Ontario breaks ground on York battery energy storage facility

Key Takeaways:

• Ontario has started construction on the York BESS, a facility that will store 120 MW of electricity, enough to power 120,000 homes.
• The Ontario government recently secured 3,000 MW of new battery energy storage capacity, the largest procurement in Canadian history, positioning the province to have the largest battery storage fleet in the nation and the third-largest in North America.
• In addition to battery storage, Ontario is advancing nuclear, hydroelectric, and transmission infrastructure projects to meet the growing demand for power.

The Whole Story:

The Ontario government has broken ground on a new battery energy storage project in York Region.

Once completed, the new York Battery Energy Storage System (BESS) will store and release 120 MW of electricity, enough to power 120,000 homes.

“Here in York Region and across the province, energy demand is rising. That is why our government is moving forward with an ambitious plan to generate and store more affordable, reliable and clean power for our families, farms, and businesses,” said Stephen Lecce, Minister of Energy and Electrification. “Thanks to projects like this one, Ontario is on track to have the largest battery storage fleet in the nation and the third largest in North America, which will result in a more efficient grid and help keep energy costs down.”

In May 2024 the Ontario government concluded the largest battery storage procurement in Canadian history, which secured about 3,000 MW of new battery energy storage, enough to power three million homes. Capital Power was selected during the government’s first procurement framework to build two battery storage projects – including the York BESS – representing a total of 170 MW of energy storage. Capital Power anticipates that the York BESS will reach commercial operation by August 2025.

“Building affordable, clean, and reliable electric generation for our growing communities in Northern York Region and South Simcoe is essential to supporting local families and businesses,” said Caroline Mulroney, Member of Provincial Parliament for York-Simcoe. “By bringing the York Battery Energy Storage System to our region, we will ensure our electricity system remains one of the cleanest electricity systems in the world.”

The York BESS is expected to help meet rising demand for power in the Greater Toronto Area and across the province. Officials also intend for it to make the province’s grid more efficient by drawing and storing electricity off-peak when power demand is low and returning the power to the system at times of higher electricity demand.

“Capital Power proudly provides reliable electricity to power homes and businesses across Ontario. With our York Battery Energy Storage System (BESS), we’re actively deploying balanced power solutions that will enhance grid reliability and support Ontario’s thriving economy. Flexible solutions like natural gas and battery energy storage are critical to supporting the urgent need for reliable power across the province,” said Avik Dey, President and CEO of Capital Power. “We’re also proud to be partnering with Ontario Power Generation on assessing the feasibility of deploying small modular reactors in Alberta. Ontario is becoming a clean energy superpower and we’re excited to be a part of that story.”

Ontario’s Independent Electricity System Operator (IESO) now forecasts that the province’s electricity demand alone will increase by 75% by 2050. Building energy storage facilities is just one part of the government’s plan to meet that growing energy demand and reduce emissions by expanding Ontario’s energy grid. Other efforts include:

• Nuclear Energy – Advancing nuclear power through the largest pre-development work at Bruce Power in 30 years, four small modular reactors at Darlington and supporting Ontario Power Generation’s plan for refurbishing the Pickering Nuclear Generation Station.
• Hydroelectric Energy – Investing in existing hydroelectric stations, including a $1 billion refurbishment program that the Sir Adam Beck Generating Station in Niagara Falls.
• New Transmission Infrastructure – Designating and prioritizing transmission lines in Southwestern, Northeastern and Eastern Ontario that will power job creators, including EV and EV battery manufacturing and clean steel production.
• Keeping Costs Down – Launching new energy efficiency programs on January 1, 2025, and building on the government’s $342 million expansion of existing energy efficiency programs.
• Additional Competitive Procurements – Launching the largest competitive procurement of clean energy resources in the province’s history in addition to successfully re-contracting existing capacity resources at about a 30% discount.