“What steps must be taken to implement distributed generation and why are these decisions important in the long term?”, — write: www.epravda.com.ua
The Ukrainian energy system with its energy-intensive post-Soviet generation facilities has long needed reforms.
However, the beginning of the Russian-Ukrainian war significantly complicated the situation, posing new challenges to the energy sector.
At the same time, it has now become obvious that new approaches must be sought to ensure the country’s energy security.
One of these solutions is the development of distributed generation. This will not only ensure uninterrupted energy supply for critical infrastructure facilities, but also increase the stability of the energy system in general.
What steps must be taken to implement distributed generation in Ukraine and why are these decisions important not only now, but also in the long term?
Small generation for great energy securityCurrently, Ukrainian energy depends on centralized generation facilities – nuclear and thermal power plants, thermal power plants, and large hydroelectric power plants. However, these facilities (fortunately, except for nuclear ones) have become targets for enemy missile attacks and their damage has significant consequences for consumers. Therefore, the issue of the development of small generation becomes more relevant than ever.
Distributed generation is a system of small energy facilities with a capacity of up to 20 MW, connected to the networks of distribution system operators (DSO). These are cogeneration and gas piston stations, biogas plants, wind turbines, solar panels.
Their main advantage is that they do not require large capital investments, are easily integrated with existing networks and can be quickly mobilized to ensure energy supply in the event of a shortage of electricity in the UES of Ukraine.
A large number of small generating stations, as opposed to a small number of large ones, is much more difficult to disable, making them an ideal solution for increasing energy resilience in a wartime environment.
Business rules for implementation of distributed generationEnergy development has always functioned on the basis of clear business rules established by the state. In particular, in matters of construction, connection, sale of electricity and heat, generation facilities. The sector is currently facing several important challenges that hinder the development of distributed generation.
The need to overcome bureaucratic obstacles. Under international support projects (UNDP, USAID), our utility and critical enterprises receive generating equipment and power plants, but for a long time they cannot put them into industrial operation (start producing thermal and electrical energy).
Problems arise with connection to electric, heat and gas networks due to the lack of free capacity and the procedure for connecting third parties. Therefore, it is necessary to adopt rules that will simplify this procedure and allow small generation facilities to connect to external networks faster and cheaper.
Innovations of draft law No. 11392 “On Amendments to Some Legislative Acts of Ukraine on Simplifying the Conditions of Business Activity” are designed to improve the investment and organizational attractiveness of creating distributed generation. The document was developed in dialogue with business with the participation of a large number of specialists, in particular experts from UNDP and USAID in Ukraine.
Connection of heat producers to networks of centralized heat supply. In addition to problems with connecting to electric and gas networks (if the fuel is natural gas), manufacturers need to solve the issue of connecting to centralized heat supply networks.
If this network and cogeneration plants (CHP) are affiliated, then there will be no significant problems. If these are different parties, then there are bilateral legal relations that need to be settled. Article 21 of the law on heat supply provides such a right, but the norm is limited to two paragraphs. Although bill #11392 does not fully address all issues related to joining (dispatching, balancing, hourly schedules), it supplements the business rules for such cases.
Energy consumption of connecting new generation to the network. How does it work now? Each WPP or SPP must receive separate technical conditions (TU), and in accordance with them, separate power transmission lines (LEP) will be laid from the networks of Oblenergo (OSR) or “Ukrenergo”, which does not exclude the construction of two separate power substations.
This will increase the energy intensity of OSR or Ukrenergo networks, which means the costs of their maintenance, which are reimbursed by all consumers through tariffs. Since the sun produces energy only during the day, it is possible to organize several types of generation on one site (according to the same TU). This is the so-called Cable pooling.
The draft law under discussion proposes to provide for such a possibility. For example, solar generation is connected to the networks of connected wind generation and they together issue electricity through the connection point agreed in the TU for wind generation (with certain restrictions, but without the need for new separate TUs for solar generation).
This will allow “green” energy facilities to reduce the investment burden and more stably supply electricity to the network. This solution also saves capital investment for OSR or “Ukrenergo”, because it is not necessary to build two transmission lines and two substations, which will contribute to the optimization of tariffs for consumers.
“Sleeping” technical conditions that block the activity of real investors. According to the legislation, OSR and “Ukrenergo” must calculate the reserved and free capacity of each substation. Reserved capacity is not only connected plants and consumers who consume electricity from these substations, but also entities that have received TU, but for some reason did not join.
De jure, power is stored behind them at the substation, which as a result reduces the volume of free power. In such conditions, there are situations when the point of connection to the electrical networks closest to the critical infrastructure object does not have free capacity, although de facto there is such capacity. It’s just that someone booked it, but doesn’t use it (it’s busy with “sleeping” TUs).
In order to make such situations impossible, it is necessary to introduce a limited period of validity of the technical specifications (term for the development of project and estimate documentation), so that the investor who secures the capacity does not disappear for years. Bill No. 11392 proposes this. In addition, when connecting to the “Ukrenergo” networks, the project provides for a certain payment, so that the customer of the capacity consciously receives technical conditions.
If this is implemented, some customers will start developing their projects, while others will abandon them, which will free up capacity at substations. By preventing artificial capacity reservations, real investors will enter the market, and connection costs will become fairer.
There are other innovations in draft law #11392, which by simple and purely organizational measures increase the interest of investors and consumers to independently increase energy independence and thus help the stability of the energy system and uninterrupted power supply even in wartime.
Among such innovations is the possibility of reserving capacity at Ukrenergo for the duration of the investment study; the possibility of independent construction or reconstruction of OSR substations; improvement of functional conditions of “active” consumer and energy storage installations; simplification of licensing.
Predictions and Challenges: Don’t panicThe current situation in Ukraine’s energy sector has shown that distributed generation is not only an answer to the current challenges of war, but also a strategic step towards energy independence, because large generation facilities are very vulnerable to enemy attacks.
Despite the difficult situation, it is important not to panic. The number of power outages is difficult to predict, but we have every opportunity to improve the situation in the energy sector. All the changes that are taking place should be aimed at creating a transparent and effective regulatory environment in which the Ukrainian energy industry can develop stably and reliably.
We must not only restore the energy infrastructure, but also create a foundation for strengthening Ukraine’s energy independence in the future.