TORONTO, Dec. 20, 2012 /CNW/ - Ontario's Independent Electricity System
Operator (IESO) has taken a major step forward to increase the
participation of alternative technologies such as aggregated loads,
flywheels and battery storage in the electricity market by selecting
three new suppliers of regulation service, a grid-balancing function
traditionally provided by generators - a first for Ontario.
Regulation is a contracted service that acts to match total generation
on the system with total demand on a second-by-second basis. By helping
to correct small, sudden changes in power system frequency, it balances
power flows and maintains the reliability of the power system. This
quick response is becoming increasingly important to facilitate more
renewable resources like wind and solar, whose output is variable in
"Real-time, real-world experience with new sources of regulation will
allow us to see how non-traditional resources behave," said Paul
Murphy, President and CEO of the IESO. "Engaging and empowering new
participants will provide much needed flexibility in the way we run the
power system, which is important in the context of our changing supply
Through a Request for Proposals issued earlier this year, the IESO
sought to procure up to 10 megawatts (MW) of regulation from
alternative sources such as dispatchable loads, aggregated demand
response and storage technologies, including batteries and flywheels.
To allow the IESO to acquire experience with a range of technologies,
the RFP sought proposals from multiple vendors, each providing a small
quantity of regulation.
The IESO has now entered contract negotiations with the three successful
proponents. This procurement process is part of the IESO's efforts to
broaden access to Ontario's electricity markets. These resources have
significantly different operating characteristics than conventional
units, allowing them to contribute to Ontario's energy needs in
different ways and complement the performance of existing generators.
The successful vendors include ENBALA Power Networks Inc., NRStor
Incorporated and Renewable Energy Systems Canada Inc. (RES Canada).
ENBALA Power Networks is a Canadian smart grid company that operates a
demand-side storage network that creates a new revenue stream for
businesses (such as water plants, cold storage facilities, universities
and hospitals as well as other industrial, commercial and institutional
facilities) to participate in providing flexibility to the electricity
grid. ENBALA intelligently aggregates the inherent storage and
flexibility in how loads use power to offer robust, reliable and
resilient demand-side management solutions to the power system,
increasing its efficiency and reliability.
"We are excited to work with the IESO to deliver regulation service to
Ontario. Starting early 2013, ENBALA will deliver an aggregated network
of demand-side storage, growing to four MW," said Ron Dizy, President
and CEO, ENBALA Power Networks. "The ENBALA Network has been operating
and delivering regulation services to the PJM market for more than a
year, and we are eager to deliver the same economical and environmental
benefits to Ontario stakeholders and businesses."
NRStor Inc., of Toronto, was established in 2012 to accelerate the
commercialization of energy storage technologies. NRStor has partnered
with Temporal Power, an Ontario developer of the world's highest energy
flywheel technology, and Ontario Power Generation, one of North
America's largest producers of electricity and a current provider of
regulation service in Ontario. Together, NRStor, Temporal Power and OPG
will deliver two MW of regulation service to the IESO by ensuring
fast-response energy to optimally provide this grid-balancing service.
"We are thrilled that NRStor, in partnership with Temporal Power and
Ontario Power Generation, has been awarded this contract with the
IESO," said Annette Verschuren, Chair and CEO of NRStor. "I
congratulate the IESO on paving the way for new storage technologies to
be commercially introduced on the grid."
Renewable Energy Systems Canada Inc. (RES Canada) offers a full suite of
development and construction services for wind, solar, storage and
transmission projects. Based in Montreal, with an office in Oakville,
RES Canada has constructed several utility-scale FIT solar projects, as
well as 210 MW of wind projects in Ontario. RES Canada is currently
building the 149.4 MW Halkirk Wind Project, the largest wind project
ever constructed in Alberta, as well as the 345 km, 230 kilovolt (kV)
Montana-Alberta Tie Line. RES Canada is part of the RES Group, a
leading international renewable energy developer, and is an affiliate
of RES Americas.
"We are delighted to have won the IESO's competitive tender for
regulation service, and look forward to delivering Ontario's first
battery regulation service," said Peter Clibbon, VP of Development for
RES Canada. "This project exemplifies the IESO's forward thinking with
regard to integrating renewables into the grid, and it will help
maintain the IESO's robust, reliable system." The system will be
installed in southwestern Ontario.
The IESO is responsible for managing Ontario's bulk power system and
operating the wholesale electricity market. For more information,
please visit www.ieso.ca.
SOURCE: Independent Electricity System Operator
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