"Storage technology remains one of the most innovative and exciting aspects of our energy policy, particularly because of the incredible potential it presents. It will help strengthen our system and improve service to electricity consumers," said Bob Chiarelli, Minister of Energy. "Our government is proud to see the leadership of these five Ontario companies as they move forward to create good jobs and invest in their local economies."There is a reason I no longer treat "IESO" as an acronym - there's functionally no "I" and whatever the "ESO" is, it isn't the body's original MO.
"The energy storage market is maturing," said Bruce Campbell, President and CEO of the IESO. "Now that we have completed our two-phase procurement process for a total of 50 MW of new energy storage in Ontario, we look forward to having these facilities up and running. These projects will help us better understand how energy storage technologies can support the operation of the grid by providing much needed quick response and operational flexibility."
The IESO press release does provide a rationale for the contracts:
This latest set of contracts... is focused on the capacity value – the ability to be available to store energy and provide it back when called upon – and the arbitrage value – the ability to store energy during periods of lower prices and inject it back into the electricity system when prices rise – of energy storage.Bruce Sharp, probably the province's best cost analyst, did some math in a comment on the IESO's Linkedin page: