The Canada Infrastructure Bank (CIB) will invest in one of the world’s largest renewable energy storage projects; the Oneida Energy Storage, in southwestern Ontario. The bank will invest up to $170 million.
Firstly, the CIB investment will add up to the Oneida Energy Storage LP investment, and also to the investment of private sector lenders; all those instances will fund the whole project, which total capital cost is still to be revealed.
Secondly, the instances involved will announce the final investment amount of the project when it gets financial close, around this summer. Then, construction would begin, around the fall of this very year.
Thirdly, the project will have an approximate capacity of 250 megawatts/1000 MW-hours of energy storage output. Which makes it one of the largest in the world. It will help Ontario reduce its greenhouse gas emissions by 4,1 million tons.
Moreover, such reduction would be the equivalent of taking 40,000 cars off the roads, annually. It will also allow Ontario to better manage peak electricity demand and meet future reliability needs in a more sustainable way.
Also recommended for you: NERC alerts California, Texas, and the Midwest of potential summer energy shortages. Click here to read.
CIB and First Nations Corporation among the investors
In addition, once the facility is operational, it will draw and store existing surplus baseload and renewable energy; during off peak periods. Then, it will release it to the Ontario grid when energy demand is at its peak; consequently, reducing greenhouse gas emissions.
Furthermore, the CIB-financed project will optimize Ontario’s electricity sector; by providing important grid balancing services and also reducing renewable curtailment. Overall, the project will demonstrate how CIB is attracting and making investment on the clean technology sector.
On the other hand, the project has among its investors the Six Nations of the Grand River Development Corporation; which will be pivotal for the project to bring benefits to First Nation’s communities in Ontario.
Indeed, such were the words of Matt Jamieson, President and CEO of SNGRDC. “We are extremely pleased to play a lead role in advancing an energy solution that unlocks value for ratepayers; also, promotes greenhouse gas reduction, and provides much needed stimulus for our local economy.”
Finally, Ehren Cory, CEO of the CIB, said. “The CIB, NRStor Inc. and SNGRDC are showing how we can invest in sustainable infrastructure; also, take action on climate change, create energy security for Ontarians; while stimulate economic opportunity benefiting a First Nations community.”