SolarBank begins construction of first battery energy storage project in Ontario

SolarBank’s first Battery Energy Storage System, or BESS, project located in Ontario is expected to commence construction during the week of February 10. The project is known as SFF-06 and is located in Cramahe, Ontario. The SFF-06 project is being financed through a combined loan for two projects in a principal amount of $25.8M from Royal Bank of Canada. SolarBank (SUUN)has selected Anvil Crawler to perform the civil and electrical work on the project and awarded Anvil Crawler a contract with an expected value of $1.85M to complete such work. The Project represent SolarBank’s initial foray into battery energy storage. In July 2023, the Project was awarded a contract by the Independent Electricity System Operator under the Expedited Long-Term RFP. The contract, which has a term of 22 years, includes a fixed contract capacity payment of $1,221/MW per business day. The Project is also eligible for the Clean Technology Investment Tax Credit introduced in 2024. The company has an indirect 50% interest in ProjectCo, with the remaining 50% held by a partnership formed by First Nations communities in Ontario.