ARTICLE
17 October 2024

Ontario Announces New Tilbury Battery Storage Project

AB
Aird & Berlis LLP

Contributor

Aird & Berlis LLP is a leading Canadian law firm, serving clients across Canada and globally. With strong national and international expertise, the firm’s lawyers and business advisors provide strategic legal advice across all areas of business law to clients ranging from entrepreneurs to multinational corporations.
The Ontario government recently announced its new $170-million Tilbury Battery Storage Project, owned by Quebec company Boralex in partnership with Walpole Island First Nation.
Canada Ontario Energy and Natural Resources

The Ontario government recently announced its new $170-million Tilbury Battery Storage Project, owned by Quebec company Boralex in partnership with Walpole Island First Nation. The project is estimated to become commercially operational by late 2025. Once complete, the facility will provide 80 megawatts of storage with the capacity to power approximately 80,000 homes. Battery storage facilities allow for a steady supply of energy and greater reliability for ratepayers by charging up when energy sources are overproducing and discharging energy during peak demand times.

The Tilbury Battery Storage Project was awarded in 2023 as part of Ontario's Independent Electricity System Operator (IESO)'s Expedited Long-Term Request for Proposals (E-LT1 RFP) in 2022. The E-LT1 RFP acquired more than 1,100 MW of capacity: 880 MW of electricity storage (which includes the Tilbury Battery Storage Project) and 285 MW of expansions at existing natural gas facilities to assist during the transition period to clean energy.

This latest announcement aligns with the Ontario government's larger plans to expand the province's clean energy grid and meet growing demand. As we reported earlier this year, the IESO forecasted that electricity demand in the province will increase steadily at a two per cent annual growth rate, up to 60% by 2050. Factors underpinning the increased demand include economic and population growth, and the mining, steel and electric vehicle industries.

At a public open house on April 30, 2024, Boralex shared that the project will use 89 Tesla Megapacks, lithium-ion battery storage units, each of which can store over 3.9 MWh of energy and power an average of 3,600 homes for one hour. Megapacks are already being used in battery storage facilities across Canada, including the Millidgeville Substation in Saint John, N.B., and WindCharger Battery Storage in Pincher Creek, Alta.

The next part of the IESO's record-breaking procurement process is currently underway with public consultations on its draft Second Long-Term Request for Proposals (LT2 RFP), which we introduced in a previous article. The LT2 RFP hopes to address needs emerging in 2029 and throughout the early 2030s in three streams:

  • Energy Stream: Approximately 2,000 MW of new supply to meet a five terawatt-hour energy need, to be in service by 2030. This could include solar, wind, hydroelectric expansions and biofuels.
  • Capacity Stream: 500 to 1,000 MW in service by 2031. This could include storage, hydrogen and biofuels.
  • Long Lead-Time Resources Procurement: 500 to 1,000 MW in service by 2034. This could include new hydroelectric assets and long lead-time long-duration storage.

The next Stakeholder Engagement Day for the LT2 RFP's Energy Stream is scheduled for October 22, 2024, to provide further information on project siting. The IESO's deadline to release its final LT2 RFP and Contract for the Energy Stream is December 20, 2024, with a proposal submission deadline set for sometime in 2025.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More