HomeMy WebLinkAboutECD 06- 23Report to Council
Report Number: ECD 06-23
Date: October 23, 2023
From: Fiaz Jadoon
Director, Economic Development & Strategic Projects
Subject: Trillium Energy Storage
- Municipal Support Resolution
- File: D-1600-002
Recommendation:
1. That Report ECD 06-23 regarding the proposed Battery Energy Storage System be received;
2. That Council approve a Municipal Support Resolution (Attachment 1), as required by the
Independent Electricity Systems Operator, for the Trillium Energy Storage project proposed by
Plus Power, LLC at 2310 Fairport Road (Property Identification Number: 26371-0948);
3. That the Mayor be authorized to sign the Prescribed Form of Municipal Support Resolution on
behalf of the Corporation of the City of Pickering; and,
4. That a copy of the signed Prescribed Form of Municipal Support Resolution and Report ECD
06-23 be forwarded to Power Plus, LLC.
Executive Summary: Plus Power, LLC is proposing a Battery Energy Storage System, Trillium
Energy Storage in response to Independent Electricity System Operator’s (IESO) procurement
process. The project site, 2310 Fairport Road (Property Identification Number: 26371-0948),
located North of CP Rail and West of Fairport Road, will be used to store a maximum capacity of
300 megawatts of energy in over 200 Lithium-Ion battery packs.
Plus Power, LLC will be participating in the procurement process that requires proposals be
submitted on December 2023 along with a Municipal Support Resolution (Attachment 1). The
proposal additionally requires a mandatory public open house meeting, which Plus Power, LLC
held on September 21, 2023.
The Municipal Support Resolution only provides support in principle for a company to submit a
proposal to IESO. In the event Plus Power, LLC is awarded the contract from IESO, the company
must apply for any permits or approvals under applicable laws and regulations that may be
required for the project. The Municipal Support Resolution does not allow the project to bypass
any planning and/or development processes.
Financial Implication: Not applicable to this report.
ECD 06-23 October 23, 2023
Subject: Trillium Energy Storage – Municipal Support Resolution Page 2
Discussion: In 2022, the Ontario Minister of Energy, MPP Todd Smith, issued a directive to
procure new electricity supply resources. Independent Electricity System Operator (IESO) was
directed to acquire 4,000 megawatts of new electricity generation and storage resources in
Ontario to meet an expected energy demand growth of over 30 per cent in the next 20 years. In
response, IESO launched a series of long-term procurement projects. Plus Power, LLC is
responding to IESO’s long-term procurement for 1,600 megawatts of energy storage province-
wide. The proposal is due in December 2023, with a decision expected by June 2024. IESO
requires all proposals to include a support resolution from Municipal Council where the project is
proposed.
Battery Energy Storage System (BESS) facilities generally consist of rows of rechargeable
batteries housed in self -contained, interconnected storage units. BESS facilities typically
operate by drawing surplus energy from the local power grid during periods of low usage , and
storing it for later distribution back into the grid during peak demand. BESS stabilize the local
power grid, by ensuring reliability during periods when the grid might otherwise exp erience a
partial, or total, deficit in voltage, commonly known as “brownouts” and “blackouts”. Thus,
proponents of BESS offer that these facilities can reinforce the local power grid , not only on a
routine basis, but also during emergencies when demand is especially high , or when electrical
transmission from outside the local grid is severed.
Plus Power, LLC is an American-owned company, based in Houston, Texas. The company
develops BESS facilities to enable a more efficient and reliable electrical grid. A t present, they
have more than 10,000 megawatts of energy storage projects under development in the United
States and Canada.
Plus Power, LLC is proposing a Trillium Energy Storage project, in response to IESO’s Long Term
Procurement (LT1). The location proposed in Pickering is at 2310 Fairport Road, in close
proximity to the Cherrywood Transformer Station. It is a 3.68-hectares, 9-acres, site that will be
used to store 205 megawatts of energy through Lithium -ion iron phosphate batteries , for a
maximum capacity of 300 megawatts . It will be up to 228 battery enclosures , that will include a
6-metre wide access road around enclosures and a 30-metres setback from public road.
The subject property, 2310 Fairport Road, is zoned “A – Rural Agricultural” under Zoning By-law
3036, as amended by By-law 6578/05. Permitted use within the A zone includes a detached
residential dwelling, agricultural and agricultural-related uses, and recreational uses. This property
is impacted by the reversal of Provincial government’s decision to swap lands from the Greenbelt.
The current Zoning By-law permits public utilities in any zone, as follows: “The Township of
Pickering or any “local board” thereof as defined in “The Department of Municipal Affairs Act”, […]
any Department of the Federal or Provincial Government including the Hydro-Electric Power
Commission of the Province of Ontario may for the purpose of public service, use any land or any
building or structure in any zone, notwithstanding that such buildin g or structure or proposed use
does not conform with the provisions of this By-law for such zone. However, such building or
structure shall be, as far as possible, in compliance with the regulations for such zone.” As this is
not a public agency, it does not comply with the defined purpose. Therefore, a rezoning
application, site plan application, and possibly an Official Plan Amendment will be required in the
future to move forward on this project.
ECD 06-23 October 23, 2023
Subject: Trillium Energy Storage – Municipal Support Resolution Page 3
As part of the requirement to submit a proposal, Plus Pow er, LLC hosted a public information
session on September 21st at the Chestnut Hill Developments Recreation Complex. The public
was informed via City of Pickering social media channels, newspaper ad, and mailouts to
residents within a one kilometer radius, which resulted in over 2,000 households . The company
also created a website to answer frequently asked questions and provided an email address for
residents. The public meeting was attended by one r esident who was in support of the project.
Additionally, the team received one email in advance of the meeting from a resident who was
also in support and requested an improved walking path near the site.
Generally, opponents of BESS facilities have raised concerns over the presence of highly
flammable substances, such as from lithium -ion batteries, and possible air contamination .
Historically, concerns about such threats were resolved by prohibiting such uses within
residential areas and restricting them t o high-intensity industrial districts. However, that is not
always feasible with BESS facilities. BESS facilities must connect to the local power grid
through a substation with adequate capacity to accommodate the transmission between the
BESS facility and the grid. Additionally, the greater the distance between a BESS facility and
the substation, the less efficient the transmission will be. As a result, designing a viable BESS
facility require s that a facility be located in or near a residential districts. Dangers of the use of
lithium-ion batteries include fires as a result of thermal runaway.
It is noted by the applicant that batteries have been redesigned , from Nickel Manganese Cobalt to
Lithium-Ion Iron-Phosphate since past fire incidents, and battery developers now implement a
stricter fire and safety plan that is compliant to National Fire Protection Association code for
Battery Energy Storage Systems. There is multiple layers of safety including 24/7 monitoring, the
project will have two independent Network Operations Centers (NOCs), one managed by the
manufacturer and another one by Plus Power, LLC’s asset management team and its
subcontractors. The project will be monitored by these NOCs on a 24/7 basis. Furthermore, the
proprietary technology is designed to prevent buildup of flammable gas. The battery manufacturer
has a Battery Management System that measures voltage, current, and temperature for each
battery cell. The BMS will disconnect any cell that goes out of the technical thresholds established
for voltage, current and temperature to make sure battery cells stay within certain technical
guardrails. If the temperature or voltage of a cell goes above certain thresholds, the BMS would
stop charging/discharging and disconnect that cell as well notify appropriate emergency
personnel. Plus Power, LLC has also hired the Energy Safety Response Group, which consists of
former fire fighters, fire protection engineers and battery safety experts, to support Pickering Fire
Services in the development of an Emergency Response Plan, as well as training on response
procedures for the project.
The main benefit of BESS facilities is that they will provide reliable electricity services and
capacity on the grid. Given the projected population increase in the Province, there will be
significantly increased demand. Without grid capacity upgrades, there is risk of longer on -peak
rates, grid capacit y issues, or alternative energy reliance that is less sustainable. Plus Power,
LLC states that there will be no emission of any kind directly produced by the facility. The
audible impact will be similar to an air conditioner. No water will be necessary to operate the
facility. There will be only security lights pointed towards the facil ity but no floodlights. Lastly,
there will be 1-2 light vehicles per week to visit the site during operations.
ECD 06-23 October 23, 2023
Subject: Trillium Energy Storage – Municipal Support Resolution Page 4
This Municipal Support Resolution only provides support for a company to submit a proposal. It
does not supersede any applicable permits or appro vals under applicable Laws and
Regulations that may be require s for the project . If the proponent is successful with IESO, they
will be required to follow the standard processes for Planning Act approvals. Per IESO, “all
projects selected under the LT1 RFP are still subject to all other regulatory, permitting, zoning and
siting requirements that apply to the Project Site.” Staff at that time will assess, which additional
reports will be required as part of the submission. Reports may include Air Modellin g Report,
Noise Impact Study, Hydrogeological Study, a Risk and Safety Plan, Decommissioning Plan,
and letter from Insurer.
Staff recommend that Council approve the Municipal Support Resolution (Attachment 1), as
required by the Independent Electricity Systems Operator, for Trillium Energy Storage project
proposed by Plus Power, LLC at 2310 Fairport Road.
Attachment:
1.Prescribed Form – Evidence of Municipal Support
Prepared By: Approved/Endorsed By:
Original Signed By:
Laraib Arshad Fiaz Jadoon
Manager, Economic Development & Marketing Director, Economic Development &
Strategic Projects
Original Signed By:
FJ:la
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer
120 Adelaide Street West
Suite 1600
Toronto, Ontario M5H 1T1
T 416-967-7474
F 416-967-1947
www.ieso.ca
Prescribed Form – Evidence of Municipal
Support
LT.RFP@ieso.ca
LT1PF-MS200
4
PUBLIC
Attachment #1 to Report ECD 06-23
EXHIBIT A
FORM OF MUNICIPAL SUPPORT RESOLUTION
Resolution NO: Date:
[Note: The Municipal Support Resolution must not be dated earlier than February 17, 2023.]
WHEREAS:
1.The Proponent is proposing to construct and operate a Long-Term Reliability Project, as
defined and with the characteristics outlined in the table below, under the Long-Term
Request for Proposals (“LT1 RFP”) issued by the Independent Electricity System
Operator (“IESO”).
Unique Project ID of the
Long-Term Reliability
Project:
Name of the Long-Term
Reliability Project:
Legal Name of Proponent:
Technology of the Long-
Term Reliability Project:
Maximum Contract
Capacity of the Long-
Term Reliability Project
(in MW):
Property Identification
Number (PIN), or if PIN is
not available, municipal
address or legal
description of the portion
of the Project Site that is
located on lands subject
to the authority of one or
more Municipalities:
120 Adelaide Street West
Suite 1600
Toronto, Ontario M5H 1T1
T 416-967-7474
F 416-967-1947
www.ieso.ca
Prescribed Form – Evidence of Municipal
Support
LT.RFP@ieso.ca
LT1PF-MS200
5
PUBLIC
2.Pursuant to the LT1 RFP, Proposals that receive the formal support of the local
jurisdictional authorities of all the project communities in which the Long-Term Reliability
Project is located in the form of a support resolution will be awarded Rated Criteria points
for the purpose of ranking the Proposal in relation to other Proposals for a contract under
the LT1 RFP; and
NOW THEREFORE BE IT RESOLVED THAT:
3.The council of City of Pickering supports the development, construction and operation of
the Long-Term Reliability Project on the Municipal Lands.
4.This resolution's sole purpose is to enable the Proponent to receive Rated Criteria Points
under LT1 RFP or to satisfy its obligations under any awarded LT1 Contract and may not
be used for the purpose of any other form of approval in relation to the Proposal or Long-
Term Reliability Project or for any other purpose. Rated Criteria points will be used to rank
the Proponent’s Proposal in relation to other Proposals received by the IESO under the
LT1 RFP.
DULY RESOLVED BY THE LOCAL MUNICIPALITY
on the day of , 20
<Signature lines for elected representatives. At least one signature is required.>
120 Adelaide Street West
Suite 1600
Toronto, Ontario M5H 1T1
T 416-967-7474
F 416-967-1947
www.ieso.ca
Prescribed Form – Evidence of Municipal
Support
LT.RFP@ieso.ca
LT1PF-MS200
6
PUBLIC
EXHIBIT B
MUNICIPAL SUPPORT CONFIRMATION
Note: Attach the Municipal Support Confirmation.