Exploring the game-changing project set to revolutionize renewable energy storage and strengthen Canada's clean energy future.
By Megan Haley
SolarBank Corporation has officially commenced construction on its inaugural Battery Energy Storage System (BESS) project in Ontario, marking a significant milestone in Canada's renewable energy landscape. The project, known as SFF-06, is situated in Cramahe, Ontario, and represents SolarBank's strategic entry into the emerging energy storage market.
Project Overview
The SFF-06 project is designed to deliver a daily contract capacity of 4.74 megawatts (MW) across 251 business days annually. This capacity will play a crucial role in stabilizing the grid by storing excess energy during periods of low demand and releasing it during peak consumption times. Such functionality is essential for integrating renewable energy sources, like solar and wind, which are inherently intermittent.
Strategic Financing and Partnerships
The project is being financed through a combined loan of $25.8 million from the Royal Bank of Canada (RBC), covering both the SFF-06 project and another initiative, Project 903. RBC serves as the lender, administrative agent, collateral agent, and green loan structuring agent for this financing arrangement. Anvil Crawler Development Corp., a subsidiary of Skyline Group of Companies, has been contracted to perform the civil and electrical work, with an expected contract value of $1.85 million.
Long-Term Revenue and Incentives
In July 2023, the SFF-06 project secured a 22-year contract with the Independent Electricity System Operator (IESO) under the Expedited Long-Term Request for Proposals (E-LT1 RFP). This contract includes a fixed capacity payment of $1,221 per MW per business day, significantly above the weighted average price of $876/MW for all storage category projects under the E-LT1 RFP . Additionally, the project is eligible for the Clean Technology Investment Tax Credit introduced in 2024, offering up to a 30% reimbursement of eligible capital costs for new clean technology projects.
Community and Environmental Impact
SolarBank holds an indirect 50% interest in the project through its subsidiary, 1000234763 Ontario Inc. The remaining 50% is owned by a partnership formed by First Nations communities in Ontario, reflecting a commitment to inclusive growth and community engagement . The project is expected to contribute significantly to Canada's goal of achieving net-zero emissions by 2050 by enhancing grid reliability and facilitating the integration of renewable energy sources.
Looking Ahead
The SFF-06 project is a pivotal step for SolarBank as it expands its portfolio to include energy storage solutions. With a potential development pipeline exceeding one gigawatt and over 100 megawatts of renewable energy projects already developed, SolarBank is poised to play a significant role in Canada's transition to a sustainable energy future.
For more information about the SFF-06 project and SolarBank's initiatives in renewable energy, please visit the project Press Release.
*Disclaimer: This article is entirely fictional and created for illustrative purposes only. It is not written, endorsed, or affiliated with SolarBank Corporation. Any quotes, statements, or attributions within this article are purely fictional and should not be associated with any real individuals or organizations.