How can businesses prepare for the next winter? Insights from Yevhen Korf, CEO of the international engineering and industrial consortium Energo-Plus.
According to a January survey conducted by the European Business Association, 80% of companies in Ukraine reported experiencing the adverse effects of power supply disruptions. These disruptions have resulted in higher production costs, changes in operating schedules, and reduced output volumes. At the same time, businesses have been actively investing in energy independence. Ninety percent of the surveyed companies stated that they already have their own alternative energy sources or on-site power generation facilities.
The traditional approach of relying on a generator as the sole backup power source is no longer sufficient to ensure business resilience. Energy independence is a comprehensive system that combines on-site power generation, energy storage, and automated load management. The range of available solutions has also expanded considerably, from solar power plants to cogeneration units. The question is no longer whether businesses should invest in energy independence, but which solution best matches their operational requirements?
Small Businesses: Essential Solutions for Reliable Operations
For small businesses, such as cafés, beauty salons, and small retail stores (provided sufficient installation space is available), the optimal solution is a combination of a small-scale solar photovoltaic (PV) system with a capacity of 5–30 kW and a battery storage system equipped with an inverter capable of charging from the grid and/or solar power. For example, a typical configuration may include a hybrid inverter with a capacity of 5–6 kW or higher, such as models manufactured by Deye, Solis, Must, Felicity, and other suppliers; a LiFePO₄ battery system with a storage capacity starting from 10 kWh; and a solar array with an installed capacity of 5–10 kW.
The cost of a basic backup power system for a small business — consisting of a 5–10 kW inverter, a battery with a storage capacity of approximately 10 kWh, and solar panels with an installed capacity starting from 5 kW — typically ranges from $4,500 to $10,000, depending on the system configuration.
Per unit of installed capacity, such solutions typically have a higher cost per kilowatt — often exceeding $800/kW — due to lower economies of scale and a higher proportion of auxiliary costs.
During daylight hours, the photovoltaic (PV) system partially or fully covers electricity consumption while simultaneously charging the batteries. During grid outages, the business continues to operate using the energy stored within the battery system.
A more economical solution for small businesses consists of a battery energy storage system (BESS) integrated with an inverter and supported by a diesel generator intended to operate during extended power interruptions.
A more sophisticated configuration can be implemented by utilizing time-of-use (ToU) electricity tariffs. In this case, the battery energy storage system (BESS) is charged from the grid during low-tariff nighttime hours and subsequently used to supply electricity to connected loads during the day.
Medium-Sized Businesses: Integration and Automation
Industrial facilities, logistics hubs, retail centres, and healthcare institutions generally operate under significantly higher electrical loads and, consequently, require larger installed capacities. Under these conditions, an integrated energy solution is the most effective approach:
- photovoltaic (PV) installations with an installed capacity of 50–300 kW;
- battery energy storage systems (BESS) equipped with inverters (for example, Huawei SUN2000-5/6/8/10/12K units, Solis S6-EH3P30K-H 30 kW hybrid inverters, FOX ESS Three Phase Hybrid systems, or ATESS HPS30000TL, HPS40000TL, and HPS50000TL models) designed to supply critical loads during periods of power shortages;
- a gas-fired generator as a backup source (for example, the AKSA APG 40 LPG generator powered by liquefied petroleum gas).
Why do I recommend a gas-fired generator in this case? It offers greater reliability, a longer service life, lower electricity generation costs per kilowatt-hour, and easier automation. Provided that a stable gas supply is available, the unit can be configured for automatic start-up and shutdown, as well as for maintaining the required power output.
Gas reciprocating engine units configured for combined heat and power (CHP) operation should also be considered. Such installations simultaneously produce electricity and recover waste heat that can subsequently be used for building heating systems or industrial processes. This approach makes it possible to increase the overall system efficiency to 80% or more, significantly exceeding the efficiency of separate electricity and heat generation.
For medium-sized enterprises, an automated energy management system (EMS) should be deployed to coordinate and prioritize the available energy sources. Under a typical operating scheme, solar generation is utilized first, surplus electricity is stored in the battery energy storage system (BESS), and any remaining demand is covered by grid imports. During a grid outage, the battery system supplies critical loads, after which the gas-fired generator is automatically started in accordance with the predefined dispatch logic.
For medium-sized businesses, the key objective is to integrate all components into a single, centrally managed system in which each energy source operates in its most efficient mode.
The estimated cost of such a system — including an inverter with a capacity of approximately 30 kW, battery storage with a capacity of 30–40 kWh, and a photovoltaic (PV) installation with an installed capacity of approximately 30 kW — ranges from $30,000 to $40,000, depending on the selected configuration.
The cost of individual components may vary significantly. Inverters with a rated capacity of approximately 30 kW are typically priced at around $3,800–4,500, while higher-capacity solutions in the 30–50 kW range may cost as much as $9,000–18,000.
Large Businesses: Strategic Energy Independence
For industrial enterprises, agricultural holdings, and logistics hubs, strategic energy autonomy is of critical importance. This can be achieved through the creation of a dedicated “energy island” or a local microgrid. Such a system may be built around a photovoltaic (PV) power plant with an installed capacity of 5–10 MW, combined with battery energy storage systems (BESS) of comparable capacity.
These systems are generally built around high-capacity industrial inverters rated at 300 kW or more, similar to those deployed in utility-scale photovoltaic installations, such as the Huawei SUN2000-330KTL-H1 Smart String Inverter. It is also advisable to incorporate gas reciprocating engines or gas turbine units as dispatchable generation assets capable of covering both baseload and peak-load demand.
Although gas turbine units require higher initial investment and operating expenditures, they provide longer operating intervals between major overhauls, more stable performance under high-load conditions, and superior suitability for continuous operation. As with medium-sized installations, waste heat recovered from gas reciprocating engines and gas turbine units can be utilized for space heating and industrial processes within a combined heat and power (CHP) configuration, increasing overall fuel-cycle efficiency.
An essential component of such a microgrid is a fully integrated automation system that includes distributed controllers, a microgrid management system, as well as load forecasting and optimization algorithms. Without these elements, even the most advanced generation assets remain nothing more than a collection of independently connected units operating without coordination.
Investments in solutions of this kind are measured in millions of dollars. Depending on the configuration, the cost of a microgrid may range from approximately $1.75 million to $10–15 million or even more.
Larger systems typically have a lower cost per kilowatt of installed capacity. For example, ground-mounted installations with capacities ranging from several dozen to several hundred kilowatts may cost approximately $380–500 per kilowatt, depending on their technical specifications and overall system configuration.
There is no universal payback period for solutions of this kind, as it depends on a number of factors, including the nature of the business, the consumption profile, electricity tariffs, and the financial impact of operational downtime. However, under conditions of energy instability, the key factor is a company’s ability to maintain uninterrupted operations and accurately forecast its own costs rather than react to disruptions after they occur.
Author: Yevhen Korf, СEO of NVP ENERGO-PLUS LLC.
Source: Forbes.
