On November 3, 2025, UWEA held the second webinar in a series dedicated to energy storage facilities (ESPs) – a technology that is gaining momentum in Ukraine. However, if the first event was dedicated to the legal basis for launching ESP projects, this time the focus shifted to the economy, investment attractiveness of such projects and regulatory practice in the market. Sharing their experience, the webinar speakers proved that in just a few years ESPs can become not just a technological addition, but a full-fledged driver of the profitability of the electricity market. Especially if the three main pillars of commercial activity in the market are: financial efficiency (from the correct calculation of ROI to the optimal ratio of power and capacity), an effective profitability strategy (choice between arbitrage in the DAM/VDR markets, participation in the provision of ancillary services or the creation of hybrid models) and an attractive regulatory environment (ensuring licensing, determining the status of an active consumer and proper legal registration of activities).
The event was moderated by Igor Retivov, partner at Altelaw & Sempra, chairman of the UWEA Committee on the Development and Implementation of UZE, and the invited speakers were:
- Yuriy Ostapʼyuk, Deputy Director of the Department, NEURC;
- Yegor Zakharchenko, Head of the Department for Work with RES and UZE, D.Trading;
- Serhiy Kravchuk, Director of Trading and Electricity Supply KNESS, Deputy Chairman of the UWEA Committee for UZE Development;
- Maryna Ilchuk, Advisor to the Energy and Climate Change Practice of CMS Ukraine.
Taking the floor first, Mr. Ostapyuk, whose presentation was devoted to possible usage models and features of connecting UZE to the grid by various market participants, noted that “the role that UZEs play today in the areas of primary and secondary regulation is difficult to overestimate. UZEs are one of those tools that can significantly facilitate the “breathing” of our energy system and allow for uninterrupted electricity supply.”
Next, Mr. Zakharchenko, the head of the direction with over 250 MW of UZE under management, focused on commercial issues and financial and economic modeling depending on the type of project: whether it is a project without a long-term contract and fixed income, the level of profit of which depends on the trading strategy of the optimizer/aggregator, or a project that involves cooperation with NPC Ukrenergo within the framework of long-term auctions. “If we talk about the frequency restoration reserve (RFR), then depending on the scenario and work profile, our experience shows from 23 to 28% IRR of such projects. Anything that goes beyond this range usually indicates either overly optimistic calculations or failure to take into account important parameters,” noted Yegor Zakharchenko. In general, the representative of D.TRADING noted that “a professional commercial strategy is always a mix of different profitability models. There is no universal formula. Each project requires its own approach, taking into account market risks, technical capabilities, and regulatory frameworks.”
Continuing the webinar, Serhiy Kravchuk revealed both more general issues of the philosophy of installing UZE, and more specialized ones – the possibilities of using one UZE in different market segments and the features of UZE management using EMS systems using the example of a software solution developed by KNESS. The future of the industry is in the combination of generation, storage and digital management. It is such solutions that allow you to create flexible, cost-effective energy systems of the new generation. “The EMS system analyzes the market in real time, forecasts the load and automatically makes decisions when to sell, when to charge, and when to support the network,” said Mr. Kravchuk.
Finally, Maryna Ilchuk paid attention to the legal aspects of the activities of active consumers, including in the case of their installation of UZE, and the mechanisms for regulating relations between an active consumer and a TSO/DSO, a third party (supplier) and an aggregator. An active consumer who has his own energy storage installation can not only optimize his own consumption, but also enter the market as an independent player, ensuring the flexibility of the system and receiving additional income. “Today, the legal field is gradually catching up with the technological dynamics of the market. It is extremely important to clarify at the legislative level the status of an active consumer, as well as the status for electricity producers who have installed energy storage systems,” the speaker noted.
Thus, energy storage systems are becoming a key link between renewable energy generation, consumption and flexibility of the energy system, and also open a new segment of investment activity for business.
UWEA expresses sincere gratitude to all speakers for their high professionalism and willingness to share experience, and to the participants of the event for their active participation and interesting questions.
You can read the speakers’ materials at the link: https://drive.google.com/drive/folders/1iK0iCoYJVbKk6gTFxVUB2VAFNHSmfqUN?usp=share_link
The webinar recording is available on the page UWEA Youtube.
