In July, municipal staff sought direction from the Independent Electricity System Operator (IESO) about the role of the municipality in the development of additional electricity capacity.
Staff was seeking clarification to help staff and council respond appropriately to requests to establish new electricity facilities like the one they received from Nexus Energy at the June 23rd meeting, where the firm sought support for the creation of a large-scale battery storage system in Cavan Monaghan. Boosting the provincial electricity supply is particularly relevant to the township as there is currently inadequate hydro capacity to fully service the residential and commercial developments currently in the pipeline. There quest sought answers to specific technical questions regarding the site requirements, the ability to stack battery storage units and the life expectancy of stored energy in these units as well as broader concerns about the role of the municipality in the project approval process.
The Nexus group was preparing to bid on a provincial energy procurement process that opened up later that week. In November, the province issued a directive indicating the intention to address the province’s need for increased electricity supply to ensure the province continues to have a reliable, affordable and sustainable electricity system. According to IESO, which is the province’s electricity system planner and operator, the demand for electricity is projected to grow by 75% by 2050, driven by economic and population growth, new technology and the electrification of industries including transportation. This is the largest competitive electricity procurement process in the province’s history. Wind, solar, bioenergy, energy storage, natural gas and hydroelectric projects with a minimum capacity of 1million megawatts that can be operation by May 2030 are eligible, with successful projects receiving a 20-year contract. The first window of opportunity for proposal submission opened on June 27th with a deadline of the calendar year for applications with the expectation that new submission opportunities will open on an annual basis.
The IESO provided the municipality with specific references for their technical questions and a report outlining the municipal role in this initiative issued in July. According to this guide, municipalities will decide whether their community will be willing hosts to new electricity projects pro-posed under this program and will oversee local development approvals. While municipalities are expected to remain engaged and support securing the province’s energy future, each one will establish their own community engagement standards as part of their approval process. Projects must also adhere to the normal development permitting processes which ensure adherence to land use regulations, zoning, environmental impact, infrastructure development such as roads, grid connection approvals among others. In June, the province added another restriction: proponents must have Canadian status. To be successful, proposals must effectively contribute to the provincial electrical capacity at a reasonable cost.
Energy storage facilities such as the ones outlined in the June 23rd presentation by Nexus Energy act as a form of supply and demand, drawing energy from the grid during off-peak hours when demand is low and injecting it back into the grid during peak electricity demand. They are particularly useful in integrating renewable resources such as wind and solar as it smooths out changes in energy output associated with unpredictable weather. These projects are subject to strict environmental and maintenance requirements to ensure their safe operation.
The municipality is now prepared to respond to proposals under this major program which will surely come sooner than later.