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TERIC Power Ltd. eReserve4 Battery Energy Storage Power Plant Project, AUC Decision 27234-D01-2022

Link to Decision Summarized

Electricity – Facilities

Application

TERIC Power Ltd. (“TERIC”) applied for approval to construct and operate the 20-megawatt (“MW”) eReserve4 Battery Energy Storage Power Plant Project (the “Power Plant”).

Decision

The AUC approved the application to construct and operate the Power Plant under s. 11 of the Hydro and Electric Energy Act (“HEEA”). The AUC approved the application to interconnect the Power Plant to the distribution system of FortisAlberta Inc. under s. 18 of the HEEA.

Applicable Legislation

Alberta Ambient Air Quality Objectives.

Alberta Environment and Parks: Conservation and Reclamation Directive for Renewable Energy Operations.

Alberta Utilities Commission Act, SA 2007, c A-37.2 – s 17.

AUC Rule 001: Rules of Practice.

AUC Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations, Hydro Developments and Gas Utility Pipelines.

AUC Rule 012: Noise Control.

Historical Resources Act, RSA 2000, c H-9.

Hydro and Electric Energy Act, RSA 2000, c H-16 – ss 11 and 18.

Pertinent Issues

The project comprises 11 1.9-MW lithium-ion battery modules from Tesla, Inc., with a total nameplate storage energy capacity of 20 MW-hours. The Power Plant will be located on 2.5 acres of privately-owned and previously cultivated land southeast of the town of Hardisty.

The AUC determined that the Power Plant complies with Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations, Hydro Developments and Gas Utility Pipelines, and Rule 012: Noise Control.

The AUC determined that the participant involvement program was adequate and that no outstanding concerns remained. The AUC further accepted the environmental assessment report’s conclusion that the project lands include minimal habitat suitable for wildlife species.

The AUC accepted that, in the event of a fire, all emission concentrations would comply with applicable Alberta Ambient Air Quality Objectives guidelines at or beyond 100 meters of the Power Plant site. The AUC found that the risk to health due to gases released in a fire is mitigated because the closest residence is approximately 750 meters away.

The AUC noted that TERIC has an emergency response program (“ERP”) to support the development of its ERPs and imposed the following as conditions of approval:

(a)     TERIC, and any subsequent operator, shall implement ongoing upgrades to improve the project’s safety, including but not limited to firmware and software enhancements, monitoring capability enhancement, process changes, and safety standards as they are developed; and

(b)     TERIC, and any subsequent operator, shall continually update and improve the site-specific ERP, the corporate ERP, and associated ERPs and advise the local fire departments, including but not limited to incorporating all mitigation measures required from discussions with the local fire departments and input from interested stakeholders and residents.

The AUC also required that TERIC and any subsequent operator maintain insurance coverage sufficient to protect against any reasonably foreseeable liabilities.

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