A recent announcement from the government of Ontario outlining a sustainable road map toward achieving an emission-free electricity sector means final evaluation will begin on the Ontario Pumped Storage project, TC Energy said.
The 1 GW Ontario Pumped Storage project is proposed for construction on the Department of National Defence’s 4th Canadian Division Training Centre in Meaford, Ontario, in the territory of the Saugeen Ojibway Nation. It is proposed by TC Energy and its prospective partner Saugeen Ojibway Nation.
The project would be Ontario’s largest energy storage project, storing enough clean electricity to power 1 million homes for 11 hours. It would stimulate the economy and maximize the value of Ontario’s electricity, generating about $12.1 billion in energy system cost benefits, while creating more than 1,000 direct jobs regionally and in Ontario. Once operational, the project would pay about $8.5 million annually in income to workers employed at the facility, off-site employees and direct contract workers.
“Ontario Pumped Storage will be a critical component of Ontario’s growing clean economy and will deliver significant benefits and savings to consumers. Ontario continues to attract major investments that will have large power needs — many of which are seeking zero-emission energy before they invest,” said Corey Hessen, Executive Vice-President and President, TC Energy, Power and Energy Solutions. “We are pleased the government is advancing efforts to recognize the significant role that long duration storage plays — firming resources will become increasingly valuable in supporting a future emission-free electricity system.”
The Ministry of Energy has directed the Independent Electricity System Operator (IESO) to conduct a final analysis of Ontario Pumped Storage to validate its role as part of Ontario’s electricity system. The IESO will provide its analysis by Sept. 30, 2023. In parallel, the ministry will launch consultations on Ontario’s Regulatory Registry and the Environmental Registry of Ontario on the potential to rate regulate Ontario Pumped Storage via the Ontario Energy Board.
By Nov. 30, 2023, the Minister of Energy will make a final determination on Ontario Pumped Storage.
The project is subject to the approval of TC Energy’s board of directors and a successful partnership agreement with the Saugeen Ojibway Nation. TC Energy is targeting a final investment decision in 2024. It is expected to be in-service in the early 2030s, subject to receipt of regulatory and corporate approvals.
