PowerBank expects its first battery energy-storage project, located in Cramahe, Ont., to reach commercial operation later this month, the company announced.

The SFF-06 Battery Energy Storage System project is in the final stages of commissioning and is expected to enter commercial operation in January 2026, subject to final technical and regulatory approvals. Once operational, the facility will deliver 4.74 megawatts of contracted daily capacity for 251 business days annually under a long-term agreement with Ontario’s electricity system operator.

The project includes 4.99 megawatts of energy storage and is undergoing “hot” commissioning with EVLO, including grid interconnection and testing of nine battery containers. It is owned by a project company in which PowerBank holds a 50% interest, with the remaining stake held by a partnership of Ontario First Nations communities.

SFF-06 was secured through a 22-year contract awarded in July 2023 under the Independent Electricity System Operator’s Expedited Long-Term RFP. The agreement provides a fixed capacity payment of $1,221 per megawatt per business day, exceeding the average awarded to storage projects in the same procurement.

The project also qualifies for the federal Clean Technology Investment Tax Credit, which provides up to a 30% refundable credit on eligible capital costs. PowerBank said the incentive is expected to enhance project economics while supporting the expansion of clean energy infrastructure in Ontario.

The company acquired SFF-06 as part of its $45-million purchase of Solar Flow-Through Funds in July 2024, positioning PowerBank in a battery-storage market projected to grow significantly over the next several years.

PowerBank also provided updates on its other Ontario battery projects. The company has terminated equipment supply and long-term service agreements for its OZ-1 project due to permitting delays, agreeing to pay termination and retrofit-related costs totalling $575,000, along with amounts owing for services performed. PowerBank said it may re-engage a supplier or seek an alternative once permitting certainty is achieved. Timelines for remaining projects are being adjusted, and the company will also pay $512,000 for extended warranties covering the SFF-06 and 903 projects.

Toronto-based PowerBank is a North American renewable-energy developer and owner focused on distributed and community solar and battery energy-storage projects. The company has developed more than 100 MW of renewable energy capacity and has a development pipeline exceeding one gigawatt across Canada and the United States.

Pictured: PowerBank SFF-06 battery-storage project site in Cramahe, Ont.

Image: CNW Group/PowerBank