ONTARIO — Construction has officially begun on the Skyview 2 Battery Energy Storage System, a 390-megawatt lithium-ion facility that will become the largest battery storage project ever built in Canada.

The development marks a significant step in Ontario’s plan to expand grid flexibility, reduce system costs, and support the province’s clean-energy transition as demand for electricity rises sharply over the coming decades.

Developed jointly by Potentia Renewables Inc. and the Algonquins of Pikwakanagan First Nation, the project was awarded through the Independent Electricity System Operator’s (IESO) Long-Term 1 Request for Proposals (LT1 RFP)—a competitive process designed to secure new capacity resources.

Once operational in 2027, Skyview 2 will store surplus electricity from Ontario’s predominantly clean grid during off-peak hours and return it when demand peaks, providing enough power to serve nearly 400,000 homes.

The project is expected to create up to 300 jobs during construction and additional operational roles once complete. It joins other large-scale energy storage initiatives such as the Oneida Energy Storage Facility, together bringing Ontario’s total contracted storage capacity to nearly 3,000 megawatts—the largest portfolio of its kind in Canada.

“Skyview 2 represents a major milestone in the evolution of Canada’s electricity sector,” said Ben Greenhouse, CEO of Potentia Renewables. “It demonstrates how commercial developers and Indigenous communities can collaborate to deliver critical grid infrastructure that benefits everyone.”

Chief Greg Sarazin of the Algonquins of Pikwakanagan First Nation added, “This project shows the value of including First Nations as equal partners in the clean-energy economy. When we are full participants, the benefits are shared widely.”

Growing Role for Storage in Ontario’s Grid

Ontario’s IESO has forecast that electricity demand could rise by more than 60 percent by 2050 as electrification accelerates across transportation, manufacturing, and housing. Energy storage—particularly large-scale battery systems—will be essential to maintaining reliability while enabling greater use of renewables.

According to Energy Storage Canada, the country will need over 30 gigawatts of energy storage by 2050 to meet national decarbonization and reliability goals. Ontario’s early leadership through large procurements such as the LT1 RFP positions the province as a focal point for investment in storage manufacturing, integration, and operations.

“Energy storage is no longer experimental—it’s a core component of modern electricity systems,” said Justin Rangooni, President and CEO of Energy Storage Canada. “Projects like Skyview 2 are not only good for the grid; they’re good for business.”

Nextracker Rebrands as Nextpower

Previous article

Central Ontario town of Newmarket faces a heated public split over its new climate plan

Next article

You may also like

Comments

Leave a reply