PowerBank Commences Commercial Operation of First Battery Energy Storage System in Ontario
PowerBank Corporation has announced the start of commercial operations at its first battery energy storage system (BESS) in Ontario, marking its entry into the utility-scale energy storage sector.
The 4.99 MW facility, located in Cramahe, Ontario, is known as the BESS SFF 06 project and has begun generating revenue under a long-term contract with the Independent Electricity System Operator (IESO).
The project operates alongside an existing solar generation facility at the same site, combining renewable generation with energy storage to improve grid flexibility and dispatchability.
According to project details, the system was awarded a 22-year contract through an IESO procurement process in 2023. The agreement provides a fixed capacity payment structure, supporting long-term revenue stability for the asset.
The facility is expected to deliver approximately 4.74 MW of daily contracted capacity across 251 business days per year, contributing to Ontario’s broader strategy to enhance grid reliability and integrate renewable energy.
The project also qualifies for Canada’s Clean Technology Investment Tax Credit, introduced in 2024, which provides up to 30% coverage of eligible capital costs for qualifying clean energy investments.
PowerBank holds an indirect 50% ownership stake in the project company, with the remaining interest held in partnership with First Nations communities in Ontario.
The project was financed through a combination of equity and debt, including a $28.1 million loan facility from Royal Bank of Canada, which also supports additional storage development.
PowerBank stated that the commissioning marks an important step in its broader strategy, with a development pipeline exceeding 1 GW of renewable energy projects across North America.
Battery energy storage is increasingly being deployed across global power systems to support renewable integration, peak demand management, and grid stability, particularly as electricity systems transition toward higher shares of variable generation sources.
Source: prnewswire.com
