Us Energy storage provider Powin Energy, engineering and project management vendor Sungrid and a subsidiary of customer Kruger Energy have announced they are working together to deploy a 2MWh Energy storage project. The project will reduce peak power demand from utilities by users in Ontario, Canada, and the use of battery storage systems is a huge opportunity to reduce power costs and reduce carbon emissions.
The battery storage system is being deployed by Kruger at its Brampton packaging plant, which produces containers for food, beverages, chemicals, textiles and many other products and industries. Cyrus Etemadi, Energy Storage Manager at Kruger Energy, says: "During the current coronavirus outbreak, our Brampton plant is operating 24/7, so there is much more to be gained from deploying and running the Energy storage system."
Ontario's Global Adjusted Cost (GAC) policy is being implemented by independent power System Operators (IESO) that operate the grid and remains a major source of revenue for grid infrastructure and clean energy. Over the past few years, Canada has invested tens of millions of dollars to deploy energy storage projects of various sizes. Powin Energy says it has deployed more than 100MW of Energy storage and plans to deploy about 80MW.
Kruger said that while its recent deployment of energy storage projects was small in overall terms, it was the company's first pilot project in energy storage and received a large number of RFPS from key bidders with expertise in energy storage technology.
"We have done extensive research with SunGrid and Powin Energy on Energy storage deployment, with a particular focus on the safety of battery Energy storage systems," Etemadi said. Ultimately, they came up with a lithium iron phosphate battery energy storage system that is safe, reliable, has a long working life, is environmentally friendly and non-toxic, and does not use cobalt."
Other energy storage projects in Ontario that have been deployed include an 8.9MW/18MWh battery energy storage system by Fortune 100 technology company Honeywell, which was deployed last May; Shell's industrial customers in Ontario are deploying a battery storage system through a partnership with Energy storage developer Convergent Energy + Power. Earlier this year, private-equity investor Blackstone Energy Partners bought Toronto-based NRStor C&I, a former subsidiary of Canadian energy-storage developer NRStor.
Jeremy Goertz, general manager of SunGrid Solutions, said: "In Ontario, large load users pay about 70 per cent of their electricity bills during peak demand (about five hours). This situation provides users with the opportunity to deploy battery storage systems to reduce power demand during peak periods."