PowerBank to commission 4.99 MW BESS project in Ontario
PowerBank Corp. is set to complete final commissioning of its SFF-06 battery energy storage system (BESS) project in Ontario, Canada. The project was previously announced in August 2025 and will include 4.99 MW of energy storage.
The SFF-06 project is in the final stages of “hot” commissioning with EVLO. The commissioning of the project includes several milestones with technical partners to ensure safe installation, interconnection, and commissioning with the hydro grid for the nine EVLO battery containers. PowerBank is anticipating the commercial operation date for the SFF-06 project to occur during January, subject to the receipt of all necessary commissioning approvals. This project will be PowerBank’s first operational battery energy storage project.
SFF-06 is owned by 1000234763 Ontario Inc. (ProjectCo), in which PowerBank holds a 50% stake, with the remaining 50% owned by a partnership of First Nations communities in Ontario.
Acquisition to capitalize on growing market
Acquired through PowerBank’s $45 million valued acquisition of Solar Flow-Through Funds Ltd. in July 2024, this project positions the company in a battery storage market projected to increase to $31.2 billion by 2029, growing at a 16.3% CAGR, according to Fortune Business Insights.
The project qualifies for the 2024 Clean Technology Investment Tax Credit, offering up to 30% reimbursement of eligible capital costs. This refundable credit enhances SFF-06’s financial performance while aligning with PowerBank’s mission to accelerate renewable energy adoption through strategic government incentives.
In July 2023, SFF-06 secured a 22-year contract through the Independent Electricity System Operator’s (IESO) Expedited Long-Term RFP (E-LT1 RFP). With a fixed capacity payment of $1,221/MW per business day — well above the $876/MW average for storage projects — this contract ensures strong financial returns.
PowerBank’s proven expertise, with more than 100 MW of completed projects and a development pipeline exceeding 1 GW, underpins the project’s execution. Strategic partnerships and institutional-grade development capabilities position PowerBank to deliver reliable, high-impact renewable energy solutions.
Project risks
There are several risks associated with the development of the project. The commercial operation of the project is subject to receipt of final technical and regulator approvals, and the degradation of battery storage capacity can occur over time based on the number of discharge cycles. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for battery energy storage, which could result in future projects no longer being economic.
Other BESS Project Update
As previously disclosed, the PowerBank is also developing two other battery energy storage projects in Ontario known as 903 project and OZ-1 project. As a result of permitting delays, the company and its battery storage systems supplier were in discussions to terminate the contracts for OZ-1 on mutually agreeable terms.
Once permitting certainty is achieved for OZ-1, the PowerBank will either re-enter into agreements with the supplier or pursue an alternative source. A termination arrangement has now been concluded pursuant to which the parties agreed to terminate the OZ-1 equipment supply and long-term service agreements, with PowerBank relinquishing all rights and obligations.
The supplier will retain possession and property of the systems originally allocated to OZ-1, and PowerBank will pay the supplier a termination fee of $475,000 along with a reimbursement of certain retrofit costs in the amount of $100,000, in addition to any amounts due for services performed to date. Final completion deadlines for the remaining projects are also being adjusted. Finally, PowerBank will pay $512,000 for an extended warranty for the SFF-06 and 903 projects.
