely on market signals, but also think about other ways”, he noted.

According to the top manager of Ukrenergo, there are two possible ways. The first is the development of a specific investment incentive system until the market works this way when the investor has “clear target signals” for investing without special support.

He recalled that last year, NPC had signed a memorandum with an international financial corporation, which is part of the World Bank Group, on the development of such an energy storage support system in Ukraine. It is expected that in April this year there will be first developments. 

The Fourth energy package opens the second way, which is not yet mandatory in Ukraine, said Kudrytsky. Its second name is Clean Energy Package. According to this document, if there is a proven shortage of maneuvering capacities in the power grid, the energy system operator Ukrenergo, or regional gas distribution companies, can build and operate an energy storage system for some time with certain clear limitations.

“The system operator can invest in such facilities for some time, until market mechanisms work, until private investors build their facilities, operate energy storages, but only to ensure operational security. It will not sell the service on the auxiliary services market, but will include these facilities in the event that the market has not provided the necessary amount of reserves”, Kudrytsky explained.

He says that the position of Ukrenergo is such that “it is necessary to run in all three ways” – as quickly as possible to launch an auxiliary services market that will give price market signals for investors, develop a support system for private investors, and leave room for transmission system and distribution system operators invest in such facilities too., And to sell these objects at auction when private investors appear.

To recap, Ukrenergo told about the need for balancing capacities.

Tags: legislation, electricity, energy market, Ukrenergo, electricity market, investments, investors, energy storage

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