Recent Blog Posts
By Justin Rangooni
Executive Director, Energy Storage Canada
After years of consistency, in the next three decades Ontario’s energy sector and its electricity grid are expected to undergo a substantial transformation, which of course leaves a lot of room for innovation. While all types and technologies of energy storage are seeing substantial innovation in their composition and application, long duration energy storage (LDES) is perhaps seeing more than others, because there are far fewer instances of LDES assets having been deployed or connected to major grids, apart from pumped hydro.
However, even with fewer instances of deployment to date, data indicates long duration storage is to be critical to the future changes to Ontario’s grid as the province, like many regions, prepares to secure two or three times its current generating capacity, while still achieving its ambitious decarbonization goals.
Changing the blend of resources supplying energy to the province, with an emphasis on non-emitting resources – including renewables like wind, solar, and hydro, new grid-scale and small modular nuclear assets, and emerging resources like hydrogen and geothermal – is going to be a major challenge. As we electrify heating and transportation, the frequently simultaneous demand for charging EVs or powering heat pumps is going to drive unprecedented levels of peak electricity demand that will compound the strain on our power grids.
As Ontario brings on more generation capacity, and electricity demand reaches new levels, the province will require a greater variety of energy storage resources to ensure Ontario has the power it needs when it needs it. Long duration assets – broadly defined as assets capable of discharging energy for a period of ten or more hours – will be a key component of this mix.
In fact, a recent report commissioned by Energy Storage Canada (ESC) and prepared by Dunsky Energy & Climate Advisors, identifies a minimum of 6 gigawatts (GW) of +10-hour duration energy storage starting in 2032, could be mitigate potential supply, planning and deployment risks and achieve savings between $11 billion to $20 billion compared to Ontario’s current transition plans.
Fortunately, in recent years the Government of Ontario worked closely with the Independent Electricity System Operator (IESO) to adopt an ambitious approach to regulatory and market reforms to enable the deployment of energy storage resources (ESRs). The province achieved a major milestone last summer with the IESO’s procurement of over 880 MW of energy storage capacity, the largest in Canada – and as the initial stage of an ultimately 2,500 MW addition, one of the most ambitious such initiatives anywhere in North America. A 2022 report commissioned by ESC indicates the province could need as much as 4 to 6 gigawatts (GW) of short-duration storage – generally defined as assets capable of discharging energy for 6 hours or less – as part of Ontario’s path to net zero.
However, as Ontario brings on more non-emitting generation, particularly intermittent resources (such as wind or solar) and peak demand reaches new levels, the province will need a more substantial inventory of LDES resources to ensure its grid continues to be reliable when the wind isn’t blowing, and the sun isn’t shining.
Energy Storage Canada’s report is the first to go beyond speculating the potential use cases for LDES technologies to research the potential scope of investment for Ontario as the province decarbonizes, with the modelling provided by Dunsky Energy & Climate Advisors, which illustrates the specific advantages investment in LDES assets can provide.
Using as a baseline the IESO’s Pathways to Decarbonization (P2D) study from December 2022, Dunsky analyzed the likeliest risks in those scenarios, quantifying the cost of falling short in our planning, procurement, construction, and import objectives compared to the alternative cost of procuring LDES assets. Evaluating by the technical readiness and value proposition of LDES as a ‘guardrail’ for Ontario’s economic growth and decarbonization journey, Dunsky found that a minimum of 6 GW of LDES capacity would be economically beneficial starting in 2032.
However, LDES technologies generally have long lead-times for development, meaning that to ensure the assets are available when we need them, we need to start planning now. As the province’s grid undergoes a massive transformation and modernization in the coming decades to meet its energy needs, integrating new assets in new ways, the importance of pursuing innovative solutions and technologies, such as long duration energy storage, will become increasingly important. While 2032 is 8 years away, the time to act is now.
To that end, Energy Storage Canada is calling on the IESO to make a formal commitment this year for initiating a procurement process in 2025, with a 6 GW target. Critical factors such as the availability of Canada’s Clean Technology Investment Tax Credits (ITCs) for projects completed prior to 2032, the extensive lead time necessary for prospective proponents to develop positive relationships with Ontario municipalities, to develop equitable and beneficial partnerships with the province’s First Nations communities, and secure supply chain commitments in a competitive global market all demonstrate the need to begin the process now.
by Cam Carver, President | Workbench Energy | 2022 Pioneer in Energy Storage Award Recipient
The energy storage industry in Canada has come a long way in a short time. When I led the founding of Energy Storage Canada (then Energy Storage Ontario) as its first Chair in 2012, our goal was to raise awareness of this emerging technology class and to advocate for a place in the electricity market for energy storage. Through the work of Energy Storage Canada, system operators, and other stakeholders, much has been achieved in the past decade. Today, energy storage is taking a front and centre position as a key energy technology that will help meet growing demand levels while enabling the decarbonization of Canada’s power grids. To complete the success story of energy storage in Canada, the industry must now prioritize the smart operation of these unique resources to ensure they deliver on their full potential.
Every day at Workbench Energy, we provide market operations services to a wide range of grid assets in Ontario including front-of-meter energy storage plants, dispatchable loads, and gas-fired generators. Each resource class has its own set of contract structures, market rules, and IT interfaces with the system operator which, together with internal considerations, provide a blueprint for their operations.
Following recent and current procurements for front of the meter energy storage plants in Ontario, large scale energy storage systems will begin coming online in the Province in the 2025 timeframe and will continue arriving for years to come. As it stands, an enduring model for the smart operation of these facilities will not be ready. Energy storage systems will initially operate under the interim energy storage framework, as it does today, whereby energy storage is considered as both a dispatchable load for charging and a dispatchable generator for discharging. While this provides “a” participation model, it doesn’t appreciate many of energy storage’s unique characteristics, such as a rapid response and quick duration capabilities, or state-of-charge status. Energy storage operators will continue to operate under the interim energy storage framework beyond the launch of the Market Renewal Project (MRP), currently scheduled for implementation in mid 2025, with new added complexities of the new market design. As currently planned, the focus of an enduring energy storage model will only be prioritized, planned, and implemented following the launch of MRP.
The reward of accelerating a smart enduring model for energy storage in-line with the launch of MRP is considerable. New energy storage facility owners can invest with confidence in their IT integrations and long-term operating plans with less concern about complexities of multiple market design changes in the early years of the projects. The IESO can expect access to greater capabilities and more operational transparency from energy storage resources. Energy storage market participants can integrate with the IESO with fewer manual interventions as current and planned IESO IT systems and rules don’t square with the realities of operating storage plants. Ultimately, we need energy storage to deliver on its full potential from the beginning of the new market design so it can fully demonstrate its ability to drive down costs, improve system reliability and operate to reduce emissions. A smart and enduring participation model is critical to the success of the energy storage industry in Ontario and for shaping a future provincial power grid that will be a model for the rest of Canada and jurisdictions around the world.
By Peak Power
It’s been almost a full year since Peak Power was selected for the first annual Champion of Diversity, Equity & Inclusion in Energy Storage Award at last year’s Energy Storage Canada (ESC) Conference. Per ESC’s website, the award aims to recognize corporations that consistently advocate for diversity, equity, and inclusion within their organization or the industry broadly.
In the case of Peak Power, we’ve built diversity into our hiring and internal processes, putting policy into practice.
When hiring, tools such as Gender Decoder are leveraged to detect and correct potentially gendered language in the job description and its corresponding responsibilities. We’ve learned that gendered language has the ability to discourage certain groups, particularly women, from applying to an open job posting. We also targeted recruitment from a range of diverse talent pools: searching job boards, engaging with networking groups, and attending hiring events that focus on marginalized groups.
Additionally, all candidates are asked in their pre-screening process what DEI means to them to ensure the individuals joining our teams share our outlook on the importance of DEI, bringing diverse perspectives and fostering an inclusive environment.
Peak Power’s investment in DEI is present at every step of our team members’ career journeys.
We’ve partnered with consultants like Nomandin Beaudry to create a compensation and career framework to balance our company’s external competitiveness with internal equity.
Another key tool is our JEDI – Justice, Equity, Diversity & Inclusivity – Committee, which sets annual goals for the organization and facilitates fun and educational programming for team members to ensure everyone is continuing to develop their skills and knowledge of DEI.
One new initiative this year is our monthly Pod-lunch sessions. We listen to a half-hour podcast together during lunch, either in person or remote. Each podcast focuses on a DEI subject, often with a tie-in to sustainability. This is followed by breakout groups where team members can share their thoughts in a safe, moderated setting.
Even as we look ahead, our team at Peak Power aims to continue our commitment to DEI. We’ve already done a lot to ensure that DEI is an integral part of everything we do at Peak Power, but we want to do even more.
We’ve designed governance for committees to provide more structure around term limits and committee roles to ensure that more staff are able to participate and offer their perspectives.
We’re working to align our performance management process with our core values, which counsels team members to “do everything with integrity and make a positive impact on people and the planet.” This focus ensures we’re measuring and supporting the traits we want to emphasize in the company’s culture.
Managers receive training on unconscious bias to ensure they are cognizant of unintentional prejudices that could influence employee reviews. DEI surveys are performed regularly to refresh and refine our goals and action items to capitalize on areas of opportunity.
The emphasis on DEI when Peak Power was founded was pragmatic. We began as a diverse company, and we attribute our success to the diversity of backgrounds and life experiences that constantly bring new ways of thinking to our teams. Diversity promotes innovation and ensures the company stays competitive and a great place to work! However, even if it was there from the beginning, our commitment to DEI requires work, continued learning, and the right tools.
Peak Power’s DEI program and the policies incorporated because of its efforts contribute to a working environment valuing fairness, opportunities, resources, and a voice for employees.
We appreciate the recognition of the effort we’ve made at Peak Power through ESC’s Champion of Diversity, Equity & Inclusion Award and we look forward to opportunities to share our work again in the future.
Peak Power is an energy storage software company founded in 2015 operating in Ontario, New York, New England, and California. If you’d like to learn more about Peak Power’s JEDI initiative or any other element of their company, be sure to reach out or read more at their blog.
Recent Blog Posts