Ontario Completes Largest Battery Storage Procurement in Canada to Meet Growing Electricity Demand
May 14, 2024
Successful electricity generation and storage procurement will meet province’s energy needs through 2030
The Ontario government has concluded the largest battery storage procurement in Canada’s history and secured the necessary electricity generation to support the province’s growing population and economy through the end of the decade. This successful procurement marks another milestone in the implementation of the province’s Powering Ontario’s Growth plan, helping to build the province’s clean energy advantage and ensure reliability for years to come.
“Our government has secured astounding new investments for the province, from electric vehicle and electric vehicle battery manufacturing to green steel, and the good quality jobs that come with them,” said Todd Smith, Minister of Energy. “We have now broken records once again by completing the largest battery storage procurement in Canadian history and securing the electricity generation we need to power the next major international investment, the new homes we are building and industries as they grow and electrify.”
The Ontario government and Ontario’s Independent Electricity System Operator (IESO) announced today that their latest round of procurement secured a total of 2,195 megawatts (MW) of capacity, enough to power the peak demand of 2.2 million homes.
This includes 1,784 megawatts (MW) of clean energy storage from ten projects ranging in size from 9 to 390 MW. When combined with the previous round of the procurement and the Oneida Battery Storage Facility, Ontario’s entire storage fleet will be comprised of 26 facilities with a total capacity of 2,916 MW, exceeding the government’s initial target of 2,500 MW. This includes the 390 MW Skyview 2 Battery Energy Storage System in the Township of Edwardsburgh Cardinal, which will be the largest single storage facility procured in Canada.
The latest round of procurement also secured 411 MW of natural gas and clean on-farm biogas generation which together acts as an insurance policy, maintaining reliability on the hottest and coldest days of the year. This is consistent with the expert advice of the system planners at IESO whose Resource Eligibility Interim Report says: “Without a limited amount of new natural gas in the near term the IESO would be reliant on emergency actions such as conservation appeals and rotating blackouts to stabilize the grid.”
“With over $43 billion in automotive investments secured over the last four years, Ontario is now recognized as a leader in the global production and development of electric vehicles, batteries, and battery materials,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By securing the largest battery procurement in Canadian history, our government is taking the next steps to ensure manufacturers have a reliable supply of clean energy to power their projects, all while further fueling economic growth and job creation across the province.”
Ontario’s success in building the province’s clean electricity system has played a pivotal role in attracting new investments to the province, particularly those investing in large-scale manufacturing projects. These new procurements will help ensure companies investing in Ontario have the energy supply they need, as Ontario continues to grow its economy and electricity system.
“The continued success of adding new technologies and resources to the grid will ensure the electricity system is ready to support continued growth all across Ontario,” said Lesley Gallinger, President and CEO, the IESO. “The results of this procurement are also credit to the diligent collaboration between municipalities, Indigenous communities, proponents, and the IESO to ensure mutually beneficial projects go forward to secure our energy future.”
The newly procured energy resources are just one part of Powering Ontario’s Growth, the government’s pragmatic plan which outlines the actions the province is taking to meet growing energy demand and reduce emissions by expanding Ontario’s reliable, affordable and clean grid, including:
- Nuclear Energy – Advancing reliable, affordable and clean nuclear power through pre-development work at Bruce Power, four small modular reactors at Darlington and supporting Ontario Power Generation’s plan for refurbishing the Pickering Nuclear Generation Station.
- New Transmission Infrastructure – Designating and prioritizing transmissions lines in Southwestern, Northeastern and Eastern Ontario that will power job creators including EV and EV battery manufacturing and clean steel production.
- Keeping Costs Down – Launching new energy efficiency programs on January 1, 2025, building on the government’s $342 million expansion of existing energy efficiency programs which are helping families and businesses reduce their electricity use so they can save money on their energy bills.
- Additional Competitive Procurements – A successful re-contracting of existing resources at about a 30 per cent discount and planning more competitive procurements for non-emitting electricity resources including wind, solar, hydroelectric, and bioenergy.
Quick Facts
- After more than a decade of strong electricity supply, IESO’s 2024 Annual Planning Outlook forecasts that Ontario’s total electricity demand will increase by 60 per cent over the next 25 years. The new electricity generation and storage resources announced today are expected to come online by no later than 2028 and will help meet the growing demand for clean, reliable, and affordable electricity.
- The clean energy storage projects secured as part of the latest procurement have an average price per MW of $672.32. This represents a 24 per cent decrease from the $881.09 price for storage acquired in the previous round of the procurement in May 2023, and indicates the effectiveness of a predictable cadence of competitive procurements. 9 of 10 selected storage projects also have 50 per cent or more Indigenous ownership.
- Storage facilities can charge during off-peak hours, to take advantage of Ontario’s clean energy supply mix, and disperse energy back into the grid when it is needed most.
- Ontario’s electricity system is among the cleanest in the world, powered by a diverse supply mix including nuclear, hydroelectric, renewables, natural gas, and biomass.
Related Story
Ontario Refurbishing Hydroelectric Stations in Niagara
The Ontario government is supporting Ontario Power Generation’s (OPG) plan to refurbish its hydroelectric stations in the Niagara region, including the Sir Adam Beck Complex at Niagara Falls. This $1 billion dollar infrastructure program would secure up to 1,700 megawatts (MW) of clean electricity, equivalent to powering 1.7 million homes, helping to meet increasing demand from electrification and fueling the province’s growth.
