1. Battery storage contracts range from 9MW to 390MW, with a minimum delivery requirement of energy for four consecutive hours.
2. Procurement aims to address electricity demand growth and prepare for a projected 60% increase in demand over the next 25 years.
3. The LT1 procurement follows a predecessor Expedited LT1 RFP, with contracts awarded to 881MW of energy storage projects, contributing to Ontario’s goal of securing 2,915MW of storage resources.
Ontario has awarded contracts for energy storage projects ranging from 9MW to 390MW, with resources required to deliver energy to the grid for at least four consecutive hours. These procurements aim to meet electricity demand growth and prepare for a projected 60% increase over the next 25 years. The contracts were part of the ‘Powering Ontario’s Growth’ government plan, which includes investments in infrastructure to support industrial and residential growth.
The procurement follows the Expedited LT1 RFP, which awarded contracts for 881MW of energy storage projects in two tranches. Energy Storage Canada noted that the average price of winning bids decreased by 24% compared to the previous round, solidifying energy storage as the most affordable new capacity resource available.
Major winners of the contracts include Potentia Renewables for its 390MW Skyview 2 BESS project, Shift Solar Inc. for its 380MW Grey Owl Storage project, and Brookfield Renewable and Aypa Power for multiple contracts totaling 400MW each. A significant portion of the selected projects are owned by First Nations, a feature applauded by Energy Storage Canada.
With the LT1 tenders included, Ontario has secured 2,915MW of storage resources out of a target of 4,000MW. The full results of the LT1 procurement can be found on the IESO’s website, with further tenders expected to continue driving down costs for energy storage projects.