Honeywell to Deliver 18MWh Battery Storage Project to Ontario


Ontario's long-standing energy supply problem combined with its high and rapidly increasing energy rates has made its energy supply market ripe for innovative new energy solutions.  Presently, large power users in Ontario are levied a premium rate through for the power they draw from the grid during designated peak hours. The "Global Adjustment Charge" (GAC) policy allows local administration to pay for grid upgrades and green, decarbonization and sustainability initiatives. Due to Ontario's peculiar climate, namely, it's extremely cold temperatures in winter and increasingly hot summer temperatures, spikes in energy demand occur regularly as energy from the grid is needed to meet province-wide demands for air conditioning in the summer, and warm heat during winter time.  As Saturn Power's Chief Investment Officer Tai Nguyen explains,  "intense peaks during the summer and winter months, when energy consumption substantially increase", has been a "recurring challenge" for Ontario's manufacturing sector.

One technological innovation to have been quickly recognized as having tremendous potential in Ontario has been that of energy storage. A company to have most recently taken advantage of this novel opportunity in Ontario's energy storage market is Honeywell, a Fortune 100 technology company.  Honeywell has recently been chosen to supply a multiple megawatt-hours battery energy storage system at a commercial site in Ontario, Canada.  The project is said to be the largest battery energy storage project to date with an output of up to 8.9MW and 18MWh of storage and will be delivered to developer and EPC partner Saturn Power.  

Honeywell also announced that Saturn Power's customer which will host the battery system is a local power plant that has been classified by Ontario's grid operator that is, the Independent Electricity System Operator or, IESO, a Class A customer of electricity with high peak demand. The Honeywell battery storage system is brilliantly designed to be charged from the grid during specified off-peak time frames (where energy rates are cheapest), then using the battery's stored energy when demand for energy goes up, i.e. when energy prices are at their highest.  Honeywell also opined that deploying batteries to reduce on-peak energy consumption can lead to significant energy supply cost savings.  

Honeywell's 18MWh battery storage system features a cell-level control that Honeywell claims is "unparalleled", enhancing system performance and prolonging its maximum lifespan, while simultaneously enabling the project's partner to provide necessary performance guarantees to their Ontario client.  Honeywell also affirmed that its modular battery energy storage system (BESS) can be installed and commissioned quickly, which concords with Saturn Power's requirements.


The likely competition that will arise is Ontario's energy storage energy market in the coming years will be fierce.  A few days past, for instance, Shell issued a public statement to the effect that it would also be offering battery energy storage capabilities to its commercial customers in Ontario through a strategic partnership with Convergent Energy + Power.  The province of Nova Scotia has also been experimenting with Tesla battery storage systems.  Already, Saturn Power has been active in the battery storage industry since 2017.  In addition to Ontario, Saturn Power projects have already been developed in Western Canada, the United States, Turkey and Bermuda.

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