TC Energy plans to continue Ontario energy storage project

Key Takeaways:

• The decision comes after direction from Ontario’s minister of energy to the Independent Electricity System Operator (IESO), outlining next steps related to the project including a cost recovery agreement.
• Using water and gravity, pumped storage acts like a giant battery. It stores excess electricity when demand is low and makes it available when it is high.
• If built, the facility would provide 1,000 MW of flexible energy to Ontario’s electricity system.
• It is expected that construction for the project would begin in the latter part of this decade with in-service in the early 2030s.

The Whole Story:

TC Energy Corporation announced this month that it will continue to advance the Ontario Pumped Storage Project with its prospective partner Saugeen Ojibway Nation, and begin work with the Ministry of Energy and the Ontario Energy Board (OEB), to establish a potential long-term revenue framework. Further, TC Energy and Saugeen Ojibway Nation will assist with the ministry’s evaluation of the Project’s broader societal and economic benefits.

The decision comes after direction from Ontario’s minister of energy to the Independent Electricity System Operator (IESO), outlining next steps related to the project including a cost recovery agreement. Subject to an agreement with the IESO, this direction from the minister will facilitate the continued development of the project, that if constructed, will support Ontario’s long-term plans to grow the economy and build a sustainable, reliable and clean electricity system.

TC Energy and Saugeen Ojibway Nation stated that they look forward to continuing work with the Ministry, the IESO and the OEB to advance the project, which they say will play an important role in accelerating the province’s ambitious plans for clean economic growth.

Using water and gravity, pumped storage acts like a giant battery. It stores excess electricity when demand is low and makes it available when it is high.

The Ontario Pumped Storage Project will be designed, engineered, and built by a domestic supply chain. During construction, the project will create 1,000 unionized jobs and over 75% of the total materials and supplies will be provided by Ontario-based companies.

Based on feedback from stakeholders and Indigenous groups, the project team opted to completely re-designed the project to enhance protections for Georgian Bay & near-shore environments.

The project remains subject to the approval of TC Energy’s board of directors and Saugeen Ojibway Nation. It is expected that construction for the project would begin in the latter part of this decade with in-service in the early 2030s, subject to receipt of regulatory and corporate approvals. Further, any future capital allocation decisions will align with TC Energy’s net capital expenditure limit of $6-7 billion post-2024.

 The Independent Electricity System Operator (IESO) estimates that Ontario needs 5,000 to 15,000 megawatts (MW) of new electricity production by 2035. When operational, the OPSP will provide 1,000 MW of flexible, clean energy to Ontario’s electricity system — enough to power a million homes for up to 11 hours.