ENERGY RESILIENCE FOR AGRIBUSINESS: OLEKSANDR HAVVA PRESENTED ENERGY STORAGE OPPORTUNITIES AND MARKET ARBITRAGE MECHANISMS

Acting CEO of JSC “Market Operator” Oleksandr Havva participated in an industry event for representatives of the agricultural sector, where he presented practical applications of Energy Storage Systems (ESS) and energy arbitrage mechanisms in the Ukrainian electricity market.

During his presentation, he highlighted the potential of ESS for agribusinesses, which are increasingly investing in their own generation assets and seeking solutions to enhance energy resilience and improve economic efficiency.

Oleksandr Havva emphasized that energy storage facilities can serve not only as a standalone market asset generating revenue through arbitrage operations, but also as an important component of a company’s energy portfolio management strategy. Combining the roles of electricity consumer and ESS owner enables businesses to diversify their activities, optimize electricity procurement, improve balancing performance, and mitigate the impact of price volatility on financial results.

Particular attention was paid to the economics of arbitrage operations on the Day-Ahead Market (DAM). Based on the calculations presented, the most attractive scenario among those analysed was an ESS project with a capacity of 1 MW and an energy storage capacity of 3 MWh. Under the current market rules and the existing methodology for calculating transmission and distribution tariffs, the simple payback period for such a project is approximately 3.7 years, while the discounted payback period is estimated at 4.2 years.

“For agricultural enterprises that already operate or are planning to develop their own generation facilities, energy storage systems create new opportunities to improve efficiency in the electricity market. At the same time, the further development of this segment will largely depend on the stability and predictability of the regulatory framework,” Oleksandr Havva noted.

Participants of the event also discussed the prospects for integrating ESS with renewable energy facilities, the mechanisms enabling storage participation across various electricity market segments, and the role of modern energy technologies in strengthening business resilience amid wartime conditions and the ongoing transformation of Ukraine’s energy sector.