Canadian power producer Northland Power Inc (TSE:NPI) on Friday awarded several major agreements backing the development of its 250-MW Oneida project in Ontario, set to create the largest battery energy storage complex in Canada.
Specifically, Northland has sealed a 20-year deal to deliver electricity storage services from the facility to Independent Electricity System Operator (IESO), under which it will receive fixed-price revenues from the provincial grid operator. The contract secures most of the project capacity, while the remaining portion will rely on sales to the wholesale market.
The Toronto-based developer has also brought in Tesla Inc (NASDAQ:TSLA) to deliver key components for the lithium-ion facility and oversee its operations in the long run. Aecon Group Inc will act as the engineering, procurement and construction (EPC) contractor.
Once in operation in 2025, the Oneida battery will double Ontario’s current energy storage capacity to 475 MW.
Northland is partnering with NRStor and the Six Nations of the Grand River Development Corporation on the project, which has already received backing from the Canada Infrastructure Bank (CIB). The Canadian firm is the majority investor and will lead the construction and operation of the proposed system. It is currently working with commercial banks to obtain the required financing.
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