Northland Power and partners execute major agreements

Northland Power Inc. announces the successful execution of an Energy Storage Facility Agreement (ESFA) with the Independent Electricity System Operator (“IESO”) for the Oneida Energy Storage Project (“the Project”). 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 follows the issuance of a Ministerial Directive to enable the Project to proceed, granted by the Government of Ontario.

The news builds on last week’s announcement confirming Northland’s investment in the Project. It marks a significant milestone for advancing its development in partnership with NRStor Inc. (NRStor) and the Six Nations of the Grand River Development Corporation (SNGRDC). Northland is a majority owner in the Project 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.

The Canada Infrastructure Bank (CIB) has played a key role supporting project development and is collaborating with the Oneida Energy Storage Project on an investment agreement. In addition to the CIB, Northland and its partners are also working with commercial banks to complete financing of the project. Furthermore, Natural Resources Canada has provided $50 million in funding from the Smart Renewables and Electrification Pathways program, recognising that the Project will reduce greenhouse gas emissions by enabling increased renewable energy capacity and providing essential grid services. The Project will contribute to Canada’s ongoing transition to a net-zero economy by 2050 as well as Canada’s commitment to achieving a 100-percent net-zero-emitting electricity system by 2035.

The Project is the largest battery energy storage project in Canada and amongst the largest in the world. It will deliver critical capacity and improved efficiency to Ontario’s energy grid and double the energy storage resources on Ontario’s clean electricity grid from approximately 225 MW today to approximately 475 MW when the Project is completed in 2025.

“The Oneida Energy Storage Project is a milestone for Ontario’s burgeoning energy storage sector. For Northland, this project marks our first storage investment. As trusted and experienced operators in Canada, the opportunity to construct and operate Canada’s largest battery energy storage project holds special significance,” said Mike Crawley, President and CEO of Northland Power. “We recognise the Government of Canada and the Government of Ontario for their continued support of Oneida as part of their broader vision to ensure reliable and affordable clean energy for Canadians. We’re excited to be a part of this growth and look forward to continuing to work in partnership with NRStor and the Six Nations of the Grand River Development Corporation.”

Source: https://www.northlandpower.com/
Image source: Courtesy of Northland Power