CIB invests in Oneida Energy Storage Project
May 15, 2023
On May 15, 2023, Canada Infrastructure Bank ("CIB") completed its investment in the Oneida Energy Storage Project, the largest battery energy storage project in Canada and among the largest in the world. This 250 MW Project, located in Haldimand County in Ontario, will deliver critical capacity and improved efficiency to Ontario’s energy grid and is estimated to double the amount of energy storage resources in Ontario’s clean electricity grid (from approximately 225 MW to 475 MW) when the Project is completed.
The Borrower is a special purpose vehicle formed by, among others, Northland Power Inc., NRStor Inc. and the Six Nations of the Grand River Development Corporation. The Energy Storage Facility Agreement with IESO ensures that the Project benefits from a 20 year fixed price contract for revenue payments for the majority of the capacity from the Project. The Borrower has also executed a battery supply agreement with Tesla Inc. and an EPC Agreement with Aecon Group Inc. The Project is anticipated to reach construction completion in 2025.
CIB is a Canadian crown corporation that co-invests in infrastructure projects, specifically in public transit, trade and transportation, and green infrastructure.
McCarthy Tétrault advised CIB with a team led by Stephen Furlan, Lynn Parsons and Liezl Behm that included Seán O’Neill, Heba Al-Shakarchi, Kristin Dosen (Business), William McCullough (Real Estate), and Reena Goyal (Litigation).