PowerBank Corporation has initiated the installation of a 4.99 MW battery energy storage system at its SFF-06 project in Cramahe, Ontario, signaling its entry into the burgeoning battery storage market. This project, once operational, is expected to supply 4.75 MW of daily contract capacity for 251 business days each year, contributing clean and reliable energy to Ontario's grid. The move comes as the global battery storage market is projected to reach $31.2 billion by 2029, growing at a compound annual growth rate of 16.3%.
The financial backbone of this ambitious project is a $25.8 million loan from the Royal Bank of Canada, which also serves as the Lender, Administrative and Collateral Agent, and Green Loan Structuring Agent. PowerBank's venture is further secured by a 22-year contract, ensuring long-term value and stability. Notably, the company will receive a fixed capacity payment of $1,221/MW per business day for the power supplied, significantly above the $876/MW average for similar storage projects.
This strategic expansion into the battery storage sector not only underscores PowerBank's commitment to sustainable energy solutions but also positions the company to capitalize on the increasing demand for energy storage systems. The project's success could pave the way for further investments in renewable energy infrastructure, reinforcing Ontario's position as a leader in clean energy. For more details on PowerBank's initiatives, visit https://ibn.fm/3KhG2.
