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Energy Storage in Ontario

I have used the term Battery Energy Storage System (BESS) throughout this website which is to be honest is a little unfair. These are not just simple products which distribute power but are rather intelligent power management systems which in essence can/will replace the grid. They regulate and can provide power at a higher quality than the grid, provide a better power factor, regulate the voltage etc and provide for an uninterruptable power source. A BESS will be the centrepiece of any micro grid and off grid system.

I have mentioned the new Ultra Low Rate (ULR) on the front page of my web site. It was introduced in part by the Province to help people who owned Electric Vehicles (EV’s) lower their hydro costs when recharging their EV’s. It also helps shift power to off peak times in order to smooth out hydro demand.  The simple fact is that Ontario (or any jurisdiction) do/does not have the generating and transmission capacity to handle the required electrical demand if everybody transitioned to EV’s at once or existing EV owners recharged them at peak times.

The new 30% Federal Investment Tax Credit (ITC) which includes (BESS) and solar and other technologies. In Ontario, a Class “A” end user would use a BESS to lower their peak load factor (PLF) and Global Adjustment (GA) hydro costs under the 5CP program in Ontario.  

With respect to a BESS many companies as part of their business model, offer a no CapEx option. They would install the BESS, monitor the peak hours, and share the GA savings. They would take most of these savings in the initial years in order to recoup their investment etc. but even that is up for negotiation.