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TERIC Power Ltd. eReserve2 Battery Energy Storage Power Plant Project, AUC Decision 25691-D01-2020

Link to Decision Summarized

Stand-Alone Battery Energy Storage Facility – Power Plant


In this decision, the AUC approved the application from TERIC Power Ltd. (“TERIC”) to construct and operate the eReserve2 Battery Energy Storage Power Plant Project, and to interconnect the facility to FortisAlberta Inc.’s (“FortisAlberta”) distribution system.

Background

TERIC applied for approval to construct, operate and interconnect a 20-megawatt (“MW”) battery energy storage facility, designated as eReserve2 Battery Energy Storage Power Plant Project (the “Project”). TERIC sought approval of the Project as a power plant, pursuant to Section 11 of the Hydro and Electric Energy Act (“HEEA”) and to connect it to FortisAlberta Inc.’s 25-kilovolt distribution system pursuant to Section 18 of the HEEA.

The Project would consist of 14, 1.5-MW (approximately) lithium-ion battery modules with a total nameplate storage energy capacity of 20 MW-hours.

TERIC stated that it developed and conducted a participant involvement program in accordance with Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments and AUC Bulletin 2020-13: Interim changes to AUC participation involvement program and related information requirement.

TERIC stated, that it expected to use lithium-ion battery modular units such as Tesla Megapacks or Similar, although they had not formally selected an equipment supplier, make or model of the components.

TERIC stated that the Project is currently in Stage 1 of the AESO’s connection process. It confirmed that the Project would participate in both the energy market and the ancillary services market. TERIC added that the AESO had not expressed any concerns with the interconnection proposal or the Project in general.

Findings

The proposed battery energy storage facility would not be associated with any other existing or proposed power plant and the battery modules would be charged from, and discharge energy to, the Alberta Interconnected Electric System (“AIES”) through an existing feeder at FortisAlberta’s Buffalo Creek 526S Substation.

The AUC considered the issue of whether a stand-alone battery energy storage facility is a power plant or generating unit as defined in the Hydro and Electric Energy Act. Similar to Decision 25205-D01-2020, the AUC was satisfied in this decision, that TERIC’s proposed battery energy storage facility meets the definition of a power plant under HEEA

The AUC determined that the technical, siting, environmental and noise aspects of the proposed project met the Commission’s Rule 007 and Rule 012 requirements.

The AUC found no outstanding public or industry concerns with the Project and found TERIC’s participant involvement program to be adequate. Considering TERIC’s commitment to follow all mitigation measures recommended in the environmental assessment report, and all applicable standards and guidelines, the AUC was satisfied that the Project would have minimal impacts on the environment.

TERIC planned to start construction in April 2021 and expected the in-service date to be in the early third quarter of 2021.

The AUC approved the Project as a power plant pursuant to Section 11 of the HEEA. The AUC approved the connection of the project to FortisAlberta’s 25-kilovolt distribution system pursuant to Section 18 of the HEEA.

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