Energy storage developer NRStor announced that the Independent Electricity System Operator (IESO) has entered into an energy storage facility agreement for the Oneida Energy Storage (OES) Project in Ontario, Canada.
NRStor is developing the 250 MW/1 GWh stand-alone lithium-ion battery storage project in partnership with the Six Nations of the Grand River Development, Northland Power and Aecon Group. Northland is participating as an equity and operating partner.
The agreement follows the issuance of an order-in-council and ministerial directive to enable the project to proceed, granted by the government of Ontario. IESO is an electric power transmission company responsible for operating the electricity market in Ontario.
The OES project, which started in 2018, is expected to be completed in 2025 and provide 1 GWh of capacity to the Ontario grid. The project has finalized a battery supply agreement with Tesla and an engineering, procurement, and construction agreement with Aecon Group.
According to NRStor, the project will provide clean, reliable power capacity by storing existing surplus baseload and renewable energy during off peak periods and releasing it back to the grid during peak demand. It will also help stabilize Ontario’s electricity sector by providing grid-balancing services.
The project is also expected to reduce the need and cost associated with using gas-fired power plants during times of peak demand. Additionally, it will help Ontario cut greenhouse gas emissions (GHG) by 4.1 million tons, or the equivalent of taking 40,000 cars off the road annually.
The OES project received C$50 million (about $38M U.S., at current exchange rates) in funding from Natural Resources Canada’s Smart Renewables and Electrification Pathways program and support from the Canada Infrastructure Bank through an investment agreement. It is expected to help reduce GHG emissions and contribute to Canada’s transition to a net-zero economy by 2050 and a 100-percent net-zero-emitting electricity system by 2035.
