Energy Storage Projects Selected to Provide Essential Grid-Balancing Service
November 28, 2017
Ontario's Independent Electricity System Operator (IESO) announced today that two new energy storage facilities have been selected through a competitive process to help support the reliability, flexibility and efficiency of the province’s electricity grid.
The successful parties, Hecate Energy Ontario Storage VII, LP and Saturn Power Inc., will provide a combined 55 megawatts (MW) of regulation service, an important grid-balancing function that corrects for short-term changes in electricity use that might affect the reliability of the power system. These successful projects also represent one of the largest reductions in per-unit regulation costs since Ontario’s electricity market opened.
Regulation service helps compensate for real-time supply and demand imbalances. It is a requirement under North American Electric Reliability Corporation (NERC) and Northeast Power Coordinating Council (NPCC) standards. The 55 MW procured through this process will complement the 100 MW of regulation service that is typically scheduled every hour to help ensure the reliable operation of the power system.
When regulation is required, the IESO sends an automated signal to the regulation provider, instructing them to adjust the production (or consumption) of their facility within a designated timeframe, often measured in seconds. Learn more here.
Under the 2017 regulation request for proposals (RFP), the IESO received 42 submissions representing approximately 350 MW of regulation capacity from a variety of existing and new build facilities, including energy storage and waterpower facilities. The RFP process was administered by the IESO and overseen by an external fairness advisor. The final contract offer list can be found here.
“Our energy system continues to evolve with new players, technologies and changing demand patterns, and as Ontario’s reliability coordinator, we are always looking at new ways to manage the changing conditions on the power system,” said Leonard Kula, Vice-President of Planning, Acquisition and Operations, and the IESO’s Chief Operating Officer. “The important grid-balancing function of regulation service has historically been provided by generators. Today, we are seeing the increasing participation of emerging technologies like storage to cost-effectively help meet our operational needs,” said Kula.
The IESO’s 2016 Operability Assessment identified a need to increase the amount of regulation service scheduled each hour to assist with real-time system operation needs. Following this RFP, the IESO may seek additional regulation suppliers based on updated assessments. More information on the results of the 2017 Regulation RFP can be found here, and click here to read about the evolution of Ontario’s regulation service market.
About the IESO
The IESO manages the province's power system so that Ontarians receive power when and where they need it. It plans and prepares for future electricity needs and works with its partners to guide conservation efforts. The IESO is also leading a Market Renewal Program, which will enhance the way electricity is priced, scheduled and procured to meet Ontario’s current and future energy needs reliably, transparently, efficiently and at lowest cost.
For more information, please visit www.ieso.ca.
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