Strategic Partners
No Responses June 28, 2023
  • Three projects in Ontario, each has a discharge capacity of 4.99 megawatts with 19.96 megawatt hours of storage
  • SolarBank currently manages solar farms at two of the three locations that will now host a Battery Energy Storage System (BESS)
  • The projects will now be developed and built, subject to the successful completion and execution of definitive contracts and related closing documents
Toronto, Ontario, June 28, 2023 — SolarBank Corporation (CSE: SUNN; OTC: SUUNF; FSE: GY2) (“SolarBank” or the “Company”) is ‎pleased to announce that the Ontario Independent Electricity System Operator’s (“IESO”) has confirmed the award of three separate proposals submitted by SolarBank for the IESO’s Expedited Long-Term 1 (“E-LT1”) Reliability Procurement in Ontario related to battery storage (see press release dated June 20, 2023). The proposed projects are owned by Solar Flow-Through Funds and two First Nations communities in Ontario (the “Investors”). The proposals represent SolarBank’s initial foray into battery energy storage, a market forecast by Fortune Business Insights to grow at a 16.3% compound annual growth rate from 2022 to reach US$31.2 billion by 2029.1 SolarBank successfully obtained resolutions of support from local municipal councils for each project and has completed the proposals responding to IESO’s E-LT1 Procurement Request for Proposal on behalf of the Investors. The Investors will now develop and build the projects, subject to the successful completion and execution of the E-LT1 Contract and related closing documents. SolarBank and the Investors are in discussions regarding SolarBank’s future involvement with these projects, which could include continuing to advance each project through permitting, engineering, procurement, construction, and commercial operation. The IESO works at the heart of Ontario’s power system, delivering key services across the electricity sector, including managing the power system in real-time, planning for the province’s future energy needs, enabling conservation, and designing a more efficient electricity marketplace to support sector evolution. Transmission and distribution-connected battery storage projects provide reliability benefits to existing electricity grids. In what is known as energy arbitrage, the storage systems will discharge their capacity during periods of peak demand and high prices and then re-charge from the grid when demand and prices are low. Utilities and system operators pay for these benefits to the grid via capacity payments. Projects under the E-LT1 are expected to be operational no later than April 30, 2026. Each system is expected to operate under a 22-year contract with guaranteed capacity payments from the IESO, provided all contract obligations are met. The systems will also earn revenue from the energy and ancillary markets in Ontario. The projects in SolarBank’s submissions are in three different areas of Ontario. Each has a 4.99 MW discharge capacity with a four-hour duration using lithium-iron-phosphate technology. Lithium Iron Phosphate technology allows for the greatest number of charge/discharge cycles, making it the optimal selection for stationary energy storage systems. There are several risks associated with the proposals set forth in this news release. Firstly, there is no certainty that the Investors will successfully complete the execution of the E-LT1 Contract and related closing documents. There is also no certainty that the Company and the Investors will agree on terms for the Company’s continued involvement with the projects. There is no certainty the projects will be completed on schedule or that they will operate in accordance with their design capacity. The development of any project is subject to receipt of required permits and the continued availability of third-party financing arrangements for the Company. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for battery storage systems, which could result in future projects no longer being economic. Please refer to “Forward-Looking Statements” for additional discussion of the assumptions and risk factors associated with the statements in this press release. 1 https://www.fortunebusinessinsights.com/industry-reports/battery-energy-storage-market-100489