2024: A Year In Review

2024 — a year of significant events, transformative decisions, resilience to energy challenges, conscientious actions, cooperation, experience exchange, win-win partnerships, work in a multitasking environment… 

This year has once again reminded us of the team importance, the value of unity, mutual support, similarities and differences, and working side by side to achieve results. This year has emphasized that even in very difficult conditions, thanks to the accumulated experience and expertise, it is possible to develop qualitatively, achieve ambitious goals and even “see” what is beyond the horizon. The main thing is to love what you do and be open to the new. And boldly change in order to transform… 

So, we are summarizing and sharing the most important things that happened in the passing year. 

Participated in long-term special auctions for the procurement of frequency containment reserve (FCR) and automatic frequency restoration reserve (aFRR)

KNESS’s price offers have enabled the implementation of a significant number of energy storage projects for further provision of frequency containment reserve (FCR) and automatic frequency restoration reserve (aFRR) services. Some of the projects are implemented using our own solutions. Scaling up and developing such projects will be one of the keys to increasing the flexibility and reliability of the integrated power system of Ukraine. 

The expertise that we have accumulated over the past 3-4 years in the development of energy storage systems (ESS), the development of an optimal technological solution for FCR and aFRR, and the creation of bankable business models for ESS in the ancillary services market has been transformed into a practical framework this year. We are already at the final stage of implementing the project for the construction and connection to the power grids of ESS with a certified capacity of 10 MW to provide the FCR service. Also this year, we have completed the development of ESS projects with a total connected capacity of more than 200 MW.

The Development direction is also engaged in preparing wind farm projects for the ready-to-build stage with a total capacity of about 1 GW.

We now have strong qualifications and practical experience in this area. Therefore, the development of new energy facilities, including energy storage systems for balancing the power system, will be one of our focus areas in the coming years.

Obtained a license for aggregation in the electricity market

This is the first step towards the launch of a new electricity market participant, the Aggregator, which is an important link in dispatching the capacities of distributed energy consumption, production and storage assets. For active consumers, this will provide an opportunity to generate additional income, and for the transmission system operator, it will provide more balancing capacities and simplify the structure of dispatch control of small electrical installations.

Expanded the range of services in the Latvian and Polish markets

In addition to the implementation of turnkey industrial solar power plants, KNESS representative offices in Poland and Latvia also provide comprehensive operational and technical maintenance of facilities. Currently, the total capacity of solar power plants serviced abroad is almost 60 MW.

Certification for compliance with international ISO standards

KNESS Group and its international business units have implemented an integrated management system (IMS) and have been certified for its compliance with the requirements of international ISO standards. This means that throughout the group of companies, the quality, health, safety and environmental management systems operate in accordance with international standards and meet the requirements of the European market. 

Developed renewable energy capacities in Ukraine and abroad

In 2024, KNESS Group implemented almost 60 MW of solar power plants in Ukraine, Poland and Latvia. And almost 100 MW more are currently under construction abroad. 

We designed ground- and rooftop solar power plants, conducted feasibility studies, supplied the necessary electrical equipment, manufactured mounting systems, including for export (1000 tons for a SPPs in Latvia), built and commissioned new generating facilities.

Our team reconstructed a high-voltage substation. Currently, we are implementing two more high-voltage substations, one of which is being reconstructed and the other is being implemented under a BoP contract. These substations will allow connecting the capacities of the 60 MW wind farm to the distribution system operator’s grids. As part of the same project, external and internal cable lines have already been laid to provide the output of the specified wind farm.

Helped and continue to help enterprises on their way to energy independence

15 years of experience in the energy market, acknowledged expertise, qualifications, and the opportunity to develop and implement new business models have allowed us to help companies become more energy resilient to external challenges. For example, we implemented a project that allowed Vinpromholod enterprise to operate as an energy island by increasing the capacity of a solar power plant and installing an energy storage facility. We have also developed and are implementing comprehensive solutions for power supply to enterprises using local renewable energy sources and energy storage facilities. What is more important, we are integrating new mechanisms introduced by the Law of Ukraine 3220-IX into practice — models of active consumer, self-production, guarantees of origin, etc.

Systematically worked and continue to develop systematically

KNESS Balancing Group continues to develop and scale in terms of the participants number. As of the end of the year, the balancing group comprises more than 200 MW of capacities of various types of renewable energy generation – SPPs, WPPs, ESSs, biogas installations, small hydroelectric power plants, as well as electricity suppliers and end consumers. This diversity of participants has a qualitative impact on reducing imbalances. 

Continuing with the subject of imbalances, our team has improved the forecasting model for RES generation, reducing the error to 17% compared to the previous year. As of the end of this year, forecasting services are provided for facilities with a total capacity of 1140 MW. It is worth noting that the PV Forecast by KNESS system is competitive not only in Ukraine but also abroad.

What else — we continue to perform high-quality commercial metering for more than a hundred facilities (the number of metering points is over 3000), and provide electricity supply services, including imported electricity, to industrial consumers.

In 2024, we expanded the range of services, including monitoring and transferring guarantees of electricity origin from renewable sources, as well as metrological verification of measuring equipment.

We continue to actively develop the integrated management and maintenance of electricity facilities. We provide operational, technical and dispatching management of solar power plants with a total capacity of over 1.44 GW located in Ukraine. The pipeline of facilities also includes 5 high-voltage substations. Also, as mentioned earlier, this business is currently developing not only in Ukraine but also abroad. Our partners have been working with us for a long time, which confirms the high quality of our services. Moreover, we are always developing and improving the approaches and tools we use in our work. For example, our PV.SCADA system, a software and hardware complex used by the KNESS Dispatch Center, was awarded in the Best Transformational CX Solution nomination at UKRAINIAN CX EXCELLENCE’2024. 

What is more important, this year the service team has received certified training from the Global Wind Organization in the maintenance of wind energy facilities. This is an important step for the further development and expansion of the projects pipeline. 

Received funding under the InnovateUkraine program with the AIRFUSE project 

The AIRFUSE project, a joint initiative of dpSun, R.Flo and KNESS, has received funding from the InnovateUkraine program, which was launched to support the recovery and future resilience of Ukraine’s energy system. The AIRFUSE project aims to develop a long-term energy storage technology that is essential for accelerating the energy transition. 

Acted as speakers, shared experiences, and welcomed guests

This year, we conducted a significant number of visits, in particular we hosted Ambassador Extraordinary and Plenipotentiary of Switzerland to Ukraine and the Republic of Moldova Felix Baumann, the Embassy of the Kingdom of the Netherlands in Ukraine and two delegates from the Ministry of Economic Affairs and Climate Policy of the Netherlands, our partners Regional Director of Digital Power Huawei Zhao Xuezheng (Nathan), CEO of LLC “Huawei Ukraine” Cao Yichushui (Tony), representatives of the Verkhovna Rada Committee on Economic Development and Federation of Employers of Ukraine leadership, representatives of Vinnytsia City Council and Vinnytsia Mayor, Serhii Morhunov, and many other organizations, business communities, etc. 

We actively participated in international events, including Climate Week NYC in New York, the Ukrainian Energy Transition Forum in London, the conference “Doing Business in Ukraine 2024: Building Ukraine’s Security through Economy Modernization” in Washington, D.C., at the Green Energy for Business | Re-Source Poland Hub Central-Eastern Europe 2024 conference in Katowice, shared expertise at the International Conference on Ukraine’s Recovery and  Energy Transition Dialogue 2024 in Berlin, exchanged experience at the SABIT Clean Energy Program for Eurasia in the United States, joined an economic mission and visited the province of Overijssel in the Eastern Netherlands.

We have also acted as experts on business management and development, sustainability in the current energy sector, ways to achieve energy independence, ESS implementation for the operation on the electricity market, the current state of the mechanism of electricity origin guarantees in Ukraine, new business models for active consumers, technical and commercial aspects of selling electricity from RES in the wholesale market, corporate PPAs, green transformation of Ukraine, conducted educational lectures on the use of AI, recorded podcasts, shared the practice of legalization of innovative developments, prospects for the development of regional innovation hubs, etc.

Together with Ukrainian companies-members of the Ukrainian Wind Energy Association, we were represented at WindEnergy Hamburg 2024, an international exhibition for onshore and offshore wind energy. We also presented solutions for rebuilding Ukraine at ReBuild Ukraine 2024 in Warsaw.

What is more important, we joined joint discussions with industry colleagues, participated in and continue to work together on the development of important bylaws designed to develop the energy sector.

Helped and volunteered and continue to do so

We are actively helping to support the defense capability of our country. We carried out work on the power supply of important infrastructure, supplied cars, office equipment, autonomous power supply systems, power tools, etc. for the needs of the military. 

We resolved dozens of requests from our mobilized colleagues, actively helped as part of the corporate volunteer movement, and systematically held corporate blood Donor Days…

KNESS has launched a program of support and assistance for veterans and their families, which lasts throughout the entire period of military service, demobilization, and return to civilian life and work.

As part of the program, KNESS provides information, administrative and social support, legal advice, retraining and employment assistance. We develop and implement special programs for family members of veterans to help them adapt to new life conditions. We systematically communicate with our mobilized colleagues, veterans, and provide them with up-to-date information on their rights, benefits, available services and opportunities.

In addition, the company provides financial assistance to mobilized employees; in 2024, the Group covered UAH 4 million.

We continue to support the Armed Forces of Ukraine and believe in the Victory.

What is next?

In 2025, KNESS will continue to strengthen its expertise, explore new markets, and invest its experience in the development and implementation of innovative technologies, products, and services aimed at developing renewable energy.

We are grateful to everyone who has been with us this year on the way of bringing energy independence closer. We thank everyone who continues to fruitfully cooperate with us. There is still a lot of work to be done, but the synergy of interaction brings global results.

So we are now looking to the energy future with confidence! We continue to implement innovations, new business models, invest, transform, automate, balance, decarbonize and decentralize the energy system of Ukraine.