Solar PV and energy storage firm Canadian Solar has entered into battery storage agreements (BSAs) and long-term services agreements (LTSAs) with Aypa Power for the Elora and Hedley battery energy storage system (BESS) projects in Ontario, Canada.
The Elora and Hedley BESS projects will provide 420MW/2,122MWh of capacity to Ontario’s grid.
Canadian Solar entered into the BSAs and LTSAs through e-Storage, part of the company’s majority-owned manufacturing subsidiary CSI Solar.
Elora and Hedley will both deploy e-Storage’s SolBank, its BESS solution using lithium iron phosphate (LFP) battery cells.
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E-Storage introduced the SolBank 3.0 Plus at the ees Europe trade show in Munich, Germany. The new model features improvements to its LFP technology and, according to the company, delivers a ‘near zero battery degradation curve’ during the first four years.
The company launched its FlexBank 1.0 BESS at RE+ in Las Vegas, US, in September. This system provides up to 8.36MWh of capacity by stacking modular cabinets, and the company states it is suitable for various utility-scale applications.
Canadian Solar states that the Elora and Hedley BESS contracts are structured to ensure high system availability and predictable service revenues throughout the life of the assets.
Delivery is scheduled to commence in the first quarter of 2026, with commercial operation expected in the first half of 2027.
Notably, Colin Parkin, President of e-Storage, said the projects will provide capacity through the Independent Electricity System Operator (IESO) long-term 1 (LT1) resource adequacy framework.
In 2023, the IESO conducted its inaugural LT1 procurement through a streamlined process, awarding contracts for more than 850MW of battery storage capacity across two phases in May and June.
Capital Power recently announced commercial operation of its 120MW York and 50MW Goreway BESS projects in Ontario, also contracted following the LT1 request for proposals (RFP) process.
The IESO recently initiated its LT2 RFP, releasing the related documents at the end of June.
In September, Energy Storage Canada (ESC) released a report titled ‘Energy Storage Canadian Market Outlook,’ which outlines the current state of energy storage in the country.
Ontario is notably at the forefront of BESS installations, representing more than two-thirds of the country’s grid-connected energy storage at 486MW.
