Energy storage developer NRStor has announced that the Independent Electricity System Operator (IESO) has entered into an Energy Storage Facility Agreement (ESFA) for its Oneida Energy Storage Project. With the finalization of the ESFA, NRStor has finalized and executed a battery supply agreement with Tesla, and an engineering, procurement, and construction (EPC) agreement with Aecon Group Inc., to advance into the construction phase.

The project will supply the Ontario electricity system through a 250 megawatt/1,000 megawatt-hour Tesla Megapack system in southwestern Ontario and is scheduled to be completed in 2025.

The Oneida Energy Storage Project is the largest of its kind in Canada and amongst the largest in the world, NRStor says. It will provide a gigawatt-hour of capacity to the Ontario grid, while prioritizing local Indigenous partnerships and environmental benefits. NRStor and Six Nations of the Grand River Development Corporation (SNGRDC) have been jointly developing the Project since 2018 and have announced Northland Power’s participation as an equity and operating partner.

The facility will help meet Ontario’s future electricity needs by providing clean, reliable power capacity, NRStor says. It will draw and store existing surplus baseload and renewable energy during off-peak periods and release that power back to the grid when energy demand is at its peak. In addition, the energy storage facility will help stabilize Ontario’s electricity sector by providing grid-balancing services.

Oneida Energy Storage is expected to provide benefits to provincial ratepayers by reducing the need and cost associated with using gas-fired power plants during times of peak demand. The project will help Ontario reduce greenhouse gas emissions by 4.1 million tonnes, or the equivalent of taking 40,000 cars off the road every year, NRStor says.