How Cities Prepare for New Blackouts

By early summer 2024, as a result of Russian attacks, Ukraine had already lost nine gigawatts of power generation capacity. For comparison, this is equivalent to nine nuclear reactors. “There definitely won’t be an easy winter ahead,” commented Volodymyr Kudrytskyi, the former head of Ukrenergo, regarding the approaching cold season. At the same time, he expressed confidence that a disaster would be avoided.

Ukrenergo, along with other energy companies, communities, and enterprises, are preparing for energy challenges caused by Russian actions. The DOZORRO team investigated what these entities are procuring on Prozorro to enhance their energy independence.

Prozorro has already recorded contracts totaling UAH 7.1 billion.

In the first eight months of 2024, contracts worth UAH 7.1 billion were concluded through the system for the procurement and lease of equipment, as well as related work and services, including assembly, installation, and development of project documentation. In July, the government permitted some of these procurements to be made directly.

This year, procuring entities most frequently procured:

Cogeneration plants — along with project development for their installation and related construction work — account for 40% of the total value of concluded contracts, amounting to UAH 2.9 billion.
Generators and gas piston plants — UAH 2.6 billion.
Uninterruptible power supplies, including charging stations, batteries, and inverters—UAH 1.2 billion.
Solar power plants — over UAH 403 million was allocated for equipment and construction.

These amounts are not final. Over 400 procurements, with an expected total cost of UAH 1.8 billion, are still underway.

Among the regions, Kyiv and Kharkiv stand out the most, with contracts worth nearly UAH 2.3 billion and UAH 1.9 billion, respectively. At the same time, approximately UAH 1 billion in the Kyiv region is attributed to large state-owned companies that are legally registered in the capital.

The Dnipropetrovsk region (UAH 462 million), Zaporizhzhia region (UAH 333 million), Zhytomyr region (UAH 172 million), and Poltava region (UAH 133 million) follow in terms of contract value.

Gas-piston cogeneration plants

Gas-piston cogeneration plants, also known as mini-CHPs, produce both electricity and heat simultaneously. As the name suggests, they operate on gas.

In 2024, Prozorro listed at least 200 projects for the construction and installation of cogeneration plants. These tenders were announced by 70 different procuring entities, mostly city councils.

Eighty-seven percent of the total value of concluded contracts (UAH 2.5 billion) is for the procurement or lease of the installations themselves, as well as for construction work related to their installation and assembly. An additional UAH 270 million (9%) is allocated for the development of design and estimate documentation, as well as for technical and design supervision services. The remaining UAH 114 million (4%) covers the cost of repairing existing cogeneration plants.

Cogeneration plants in the city are not only procured but also received as donations from our international partners. For example, USAID Ukraine has already donated 80 cogeneration plants to heating enterprises across 21 regions of Ukraine. Some cities work directly with foreign organizations and businesses: for example, Kharkiv received cogeneration plants from the GIZ project, while Mukachevo received them from the Czech company Gentec 1.

The biggest procuring entities

Kyiv, Kharkiv, Vyshneve, and Zaporizhzhia are among the leaders in the number of completed procurements of mini-CHP plants, with existing contracts. In Zhytomyr and Vinnytsia, the procurement was for construction work related to the installation of cogeneration plants, rather than the plants themselves.

Kyiv — UAH 1.2 billion

In June, Kyivteploenergo completed a tender for the supply of cogeneration plants, totaling UAH 1.1 billion. At the auction, four suppliers competed, with the Slovak firm KTS Engineering s.r.o. winning with cogeneration plants from the Austrian manufacturer Innio Jenbacher GmbH. The contractor must deliver 9 JMS 624 GS-N.L. mini-CHP plants with a capacity of 4.5 MW at UAH 182.7 million each, and 9 JMS 620 GS-N.L. units with a capacity of 3.3 MW at UAH 63.51 million each. According to the contract terms, the advance payment is 30%, and delivery must occur within 5 months of the procuring entity’s request.

UAH 100 million is allocated for the development of design and estimate documentation for the installation of the plants.

Kharkiv — UAH 533 million

In July, Kharkiv Thermal Networks procured 4 GXC100C-NG cogeneration plants for UAH 8 million and 2 GXC200C-NC cogeneration plants for UAH 14.3 million. This equipment is manufactured by PowerLink in Great Britain. Both contracts were concluded with DAREX-ENERGY LLC, which is scheduled to deliver the installations by November 7. These two agreements total UAH 60 million and will be financed by the city council and UNICEF.

At the end of August, the Utility Enterprise Centralized Procurement Organization of Kharkiv City Council concluded three contracts for the supply of 10 cogeneration plants with a total capacity of 44 MW. They are intended for Kharkivvodokanal. According to the results of the open tenders, Additional Liability Company “Brovary Factory of Boiler Equipment Ardenz” received the contract and plans to supply cogeneration units of its own production. The Polish company 2G Polska Sp. z o.o., which offered a lower price, was rejected by the procuring entity due to a lack of necessary documents.

According to the tender documentation, Brovary Factory of Boiler Equipment Ardenz must deliver the following installations by the end of November:

On September 10, at a press conference, Ukrainian Prime Minister Denys Shmyhal reported that the Russians had destroyed almost all of Kharkiv’s thermal power plants. So, in reality, the city will rely on mini-CHP plants to survive the winter. In the near future, small 1 MW boiler facilities, which will be installed by local authorities, are expected to be delivered to Kharkiv.

Vyshneve — UAH 315 million (renting a cogeneration plant)

So far, Vyshneve in the Kyiv region is the only city where such equipment was rented rather than procured. On August 30, Vyshnivskteploenergo concluded a contract for the lease of a gas-piston cogeneration plant with a capacity of 1.5 MW without competitive bidding. The procuring entity justified the direct contract by the need to prepare for the 2024-2025 heating season. The contract was awarded to the local company Ecoresource-T LLC.

The amount of the contract is UAH 315 million. Installation and maintenance of the plant equipment are also included in the rental price. The lease term is 15 years, with a monthly rent of UAH 3.5 million.

According to calculations by journalists from Nashi Hroshi, this price is too high, and it would be more cost-effective for the city to procure the plant rather than rent it.

Zaporizhzhia — UAH 274 million

At the beginning of July, Urban Thermal Networks Concern announced the procurement of 3 cogeneration plants with a capacity of 2.5 MW each, for a total of UAH 255 million. Three participants submitted their bids. The procuring entity awarded the contract for 3 Slovak units to DALGAKIRAN COMPRESSOR UKRAINE LLC, whose bid was the lowest at UAH 228 million. That procurement was financed by UNICEF. In total, the city needs to equip 12 cogeneration plants.

Active procurements of cogeneration plants

Lviv City Council — UAH 500 million

At the beginning of August, Lvivteploenergo announced a procurement for the purchase and installation of 4 cogeneration gas-piston plants with a total capacity of 20 MW, with an estimated cost of UAH 470.7 million. Only one Lviv firm, COVER ENERGY PLUS LLC, took part in it. The procuring entity has not yet evaluated the bidder’s offer for compliance with the tender documentation requirements. According to the conditions, the work is expected to be completed by the end of 2025.

Another UAH 18 million is planned to be spent on the reconstruction of the power supply system at one of Lvivteploenergo’s facilities, including the installation of a Jenbacher JMS 420 GS-NL cogeneration unit.

In total, the city budget allocated UAH 654 million for the installation of cogeneration plants. The program is planned to be implemented in 2024-2025.

Generators

Generators — whether gasoline, diesel, or gas-powered — can support the operation of critical infrastructure and emergency services. The peak demand for these generators occurred in December 2022, two months after the first Russian attacks on the energy infrastructure.

In 2024, generators have become popular again. The total amount of contracted equipment over 8 months is UAH 2.6 billion, with procurement continuing for an additional UAH 944 million. Most of the generators were procured by city councils and various utilities. Traditionally, generators with a capacity of up to 10 kW remain the most popular. However, there are instances of procuring generators with a capacity of more than 1 MW, such as cogeneration plants.

This year also saw an increase in demand for gas-piston plants, which are essentially large gas-powered generators.

The largest number of such plants was procured by the Utility Enterprise Centralized Procurement Organization of Kharkiv City Council, with contracts totaling UAH 1 billion. The utility concluded 7 contracts for the supply of 30 plants, with a total capacity of 234 MW:

According to the results of the open tenders, Additional Liability Company “Brovary Factory of Boiler Equipment Ardenz” received the contract and will supply cogeneration units to Kharkivvodokanal.

In second place in terms of spending on gas turbine power plants is Operator of the Gas Transport System of Ukraine LLC, with contracts totaling UAH 536 million.

Operator of the Gas Transport System of Ukraine procured three gas turbine power plants with a total capacity of 18 MW. The contract was concluded with Motor-Sich PJSC, which is subordinated to the Ministry of Defense. The company is to deliver three block-modular gas turbine power plants of its own production, model GTE-6/6.3 M1 UHL1, each with a nominal capacity of 6 MW, at UAH 176 million per unit. Another almost UAH 9 million will be spent on the installation of those plants. They will be installed in the Kharkiv region.

Uninterruptible power supplies

In total, they were procured for UAH 1.3 billion.

Charging stations have become the most popular portable source of uninterrupted power. Most often, such devices were procured either by the military units themselves or by territorial communities on their behalf. Both domestic stations, such as Bandera Power, and foreign ones like EcoFlow, Anker, and Bluetti are popular. Charging stations have become quite popular not only because of their mobility but also due to their ability to be charged from solar panels.

Less common power sources include battery packs and inverters. For example, Oschadbank procured 450 sets of such equipment for UAH 188 million. Each set includes a Ukrainian-made Revention Powercube Enterprise 14.4 kW rechargeable battery and a Chinese-made DEYE SUN-6 K inverter.

Other portable equipment for backup power is also in demand. For example, Kyiv’s Traffic Management Center procures uninterruptible power supply cabinets, which are installed for traffic lights to ensure they remain operational during a blackout.

At the end of March, Kyiv Metropolitan procured a rack-mounted guaranteed power supply system for communication devices for UAH 279 million. A direct contract was concluded with the Bulgarian company S END S Engineering EOOD. As indicated by the procuring entity on Prozorro, the procurement was conducted without a tender due to its urgency. The State Audit Service did not find any violations during its monitoring.

Solar power plants

Contracts totaling UAH 404 million were signed on Prozorro for the installation of solar plants. Procurements worth UAH 72 million are still ongoing.

Solar power plants are most often procured by various utilities, particularly water utilities and hospitals.

Currently, Zhytomyrvodokanal leads in the number of contracts for solar plants. The company signed contracts for UAH 55 million. The second is Production Management of Water Supply and Drainage of Uzhhorod (UAH 25.5 million), and in third is Lutskvodokanal (UAH 25.2 million).

Healthcare institutions also spend a significant amount on solar power plants. As Andrii Herus, head of the Verkhovna Rada Committee on Energy, Housing, and Utilities Services, pointed out, solar power plants with capacities ranging from 7 to 100 kW are planned for installation in 270 medical institutions in 2023-2024. Some hospitals install solar stations on their own initiative, while others do so under a program from the Ministry of Health and the World Bank.

In general, preparations for the autumn-winter season are quite active. However, as seen from procurement trends, this is still insufficient — more orders continue to appear on Prozorro. Large cities concentrate primarily on cogeneration plants to ensure both electricity and heat supply. Water utilities and medical institutions are the main procurers of solar power plants. Communities are striving to manage both independently and with the help of international assistance. However, there is very little time left before the first cold weather. Even for procurements already underway, the actual delivery and installation of equipment are expected to begin, at best, in early October.

This material was created within the framework of the Supporting Digital Transformation project, funded by USAID and UK Dev.

Source: glavcom.ua

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