Serhii Kravchuk on practical business models for the development of energy communities in Vinnytsia region

An event “Green Transformation of Vinnytsia: Policy, Communities, Energy” was held in Vinnytsia, during which participants discussed the impact of the green roadmap on communities, practical business models for launching energy communities, and opportunities for supporting them.

Serhii Kravchuk, Director of Electricity Trading and Supply in KNESS spoke about new mechanisms for businesses and communities seeking to integrate effectively into the energy market. In particular, the KNESS expert focused on the Aggregator business model, which could become a starting point for the development of energy communities in the Vinnytsia region.

Serhii Kravchuk explained that aggregation in the electricity market is a promising new area of activity that allows distributed energy facilities to be integrated and managed efficiently in response to requests from the system operator. In the context of Ukraine’s energy market transformation, this mechanism is particularly important for balancing the system and increasing its stability. Despite the fact that aggregation is relatively new to the Ukrainian market and requires special expertise and specialized software and hardware, KNESS was one of the first companies in Ukraine to become a licensed aggregator and is currently actively developing in this area.

“If to segment the participants that can cooperate with the Aggregator, we can identify four groups. These are electricity consumers, active consumers who own electrical installations intended for the electricity production, storage and consumption, electricity producers and operators of energy storages. For all participants, the Aggregator provides conditions for maximizing the benefits of operating in the electricity market. Because it is through combination into one aggregated unit that it is possible to work more efficiently and profitably through the Aggregator in different segments of the electricity market,” the expert notes.

Therefore, the Aggregation mechanism is a ready-made business solution for creating energy communities as local businesses, institutions, and organizations have the opportunity to become active participants in the energy market, increasing their own profitability, reducing electricity costs, and contributing to the stability of Ukraine’s energy system.