Capital Power's Energy Storage Projects Enhance Ontario's Grid
Capital Power Commissions Innovative Energy Storage Projects
EDMONTON, Alberta — Capital Power Corporation (TSX: CPX) proudly announces the successful launch of its York Battery Energy Storage System, a 120-MW facility, along with the Goreway Battery Energy Storage System, a 50-MW project. These state-of-the-art systems mark a significant milestone for Capital Power and for the future of energy storage in Ontario.
Significance of Battery Energy Storage Systems
By enabling an efficient way of managing energy, Capital Power is enhancing the state's grid stability while supporting the growing demand for clean electricity. These two storage projects are expected to generate an impressive $35 million in annual contracted earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next two decades. Both are tied into contracts until 2047 with the Ontario Independent Electricity System Operator (IESO), signifying a long-term commitment to the energy future.
Commitment to Safety and Efficiency
Delivering these projects under budget and within the planned timeline is a testament to Capital Power's expertise and dedication. Jason Comandante, Senior Vice President, Head of Canada, stated, "We’re proud to deliver our first-ever battery storage projects. These facilities enhance our portfolio of flexible generation sources that provide grid stability, support the integration of renewable resources, and meet the province’s unprecedented, growing demand for electricity." This commitment not only ensures reliable service but fosters economic growth across the region.
Community Partnerships and Local Impact
During the development of these projects, Capital Power maintained close cooperation with various stakeholders, including the City of Brampton and Indigenous Nations. This collaborative effort highlights a shared vision for a sustainable energy future. Following 12 months of construction which saw over 183,000 hours of dedicated work, the successful completion of these projects represents both technological advancement and community-focused initiatives.
Government's Support and Vision for Affordable Energy
Minister of Energy and Mines, Hon Stephen Lecce, has expressed his support for such ventures by stating, "These investments will help deliver affordable, reliable, and clean electricity that supports families, farms, and businesses in the Greater Toronto Area and beyond." As Ontario continues to innovate within its energy procurement, Capital Power is paving the way for future-proof solutions that promote affordability and stability.
Future of Energy Storage at Capital Power
The advancements in utility-scale battery energy storage are revolutionary, allowing for a versatile approach towards renewable energy integration. This not only positions Capital Power as a leader in North America's energy sector but also demonstrates their commitment to reducing carbon emissions and promoting efficiency. With the capability of providing up to 170 megawatts of storage, these systems will deliver power precisely when and where it’s needed in Ontario.
About Capital Power
Capital Power (TSX: CPX) is a growth-centric power producer dedicated to offering reliable power across North America. With approximately 12 gigawatts of generation capacity across 32 facilities, the company is relentless in its pursuit of low-carbon solutions that meet the needs of communities.
Frequently Asked Questions
What is the capacity of the York and Goreway BESS projects?
The York Battery Energy Storage System has a capacity of 120 MW, while the Goreway BESS has a capacity of 50 MW, combining for a total of 170 MW.
How does Capital Power support local communities?
Capital Power closely collaborates with local governments, Indigenous nations, and community stakeholders to ensure the development aligns with regional needs and sustainability goals.
What are the expected annual earnings from these projects?
The combined projects are projected to generate approximately $35 million in contracted annual EBITDA over the next 20 years.
When will the projects be operational until?
The projects are contracted until 2047 with the Ontario IESO, ensuring a long-term operational and financial commitment.
How does these projects contribute to grid stability?
The energy storage systems help balance supply and demand, allowing for the integration of more renewable energy sources and enhancing overall grid reliability.
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