Renewable Energy Generation Facility (REGF) and Battery Energy Storage Systems (BESS) Provisions

January 14, 2025

In October 2023, the Independent Electricity Systems Operator (IESO) put out a call for proposals for new Battery Energy Storage Systems (BESS). Through this competitive procurement process, known as the Long-term 1 Request for Proposals (LT1 RFP), the province looked to procure year-round capacity from new build storage facilities larger than 1 MW. This represented the largest energy storage procurement ever in Canada.

A report was tabled at the November 30, 2023 Agricultural and Rural Affairs Committee on four proposed BESS projects within Ottawa, one of which project received Council support, known as a Municipal Support Resolution (MSR).

On May 9, 2024, the IESO announced that ten proposed BESS projects were selected, totaling 1,784 megawatts (MW) of energy storage, including two to be located in rural west Ottawa.

A report on proposed Official Plan and Zoning By-law Amendments will be tabled at upcoming Agricultural and Rural Affairs and Planning and Housing Committees on January 23 and February 5 respectively.

The following are frequently asked questions related to the procurement and BESS.

Battery Energy Storage Systems (BESS) – Frequently Asked Questions (FAQ’s)

What are Battery Energy Storage Systems (BESS)?

Battery Energy Storage Systems (BESS) are energy retention systems that store and then discharge electricity back into the electricity grid when supply is low or when energy is most expensive. Lithium-ion batteries, the same batteries that are used in cell phones and electric vehicles, are the dominant form of energy storage today because they hold a charge longer than other types of batteries, are less expensive, and have a smaller footprint. BESS systems have a range of applications including smaller residential systems, larger commercial systems and public utility and transmission-scale systems similar to those under the LT1 RFP. BESS are also being used to store energy supplied from rooftop or ground mounted solar systems.

Who is the Independent Electricity Systems Operator (IESO)?

Electricity is a commodity that all residents use. It follows a process of production, transmission, and then direct delivery to customers. The Independent Electricity Systems Operator (IESO) is the authority responsible to manage the flow of electricity across Ontario and ensure service reliability by monitoring and forecasting energy needs, and controlling when and how new production can be integrated.

Why does the IESO want to invest in BESS?

The IESO has identified new challenges in accessing reliable electricity supply, which are related to a number of factors including: increased demand from expanding electrification and business investment; pressures on supply from aging infrastructure with the retirement of the Pickering nuclear facility, the refurbishment at Bruce and Darlington facilities; and expiring electricity supply and capacity contracts that IESO has with privately owned energy retailers.

Without a mechanism for storage, the electricity produced must be used immediately or it will be wasted in times of oversupply during off hours and shortages during peak hours. BESS have been identified as an important type of energy infrastructure to address the issue of peak hour shortages, as well as providing access to energy closer to home. BESS can also support renewable energy generation by way of wind and solar facilities, where production is intermittent.

As a result, IESO has identified the need to increase energy supply and storage capacity significantly, starting in 2025 through the latter part of the decade. In October 2023, the IESO put out a call for proposals for transmission scale BESS facilities. Through this competitive procurement process, province procured almost 3,000 megawatts (MW) of year-round capacity that is to be from new build storage facilities larger than 1 MW. This represented the largest energy storage procurement ever in Canada.

What is a megawatt?

A Watt is the amount of energy (in Joules) that an electrical device (such as a light) is burning per second that it is running. One watt is equal to one joule per second. A megawatt (MW) is one million watts. One megawatt hour (MWh) is equal to 1,000 kilowatt-hours (kWh). The number of homes that can be powered by a MWh depends on the average electricity consumption of the homes. In Ontario, an average household uses approximately 9,500 kWh per year.

What is a Municipal Support Resolution?

Where a project is proposed in an area governed by a municipal government, the IESO requires proponents to obtain confirmation of municipal support through a Municipal Support Resolution (MSR) as part of the application process. An MSR is general in nature and does not preclude a project from having to meet municipal regulatory requirements or obtain any municipal development approvals or permits should they be selected by the IESO.

As part of the 2023 procurement, the successful proponents have up to 20 months to obtain the MSR. Projects that included an MSR with their application were eligible to receive four (4) additional Rated Criteria points, which gave them a better chance of being selected.

Are there proposed BESS projects in Ottawa?

Yes, there are two transmission scale BESS projects proposed in rural west Ottawa. One in West Carleton-March (Ward 5) and the other is in Rideau-Jock (Ward 21).

Are there land use impacts associated with BESS?

There are different types and sizes of BESS. BESS that are intended to support the transmission grid are typically made up of several rechargeable batteries placed in storage containers that range in size. These facilities are often installed outdoors near to existing electrical infrastructure such as a sub-station. Containers can range in size, being approximately 10 to 40 feet in length and approximately 8 feet in height and width. Smaller scale BESS are used to provide backup power to support both residential and non-residential buildings. They can be placed either indoors or outdoors close to the buildings they are designed to support.

Once constructed, BESS require only routine maintenance. They can be monitored remotely and therefore traffic and onsite parking are minimal. Site lighting at BESS facilities is also minimal, except for security purposes. The absence of employees also means there is no water or sewer requirements at BESS facilities. Noise generated by cooling fans may require mitigation through the use of sound barriers or landscaping.

Specifically for transmission scale BESS, reducing risk of fire is an important consideration. Lithium-ion batteries contain flammable electrolytes that, if overheated, can short circuit and catch fire, also known as “thermal runaway”. More information is available in the FAQ on Fire Safety for BESS.

Are BESS facilities permitted in Ottawa’s Official Plan?

The Official Plan permit utility facilities which are subject to the Environmental Assessment Act in all designations of the Official Plan. However, only the transmission components of a BESS facility (i.e., the transformer station(s), transmission line(s) may be subject to the Class Environmental Assessment for Minor Transmission Facilities. The battery storage units associated with a BESS facility are subject to Planning Act requirements. Therefore, specific land use policy guidance is required to support BESS in Ottawa. These policies will be tabled at the Agricultural and Rural Affairs and Planning and Housing Committees on January 23 and February 5 respectively.

How are BESS facilities zoned?

BESS facilities are a specific type of energy storage system that store energy using batteries. Considerations for zoning must consider their intended use, preferred location and size. The Zoning By-law therefore needs to distinguish between a BESS facility intended as a standalone use and which is connected directly to the electrical grid and a BESS that is accessory and supports principal residential and non-residential uses.

Specific use zoning provisions for BESS facilities will be tabled at the Agricultural and Rural Affairs and Planning and Housing Committees on January 23 and February 5 respectively.

UL 9540A is a method for evaluating “thermal runaway” and sets out requirements for battery management systems (BMS) including battery safety, performance and communications protocols. This standard was developed to verify the effectiveness of protection levels against thermal runaway and fire hazards. The OESC mandates UL 9540A certification so this would be regulated in the electrical safety code. The Hydro One Standard also requires proof of compliance with UL 9540A.

How will Ottawa Fire Services respond to a fire incident involving a BESS system?

Ottawa Fire Services (OFS) develops emergency response plans based upon the occupancy and hazards specific to each location, creating standardized response protocols that address these needs. Prevention through early detection and suppression mitigation is our primary response. In the rare event of a fire emergency, OFS’ tactical priorities are focused on addressing any threat to life, reducing property loss, and mitigating environmental impacts. Fire suppression efforts will centre on preventing the spread of fire, with specialized air monitoring conducted throughout the event.

Is water to be used to respond to a fire incident involving a BESS system?

Automated prevention and suppression systems aim to mitigate the potential for a fire. In the event of a fire, fire tactics will primarily focus on protecting exposures to prevent the spread of flames. Each site will be assessed on a case-by-case basis to determine the appropriate water supply requirements, which may include municipal water supply, on-site storage reservoirs, or the installation of dry or remote hydrant systems.

Is there a risk of groundwater contamination due to run off if water is used to respond to a BESS fire?

The risk of groundwater contamination from firefighting water runoff during a BESS fire is estimated to be minimal. Most contaminants will burn off, with safety monitored throughout the event, and appropriate actions taken to protect the public if necessary. As with similar incidents involving the risk of contaminated liquids reaching the soil, the situation will be evaluated, and a cleanup service will be secured if needed. These considerations will also be factored into the site plan approval process, with a focus on prevention and mitigation strategies to further minimize environmental risks.

Will residents be able to be informed of the details related to a fire incident associated with a BESS, such as whether there was a risk of air or groundwater contamination?

OFS will have specialized teams conducting air monitoring throughout the event. If there is a risk of air contamination, it will be assessed and communicated during the incident, with updates provided as needed. Typically, the risk of air contamination is mitigated shortly after the fire is extinguished. Ongoing air monitoring and groundwater testing will be included as a condition of the approval process to ensure comprehensive environmental protection after the event.

Will Ottawa Fire Services inspect and certify that BESS projects are safe before they operational?

OFS plays a role in ensuring the safety of BESS projects. While the certification of the BESS unit itself is managed by external experts to ensure compliance with standards like NFPA 855, OFS’ focus is providing specialized expertise in firefighting capabilities, hazard mitigation and emergency response. OFS participates in the overall design review, which includes evaluating site access, layout, firefighting requirements, and the emergency response plan.