The USAID Energy Security Project (ESP), together with the Ministry of Communities and Territories Development of Ukraine (Ministry of Restoration), is supporting a project to develop distributed generation in Ukraine. This will make the energy system of Ukraine more flexible and resilient to challenges caused by Russia’s aggression and provide sustainable heat, electricity, and water to over 800 000 residents of Vinnytsia, Khmelnytskyi, and Ternopil in case of emergencies.
A coordination meeting on developing a pre-feasibility study (FS) related to the introduction of distributed generation with the possibility of creating energy islands in Vinnytsia, Khmelnytskyi, and Ternopil took place recently. The participants, including representatives of USAID, ESP, Ministry of Restoration, local authorities, and public utilities, agreed that distributed generation strengthens Ukraine’s energy security.
“Our common mission is to enhance the energy infrastructure of Ukraine, develop distributed generation, and speed up the important reforms that would make Ukraine a leader in low carbon, competitive energy economy integrated into Europe,” said Kathleen Kirsch, Deputy Director, Office of Critical Infrastructure, USAID/Ukraine.
The local officials thanked USAID ESP for the technical support provided, specifically, for the cogeneration plants, allowing communities to increase their energy resilience. They emphasized the importance of qualified specialists who would efficiently operate new equipment and suggested that the project include dedicated pieces of training for specialists.
Special attention was paid to the need of involving investors in implementing projects. Ievgen Glushak, the USAID ESP Senior Heat Market Officer, emphasized that the purpose of developing the pre-feasibility study is to attract additional financial resources to introduce distributed generation at municipal heat supply facilities: “The pre-feasibility study will allow cities to present investors a clear development plan demonstrating the purpose of the project, the needs of the community and potential benefits from its implementation.”
The main steps of the work would include a technical and economic analysis of two cogeneration technologies, elaboration of the plant connection and installation schemes, an assessment of capital and operating costs, and the development of an economic model for the project implementation.
Projects such as this, which include the creation of energy islands, will contribute to the development of the infrastructure of communities by ensuring that critical infrastructure facilities will operate even during power outages. In addition, it will result in a reduction in natural gas consumption and annual costs due to the utilization of self-produced electricity and provide an opportunity to sell its surplus in the electricity market.