Post: Ontario to target 2,500MW of battery storage

Ontario to target 2,500MW of battery storage 

After years of having surplus electricity supply, Ontario is entering a period of need, driven by economic growth, retirements and refurbishments of power plants and increased electrification of the transportation and manufacturing sectors. To meet these challenges IESO has recommended pursuing a diverse portfolio of supply options, including battery storage.

In its Resource Eligibility report, published mid-October, IESO said that to maintain system reliability, Ontario requires an additional 4,000MW of electricity supply between 2025 and 2027, which is the equivalent of adding a city the size of Toronto to the electricity grid.

IESO forecasts that overall annual energy demand will grow at an average rate of 1.7% a year over the 20-year Annual Planning Outlook Period (2023-2042). Summer peak demand is forecasted to rise at an average annual rate of 1.3%

Source: IESO

The procurement will target new capacity from a variety of resources including approximately 2,500MW of energy storage. If realised, these investments could create one of the largest battery storage fleets in North America, while providing assurance that Ontario’s electricity system will continue to be reliable and affordable as it transitions to a decarbonized future. But it noted that energy storage is faced with a number of reliability risks, including potential project delays, supply chain disruptions, grid integration challenges and operational limitations.

The report also noted that contributions from other non-emitting resources such as hybrids and biofuel resources. The IESO is confident that a maximum target of 1,500MW of new natural gas capacity will address short-term energy needs and contribute to the province’s longer-term energy transition. 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.

Source: IESO

GridBeyond SVP North America Wayne Muncaster said: