TC Energy says it will continue with its proposal process for a pumped water energy storage facility in Meaford.
The company say this follows a request for more detailed information from Ontario’s Minister of Energy Todd Smith.
TC Energy says it will start work with the ministry and the Ontario Energy Board to establish a potential long-term revenue framework for the proposed project, with a report for the minister by July 31st, 2024.
TC Energy also says it will work with the ministry and the Independent Electricity System Operator (IESO) on a potential cost recovery agreement associated with some pre-development work.
Minister Smith has asked his ministry to work with TC Energy on an outline of potential social and economic benefits of the proposed project.
A release from TC Energy Thursday says it is, “Encouraged by the Ministry of Energy’s direction and we continue to believe in the important role that the Ontario Pumped Storage Project will have in growing the clean economy and building a sustainable, reliable and secure electricity system.”
Ontario Pumped Storage Communications Lead, Sara Beasley explains, “TC Energy will provide a report to the ministry as well as the Independent Electricity System Operator and that report will include a breakdown of our estimated costs and associated pre-development work on the project, and then we’ll also be providing a project schedule.”
On January 9th, Minister Smith sent a letter to the IESO. In it, he thanked the crown corporation for a September 29th assessment that said the proposed Meaford pumped storage project and another one in Marmara, “Do not compare favourably to currently available alternatives, including battery storage or a portfolio of other non-emitting resources, and therefore neither PS (pumped storage) project is able to provide net benefits to Ontario’s electricity system or ratepayers.”
But Smith challenged that in his letter, claiming the IESO has said long-duration energy storage could play an important role in meeting electricity system needs.
He said in his letter the IESO has also acknowledged the “potential benefit of these projects in enhancing the diversity of Ontario’s supply mix, if completed in a timeline that would provide value to the system.”
Smith said in his letter, “There are also potential value and risk mitigation opportunities provided by domestically sourced and constructed projects,” and noted, “I have asked my ministry to work with proponents and other ministries as required to assess the broader societal and economic benefits of these PS projects.”
With that in mind, Smith said he wasn’t prepared to make a final decision and asked for a more refined cost estimate and project schedule for pre-development work from TC Energy.
He also recommended TC Energy talk with the federal government about more assistance to reduce the cost of the work, saying, “I anticipate that my cabinet colleagues
will expect significant federal involvement in cost sharing of pre-development costs associated with for the project.”
Smith says once his ministry and the IESO have refined estimates from TC Energy they’ll assess the information and give a recommendation about proceeding with pre-development within 45 days of submission.
Smith added, “I understand that the IESO is initiating a Southern and Central Ontario transmission planning study that will review the capability of the transmission system to support future generation connections and demand growth throughout the southwest to enable a decarbonized system.”
He asked the IESO to also consider in its study how pumped storage could be integrated into the system, said Smith, “To ensure that recommendations are optimized and that the transmission plans developed not only enable the expansion of the Bruce Nuclear Generating Station, but also a wide variety of possible supply and demand outlooks for southern Ontario.”
While its detailed cost has yet to be outlined, Beasley says it would be a multi-billion dollar project.