SolarBank Announces Commencement of Construction of First Battery Energy Storage Project (BESS) in Ontario

Core Insights - SolarBank Corporation is initiating construction of its first Battery Energy Storage System (BESS) project, SFF-06, in Ontario, with financing of $25.8 million from the Royal Bank of Canada [1][3] - The project is expected to have a daily contract capacity of 4.74 MW, with a fixed capacity payment of $1,221/MW per business day, significantly higher than the average price for similar projects [4] - The BESS market is projected to grow at a compound annual growth rate of 16.3%, reaching $31.2 billion by 2029, indicating strong future demand for energy storage solutions [3] Financing and Contracts - The SFF-06 project is financed through a combined loan for two projects, with the Royal Bank of Canada acting as the lender and structuring agent [1] - Anvil Crawler Development Corp. has been contracted for civil and electrical work on the project, with a contract value of $1.85 million [2] - The project has a 22-year contract awarded by the Independent Electricity System Operator (IESO), ensuring stable revenue for SolarBank [4] Tax Incentives and Economic Impact - The project is eligible for the Clean Technology Investment Tax Credit, which offers up to 30% reimbursement of eligible capital costs, enhancing its economic viability [5] - SolarBank's indirect 50% interest in the project is held through a partnership with First Nations communities in Ontario, promoting community involvement in renewable energy [6] Company Overview - SolarBank Corporation focuses on developing renewable energy projects, including solar and battery energy storage systems, with a significant development pipeline exceeding one gigawatt [8][9] - The company aims to maximize returns through a diverse portfolio across various North American markets, contributing to the transition to renewable energy [8]