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Energy Storage Procurement

The IESO is exploring how energy storage can be integrated into the day-to-day operation of Ontario's electricity system and market by procuring up to 50 megawatts (MW) of energy storage for Ontario in two phases.

Energy storage has the potential to transform how the IESO plans and operates the power system by providing a range of real-time grid balancing services and injecting or withdrawing energy on demand. Under some conditions, it can reduce local congestion in transmission and distribution networks, which will allow utilities to defer, or even avoid, expensive system upgrades; optimize the performance of renewable resources by smoothing out natural fluctuations in solar and wind production; and provide ramp support when demand for electricity rises (or falls) quickly. 

The IESO’s technical report on energy storage focuses on the reliability needs of the Ontario power system and the potential for energy storage technologies to address those needs.

In the first phase, the IESO selected storage technologies from five companies, for a total of 33.54 MW, to provide ancillary services to support increased reliability and efficiency of the grid. All projects are still under development, with the first expected to come into service before the end of Q3 2016.

The second phase of the procurement was open to energy storage technologies with a range of performance characteristics. This phase was focused on two specific aspects of energy storage: its capacity value – the ability to be available to store energy and provide it back when called upon – and its arbitrage value – the ability to store energy during lower priced periods and inject it back into the electricity system when prices rise, and the value of energy increases.

Energy Storage Procurement Phase II

Updated November 23, 2015

Over the past 12 months, beginning in the fall of 2014, the IESO conducted a two-stage process for the second phase of the energy storage procurement, including a Request for Qualifications (RFQ) followed by Request for Proposals (RFP).

After careful analysis and evaluation of the proposals received from qualified applicants, the IESO has offered 10-year contracts to five companies for nine separate energy storage projects totalling 16.75 MW.

​Proponent ​Technology ​Capacity (MW)
Ameresco Canada Inc.Battery – Solid​2.0
Ameresco Canada Inc.​Battery – Solid​2.0
SunEdison Canada Origination LP.Battery – Flow​2.0
​SunEdison Canada Origination LP.​Battery – Flow​1.0
​SunEdison Canada Origination LP.Battery – Flow​2.0
NextEra Canada Development & Acquisitions, Inc.Battery – Solid​2.0
​NextEra Canada Development & Acquisitions, Inc.Battery – Solid​2.0
NRStor Inc.​Compressed Air​1.75
Baseload Power Corp.​Battery – Flow​2.0

For previously posted information and material related to the Energy Storage RFQ, see the legacy OPA website at www.powerauthority.on.ca/generation-procurement/energy-storage.