Toronto, ON – SolarBank Corporation (CSE: SUNN) (OTC: SUUNF) (FSE: GY2) (“SolarBank” or the “Company”) is pleased to announce that further to its press release of October 4, 2023, it has selected EVLO Energy Storage Inc. (“EVLO”) to supply EVLOFLEX battery energy storage systems (“BESS”) for three separate BESS projects in Ontario (the “Projects”).
EVLO is a fully integrated battery energy storage system provider and wholly owned subsidiary of Hydro-Québec. EVLO will supply each of the Project sites with a 5 MW / 20MWh EVLOFLEX system.
The Projects are owned by Solar Flow-Through Funds, two First Nations communities, and a third-party developer in Ontario (the “Investors”). The Projects are being constructed by SolarBank under engineering, procurement, and construction (“EPC”) agreements dated October 3, 2023 with a total contract value of approximately $36 million.
“We are pleased to move forward on constructing our first energy storage projects with EVLO, a leader in the Canadian battery storage industry,” said Dr. Richard Lu, Chief Executive Officer of SolarBank. “Safety and longevity were two of our primary considerations, and we are confident that the EVLOFLEX will deliver on both fronts.”
“It is an exciting time as the IESO progresses through its largest procurement of energy storage to date,” said Sonia St-Arnaud, President and CEO of EVLO. “Energy storage is critical for increasing reliability and resiliency while lowering greenhouse gas emissions, and we’re proud to support the reliability of the Ontario grid by supplying EVLOFLEX systems to SolarBank.”
SolarBank secured approval for the Projects from Ontario’s Independent Electricity System Operator (“IESO”) under the province’s Expedited Long-Term 1 (“E-LT1”) Reliability Procurement for battery storage. The Projects will increase grid reliability by participating in Ontario’s capacity markets, allowing them to strategically inject power into the grid during peak load hours to safely, sustainably, and cost-effectively manage energy demand. In addition to boosting grid reliability, participation in the IESO capacity market creates new revenue generation opportunities. The BESS for the three Projects are expected to be commissioned by summer 2025.
There are several risks associated with the Projects set forth in this news release. Firstly, there is no certainty the Projects will be completed on schedule or that they will operate in accordance with their design capacity. If the EPC agreements are terminated then SolarBank will not realize the full contract value. The development of any Project is subject to receipt of required permits and the continued availability of third-party financing arrangements for the Investors. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for battery storage systems, which could result in future projects no longer being economic. Please refer to “Forward-Looking Statements” for additional discussion of the assumptions and risk factors associated with the statements in this press release.