Energy Reserves: How Ukrainian Businesses Can Achieve Energy Independence

Oleksandr But, solar energy expert, CTO of SUNSAY NRG.

It’s nearly impossible to find a business in Ukraine that hasn’t felt the impact of prolonged power outages. However, even those affected are finding ways to adapt. A third of companies have the capability to provide their own electricity during centralized power failures. Most commonly, these businesses use generators, but nearly half of them diversify their energy sources by incorporating solar panels or gas-powered units. As a result, demand for energy storage systems is growing rapidly.

How does it work?

Energy storage systems consist of batteries connected to the grid, capable of absorbing excess energy and feeding it back into the grid during periods of high demand. These systems allow businesses to reserve energy for use during outages or purchase electricity at lower nighttime rates for future use.

Energy storage systems: who needs them and why?

There are three main user segments for energy storage: small businesses, medium-sized enterprises, and large industrial facilities. For example:

• A small business, like a shop or auto repair service, might need a system with a capacity of up to 200 kW.
• A medium-sized manufacturer might require up to 1,000 kW.
• Large industrial companies typically utilize more powerful, modular systems.

While this technology is versatile and can benefit everyone, who stands to gain the most?

Take, for instance, a large metallurgical business with extremely high energy demands. Even a powerful modular storage system could only sustain uninterrupted operations for 20–30 minutes.

From a technical standpoint, energy storage is an alternative to fossil fuel-powered generators. Its advantage lies in its flexibility — not only during outages. Unlike generators that might sit idle for months waiting for the next blackout, energy storage systems can be used daily. Businesses can store electricity purchased at lower rates, reducing costs and ensuring operational efficiency.

For example, electricity costs drop significantly at night during off-peak hours (11:00 PM to 7:00 AM). Businesses can purchase cheaper energy and use it during peak hours. If the grid supply falls short, the stored battery charge can supplement the energy supply, boosting a business’s capacity without requiring costly upgrades to the grid.

Additionally, demand for energy storage systems is increasing alongside the growing adoption of renewable energy sources. Solar energy production, for instance, fluctuates depending on weather conditions and time of day, leading to periods of overproduction or shortfalls. This is where storage systems play a critical role. Businesses with solar panels can store surplus energy generated at midday and use it during the evening.

Three key benefits of energy storage:

1. Energy backup – power continuity during outages.
2. Cost arbitrage – purchasing energy at lower rates for later use.
3. Optimized renewable energy use – storing surplus solar energy for evening consumption.

Energy independence in action: a case study in Bohuslav

Energy storage systems can ensure seamless production transitions during outages — an essential capability for most Ukrainian businesses. While generators are helpful, they don’t solve the issue instantly, as it can take 1-5 minutes to switch power sources. During this time, equipment might stop, leading to material losses or production downtime. Industrial-grade storage systems enable smoother transitions and help balance energy consumption throughout the day by drawing on stored energy during peak hours.

For maximum efficiency, storage systems can be integrated with generators. One such project is currently underway in Bohuslav. It’s the first project of its kind in the region and one of the most complex, combining solar panels, a generator, and automated transitions between power sources. This setup ensures a seamless switch to alternative power during outages, maintaining uninterrupted production.

The Bohuslav system, which has a capacity of 400 kWh and is paired with a 500 kW generator, took about four months to design, build, and configure. Now that the team has gained experience with such systems, similar projects can be completed twice as quickly.

International context: lessons for Ukraine

While Ukraine is only beginning to implement large-scale energy storage projects, other countries are well ahead. For instance:

• In Australia, W?rtsil? is building a massive 2,800 MWh storage system capable of powering over 150,000 households.
• In Spain, a developer plans to build the world’s largest energy storage system in Chile by 2026.
• Latvia has launched its first municipal energy storage project, which stores surplus wind energy and releases it during peak demand.

For Ukrainian businesses, energy storage represents a form of decentralization, enabling localized energy usage. The country’s energy challenge lies not in supply shortages but in managing peak demand. By scaling up energy storage adoption, Ukraine can reduce these demand spikes. DTEK has already begun this process, announcing plans to build a 200 MWh storage system made up of several geographically distributed units across the country.

Energy storage systems hold potential for every region in Ukraine—from southern areas rich in solar resources to less sunny regions like Kyiv.

Will energy storage become a trend in Ukraine?

The energy storage market in Ukraine is growing rapidly as businesses seek quick ways to adapt to sudden changes in energy supply. Storage systems have the potential to revolutionize energy distribution and consumption. However, the trend's success depends on both businesses and government support, including regulatory, financial, and technological initiatives.