The USAID Energy Security Project (ESP) presented the results of the technical and financial analysis of the project to introduce distributed generation at facilities of the Public Utility “Vinnytsiamiskteploenergo.” The project also aims to ensure the power supply of critical infrastructure facilities in emergencies.
Mykola Formanyuk, Deputy Mayor of Vinnytsia, thanked USAID for the technical assistance in ensuring a reliable power supply in the city, particularly in the conditions of considerable damage to Ukraine’s energy system by Russia. “For local self-governance, providing the required services for the city’s vital activity is extremely important. We bear responsibility for this, and with the support of your project (ESP), we will be able to discharge our obligations to Vinnytsia inhabitants” – Mykola Formanyuk said.
Maxym Bilyk, Head of the PU “Vinnytsiamiskteploenergo,” has noted the positive dynamics of cooperation with the USAID ESP: provided technical assistance that allowed the considerably improved reliability of power supply for the utility boiler houses. The collaboration between the city and the USAID ESP is expanding and covers the city’s critical infrastructure. “Considering the condition of our energy system, we clearly understand that cities should develop a distributed generation or cogeneration. This solution will help us survive through the future heating period and improve the reliability of the city power supply,” Maxym Bilyk said.
Ievgen Glushak, USAID ESP Chief Heat Supply Expert, during the presentation of technical assessment results, emphasized that the guarantee of success of such projects is an interest by local power, its initiative, support, the possibility to quickly and reasonably identify the list of critical infrastructure facilities, combine into the process all public and non-public infrastructure utilities to achieve a single goal: ensure the vital activity of the city even subject to lack of power supply from the integrated power system of Ukraine. The expert also added that the city of Vinnytsia is a leader in implementing the distributed generation project in Ukraine.
The preliminary analysis conducted by the USAID ESP based on the checklist data implied an assessment of the technical feasibility of projects on the selected heat sources considering local conditions, including the energy needs of local critical infrastructure facilities and financial and economic advisability. At the same time, during the analysis, the power engineers of Vinnytsia covered as many critical energy infrastructure facilities that need a power supply in emergencies as possible. The assessment of technical feasibility was based on the assumption of including in future projects the following components: cogeneration plants (CGP) (CHP, mini CHP), which fire natural gas or alternative fuels, solar energy facilities, waste incineration plants, landfills, biofuel production plants, and energy islands.
The technical analysis of the heat supply infrastructure of the city of Vinnytsia allowed the USAID ESP experts to make an assumption that the cogeneration equipment installed or that to be installed will be able to operate for a year with maximum efficiency. Thus, the heat supply utility can use cogeneration equipment during the war and in peacetime. At the same time, the utilization of cogeneration plants will be more efficient compared to operational gas boilers. As a result, the city will receive savings at the expense of its electricity consumption and heat supply.
“The results of financial analysis of advisability concerning the CGP installation to replace gas boilers at the PU “Vinnytsiamiskteploenergo” and to supply electricity to critical infrastructure facilities in the mode of energy island are quite positive. It means that the project proposed by USAID ESP experts is investment attractive and could also be implemented in other cities even without the attraction of grant funds for procurement of CGP, under the public-private partnership mechanism” – Nadiia Iermolenko, the USAID ESP Senior Financial Expert noted.
The analysis conducted is the basis for this project’s next development step. The ESP, jointly with the Utility, has agreed to move to the development of the preliminary feasibility study on the introduction of distributed generation and the attraction of investments to implement it.
The USAID ESP support to local communities, particularly those in Vinnytsia, is focused on helping to develop flexible, resilient, and sustainable energy supply schemes through the introduction of distributed generation. The pre-feasibility study of projects will allow the cities in the future to:
- develop the distributed energy generation
- strengthen the integration of renewable energy
- improve energy efficiency of heat supply systems
- strengthen energy security and resilience of local communities.