Though it has yet to receive a green light from the Independent Electricity System Operator (IESO), TC Energy, proponent of a proposed pumped storage facility to be located on the grounds of the 4th Canadian Division Training Centre, in the Municipality of Meaford, continue to advance the project with what they describe as their ‘prospective partner’, the Saugeen Ojibway Nation.
In a media release issued on January 11, TC Energy said that it “will continue to advance the Ontario Pumped Storage Project (Project) with its prospective partner Saugeen Ojibway Nation, and begin work with the Ministry of Energy (Ministry) and the Ontario Energy Board (OEB), to establish a potential long-term revenue framework for the Project. Further, TC Energy and Saugeen Ojibway Nation will assist with the Ministry’s evaluation of the Project’s broader societal and economic benefits.”
In a letter to the IESO dated January 9, provincial Energy Minister, Todd Smith wrote that Ontario’s electricity system could need to double capacity in the next 25 years.
“As illustrated in the IESO’s Pathways to Decarbonization study, Ontario’s electricity system could need to double in capacity by 2050, in order to move the province towards a net-zero electricity grid. Long-duration energy storage could play an important role in meeting electricity system needs, including enabling greater integration of intermittent renewable generation and complementing future nuclear generation,” wrote Smith in his letter to the IESO. “I would like to thank the IESO for your initial report back, dated September 29, 2023, containing an analysis of the two Pumped Storage (PS) proposals, namely, TC Energy and the Saugeen Ojibway Nation’s (SON) Ontario PS project and Ontario Power Generation (OPG) and Northland Power’s Marmora PS project, and the addendum dated November 30, 2023, containing an updated analysis for the Ontario PS Project based on revised information provided by the project’s proponent. In the report back, the IESO has noted that under currently proposed cost structures, the PS projects do not compare favourably to currently available alternatives, including battery storage or a portfolio of other non-emitting resources, and therefore neither PS project is able to provide net benefits to Ontario’s electricity system or ratepayers. At the same time, the IESO acknowledged the potential benefit of these projects in enhancing the diversity of Ontario’s supply mix, if completed in a timeline that would provide value to the system.”
TC Energy says that they look forward to continuing to work with the Ministry, IESO, and the Ontario Energy Board (OEB) as they work to advance the proposal.
“TC Energy and Saugeen Ojibway Nation look forward to continuing work with the Ministry, the IESO and the OEB to advance this Project, which will play an important role in accelerating the province’s ambitious plans for clean economic growth,” said TC Energy in their January 11 media release. “The Ontario Pumped Storage Project represents a made-in-Ontario solution – it will be designed, engineered, and built by a domestic supply chain. During construction, the Project will create 1,000 well paid, unionized jobs and over 75 per cent of the total materials and supplies will be provided by Ontario-based companies.”
TC Energy noted that the project remains subject to the approval of the Saugeen Ojibway Nation.
“The Project remains subject to the approval of TC Energy’s board of directors and Saugeen Ojibway Nation. It is expected that construction for the Project would begin in the latter part of this decade with in-service in the early 2030s, subject to receipt of regulatory and corporate approvals. Further, any future capital allocation decisions will align with TC Energy’s net capital expenditure limit of $6-7 billion post-2024,” said TC Energy.
Conrad Ritchie, Chief, Saugeen First Nation and Gregory Nadjiwon, Chief, Chippewas of Nawash Unceded First Nation called the pumped storage proposal long overdue.
“The Minister continues to acknowledge that electricity development will only be successful with the participation and leadership from Indigenous Nations. The Ontario Pumped Storage Project is a long overdue energy initiative with real benefits for the Indigenous people of the land,” said Conrad Ritchie, Chief, Saugeen First Nation and Gregory Nadjiwon, Chief, Chippewas of Nawash Unceded First Nation in TC Energy’s media release.
In his letter to the IESO, Minister Smith noted that he expects significant federal involvement in the cost sharing of pre-development costs associated with the project.
“In developing its cost estimates, I would ask that TCE further engage the Government of Canada on additional assistance that may be available to support pre-development work on the project to further reduce the cost. I anticipate that my Cabinet colleagues will expect significant federal involvement in cost sharing of pre-development costs associated with for the project,” noted Minister Smith in his letter. “Once these estimates and project schedule have been submitted, ENERGY and the IESO will conduct an assessment of the proposed costs and provide a recommendation to proceed with pre-development within 45 days of submission. Following this review, I would ask that the IESO negotiate with TCE a commercial agreement to enable TCE to recover eligible, prudently incurred expenses associated with the completion of pre-development work on the project. I ask that the IESO report back to me on the outcome of those discussions within 60 days of the submission of the estimates. A final decision to fund pre-development costs associated with the project would be subject to a Cabinet approval and a future Ministerial directive to the IESO to execute the agreement with TCE. With respect to the appropriate revenue framework for these projects longer term, I am currently not prepared to make a final determination on this matter. In the meantime, I have asked Ministry officials to work with the Ontario Energy Board (OEB) and proponents on project cost recovery mechanisms for my consideration, with a report back by July 31, 2024.”
The proposed facility has raised concerns among many Meaford residents since it was first announced in 2019. Save Georgian Bay, a local advocacy group, has been working to raise awareness of, and opposition to, the proposed facility. The group has held a number of protest rallies, and has collected thousands of signatures on petitions opposing the proposed facility. Recently, Save Georgian Bay has been calling upon bay area municipalities to express opposition to the proposed pumped storage plant.
The concerns of opponents are many, ranging from fears that the facility would have negative impacts on the environment, including negatively impacting fish in the bay, to concerns that homeowners in close proximity to the site could be in danger of flooding should the reservoir fail.
TC Energy, on the other hand, says the proposal is a green initiative that would consume inexpensive off-peak power at night to pump water from Georgian Bay into a 374-acre storage reservoir located 150 metres above the Georgian Bay shoreline on the military base. The reservoir, which would hold 20 million cubic metres of water, would be emptied back into Georgian Bay during peak usage periods, driving hydraulic turbines to generate electricity.
In February of last year, in a 5-2 vote, Meaford’s council approved a motion offering conditional support for the project, subject to a number of conditions including confirmation with TC Energy that the municipality will be compensated for all costs incurred related to the proposal, development of an agreement with TC Energy for short- and long-term community benefits, and subject to the approval of the proposed facility by all relevant jurisdictions including environmental impact assessments, and all other required regulatory approvals.
Recently, two Georgian Bay municipal councils have approved motions expressing opposition to the proposed facility: the Township of The Archipelago, near Parry Sound, on November 17, and the Town of the Blue Mountains, during their December 18 council meeting.
The resolution passed by the Township of The Archipelago’s council in November stated that the proposed project “would cause irreparable harm to the environment and would have significant negative impacts on the local animal, plant, fish, and human populations”, and that the project “would irreversibly alter and damage the unique ecological, cultural, and historical features of the area, putting at risk the important tourist industry, sport and commercial fishing that relies on these natural benefits.”
As was reported by The Independent in a January 8 article, several members of Meaford’s council pushed back against the resolutions passed by the two bay area councils, with Deputy Mayor Shirley Keaveney suggesting that those councils did not have enough information to approve such resolutions.
“It is important to note that Trans Canada Energy has not to date had any communication or engagement with the Township of the Archipelago, so I struggle to understand how their council felt well enough informed to support this motion. I believe it is always critical to understand all sides of an issue before making any decision. We are the most heavily impacted community yet no one from either municipality reached out to Meaford for our input or perspective. I do maintain that our council, staff, and residents are the best informed of any municipality since we have access to ongoing communication with TC Energy and we have the advantage of the excellent research completed by members of Save Georgian Bay,” Keaveney noted in her response to The Independent.
TC Energy said that their next steps will be to begin working with the Ministry and the OEB to establish a long-term revenue framework “culminating in a report to the Minister by July 31, 2024.”
The proponent said that it will also provide a report to the Ministry breaking down estimated development costs along with a schedule.
“Following submission of these items, the Ministry will provide a recommendation to proceed with pre-development work within 45 days,” Tc Energy advised. Following this, TC Energy would begin negotiation of a cost recovery agreement with IESO to recover eligible, prudently incurred expenses associated with pre-development work. A follow up report is to be provided to the Ministry by the IESO within 60 days of submission of the estimates. TC Energy will also provide further information to assist with the Government’s assessment of the Project’s societal and economic benefits. A final decision to fund development costs associated with the Project would be subject to a Cabinet approval and a future Ministerial directive to the IESO to execute the agreement with TC Energy.”
