On September 3, DTEK Renewables took part in the ‘Store and Earn’ forum organised in Kyiv by the state-owned company Market Operator. Company representatives shared their experience of implementing a large-scale project to build 200 MW energy storage facilities in Ukraine with government officials, market participants and experts.
During the panel discussion ‘Practical cases of ESS. Financing and regulatory aspects,’ Polina Korchak, Head of the Economics and Finance Department at DTEK Renewables, outlined the main conditions for attracting external financing for green energy and ESS projects.
She said that banks prefer guaranteed cash flow, which makes projects more attractive. At the same time, banks' interest increases when there are state auctions and clear mechanisms for electricity off-take.
Polina Korchak identified the following challenges in fundraising: doubts about the stability and completeness of project revenues, some regulatory uncertainty in the ESS, lack of market history and predictability in the sector, as well as military risks.
‘Successful preparation of a project for raising finance begins with a strategic vision, being open to partnerships and adhering to the principles of sustainable development. It is also important to have a clear implementation plan, be ready for construction, and have all the necessary documents for audits and inspections – from technical to ESG,’ emphasised Polina Korchak.
She also stressed that foreign financial institutions pay considerable attention to compliance with environmental and social sustainability standards, as well as to the assessment of environmental and social risks in the context of project financing.
Vadym Utkin, Advisor to CEO of DTEK Renewables, also spoke at the panel discussion ‘Development of ESS: the role of auctions, experience, barriers, and prospects.’ He told about the prospects of building ESS outside of auctions and shared his analysis of price trends in the market and how they affect the efficiency of ESS projects implementation.
‘When presenting your strategy to internal or external investors, you need to take into account that the ESS business will be based on certain hours of large price fluctuations in the market if the strategy is based solely on price arbitrage,’ said Vadym Utkin.
According to his estimates, the period from March 2025, when the price spread separated from the weighted average DAM price, became particularly attractive for ESS projects. This effect is most likely due to the growth of RES, especially behind-the-meter PVs. The decline in global prices for ESS, the experience gained in construction, and the construction of renewable energy sources will potentially allow ESS investors to present their projects to financial institutions with greater confidence.
During the full-scale war, DTEK Renewables invested EUR 200 million in the construction of the first phase of the Tyligulska WPP with a capacity of 114 MW, attracted EUR 370 million under the guarantee of the Export and Investment Fund of Denmark (EIFO) for the construction of the second phase of the WPP, and also invested EUR 125 million in 200 MW capacity energy storage system.
