Ukraine is expanding its energy storage systems with a capacity of 30 MW.
Oschadbank has signed a six-year investment agreement with the international Ukrainian company KNESS for an amount of €9.6 million. These funds will be used to finance and refinance the construction and commissioning of energy storage systems (ESS). The European Bank for Reconstruction and Development (EBRD) is also involved in the project, participating in the sharing of investment risk.
Project Details The project aims to build and connect new energy storage systems to the grid. These systems will provide:
- 25 MW of frequency support reserve (FSR),
- 5 MW of automatic secondary reserve (AFRR).
These services will be provided on the ancillary services market, and the transmission system operator guarantees their purchase. The new energy storage system is planned to be operational by October 2025.
Growing Demand for Energy Storage The need for new storage capacity arises from the massive destruction in peak generation areas and the growing role of renewable energy sources. Modern energy storage systems will enable greater utilization of solar energy and stabilize electricity prices.
The KNESS Group is currently implementing seven energy storage system projects in three regions of Ukraine, with a total certified capacity of 79 MW FSR and 5 MW AFRR.
Technology and Investments in the Future The core component of the new system will be energy storage systems produced by Hithium, one of the leading Chinese manufacturers of energy storage systems for municipal, commercial, and industrial applications. The company is among the top five suppliers in global markets.
According to Yurii Katsion, Vice President of Oschadbank responsible for corporate business: “The need for new energy storage systems arises from both the mass destruction of peak generation and the development of renewable energy technologies. Strong storage systems will enable broader utilization of solar energy and reduce energy price fluctuations. The KNESS project, in which Oschadbank participates, is one of the first examples of a systematic approach to building regulatory capacity near Ukrenergo stations. The high demand for such services and the long-term prospects for economic recovery contribute to the further development of this market.”
Serhii Shakalov, CEO of KNESS, emphasizes the challenges of financing such investments: “The development of energy storage is the future of the renewable energy sector. However, obtaining bank financing for such projects is a challenge because there is still a lack of long-term operational experience in the functionality of ancillary services. We are pleased that Oschadbank recognized the potential of our project and decided to support it.”
About KNESS KNESS is an international group of companies originating from Ukraine that develops technologies and implements renewable energy projects. The company designs and builds renewable power plants, manages energy forecasting and trading, and produces its own components for the energy sector.
In 2023, KNESS became the first company in Ukraine to obtain a license to operate in the energy storage sector. To date, it has completed 1.3 GW of solar power plants in Ukraine, Poland, and Latvia, and 1.48 GW of generation capacity is under its comprehensive service maintenance.