Industrial solar stations

In this section of our website, you can get acquainted with the main stages and constituent elements that arise during the construction of industrial solar power plants on the territory of Ukraine, regardless of their capacity. Industrial solar stations are called solar energy facilities, established by legal entities on the ground, on the facade or roof.

Currently, there are mechanisms in Ukraine that encourage the development of renewable energy, primarily including: the ability to sell electricity on the Day-Ahead Market (DAM) to any supplier, the possibility of selling electricity through a self-production agreement as an active consumer (net billing), and selling guarantees of origin for generated electricity, the so-called "green" certificates. There is also the possibility of connecting energy storage systems (ESS) and hybrid inverters with batteries to external grids. These procedures are ensured and regulated by the Law of Ukraine "On the Electricity Market" and the Law of Ukraine "On Alternative Energy Sources."
According to the latest changes in Ukrainian legislation, solar power plant (SPP) owners have gained a great opportunity to sell electricity with minimal interaction with state institutions. Specifically, the requirement to obtain a license from the National Energy and Utilities Regulatory Commission (NEURC) for capacities up to 5 MW has been abolished. Owners can now install SPPs and sell excess electricity within the existing connection capacity to the grid of a Distribution System Operator (DSO) to an independent supplier. They are also allowed to connect energy storage systems (ESS), among other innovations. This means you can sell the generated electricity on the direct contracts market at its commercial value, and sell guarantees of origin for electricity exclusively to commercial organizations without additional state regulation.
As of today, industrial solar power plants can be conditionally divided into three types: SPPs that sell electricity to suppliers at the Day-Ahead Market (DAM) price; SPPs that operate under the self-production mechanism (active consumer); and SPPs that work exclusively to reduce the existing consumption of an enterprise. Below are the main advantages of each type of SPP, along with estimated cost indicators for commercial tariffs for each type, and some specific features of each system are also highlighted.

RATINGS SOLAR ENERGY eng

* Independent rating of companies for the construction of PV stations in Ukraine from 2010 - 2020.

OBJECT CATEGORY OF ELECTRICAL POWER ENGINEERING,
FOR WHICH “GREEN” TARIFF IS APPLIED

For electricity generated from solar radiation by energy facilities, regardless of their capacity, the tariff is determined in accordance with the electricity purchase agreement on the Day-Ahead Market (DAM) and within the balancing group. From May 1, 2024, to October 1, 2024, the average tariff for solar power plants (SPPs) on the DAM is 4 UAH per kWh, excluding VAT.

The actual payback period for such SPPs is up to 5 years, depending on the electricity price on the DAM, without taking into account revenue from the sale of guarantees of origin for electricity. The implementation period for such projects is generally up to 6 months.

UAH, excluding VAT.
4
from 01.05.2024
to 01.10.2024

For electricity generated from solar radiation by energy facilities connected within the existing connection capacity under a Distribution Agreement with the Distribution System Operator (DSO) through the self-production mechanism, the tariff is determined as a combination of savings from operating the solar power plant (SPP) to reduce its own consumption and revenue from the sale of excess electricity in accordance with the electricity purchase agreement on the Day-Ahead Market (DAM). From May 1, 2024, to October 1, 2024, the average cost of 1 kWh for consumption is 8-9 UAH, while the average tariff for SPPs on the DAM is 4 UAH per kWh, excluding VAT.

The actual payback period for such solar power plants (SPPs) is up to 3 years, depending on the electricity price on the Day-Ahead Market (DAM), transportation, and distribution costs, excluding revenue from the sale of guarantees of origin for electricity. The implementation period for such projects is generally up to 4 months.

UAH, excluding VAT.
7,5
from 01.05.2024
to 01.10.2024

For electricity generated from solar radiation by energy facilities that are connected within the existing connection capacity under a Distribution Agreement with the Distribution System Operator (DSO) and that operate exclusively to reduce their own consumption, without generating into the external grid, the average cost of 1 kWh for consumption from May 1, 2024, to October 1, 2024, is 8-9 UAH, excluding VAT.

The actual payback period for solar power plants (SPPs) is up to 3 years, and this payback period can decrease with an increase in electricity prices for commercial enterprises. The overall project implementation period is up to 3 months. This SPP does not allow for the sale of electricity on the Day-Ahead Market (DAM) or the revenue from the sale of green certificates.

This type of system is completely independent of external regulatory factors and does not require coordination with the Distribution Company ("Oblenegro"). The feasibility of installing this type of solar power plant (SPP) depends solely on the cost per kWh of electricity for industrial enterprises.

UAH, excluding VAT.
8-9
from 01.05.2024
to 01.10.2024
PV structure (operation principal of PV station)
Basic elements of industrial inline solar power stations:
I
Solar panel is a principal component of PV, it serves for sunlight-to-electricity conversion
II
Supporting metalwork is metal goods, allowing mounting of solar panel on ground, roof and front of a building
III
Converter - converts and transfers electrical energy from solar panels to external network
IV
Automatic system for commercial accounting of power consumption is a metering system of electrical system of solar station on generation and for own requirements
V
Power facilities is a complex of equipment which serve for power delivery provision of PV, according to electrical networks requirements, including switch boards, electric transformer, electricity transmission lines

STAGES OF PROJECTS REALIZATION
INDUSTRIAL SOLAR POWER PLANTS

I
14-30 days
Pre-project
analysis
II
30-60 days
Technical specifications
for connection
III
30-60 days
Project
design work
IV
60-120 days
PV
construction
V
30-60 days
NEURC for solar power plants (SPPs) from 5 MW.
VI
30-60 days
Independent System Operator (ISO) and State Enterprise "Guaranteed Buyer," Independent Supplier.
14-30 days
Pre-project
analysis
  • — Analysis of opportunity and building conditions of PV
  • — Estimation of projected generation
  • — Technical and economic analysis of PV construction practicability
  • — Project definition
  • — Confirmation of technical design assignment of PV
30-60 days
Technical specifications
for connection
  • — Feasibility study design for connection to networks of regional power Distribution Company (where applicable)
  • — Getting of optimal technical conditions for PV connection
  • — Confirmation of terms for the project of connection to networks of regional power Distribution Company
30-60 days
Project
design work
  • — Geologic and geodetic prospecting
  • — Selection of basic facilities
  • — PV project development
  • — Project development of connection of PV to regional power distribution company networks
  • — Development of technical specifications and automatic system for commercial accounting of power consumption project
60-120 days
PV
construction
  • — Procurement of permits for commencement of construction
  • — Execution of construction and installation activities
  • — PV connection operations
  • — Obtaining of documents, approving facility readiness for operation
30-60 days
NEURC for solar power plants (SPPs) from 5 MW.
  • — Obtaining a License for the Right to Produce Electricity.
  • — Procedure for Obtaining a Tariff Through an Auction.
30-60 days
Independent System Operator (ISO) and State Enterprise "Guaranteed Buyer," Independent Supplier.
  • — Formalizing the procedures for working with the Independent System Operator (ISO) and the Distribution System Operator (DSO) necessary for the production and sale of electricity.
  • — Signing a purchase and sale agreement for electricity with the State Enterprise "Guaranteed Buyer" or with an independent supplier.

All stages are indicated in the required sequence. It is possible to perform some stages in parallel, with a total time interval of 6-8 months, regardless of the capacity of the PV.