The state is doing everything it can to solve this issue, but miracles won't happen. For years, almost every local entrepreneur in Ukraine has adopted the principle: "We don't need help, just don't get in the way."
The issue of energy security and decentralizing power generation capacities has been discussed at all levels for months. As winter approaches, the challenges intensify, with the threat of blackouts and the added complication of the heating season.
Distributed generation seems like a near-panacea. However, for its successful implementation, conditions must be created. In simple terms, two key issues need to be addressed at the level of state regulation: removing bureaucratic obstacles to project implementation and ensuring profitability for investors.
The government has already taken some steps. In May, the energy regulator (NEURC) simplified the procedure for connecting generating units (gas turbines, gas engines, cogeneration plants) to the power grid through Resolution No. 875. This allows customers to connect their units to the grid quickly.
The regulator also amended Resolution No. 352 of March 26, 2022, instructing to shorten the timeframes for issuing and approving technical specifications, reduce the number of documents required for connection, and establish minimal technical requirements for parallel operation of generating units with the energy system.
The document has been approved, and local operators (regional power companies) have been informed. It seems like the procedure has been simplified, and investors have the green light. But the process is only simple on paper. On the ground, it’s a different story.
A Practical Example: LLC "Agroterminal Construction" (Sumy), understanding the energy situation, decided to install its own generation capacity and applied to the local distribution system operator (DSO) for the temporary connection of a 1,560 kW cogeneration unit.
The official request was made "for the purpose of supplying electricity to the external grid as an electricity producer." Simply put, the plan was that the "large generator" we purchased would meet our own needs, and the excess electricity would be supplied to the grid.
However, in discussions with the local DSO, we encountered "different interpretations." The regional power company simply does not recognize the NEURC resolutions, making it impossible to connect us as an electricity producer to the grid.
What’s the problem? All legal requirements have been met, the technical conditions comply with the regulations, and alternative connection points have been proposed.
In response, the local DSO provided a letter stating they lack the material and technical resources to connect the cogeneration unit and are unable to carry out the construction work, ignoring the alternative connection points we provided.
The local DSO suggested we begin a "major construction project," which would delay the possibility of supplying excess electricity to the grid by almost a year.
Second Example: Ensuring an uninterrupted electricity supply for us, an egg producer, became critical after massive attacks on the power system. In 2023-2024, we decided to implement alternative electricity supply projects. At the Avis poultry farm of PJSC "Avangard Agroholding" in the Khmelnytskyi region, solar panels and cogeneration units were installed.
Currently, the solar panels have a capacity of 3.5 MW. Additionally, a 1 MW cogeneration unit was launched, and two more are planned for installation.
The company intends to take advantage of the recently introduced mechanism for independent electricity production, obtain active consumer status, and be able to transmit excess electricity to the grid.
In response to the company's application, the DSO referred to the law on alternative energy sources, specifically the article "Encouraging the Production of Electricity from Alternative Energy Sources through the Self-Production Mechanism."
In reality, this article applies to all generating units commissioned before December 31, 2029, regardless of whether renewable energy is used. While company representatives write letters and knock on doors, excess electricity is wasted.
Thus, we have reached a deadlock in our relationship with local energy providers, and this problem is not isolated. UkrLandFarming PLC, which includes the two mentioned companies, has already purchased and plans to install 49 more units in 2024. Their total capacity will be about 70 MW.
Of course, this is not much on a national scale. It’s clear that this generation will primarily meet the needs of our enterprises. However, it will also provide electricity and heat to 50,000 apartments from Lviv to Kharkiv.
There is much to discuss—state support programs, national strategies, investments, and investors. But until there is a truly fast, transparent, and effective connection mechanism, we will continue to sink into darkness and cold.
Material from "Ukrainska Pravda"