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Ivan Grygoruk. The consumer becomes an active prosumer, so it's necessary to dispatch their activities as well

Discussion of how Ukraine will have to transition to Smart Grids, the current challenges with investments and qualified personnel in the process of modernizing power grids, and the necessity of state guarantees and control during the transition.
Q: In the context of the shelling of power grids, there's talk about distributed generation and Smart Grids. If this begins to be implemented, what should the grids be like?

A: Let's start with generation. Distributed generation is needed for the flexibility, reliability, and security of the Integrated Power System of Ukraine (IPSU), especially today when there is significant damage to critical infrastructure objects due to military actions. Distributed, in this sense, means various types of generation and types of power installations up to 20 MW that must be dispatched in the distribution power grid.

Distributed generation additionally provides a reliable power supply to critical infrastructure objects and domestic consumers in specific territorial locations. In the future, such generation will save certain regions from blackouts, as it can operate in normal mode in the IPSU, as well as in limited modes like repair-emergency modes and "island mode," meaning isolated operation. In isolated mode, distributed generation can maintain a reliable power supply at critical infrastructure facilities, hospitals, schools, state administrations, water supply, sewage facilities, etc. This generation is more flexible and resistant to today’s threats than large power plants.

Q: And the grids?

A: Currently, grids also face military challenges, particularly the constant destruction of power grids and substations of all voltage classes in our power system. Now, in the east of the country, distribution networks mostly operate on temporary schemes to provide power to consumers and by shunting the grids of Ukrenergo, i.e., supplying electricity to some regions with lower voltage classes: 150, 110 kV, etc. These are effective in the existing conditions but temporary solutions, and similar methods will continue to be used during the war.

Q: What about after the war?

A: In the post-war period, we certainly need to take a course toward the comprehensive recovery of Ukraine's entire economy. Transitioning to normal, non-war modes of operation in various industrial sectors, agriculture, and other economic sectors, while supporting the development of new large power consumers. For this, we will need to build new infrastructure, including power networks according to European standards, the latest international practices, and technologies, and using new equipment.
Only the implementation of comprehensive measures will ensure the flexibility, security, and reliability of the IPSU.

Moreover, the war has caused the relocation of consumers within the country, especially manufacturing and industrial enterprises, resulting in changes in the operation modes of the power networks.

Q: Will the generating units of distribution networks be able to take part in balancing the entire energy system?

A: Here we are approaching the principles of developing a Smart Grids in the context of forming dispatched balancing groups in specific regions.

Q: Who are they?

A: This is a certain symbiosis of relations between the producer of electrical or thermal energy and the consumer in a particular territorial community or region of Ukraine. For example, in a certain area, heat and electricity producers like CHPs, TPPs, wind farms, bioTPPs, solar or hydroelectric power stations, etc. On the one hand, and the other hand, the total consumption volume in the same area reaches conditionally 50% or 100% of the production of all capacities of the mentioned power installations. As a result, a balancing group can be formed, whose operation is dispatched at the level of distribution networks, meaning that consumption corresponds to production requests in some regions and surpluses are sold in all market segments and the ancillary services market. Then, this region becomes more independent of adjacent operation modes of the distribution system operators and the transmission system operator while maintaining the ability to operate both in synchronous and pseudo-synchronous modes, especially during significant damage to the IPSU for any reason. In such cases, heat and electricity consumption will be mainly provided by local power stations, increasing the level of resilience, reliability, and safety of the entire region's life.

In short, the main dispatching is localized at the level of such balancing groups, where local balances of electricity production/consumption are maintained, oriented towards their local consumption schedules and demand management. Even when forming such a model, there may be rolling blackouts, if necessary, during the elimination of certain faults and until backup power is provided from adjacent networks of DSOs or Ukrenergo.

Q: Who performs this function now?

A: At the level of the main dispatcher of Ukrenergo, and if the concept of the Smart Grids is implemented in distribution networks, this function can be brought to the local level.

Q: Great, but what are Smart Grids?

A: The principle of Smart Grids provides the operator with visibility of modes and modeling of the grid in all its sections, including consumers. The main component is an automated system for dispatching technological network management, for example, based on the ADMS platform, which provides more efficient network management, switching equipment: switches, reclosers, sectionalizers, and other equipment up to smart measuring devices, and service and emergency repair teams activity.

Dispatching allows for more operational response in any emergency or abnormal situation to ensure consumer power supply via a backup line, quickly determine the type of accident or identification of equipment malfunction, to immediately send a repair team to eliminate the fault.

In addition to optimizing the above measures aimed at the reliability and safety of grid operation, important is reducing technological losses in distribution networks. In the pre-war period, the average losses were 8%, now clearly more. By implementing the concept of digitalization of networks, it is possible to reduce losses to 4%.

Moreover, in the general context, the role of smart measuring devices is very important and should not be underestimated. Today's consumer becomes an active prosumer, so it's necessary to dispatch their activities as well, meaning that when producing electricity for their consumption, surpluses are fed into the grid. Now, many small capacity generators are being installed, and this will be a huge problem for the grids.

Without the implementation of Smart Grids principles, we won't be able to effectively deal with this problem. Especially with the operation of a large number of small capacity generators with diverse characteristics, which are currently practically operated without appropriate rules and proper dispatching.

The issues of SAIDI and SAIFI - standards of electricity quality and reliability of its receipt by the consumer, become particularly acute.

In the context of post-war recovery, we have to modernize medium voltage power grids, such as increasing the wire cross-section on overhead lines to improve the reliability and transmission capacity of the grids, using self-supporting insulated wire, and transitioning from overhead lines to cable ones. Further, it is necessary to envisage the possibility of transitioning to a higher voltage class - to 20/0.4 kV instead of 10/0.4 kV for DSOs. In rural areas, such a transition is less necessary, but in cities, the transition to cable lines and a higher voltage class is economically viable.

So, briefly, all these measures are elements of a Smart Grids.

Q: What voltage class is needed?

A: For Ukrenergo, maintaining 750 kV will be impractical. Only a few lines will remain, as technically, it will be complicated to re-equip them to a lower voltage class. Mainly instead of 750 kV, lines of 400, 330, and 220 kV will be operated.

As for DSOs, on the contrary, we almost have no 150kV left. Therefore, in operation, there will remain 110, 35 kV, there will appear 20/0.4kV, because 10 kV is a very inefficient voltage class for distribution networks. Of course, some 10 kV will remain, but like 150 kV, it will eventually become anachronistic.

Moreover, it is necessary to transition from overhead lines to cable lines. As an example, neighboring Poland is now implementing a program to transition from overhead to cable lines at the medium voltage level.

Q: Who should implement these changes, DSOs or Ukrenergo?

A: The principles of implementing Smart Grids are both for the transmission operator and for distribution operators. The transmission system operator must ensure grid visibility from the highest voltage class of 750 kV to 35 kV. And DSOs - from 150 kV to 0.4 kV, managing them in real-time modes, reacting quickly to emergencies, being able to model networks, and together ensuring the reliability, flexibility, and safety of the IPSU operation.

Therefore, Ukrenergo is already carrying out such measures, as it is necessary within the integration into ENTSO E. A Catalog agreed upon by the parties has long existed, where conditions of compliance with standards and rules of operation in the ENTSO E grid are prescribed.

In distribution networks, measures are more extensive, and the main ones we have already mentioned today.

Q: We practically discussed the Fourth Energy Package, even though we didn't mention it. In 2019, this package was finalized by the EU institutions and there, in particular, it talks about active consumers, prosumers...

A: Within the framework of the 4th Energy Package, we have to ensure:

First: is network reliability, which primarily means visibility, control, and automation. This involves creating a weather-resistant network capable of adequately responding to destruction and major malfunctions.

Second: flexibility. This concerns the quality, reserve capacity, and load management in the grid.

Third: an automatic grid regulation and optimization system. This means local dispatching.

Fourth: efficiency. This is about optimal network construction standards to minimize technological losses and costs.

Fifth: digitalization of network monitoring and planning.

Another important element of the 4th Energy Package is the integration of energy sources. This means not only renewable energy sources but also energy storage/regulation devices, charging stations for cars, etc.A separate section involves measures for the cybersecurity of grid operations.

It's important to note that to guarantee these conditions, it is necessary to harmonize our legal and regulatory framework and industry standards with European ones.

Q: How much will this all cost for distribution networks? Is it expensive?

A: Yes. Because this implies a global modernization of everything currently in operation across all distribution networks. Currently, we mostly operate equipment manufactured according to the standards of the 1970s-80s.

On the other hand, without the war, it would have been very difficult for us to shift towards full modernization and new network standards. In the past, each regional energy company, power plant, or energy industry enterprise had already formed inventory reserves of old equipment and components. There were no incentives or obligations for modernization, so everyone continued to operate as usual.

Regarding the cost. It's hard to say without pre-project calculations, but roughly, it's a minimum of $40 billion over 20 years. Of this, 30% will be needed for distribution networks in the first 3–5 years, as, apart from conducting modernization, they have to operate in new post-war conditions, providing reliable power to our consumers.

Q: Why is that?

A: Firstly, we have already relocated industrial enterprises, resulting in a changed consumption structure and operating modes of the power networks.

Secondly, with proper foreign policy in the post-war period, industrial capacities from Europe should be transferred to Ukraine. That's what we need and must fight for, namely a major consumer-industrial production: machine building, chemical industry, etc. We won't get far on agriculture alone, because even export-oriented agriculture doesn't require many workers, and no country in the world whose economy is solely based on agriculture has a chance for sustainable development. Therefore, we need to develop all possible industrial sectors, and for modern industry, we need modern power stations, electrical networks, logistics, and infrastructure.

Q: RAB tariffs won't be enough for this!

A: Of course. And now it's not even worth talking about, because it doesn't work. But in pre-war and post-war times, it was and will be a good tool to ensure the development of power networks.

Leaving distribution networks along with the demand for such large-scale reconstruction is a road to nowhere. The state must predominantly support them, as only it can ensure the attraction of long-term investments with low interest rates, but at the same time with very clear and strict obligations regarding modernization. There should be accountability, unlike before. In our country, starting from the second half of the 1980s, networks were mostly just operated.

Obviously, without state support, the ODS and ultimately the consumer, who will bear the cost, won't be able to handle such modernization. Therefore, the state needs to act as a guarantor for obtaining funds and take on the function of controlling the quality and timeliness of modernization, then it's realistic.

Q: And can the EU, EBRD, and World Bank give money under state guarantees?

A: In my experience, the EBRD, World Bank, and other donors are willing to invest in modernization, but they want the state to take on the role of guarantor for "long money". If there is a properly written concept for the development of distribution networks, if there is a National plan for the development of Ukraine's post-war economy if it is agreed upon with the main international partners. The state should take on the function of guarantor for modernization, then foreign institutions will be ready to give money for 30+ years: 20 years for reconstruction and another 10 years to repay the money. And this is at adequate interest rates on the attracted funds for such large-scale projects.

Q: Besides money, there's also the problem of human capital. Is there a problem with training qualified personnel for such a transition?

A: To put it briefly - there is a problem. And now I'll explain. Let's start with the fact that as part of the transition to European standards, we need to standardize our legal and regulatory base. We have been on this path since 2014, but very slowly. Today, typical designs for network or electrical installations are developments from the 1970s-80s, which have already lost their relevance, equipment for those technical solutions is no longer manufactured, and what remains is either being used up or destroyed due to enemy shelling.

The use of new equipment requires new standards for design, new typical schemes, and technical solutions, which need to be harmonized with European ones or developed anew and put into use.

Next step - changes to the Codes of the system operator and distribution networks, rules for the arrangement of electrical installations, rules of technical operation, rules of technical safety, etc. Outdated regulatory documentation is a problem not only for electrical networks but also for gas pipelines, heating networks, and water utilities.

For all of the above, we need to adapt our educational programs. Mainly, the engineering and technical staff are not familiar with the new equipment. For example, as part of international aid, we are sent various equipment, and people see it for the first time; they don't know its technical features, or how to properly put it into operation and maintain it. So, they learn the technical documentation themselves, and adapt as best as they can. Therefore, new training/upskilling programs for engineering and technical personnel need to be adjusted to today's realities: designers, engineering specialists, commissioning equipment, maintenance services, etc.

Thus, the Ministry of Education with higher education institutions should change/update educational programs under today's conditions, develop dual education opportunities with industry enterprises, and revive our vocational-technical schools. Currently, this is handled by engineering companies. However, this is not a systematic phenomenon: when someone wants and can afford it, they train. For example, we take 2nd - 3rd-year students and gradually teach them to design relevant technical solutions, the peculiarities of arranging new equipment, how to properly write software for various software, how to conduct commissioning of equipment, etc. Unfortunately, such cases are sporadic. Therefore, the problem needs to be addressed at the national level.

Q: That takes time. And now?

A: Now there's a significant lack of qualified workers. Some have left, some are fighting, and some, unfortunately, have died. I don't think Europe will help with professional human capital. Take, for example, French EdF. It's a huge multi-directional company that operates networks, and power stations, and has distribution, its training centers in many countries. But even it announced last month that it suffers from a shortage of staff and has started to bring back its retired experts, people aged 70+ years, to involve them in training young professionals. What to say about smaller companies! Europe also has a shortage of qualified personnel, so they won't help us in the reconstruction of post-war Ukraine. And rebuilding just to return to the previous state is a road to nowhere.
Reference

Ivan Grygoruk, Vice President of Energy Club, Chief Consultant at Energopartner Consulting Engineering Company.

Education: Graduated from Taras Shevchenko National University of Kyiv in 2000; Ternopil National Economic University in 2019; Ivano-Frankivsk Scientific and Educational Institute of Management in 2021; West Ukrainian National University in 2022.

Now there's a significant lack of qualified workers. Some have left, some are fighting, and some, unfortunately, have died. I don't think Europe will help with professional human capital. Take, for example, French EdF. It's a huge multi-directional company that operates networks, and power stations, and has distribution, its training centers in many countries. But even it announced last month that it suffers from a shortage of staff and has started to bring back its retired experts, people aged 70+ years, to involve them in training young professionals. What to say about smaller companies! Europe also has a shortage of qualified personnel, so they won't help us in the reconstruction of post-war Ukraine. And rebuilding just to return to the previous state is a road to nowhere.

An energy expert with over 20 years of experience. His daily activities include participating in the design, reconstruction, and new construction of electrical installations, electric substations, and transmission lines from 35 to 750 kV. He has worked in energy companies implementing projects in Central Asia, the EU, the USA, UAE, and Ukraine.

Interview by Oleksandr Kurylenko
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