Let us design and build your energy storage project!

Energy Storage Solutions:

ORTECH has a long history of renewable energy and energy storage consulting in Ontario.  ORTECH has leveraged the experience of our parent company, Kontrol Energy Corporation and its operating subsidiaries, to offer energy storage solutions to our industrial, commercial and municipal clients. Our fundamental values to our clients include:

  • Focus on providing cost effective, dynamic and creative solutions with a targeted yet flexible approach,

  • Commitment to technology to monitor and manage the use of the equipment with enough flexibility to handle changes to the electricity system and market rules,

  • Vendor and technology agnostic,

  • Comprehensive services across the entire Kontrol family of companies: design, engineering, permitting, procurement, commissioning, performance testing and project management,

  • Structured finance approach to the business case,

  • Experience across multiple types of industrial, commercial and municipal facilities,

  • Active board member of Energy Storage Canada,

  • Over 40 years of project management experience, and

  • Industry-leading air quality, permitting, emission testing and consulting firm.

Why Energy Storage?

ORTECH recognizes that although facilities are unique, an ESS will provide improved flexibility and potential long-term savings.  The primary benefit of installing an ESS is the ability to control your electricity demand for whatever reason.  Some of the key factors contributing to the potential benefits of an ESS include:

  • The Price of Energy Storage: Like most technologies, the price of energy storage is dropping. The average price of a lithium-ion battery based system for an industrial installation is currently ≈ $700 to $800 per kWh and trending downward. The cost of lithium ion batteries themselves has dropped from about $1000 per kWh in 2010 to below ≈ $300 per kWh in 2017.

  • Demand Management: Consists of using energy storage to store electrical power during off-peak price hours and discharging it to facility loads during higher peak price hours.

  • Resilience / Reliability (Backup Power): An ESS provides these benefits until a problem is fixed or other backup power can come online. A battery system allows you to shut down gently and keep you running smoothly during a grid outage until your backup generation kicks in.

  • Market Renewal: Ontario is evaluating changes the electrical market system, but those plans are still under developed. The use of an ESS was supported by the previous government and the current government. An ESS will have a beneficial role to play in the future Ontario electricity market.

  • Global Adjustment (GA) Market Risk: There is potential for significant changes to the GA. As an example, the recently implemented Fair Hydro Plan refinances a large fraction of the GA so that payments are lower by $2.5 billion per year (≈ 21% of the total GA for 2017). However, an ESS will continue to provide its owners with benefits regardless of potential changes put in place by the government of the day. In most of the likely future scenarios, an ESS will continue to allow reductions in the owners GA payments.

  • Peak Shaving Value to the IESO: There is value to the Independent Electricity System Operator (“IESO”) in enticing electricity users to reduce their demand during peak hours (e.g. using an ESS for demand management as described above). In reducing peak demand, the IESO could decrease the need to start up natural gas peaking plants or purchase electricity from neighbouring provinces or the United States.

  • Other Benefits of an ESS:

    • Avoided or deferred costs of distribution/transmission upgrades

    • Distribution and transmission congestion relief

    • Black start

    • Demand shifting and peak demand reduction

    • Fast ramping to mitigate impact of variable generation from renewable power

    • Flexible and peak capacity

    • Frequency regulation service generation

    • Generation and uninterrupted power supply

    • GHG reductions in and outside of jurisdiction, lowering reliance on fossil fuel

    • Load following

    • Non-­spinning reserve

    • Spinning reserve

    • Operating reserve

    • Seasonal storage

    • Voltage support

How can Energy Storage help?

If you are a Class A electricity user (i.e. monthly average peak demand exceeding 5 MW), an ESS can be effective in reducing your GA and Demand Charges.  

Also, non-Class A users may qualify for Class A as the Industrial Conservation Initiative (ICI) has lowered the threshold to 500 kW (monthly average peak demand).    The ICI, administered by the IESO, is a form of demand response that allows participating customers to manage their GA costs by reducing their demand during peak periods.  An ESS can be utilized to accomplish this, and the IESO encourages users to participate in the ICI program as it helps them manage the electrical system during peaks. 

Reducing peak demand costs is the fundamental pricing mechanism that will offset the cost of an ESS.  Although the GA mechanism may change, an ESS will remain beneficial.  

ORTECH's Approach to Energy Storage projects:

Energy Storage allows you to store electricity when prices are low and use that stored electricity when prices are high. The purpose of these solutions is to cut energy costs. Determining if either solution is right for you is complicated and involved.  ORTECH can make the process easier for you. 

ORTECH offers a multi-tiered approach including:

Assessing your Solution:

An Initial Assessment and Feasibility Study will assist you in determining if Energy Storage will benefit your bottom line.  This approach will simplify and de-mystify these up and coming technologies. ORTECH will break the process down into manageable steps.

Step 1: Initial Assessment: This assessment will determine if either a net metering or an energy storage solution will benefit your company. Net gain equates reducing the cost of energy.

Step 2: Feasibility Study:  This study will identify the high-level solution (type), benefits, costs and process to setup a net metering solution using Solar PV or an energy storage solution.

Step 3: Solution Development:  Identify options for the selected solution and develop an implementation plan for your facility.

Building your Solution:

ORTECH has a structured approach to all our solutions.  Here is the high level overview of that process:

Process:

  • Scoping Study

  • Business Case development: high level

  • Preliminary Engineering design

  • Detailed Engineering design

    • Define:

      • Technology

      • Savings

      • Cost

  • Solution Development

    • Technology

    • Construction Plan

    • Operation and Maintenance plan

If you are interested to know what the business case looks like, ORTECH can tell you.  Just contact us and we will provide you with a high level assessment with capital costs, savings and solution, at no charge. Please contact Michael Tingle at mtingle@ortech.ca

 

 

 

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ORTECH has Energy Storage experience!

ORTECH has been at the forefront of Energy Storage in Canada; even so much as to be one of the founding members of Energy Storage Ontario, the only provincial or federal energy storage association in Canada at this time.  The following are a sample of ORTECH's project:

Multiple Clients including Northwater Capital: ORTECH offers a due diligence technology review product.  While the detailed scope of this review depends on the stage of development of the technology, it generally consists of reviewing technical reports and witnessing of tests conducted on demonstration units.  ORTECH has also performed high-level fatal flaw analysis of these technologies including consideration of permitting issues, market rules and structure.  ORTECH has conducted this type of review for energy storage systems using the following technologies:

  • Hydrogen Electrolyzer,
  • Flywheel,
  • Subterranean Compressed Air, and
  • Underwater Compressed Air.

Infrastructure Ontario (“IO”): IO manages over 6000 buildings in Ontario, including Northern Ontario, for the Province. ORTECH was engaged to investigate and report on the current state of the energy storage industry, including potential future developments, and how energy storage technologies can best be integrated into IO’s real estate portfolio. The primary objectives were to provide background information on energy storage technologies, their applications and benefits, to develop business case studies of applications of energy storage in IO buildings, and to provide recommendations on how best to pilot energy storage solutions in those buildings. The Technology reviewed for this project was mostly battery centric.

NRStor Inc.: ORTECH provided development support for a proposed very large scale energy storage facility.  Our scope included siting assistance including prospecting for connection points and interfacing with the IESO on a Feasibility Study, detailed analysis of Ontario’s electricity market to determine the effect of the addition of a large amount of bulk grid scale storage and participation in presentations to the Ontario Energy Board, OPA, IESO, and other potential investors.  ORTECH has provided assistance with developing proposals for energy storage RFPs in Ontario and Hawaii for projects using flywheels, lithium-ion batteries, molten salt batteries and redox flow batteries.  Our scope included developing detailed financial modelling including detailed operations and maintenance costing and plans. Also, ORTECH conducted a study on incorporating storage with a small wind farm in Nova Scotia in order to optimize energy injected to the grid with a constrained interconnection.

Oshawa Hydro: Assisted this Local Distribution Company with responding to two provincial agency RFPs:  IESO and the now merged OPA.  The battery technology is confidential but ORTECH provided support in evaluating the sites and technologies for each bid.  Financial Modelling was also a component of the engagement.

Confidential Client:  Siting assistance for a developer looking to optimize their portfolio of energy storage projects awarded contracts under a recent energy storage RFP.  Our scope included prospecting for host sites including buildings and industrial facilities where energy storage could be deployed. The award was based on this client using battery storage solutions.

European Debt Provider:  ORTECH provided risk management technical services to this Client related to the potential debt financing of an Independent Electricity System Operator’s (“IESO’s”) awarded energy storage project.   The technology consists of flywheel and battery. 

US Energy Storage Provider:   ORTECH provided risk management and technical services to the Client related to participating in a US Department of Energy (“DOE”) program for Energy Storage Projects.  The loan guarantee program requires an independent engineers report on various technical and financial aspects of the project.   The project reviewed was 40MW in size and located in California.

Canadian Debt Provider: ORTECH provided risk management technical services to the Client related to the potential debt financing of a 4 MW energy storage battery facility to be installed and operated under the Independent Electricity System Operator’s (“IESO’s”) Energy Storage Procurement program. 

 

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