The government of Canada and the province of Ontario announced the Oneida Energy Storage Project today, set to be the country’s largest energy storage project, powered by Tesla’s Megapacks.
The project will see Oneida award a $141 million Engineering, Procurement and Construction (EPC) contract to Aecon. Tesla has a battery supply agreement with Oneida LP. The Oneida Energy Storage Project will deliver a 250 megawatt / 1,000 megawatt-hour energy storage facility near Nanticoke, Ontario.
Oneida LP will be owned by NRStor, the Six Nations of the Grand River Development Corporation (SNGRDC), Northland Power and Aecon Concessions. The Independent Electricity System Operator (IESO) will have electricity storage services provided by Oneida through a 20-year agreement, while also have energy sold into the Ontario electricity grid and operating reserve, supporting the province’s growth of clean energy supply.
The Oneida project will be the largest energy storage project in Canada and one of the largest in the world, providing a gigawatt-hour of capacity to the Ontario grid. Construction is expected to start in Q2 of 2023, with completion slated in 2025.
There will be enough power to meet the peak demand of a city roughly the size of Oshawa (population 170,000 in 2017), says the federal government. The project will also more than double Ontario’s clean energy storage resources from 225 MW today to roughly 475 MW in 2025.
According to Tesla, “Megapack is a powerful battery that provides energy storage and support, helping to stabilize the grid and prevent outages. By strengthening our sustainable energy infrastructure, we can create a cleaner grid that protects our communities and the environment,” explains its website. Megapack is the commercial version of its Powerwall, a smaller battery storage solution for homeowners. The systems are all handled and managed by Tesla software.
“As a leader in the energy transition, Aecon is working at the forefront to build and operate sustainable infrastructure and the battery energy storage market offers robust opportunities for continued growth in a significant global market,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc., in a statement.
“We are thrilled to reach this milestone for the Oneida Energy Storage project and are grateful for the support of the Government of Ontario, as well as the contributions of many stakeholders that make this project a truly collaborative one. We are eager to continue moving this project forward, alongside our partners Six Nations of the Grand River Development Corporation, Northland Power, Aecon, and Tesla, and with the support of the Canada Infrastructure Bank and NRCan, as a sustainable, innovative solution that will benefit the environment, ratepayers, and our economy,” said Annette Verschuren, Chair & CEO, NRStor Inc.
“The Oneida Energy storage project is a great example of what can be accomplished through strong and meaningful partnership with Indigenous communities,” said Todd Smith, Minister of Energy, in a statement. “This project, part of our government’s larger plan for the decade to grow our reliable, affordable and clean electricity system, will ensure that we have the electricity we need to support our success in driving electrification and attracting new jobs to the province, including unprecedented investments, from electric vehicles and battery manufacturing to clean steelmaking.”
According to Natural Resources Canada, the Oneida Energy storage project is expected to reduce carbon emissions by between 2.2 to 4.1 million tonnes, equivalent to removing 40,000 cars off the road.
Megapacks are now also made at Tesla’s new Megafactory in Lathrop, California, which can make one Megapack every 68 minutes. During Tesla’s Q4 2022 earnings, the company deployed 6,541 MWh of storage, up 64% year-over-year, a new record for the company. Total energy storage deployments jumped 152% year-over-year in Q4 to 2.5 GWh. Tesla says demand for their energy storage products “remains in excess of our ability to supply,” saying it is ramping up production at Lathrop.
Tesla recently detailed its economic impact on the Canadian economy, and this new battery storage project will further entrench the company’s impact on the nation.