Energy storage developer-operator Aypa Power, and Six Nations of the Grand River Development Corporation (SNGRDC) have closed CA$700 million (US$512 million) for two battery energy storage system (BESS) projects in Ontario, Canada.
The two projects being financed are the Elora and Hedley BESS projects.
An eight-bank syndicate provided the financing, with Canadian Imperial Bank of Commerce (CIBC) serving as the left lead arranger and Sumitomo Mitsui Banking Corporation, Canada Branch, as the right lead arranger. Additional coordinating lead arrangers included Desjardins Group, National Bank of Canada, Royal Bank of Canada (also the Administrative Agent), and Societe Generale.
Industrial and Commercial Bank of China (Canada) and Siemens Financial Services also acted as joint lead arrangers. The financing package features construction-to-term loan facilities, investment tax credit bridge loans, and letters of credit.
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In 2025, the Elora and Hedley BESS projects received contracts through the Independent Electricity System Operator’s (IESO’s) Long-Term 1 (LT1) competitive procurement, a province-wide effort to secure new capacity resources that support Ontario’s long-term electricity reliability and resource adequacy.
In 2024, the IESO selected approximately 1.8GW of projects through the LT1 request for proposals (RFP), adding 410.69MW from three bids by non-storage resources (biogas, natural gas) to 10 battery storage resource bids totalling 1,748.22MW, to procure a total 2,194.91MW.
With a combined installed capacity of 422MW/1,688MWh, Aypa claims the Elora and Hedley projects represent one of the largest battery storage commitments under the LT1 programme.
The 211MW Hedley BESS is located in Haldimand County and is expected to be operational in 2027. Further, the BESS is expected to yield an annual average of US$880,000 for the Six Nations Community.
SNGRDC says the construction phase will create 200-300 jobs, and that a US$368,000 commitment has been made to the Grand River Post Secondary Education Office.
Elora, situated in Wellington County, has a capacity of 211MW. Currently, Aypa states that various studies regarding land use and environmental assessments are underway. At the same time, Aypa Power is collaborating with the County on an Official Plan Amendment and with the Township on a Zoning By-Law amendment.
Earlier this month, SNGRDC commissioned the 300MW/1,200MWh Hagersville Battery Energy Storage Park in Haldimand County, Ontario, with Quebec-based IPP Boralex.
During this project, Boralex and SNGRDC focused on engaging local Six Nations labourers. The companies partnered with construction partner Borea, bringing in A6N General Partnerships—majority-owned by SNGRDC with construction company Aecon—to handle civil work on site.
Earlier this year, Aypa Power secured a US$1.5 billion construction warehouse revolving credit facility to support its projects in the US.
Generally, warehouse lending provides loan originators with a line of credit to fund mortgages, allowing banks to issue loans without tying up their capital. Once a loan is originated, it is sold in the secondary market to recoup the credit. This short-term credit structure helps banks maintain liquidity while earning income from origination fees and loan sales.
Moe Hajabed, Chief Executive Officer of Aypa Power, said of the Hedley and Elora projects, “Ontario has long been a core market for Aypa, and we are pleased to advance the Elora and Hedley projects alongside Six Nations of the Grand River Development Corporation to support the long-term resilience of the province’s power system.”
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