Northland Power Inc. has executed an energy storage facility agreement (ESFA) with the Independent Electricity System Operator (IESO) for the Oneida Energy Storage Project – a development that will reduce greenhouse gas emissions by enabling increased renewable energy capacity and providing essential grid services.
The project will benefit from a 20-year fixed-price contract for revenue payments with the IESO in Ontario for the majority of the capacity from the project. The remaining capacity will earn market revenues through sales into the wholesale market.
Execution of the ESFA followed the issuance of a ministerial directive to enable the project to proceed, granted by the government of Ontario.
Northland is working on the project in partnership with NRStor Inc. and the Six Nations of the Grand River Development Corp. Northland is a majority owner and will lead its construction, financing, and operation.
The project has finalized a battery supply agreement and a long-term service agreement with Tesla Inc. for the supply of key components and services, as well as an EPC agreement with Aecon Group Inc. for designing, engineering and constructing the facility.
Oneida Energy Storage Project is the largest battery energy storage project in Canada and among the largest in the world. It will double the amount of energy storage resources on Ontario’s clean electricity grid from approximately 225 MW today to approximately 475 MW.