Battery Energy Storage Systems (BESS) FAQ

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, the target is to procure 2,518 megawatts (MW) of year-round capacity from new build storage facilities larger than 1 MW. This represents the largest energy storage procurement ever in Canada. A report will be tabled at the November 30 Agricultural and Rural Affairs Committee on four proposed BESS projects within Ottawa. 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 can be used in different ways. Utility scale BESS are used to support utility scale electricity supplies, as is evidenced in the recent competitive procurement by the Independent Electricity Systems Operator (IESO). They are also used to support power supplies in commercial and industrial operations, and to store energy supplied from rooftop solar and support electric vehicle charging in residential applications.

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) manages the flow of electricity across Ontario and ensures 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 part of our 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 new BESS facilities. Through this competitive procurement process, the target is to procure 2,518 megawatts (MW) of year-round capacity from new build storage facilities larger than 1 MW. This represents 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 can supply enough power for approximately 1000 homes.

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.

While proponents have up to 18 months following application deadlines to submit the MSR, projects that include an MSR with their application are granted four (4) additional Rated Criteria points, which gives them a better chance of being selected. Should a project not meet zoning requirements following IESO approval, they would not be permitted to move forward with their project.

Are there proposed BESS projects in Ottawa?

Yes. In keeping with Council direction, staff will be bringing a report to the November 30 Agricultural and Rural Affairs Committee on projects which are proposed in Ottawa and seeking a Municipal Support Resolution (MSR). Note that a MSR does not preclude all other regulatory, permitting, zoning and siting requirements that will apply to these projects.

Are there land use impacts associated with BESS?

Yes. BESS are facilties made up of several rechargeable batteries placed in containers that range in size. Utility scale BESS are often installed near existing electrical infrastructure such as sub-stations in large containers approximately 10 to 40 feet in length and approximately 8 feet in height and width.

Once constructed, utility scale 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. Reducing risk of fire is an important consideration for both municipalities and project developers since lithium-ion batteries contain flammable electrolytes that, if overheated, can short circuit and catch fire, also known as “thermal runaway”. This type of fire can be difficult to extinguish and BESS infrastructure costly to replace.

Are BESS facilities permitted in Ottawa’s Official Plan?

Yes. Public utility facilities that are authorized under the requirements of the Environmental Assessment Act may be permitted in all designations of the Official Plan. The Ministry of the Environment, Conservation and Parks has advised that 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.

How are BESS facilities zoned?

BESS facilities are considered a Utility Installation as set out in Section 91 of the Zoning By-law as they form part of the energy infrastructure grid, similar to transformer stations, hydroelectric towers and substations. Utility installations are heavily regulated and must be appropriately located in keeping with their technical requirements for site selection. As such, they are permitted in most zones of the city. BESS facilities on land zoned Agricultural (AG) are limited to two per cent of the total lot area, to a maximum of one hectare.

A review of existing municipal approval and permit requirements for BESS projects is currently being undertaken to understand where any gaps may exist. Specifically, staff are exploring whether amendments to zoning and or the Site Plan Control By-law 2014-256, are appropriate to apply to BESS and may be included as part of an upcoming report in Q1 2024 with zoning provisions for renewable energy generation facilities.

Are BESS facilities safe?

The BESS industry is undergoing rapid growth and development. Lithium-ion batteries, commonly used in mobile phones and electric cars, are currently the dominant storage technology for large scale BESS facilities. Concerns have been raised regarding the safety of BESS facilities because lithium-ion batteries contain flammable electrolytes that, if overheated, can short circuit and catch fire, also known as “thermal runaway”. This type of fire can be difficult to extinguish and BESS infrastructure costly to replace. Reducing risk of fire is therefore an important consideration for both municipalities and project developers. Technology is consistently being improved with safety features to address these concerns, including cooling systems and real time temperature monitoring.

As part of the IESO approvals process, BESS are also required to create an emergency plan, and proponents are engaging in planning and training efforts directly with local fire departments. Hydro One recently reevaluated the setbacks required to protect their infrastructure in case of fire and have proposed to reduce those setbacks from 500 metres to 150 metres due to improved technology and reduced risk.

Who sets the fire safety requirements for BESS?

Fire prevention and safety is a key feature of lithium-ion batteries and their battery management system, which typically involves several layers of protection, including:

1. Certification and Testing using UL 9540A – the test method for evaluating thermal runaway.
2. Installation to NFPA 855 – National Fire Protection Association (NFPA) Code 855 is the Standard for the Installation of Stationary Energy Storage Systems.
3. Monitoring and protection, through monitoring cell temperature, current and voltage and bringing mal-performing modules out of service until the route cause can be addressed.

NFPA 855 is not the code in Canada; however, it is considered industry best practice and is generally followed, particularly regarding site layout and system integration.

Ottawa Fire Services has been involved in reviewing the proposed BESS facilities and are continuing to evaluate best practices for emergency response planning of BESS facilities. The IESO requires that BESS proponents fulfill municipal requirements for emergency response. Ottawa Fire Services (OFS) develops emergency response plans based upon the occupancy and hazards for the location and then develops standardized response codes that meet these needs. OFS will ensure that fire protections systems are sufficient and meet applicable standards as well as determine the training requirements for all OFS members.

Who inspects BESS projects for safety?

In 2013, UL Standards was accredited by the Standards Council of Canada (SCC) as a nationally recognized Standards Development Organization (SDO) able to develop National Standards of Canada (NSCs). The following certification is required for BESS facilities:

• Battery cells, modules and racks must be certified to UL 1973 Standard for Batteries for Use in Light Electric Rail (LER) Applications and Stationary Applications.
• Battery cells, modules, and units (racks) are tested to UL 9540A Standard for Test Method for Evaluating Thermal Runaway Fire Propagation in Battery Energy Storage Systems.
• UL9540 Energy Storage Systems and Equipment is a system level certification for the batteries and the inverters. Both UL1973 certification and UL9540A testing at cell, module, and rack level are required for UL9540 listing/field certification.
• In Ontario, UL9540 (or SPE 1000 labeling confirming compliance to UL9540) is required for the electrical inspector and formal authorization to connect to the grid.

Are there any municipal approvals required for BESS projects?

Yes. BESS projects must comply with municipal land use and zoning requirements before they can be built. BESS are permitted in most zones of the city under Section 91 of the Zoning By-law. It is likely that most BESS facilities will also require a building permit, based on their size alone, which will be determined on a case by case basis.