Ukraine's energy landscape has been profoundly impacted by the ongoing conflict, with extensive damage to infrastructure and a historical reliance on Russian imports for traditional energy sources like coal, gas and nuclear fuel. Rebuilding the centralized, Soviet-era energy system is no longer a vi Contact online >>
Ukraine''s energy landscape has been profoundly impacted by the ongoing conflict, with extensive damage to infrastructure and a historical reliance on Russian imports for traditional energy sources like coal, gas and nuclear fuel. Rebuilding the centralized, Soviet-era energy system is no longer a viable option. Attempts to restore a fossil fuel or nuclear-based centralized sector are fraught with military risks, slow progress, high costs for the state and lack of appeal for private investors wary of vulnerable, high-risk assets. Razom We Stand reports.
Smart grids and microgrids offer the highest levels of energy security and the ability to withstand damages, threats and terrorist/military attacks. Microgrids can enhance the resilience and security of power systems, protecting them from various threats, including terrorist attacks. These small-scale, localized energy systems can operate independently or in conjunction with the main grid.
Microgrids can contribute to energy security in several ways:
Several Ukrainian cities are already taking steps to implement decentralized energy solutions:
Despite its cities'' readiness to embrace decentralisation, Ukraine''s current legislation presents significant barriers. There is no clear definition of ''decentralised electricity generation'' in the law, and the process of connecting to the grid is not adequately regulated. In 2023, amendments to the Law of Ukraine ''On the Electricity Market'' introduced the concept of ''small distribution systems''. Still, this definition must address the broader question of how decentralised/distributed generation should function.
The legislation also needs to clarify how energy storage systems can be integrated into decentralised generation or how small distribution systems can connect existing installations in cities without establishing a distribution system operator (DSO). In practice, individual plants connect to DSO networks, but there needs to be a legal framework for combining these plants into local networks in small towns. This gap makes it financially unviable to generate more electricity due to the need to pay for grid transit once connected.
To address these issues, Ukraine must develop a clear algorithm for small networks and incorporate appropriate changes into the regulatory framework. This algorithm should include provisions for borrowing, where the state provides guarantees in the form of assets and grants large loans for implementing ''green projects'' backed by these sovereign guarantees.
Another significant barrier is the absence of the concept of an ''energy community'' in national legislation. While positive changes were made to the Law of Ukraine ''On the Electricity Market'' in the summer of 2023, focusing on active consumers and their right to supply electricity to neighbouring consumers, communities still have little interest in creating their own energy projects due to financial capacity, organisational activity, awareness and negotiation challenges.
As Ukraine rebuilds its energy infrastructure, embracing decentralisation and microgrids is crucial for enhancing energy security, resilience and independence. However, overcoming legislative and regulatory barriers is essential for unlocking the full potential of these technologies. By fostering a supportive legal framework and encouraging the development of energy communities, Ukraine can pave the way for a more secure and sustainable energy future.
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In the midst of Russia''s continued brutal attacks against Ukraine''s energy infrastructure, Secretary of State Blinken announced today during a meeting of the G7+ on the margins of the NATO Ministerial in Bucharest that the United States government is providing over $53 million to support acquisition of critical electricity grid equipment. This equipment will be rapidly delivered to Ukraine on an emergency basis to help Ukrainians persevere through the winter. This supply package will include distribution transformers, circuit breakers, surge arresters, disconnectors, vehicles and other key equipment.
This new assistance is in addition to $55 million in emergency energy sector support for generators and other equipment to help restore emergency power and heat to local municipalities impacted by Russia''s attacks on Ukraine''s power system. We will continue to identify additional support with allies and partners, and we are also helping to devise long-term solutions for grid restoration and repair, along with our assistance for Ukraine''s effort to advance the energy transition and build an energy system decoupled from Russian energy.
Since Russia''s further invasion on February 24, working together with Congress, the Administration has provided nearly $32 billion in assistance to Ukraine, including $145 million to help repair, maintain, and strengthen Ukraine''s power sector in the face of continued attacks. We also have provided assistance in areas such as EU integration and regional electricity trade, natural gas sector support to maximize resource development, support for nuclear safety and security, and humanitarian relief efforts to help Ukrainians to overcome the impacts of energy shortages.
Since 2014, the United States has provided over $160 million in technical support to strengthen Ukraine''s energy security, including to strengthen EU interconnectivity, increase energy supply diversification, and promote investments in energy efficiency, renewable energy, and clean energy technologies and innovation. Much of this support has helped prepare Ukraine for its eventual interconnection with Europe''s ENTSO-E electricity grid, including the island mode test in February 2022 that not only demonstrated Ukraine''s progress in meeting the EU''s technical requirements, but also proved to be critical considering Russia''s subsequent military activity aimed at disrupting power supplies and distribution in Ukraine.
Specific examples of U.S. energy security support this year include:
Department of Energy (DOE)
U.S. Department of State
Norway-based Morrow Batteries has signed an MOU with a Ukraine state body to supply LFP battery cells for shoring up the country’s conflict-stricken grid infrastructure.
The firm signed a memorandum of understanding (MOU) with the State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE) to provide the country with lithium iron phosphate (LFP) battery cells from its Norway gigafactory to help it maintain stable power.
Ukraine aims to build a distributed battery energy storage system (BESS) grid, Morrow added.
Potential deliveries under the MOU may reach gigawatt-hour levels, Morrow said, although the exact volumes are yet to be agreed. Ukraine needs a significant amount of BESS over the next few years for grid stabilising, it added.
"Securing stable power supply is important for Ukraine, and President Zelensky has defined it as a task for the government to establish energy storage facilities in every school and hospital as soon as possible. This underlines the need to build a strong battery value chain in Europe. Access to batteries produced by European vendors is a critical factor for building less vulnerable grids and ensuring batteries for mobile solutions", said the head of SAEE Anna Zamazeeva.
“We share a great sense of urgency and will do our part in being ready to sign a firm offtake agreement with relevant authorities in Ukraine and are ready to start deliveries of battery cells from the first quarter of 2025", says CEO Lars Christian Bacher of Morrow Batteries.
The SAEE is Ukraine’s state body responsible for implementing state policy in the areas of energy efficiency, energy saving, renewable energy sources and alternative fuels.
Morrow recently had its first gigafactory inaugurated by Norway’s prime minister Jonas Gahr Støre this month though will only start full LFP manufacturing later in the year. Energy-Storage.news interviewed its COO Andreas Maier earlier this year about its decision to target the BESS market rather than EVs as most gigafactories are (Premium access).
The global slowdown in electric vehicle (EV) demand, highlighted recently by LG, means that may have been a sound commercial decision. But, it is also a strategic one for Europe and its battery industry, as it can enable the rapid deployment of crucial grid infrastructure like the projects under the MOU with Ukraine.
Ukraine’s first grid-scale BESS came online in 2021, a 2.25MWh system from investor DTEK. The firm has expanded outside of Ukraine too, recently buying a 532MWh BESS project in Poland from developer Colombus Energy.
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