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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.