Since the full-scale invasion, Russia has been purposefully and systematically attacking the energy infrastructure of Ukraine. To ensure uninterrupted energy supply to critical infrastructure facilities during emergencies, the USAID Energy Security Project (ESP), jointly with the Ministry for Communities and Territories Development of Ukraine (Ministry for Restoration), is implementing the project to develop distributed generation in communities, including the establishment of energy islands.
Recently, USAID ESP presented to representatives of the Public Utility Ternopilmiskteplocommunenergo the financial model of energy islands, which can be established based on the municipal thermal energy infrastructure.
Ievgen Glushak, the USAID ESP Senior Heat Market Officer, explained that it was decided to establish five energy islands to improve the energy supply of the city and get ready for work under the emergency power cuts. “The City Council identified the list of critical infrastructure facilities, which will be connected and energized from these boiler houses in emergencies. Other boiler houses, hospitals, strategic enterprises, establishments, etc. are among such facilities,” he said.
Presenting the financial model, Andrii Bykov, the USAID ESP Financial Expert, emphasized that the purpose of the model’s development was to analyze the feasibility of installing cogeneration plants (CGP) to replace Ternopilmiskteplocommunenergo gas boilers. According to Bykov, as a result of the project’s implementation, the Utility can achieve several types of savings, particularly through its own electricity consumption, the sale of surplus energy in the market, as well as the higher fuel efficiency of CGP compared to a gas boiler. According to the expert’s estimates, the annual savings can amount to about UAH 103.6 mln.
A financial model is a tool that allows the simulation of various scenarios considering different output data, assumptions, and needs. “It gives answers to questions about what the utility can gain from the project,” Ievgen Glushak says. “The received data could be used to develop an investment program, demonstrate the results of investment activity, and substantiate to the state regulator the tariff component.”
Thus, the Utility will be able to input its own data and analyze the financial results. If necessary, USAID ESP experts will conduct training for Ternopilmiskteplocommunenergo employees on the practical use of the proposed model.
The project is being implemented in Vinnytsia, Khmelnytskyi, and Ternopil, and aims to provide sustainable heat, electricity, and water to over 800,000 inhabitants in case of emergencies. USAID ESP has already begun developing a pre-feasibility study (FS) to introduce distributed generation with the possibility of establishing energy islands in these cities.