August 9, 2024
How Healthcare Facilities "Sell" Surplus Solar Power Back to the Grid: The Pioneers' Experience
The algorithm for healthcare facilities to obtain "active consumer" status, which is a component of the self-production mechanism known as Net-Billing, was recently presented by the NGO "Khmelnytskyi Energy Cluster" in collaboration with the Energy Management Department of the Khmelnytskyi City Council.
The algorithm was developed based on the experience of the Khmelnytskyi City Medical and Diagnostic Center, which was one of the firstCenters in Ukraine to implement the Net-Billing system. This medical facility generates electricity using its own solar power plant (SPP) and supplies it to the general grid under commercial terms.
Net-Billing is a mechanism for settling accounts for electricity generated by active consumers (such as solar panel owners) that is supplied to the grid. This mechanism enables consumers to "sell" surplus generated electricity, receiving payments that can be used to cover future electricity consumption.
The Khmelnytskyi City Medical and Diagnostic Center began producing electricity by installing solar power plants on the roofs of three affiliated clinics. To achieve this, they used the municipal enterprise's own funds and invested approximately four million hryvnias. The solar panels were installed between August and November 2023. During this time, they also discovered the possibility of supplying electricity to the general grid on a commercial basis – Net-Billing.
“We began to explore the implementation of Net-Billing in August 2023. It was during this time that I first learned about the law that was enacted in Ukraine, which led me to seek information from 'Khmelnytskyi Oblenergo. Due to the fact that the mechanisms had not been thoroughly examined, they committed to responding to our inquiry and reached out to the ministry. After that, we received recommendations. We investigated the issue and looked for ways to implement it. And in April of this year, with the support of the ministry, we were granted the opportunity to implement Net-Billing. During this period, the organization also established an automated system for commercial electricity accounting”, – said Oleg Chaban, an energy engineer at the municipal enterprise "Khmelnytsky City Medical and Diagnostic Center.
The main steps for implementing Net-Billing, based on the experience of the healthcare facility in Khmelnytskyi, include:
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Developing a technical task for the project, creating project and cost documentation (PCD), and installing the SPP ( solar power plant).
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Coordinating the technical task regarding the installation of accounting devices on generating units with the distribution system operator.
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Installing an Automated System for Commercial Accounting of Electricity (ASCAE) or local equipment for data collection and processing (LEDCP), as well as additional accounting on the generating unit(s).
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Signing the act of commissioning the ASCAE.
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Entering into a contract with the service provider for commercial accounting.
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Obtaining a distribution point passport that indicates the generating equipment, its capacity, generation EIC code, and installation location (if not previously available).
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Searching for a supplier (conducting a tender) for the purchase and sale of electricity.
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Signing a purchase and sale agreement for electricity under the self-generation mechanism.
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Checking payment distribution through the supplier.
A more detailed overview of the Net-Billing implementation algorithm can be found in the document linked here.
Currently, the solar panels at the three clinics operated by the municipal enterprise generate a total capacity of 100 kilowatts (kW). Depending on the time of day and the day of the week, the clinics either feed electricity back into the grid or draw from it. The calculations for this process are based on different tariffs—approximately 2.6 UAH per kWh for sales and about 7.4 UAH per kWh for purchases. As a result, the monthly electricity bill for the facility decreases by the amount earned from the electricity it has sold.
Since the clinics use grid-tied inverters, they cannot receive electricity during power outages. As Oleg Chaban, an energy engineer at the communal enterprise "Khmelnytsky City Medical and Diagnostic Center," explained, efforts are currently underway to resolve this issue.
“Net billing allows us to save money, and I believe that, considering the experience of the Khmelnytsky City Medical and Diagnostic Center, we will transition the other facilities to net billing, at least those with a capacity of over 15 kilowatts. With this experience, in the future, we will work with net billing whenever possible, as it proves to be justified since relatively small additional investments allow us to sell surplus electricity to the grid”, – said Dmytro Leskiv, Head of the Energy Management Department of the Khmelnytsky City Council.
Solar panels, like those installed at the clinics in Khmelnytskyi, not only benefit the medical facilities themselves but also contribute to the unified energy system of Ukraine. This was stated by Stanislav Ihnatiev, the head of the Ukrainian Renewable Energy Association.
“So far, the enemy has caused the destruction of 42.3% of the installed capacity, meaning that green energy generation will play a key role. Solar power plants are contributing 18% to the overall energy balance at this time. With three nuclear reactor units scheduled for maintenance starting August 9, we will once again face a shortage of electricity. We can only hope for favorable sunny weather, especially since a powerful anticyclone from Africa is moving in, bringing hot and sunny conditions. Solar generation will be our savior once more, just as it was last summer”, – said Stanislav Ignatiev.
The video detailing the steps for implementing Net-Billing and the experience of the Khmelnytsky medical facility can be accessed through the following link.