PowerBank Launches First Battery Storage Facility in Ontario with Long-Term Revenue Contract
TORONTO — North American energy infrastructure developer PowerBank Corporation has reached a significant milestone with the successful commercial launch of its first battery energy storage project in Ontario, marking its formal entry into the fast-growing energy storage sector.
The 4.99-megawatt Battery Energy Storage System (BESS), known as BESS SFF 06, is now fully operational in Cramahe and has begun generating revenue under a long-term contractual framework.
Strategic Expansion into Energy Storage
The project represents PowerBank’s initial step into battery storage, a sector widely regarded as essential for supporting the transition toward renewable energy systems.
Built alongside an existing solar installation, the facility enhances the site’s overall energy capabilities by enabling storage and dispatch of electricity based on grid demand.
The solar project itself had previously secured a contract in 2015 under Ontario’s Feed-in Tariff programme, demonstrating the site’s established role in the province’s clean energy ecosystem.
Long-Term Contract Secures Stable Revenue
In 2023, the project was awarded a 22-year agreement by the Independent Electricity System Operator under its Expedited Long-Term procurement programme.
This contract includes a fixed daily capacity payment of US$1,221 per megawatt, significantly higher than the average rates awarded to similar projects.
With an available contract capacity of 4.74 MW over 251 business days annually, the project is positioned to generate stable and predictable revenue over the long term.
Government Incentives Strengthen Financial Viability
The facility also qualifies for Canada’s Clean Technology Investment Tax Credit, introduced in 2024, which offers up to 30 percent reimbursement on eligible capital expenditures.
This incentive significantly enhances the project’s financial performance and reflects broader government support for renewable energy development.
PowerBank has emphasised its commitment to leveraging such programmes to accelerate the deployment of clean energy infrastructure while maintaining strong economic returns.
Leadership Highlights Milestone Achievement
Chief executive officer Richard Lu described the commissioning of the project as a major achievement for the company.
He noted that battery storage plays a critical role in building resilient and flexible power systems capable of supporting increasing renewable energy penetration.
“This project demonstrates that the technology, partnerships and contractual structures are in place to deliver reliable energy storage solutions,” he said.
President and chief operating officer Andrew van Doorn added that the successful delivery reflects years of technical expertise and disciplined project execution.
Financing and Ownership Structure
The project was financed through a combined loan facility worth US$28.1 million provided by Royal Bank of Canada.
Ownership is held through a project entity in which PowerBank has an indirect 50 percent stake, while the remaining share is owned by a partnership representing First Nations communities in Ontario.
This structure highlights the growing role of collaborative investment models in large-scale renewable energy projects.
Strong Growth Potential in Energy Storage Market
Industry forecasts indicate that the global battery storage market is set to expand rapidly, driven by increasing demand for grid stability and renewable integration.
PowerBank’s entry into this sector aligns with its broader strategy to diversify its portfolio and capture growth opportunities in clean energy.
The company currently has more than 100 megawatts of completed projects and a development pipeline exceeding one gigawatt, positioning it as a key player in the evolving energy landscape.
Operational Risks and Future Outlook
Despite the positive outlook, the company acknowledged that battery storage projects are subject to operational and regulatory risks.
These include maintaining compliance with permits, meeting contractual obligations and managing technical challenges such as battery degradation over time.
Nevertheless, the successful commissioning of BESS SFF 06 marks a strong starting point for PowerBank’s expansion in the energy storage sector, with additional projects expected to follow.
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