Canada’s 1 GWh battery delivered ahead of schedule, below budget

Canadian-owned global power producer Northland Power Inc. has announced that its Oneida Energy Storage Project (“Oneida”) is now fully operational. The project, the largest of its kind currently in operation in Canada, was delivered ahead of schedule and below budget, the company said earlier in May.

“Today marks a major milestone for Northland and the Oneida project,” said Christine Healy, President & Chief Executive Officer of Northland. “Oneida represents a pivotal step in our strategy to develop and operate battery storage facilities. A first-of-its-kind in Canada, this facility supports grid stability and reliability in Ontario.”

Located in Haldimand County, Ontario, Oneida is a 250 MW / 1,000 MWh battery storage facility. The project features Tesla Megapack lithium ion batteries. It is Northland’s first operational energy storage project in Canada.

Northland owns around 70% of Oneida, with the balance owned by Six Nations of the Grand River Development Corporation, NRStor Inc., Aecon Concessions and Mississaugas of the Credit Business Corporation.

The project was completed for approximately $700 million, well below the original estimate of $800 million at the time of financial close in 2023. It is supported by a 20-year capacity contract with Ontario’s Independent Electricity System Operator (IESO), providing stable, long-term revenue.

Nationally, Canada’s battery storage capacity has been increasing steadily. According to figures from S&P Global, the country’s total installed capacity surged from 11 MW in 2016 to around 92 MW in 2023.

At the end of 2024, the nation had 330 MW of operational energy storage projects, according to the figures from the Canadian Renewable Energy Association. By 2028, that could rise to more than 4 GW, the Canadian Climate Institute finds.

The energy storage revolution is needed in Canada. The organization Energy Storage Canada has projected that the country will require between 8 GW and 12 GW of energy storage capacity by 2035 if it is to achieve its net-zero goal.