Enel X said a few days ago that it will participate in the deployment of a pilot battery energy storage project in Ontario, Canada, combining user-side battery energy storage systems with demand response facilities to make grid operations more stable and reliable.
Enel X, the digital and smart energy services arm of Italy-based multinational energy developer Enel, is deploying the pilot project in partnership with Ontario's Independent Electric System Operator (IESO) and regulator, the Ontario Energy Commission.
Enel X already operates approximately 150MW of demand response facilities in the Ontario market, as well as contracted or operational battery storage systems of over 60MW. These include a 20MW/40MWh customer-side battery energy storage system, which is being installed and deployed at one of Imperial Oil's petrochemical refineries. According to industry media reports, the battery energy storage project began construction in February this year.
Like many consumer-side battery storage systems deployed in Ontario, the project helped Imperial Oil significantly reduce electricity costs by reducing the amount of electricity the petrochemical refinery draws from the grid during peak periods. Under Ontario's Adjusted Charge (GAC) program, industrial entities are charged extra for electricity that uses the grid during peak periods.
Enel X claims that the Imperial Oil battery energy storage project will become the largest customer-side battery energy storage system in North America, which is one of the pilot energy storage assets that the company has announced to participate in the deployment.
The reason for the deployment of this pilot project is that while Ontario's customer-side battery storage installation data and demand response registrations are growing, distributed energy sources (DERs) like this one cannot pass the Ontario Independent Electric System Operator (IESO) of the market directly contributes to grid stability and energy security.
These facilities are prohibited from joining these markets due to existing rules, as in the United States. This may be about to change, while the Federal Energy Regulatory Commission (FERC) has already established through Orders FERC841 and FERC2222 that battery energy storage systems and other distributed energy sources (DERs) can enter the wholesale market.
Enel X will work with local Ontario businesses to aggregate 76.6MW of energy load from 14 different sites that will operate customer-side battery storage and demand-side response (DSR).
During this two-year pilot project, the ability of aggregated distributed energy sources to significantly reduce energy loads, provide stable and reliable energy to the grid, and enhance Ontario's power system will be demonstrated.
Surya Panditi, head of North America at Enel X, said, "Ontario's large energy users continue to make significant commitments to reducing carbon emissions and recognize that carbon reduction is not only an opportunity to make business operations more sustainable, but also to manage energy cost opportunity. It is critical that we continue to free up the resources of these businesses to reduce demand on the grid, lower energy costs, improve sustainability, and create economic value.”
Foster meaningful innovation
The project is supported by the Ontario Energy Board's (OEB) Innovation Sandbox program, which allows innovators and businesses to test new ideas, products, services, business models and more.
The program will also receive C$3.3 million ($2.65 million) in financial support from the Independent Electric System Operator of Ontario (IESO) Grid Innovation Fund, which has been helping technological innovation since 2005, through better energy management Or help reduce electricity costs in Ontario by helping the reliable operation of the grid.
According to information posted on the website of the Independent Electric System Operator of Ontario (IESO), the fund is currently funding 15 projects, including Ameresco's carbon-free microgrid project, which provides heat, cooling and electricity to a middle school and NRStor’s first fully commercial grid-scale energy storage project in Canada, which uses battery storage as a non-cable alternative to help improve grid reliability.
Ontario Energy Board (OEB) CEO Susanna Zagar said, “We need to foster meaningful innovation by utilities and others and protect consumers as the energy industry transitions. Projects like this provide insight into what the industry is doing challenges that have arisen, and solutions that can address those challenges.”
According to Lesley Gallinger, president and CEO of the Independent Electric System Operator of Ontario (IESO), electricity demand in Ontario is growing at an annual rate of about 1.7%, driven primarily by power demand from industrial facilities. The pilot project will help demonstrate how these businesses can better participate in the power industry, securing new revenue streams while contributing to Ontario's reliable, sustainable and affordable electricity system.
