Solar Farm

This proposal aims to deliver a comprehensive, reliable, and scalable energy solution to Kryvyi Rih, Ukraine, by integrating solar panels and diesel generators to meet the city’s urgent energy needs. This initiative aligns with the objectives of the USAID Energy Security Project (ESP) and falls under the guidelines of the Expedited Acquisition and Assistance Procedures (EPP) for Ukraine.

The project is critical to stabilizing the energy supply for a city of one million residents (approximately 200,000 IDPs), ensuring continuous power for industrial operations, critical infrastructure, and residential areas, especially with winter approaching.

2. Background and Context

Kryvyi Rih, one of Ukraine’s major industrial cities, faces significant energy challenges due to recent conflicts that have damaged its infrastructure. The city’s iron and steel industries, which are vital to the national economy, require a stable power supply to operate effectively. Additionally, residential areas and critical infrastructure, such as hospitals and emergency services, are at risk of power outages as winter approaches.
The estimated investment required is $9.5 million. Break-even point of this project on saving fuel cost is in less than 1.5 years (less than 19 months). Since the lifespan of these solar panels is between 25 to 30 years, this investment can prove to be an invaluable benefit to the residents of this particular industrial city which is famous for its quality iron ore mining.
Not only do diesel generators act as back-up systems to solar panels during night hours for critical areas, the presence of smaller generators at apartment complexes make sure that water does not freeze in pipes in Kryvyi Rih’s harsh winters. A rough estimate on the cost of pipes bursting in winter reaches $23,000,000 annually.
The current energy deficit, exacerbated by frequent attacks on power facilities, necessitates an urgent response. This proposal aims to provide a hybrid energy solution that not only meets immediate power needs but also contributes as a long-term energy security in the region.

3. Project Objectives

Primary Objective: To provide Kryvyi Rih with a reliable, scalable energy solution by installing 11.4 MW of solar power combined with back-up diesel generators according to the request by the office of the city’s honorable Deputy Mayor and under the direct supervision of the head of department for Energy Management and Implementation of Energy-saving Technologies of the Executive Committee of the City Council.
Secondary Objectives:
Ensure continuous power supply for critical infrastructure, including hospitals, residential apartment complexes, fire fighting resources and other emergency services.
By installing generators in apartment complexes, we will ensure continuous heating, thereby saving lives and protecting pipes from freezing and bursting during winter.
Support commercial interests, including industrial operations in the iron and steel sectors.

4. Technical Solution

4.1 Solar Power Farm
System Capacity: 11,424.74 kWp / 11,400 kWe
PV Panels: 21,160 units of 540W solar panels.
Inverters: 114 units of ARCLK-INV-100KT.
AC/DC Cabling and Transformer Systems: Designed and installed according to site-specific conditions.
Location: The exact location of the solar farm and its distance to the city’s electricity grid are currently under consideration and will be determined in collaboration with local authorities.

4.2 Diesel Generator Backup and Residential Use
DAS QZ-38 Generator:
Power Capacity: 34 KVA (27 KW) prime, 38 KVA (30 KW) standby.
Fuel Consumption: 7.7 liters/hour at 100% load.
DAS QZ-1250 Generator:
Power Capacity: 1125 KVA (900 KW) prime, 1250 KVA (1000 KW) standby.
Fuel Consumption: 221 liters/hour at 100% load.
Usage: These generators are critical for providing backup power during peak loads, nighttime, and periods when solar power generation is insufficient. In addition to ensuring continuous power for critical infrastructure and industrial operations, these generators play a vital role in residential settings, particularly in apartment complexes.
Preventing Water Freezing: The generators are essential in preventing water from freezing in the absence of electricity. When there is no power to pump hot water to upper floors, the risk of water freezing in pipes increases, especially during the harsh winter months in Kryvyi Rih. By maintaining power to water pumps and heating systems, the generators ensure that hot water circulation continues, thereby preventing pipes from freezing and bursting, which could lead to costly repairs and disruption of essential services.
The deployment of a variety of diesel generators, especially the 200 smaller DAS-PR-7.5I units, is a critical component of our energy solution for Kryvyi Rih, particularly in ensuring the functionality of residential heating systems during the harsh winter months. In high-rise apartment complexes, heating is typically provided by water that is heated in a central boiler located in the basement. This heated water is then pumped up through the building to individual apartments. However, in the event of a power outage, the electrical pumps responsible for circulating this hot water become inoperable, causing the water to stagnate in the pipes. In the severe cold of Kryvyi Rih winters, this stagnant water can quickly freeze, leading to pipe bursts that can cause extensive damage and costly repairs. The pipes, although hidden within walls, are still vulnerable to the extreme temperatures, making continuous operation of the heating system essential.
The DAS-PR-7.5I small diesel generators we are proposing are perfectly suited for this situation. These generators are compact yet powerful enough to maintain the operation of the boiler and pumps in each apartment complex. By keeping the water circulating, they prevent freezing within the pipes, thereby avoiding the catastrophic consequences of burst pipes. This ensures that even in the absence of grid electricity, the heating system remains operational, providing warmth to residents and protecting the infrastructure of the buildings. The use of these DAS-PR-7.5I generators offers a highly efficient and targeted solution, bridging the gap until the main power supply is restored, and ensuring the safety and comfort of the community during the most critical times.

4.3 Large and Essential: Powering Critical Infrastructure
In addition to the small generators designed for residential use, our proposal includes a range of larger diesel generators specifically allocated for the city’s critical infrastructure, such as hospitals, schools, emergency services, and key industrial facilities. These larger units are essential for maintaining uninterrupted power supply in facilities that are vital to the health, safety, and well-being of Kryvyi Rih’s residents.
Hospitals, for instance, require a stable power source to operate life-saving medical equipment, maintain proper lighting, and ensure the continuous operation of heating and cooling systems. In the absence of electricity, even a short power outage can have serious consequences, making these larger generators indispensable. Schools and emergency service centers also benefit from this reliable backup power, ensuring that educational activities and emergency responses are not hindered during power interruptions.
Our proposed DAS QZ-1250 generators, with a power capacity of up to 1250 KVA, are specifically chosen to meet these high demands. They are capable of handling significant loads, providing the necessary energy to keep critical infrastructure fully operational during peak loads or when solar power is not available. By including these larger generators, we ensure that Kryvyi Rih’s most important services remain functional, safeguarding both the community’s immediate needs and its long-term resilience.
This combination of small, strategic generators for residential areas and large, essential generators for critical infrastructure creates a comprehensive energy backup solution, addressing the diverse needs of Kryvyi Rih and ensuring that the city is well-prepared to face any power-related challenges.

4.4 Implementation Strategy
Hybrid Integration: Solar panels will supply the majority of daytime power needs, while diesel generators provide additional support during peak hours and as a backup solution.

Scalability: The solar power system is designed with long-term stability and reliability in mind. Solar panels, the backbone of the system, are built to last for 25 to 30 years with proper maintenance. Over this lifespan, the panels are expected to maintain a high level of efficiency, typically retaining around 80-85% of their original capacity after 25 years. Regular maintenance, including cleaning and inspection, ensures that the system operates at peak performance, minimizing efficiency losses and extending the overall lifespan. This durability makes the solar power system a solid long-term investment, providing the city with a stable and sustainable energy source for decades to come, significantly contributing to energy security and reducing dependence on non-renewable sources

5. Financial Plan and ROI

5.1 Return on Investment (ROI) Analysis
The proposed solar power farm with generators for Kryvyi Rih, with a total cost of $10,207,404, is projected to generate substantial savings for the city by significantly reducing its reliance on diesel fuel. The following ROI analysis outlines the expected financial benefits:
Annual Savings:
By utilizing solar panels, the city is expected to save approximately $6,393,068.86 annually in fuel costs.
The solar power system’s annual maintenance cost is estimated at $204,148.08 (approximately 2% of the total installation cost). This maintenance cost is significantly lower than the ongoing fuel costs associated with diesel generators.
Break-Even Period:
Based on the current diesel prices in Ukraine and the projected annual savings, the initial investment of $10,207,404 will be recovered in approximately 1.58 years (18.48 months).
Long-Term Benefits:
After the break-even period, the city will continue to save approximately $6.39 million per year for the remaining lifespan of the solar panels, which is expected to be 25 to 30 years.
This long-term use of solar power will result in significant cost savings, making the project a financially sound investment in the city’s energy infrastructure.
To Sum up:
The hybrid energy system will drastically reduce reliance on expensive diesel fuel, with solar power providing ongoing cost savings over time. The investment will pay off not only through reduced operational costs but also through the stabilization of the city’s energy supply, which is crucial for both economic and social stability in Kryvyi Rih.