Energy storage project expected to attract more businesses to Eastern Ontario, officials say

Joseph Coppolino

January 3, 2025

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A $750-million energy storage project expected to break ground in late 2025 or early 2026 could be a catalyst for attracting new industries to Eastern Ontario, officials say. Announced in May, the Skyview 2 Battery Energy Storage Project (BESS), a 411-megawatt facility to be located northwest of Dobbie Road and Byker Road in the township of Edwardsburgh Cardinal, is being touted as a way to support Ontario’s growing energy demands while bringing jobs and business opportunities to the region. To be built by Potentia Renewables in partnership with the Algonquins of Pikwanagan, who have a 10-per-cent stake in the project, the facility east of Ottawa is designed to charge a series of batteries housed in 400 container-like buildings on about 30 acres of land. Drawing electricity from the grid during off-peak hours, the batteries will hold that charge until demand is at its highest during peak hours. This approach, according to Potentia, will make the region’s energy system more efficient by ensuring there is capacity when it's needed most and reduce the need for building new transmission lines. According to Ontario's Independent Electricity System Operator (IESO), the Crown corporation responsible for operating the province’s electricity market, Ontario's demand for electricity is expected to increase by 75 per cent over the next 25 years – the equivalent of adding more than four more cities the size of Toronto to the grid. With more reliable electrical capacity, Eastern Ontario is looking to reap the benefits of businesses needing that energy. “This project is going to improve electrical capacity throughout Eastern Ontario,” said Will Patterson, Potentia’s senior project manager for development and origination. “Businesses are increasingly looking to locate where there’s sufficient grid capacity. Skyview 2 ensures Eastern Ontario is better positioned to attract and retain those investments.” Patterson noted Skyview 2 has the potential to provide enough energy to power approximately 400,000 homes during peak demand. “That level of grid capacity is critical as Ontario looks to balance increasing demands from urban growth, electric vehicles and industrial expansion,” he said. Broad regional benefits During the Leeds and Grenville Economic Development Summit 2024 in November, at which Ontario’s Minister of Energy and Electrification Stephen Lecce was a guest speaker, Skyview 2 was highlighted as a keystone project for the region, a harbinger of what the renewables industry could be for Eastern Ontario. Ann Weir, economic development manager for the United Counties of Leeds and Grenville, said she views the project as a means of diversifying the region’s economy with cleantech industries. Weir said she has been on several calls with companies big and small looking to move to the area since Skyview 2 was announced and hinted at another major project being announced in early 2025. “It has certainly already drawn interest to the region,” said Weir. “And with the need for power across Eastern Ontario and the rest of the province, this could be a cornerstone for the region.” Eastern Ontario already hosts major players in industries supporting cleantech, such as cabling and chemical processing, which Weir said is an added incentive for businesses considering the area. When the project was first announced, Charlie Mignault, commissioner of the St. Lawrence Corridor Economic Development Commission, echoed the sentiment. He sees the project as the first step in bringing the battery storage industry to the region "This is significant news for our entire region. The market for battery energy storage systems is growing rapidly. Clean energy investments will be a critical element in our regional economy moving forward,” stated Mignault when the project was announced, noting that he expects the global market for energy storage to reach US$120-$150 billion by 2030. “We anticipate other elements of the battery value chain to follow, such as the manufacturing of storage components ... This market is at an explosive stage of development and we are very happy to have this investment in our corridor region.” The construction of Skyview 2 is expected to create approximately 200 jobs during a year-long building phase. Patterson noted the project will bring direct benefits to local businesses and service providers. “We’re talking about sourcing materials like aggregate locally, contracting with logistics and trucking companies, and creating opportunities for hotels, restaurants and other businesses,” he said, emphasizing that smaller energy projects have brought millions of dollars into local economies. “A project of this scale will create substantial ancillary benefits for Edwardsburgh Cardinal and surrounding communities.” Located on 30 acres of non-prime agricultural land that is already cleared, the project is expected to contribute significantly in terms of taxes over its lifespan, helping to fund infrastructure such as roads and public services. A regional boost after Umicore pause The Skyview 2 project helps to underscore Eastern Ontario’s reputation as a destination for renewable energy and electric vehicle-related investments, despite recent challenges such as Umicore’s decision to pause its $1.5-billion battery materials plant in Loyalist Township. Other recent investments in the industry include the expansion of Voltari Corp. in Merrickville, a company manufacturing electric-powered boats. Enhanced energy infrastructure is expected to make the region more competitive in attracting high-energy users such as manufacturers. “Manufacturers and other high-energy users are only setting up shop where grid capacity is sufficient,” Patterson said. “This project helps ensure Eastern Ontario can compete for those investments in the future.” The Edwardsburgh Cardinal location was selected for its proximity to existing transmission infrastructure and because of the municipality’s support for the project. Patterson noted that without municipal backing, projects of this scale are difficult to move forward. “The business community and local governments play a key role in ensuring Ontario can meet its energy challenges,” he said. Potentia created a community benefit agreement with Edwardsburgh Cardinal that includes $300,000 annually to support local initiatives such as the Spencerville Fair. “This funding is not for operating expenses like road maintenance or salaries,” Patterson said. “It’s for community-driven projects that enhance quality of life for residents.” The project is currently in its preliminary design phase, with construction expected to begin in late 2025 or early 2026. Once operational, Patterson said Skyview 2 will be part of a broader effort to ensure Ontario’s energy needs are met. Potentia has invited local businesses, contractors and service providers to get involved as the project progresses. “This is an opportunity for the local business community to be part of building critical infrastructure,” Patterson said.