Northland Power, a Canadian energy firm, has finalised an energy storage facility with Canada’s Independent Electricity System Operator (IESO) for the Oneida energy storage project. Reportedly, the Oneida project is one of the biggest battery energy storage projects in the world and the largest in the country. Upon completion in 2025, it will raise the quantity of energy storage resources on Ontario’s clean electricity grid from roughly 225 MW to nearly 475 MW.
Recently, in order to strengthen its collaboration with NRStor and the Six Nations of the Grand River Development Corporation, Northland Power announced an investment in the Oneida project (SNGRDC). Northland will manage the project’s construction, financing, and operation as the principal stakeholder. The majority of the output from the Oneida project will be covered by a 20-year fixed price contract for revenue payments with the Ontario IESO, and the remaining capacity will be sold into the wholesale market.
In July 2022, Northland Power entered into a corporate power purchase agreement (CPPA) with an investment-grade counterparty for its offshore wind farm in Taiwan. In accordance with the 20-year CPPA, the buyer would receive all of the clean energy produced by the Hai Long 2B and 3 projects. The two projects would start operating in late 2026 and have a combined capacity of 744 MW.
REGlobal’s Views: Energy storage is becoming a critical part of the power sector owing to its multiple benefits in serving as backup for power and improving grid stability. Canada is slowly planning to increase its share of intermittent renewable energy and such large battery energy storage projects will be important to balance the grids in the future.
