Solar and wind power curtailments are rising in California

OEB Energy Storage Integration advances DERs and battery storage through CDM guidelines, streamlined connection requirements, IESO-aligned billing, grid modernization incentives, and the Innovation Sandbox, providing regulatory clarity and consumer value across Ontario's electricity system.

Key Points

A suite of OEB initiatives enabling storage and DERs via modern rules, cost recovery, billing reforms, and pilots.

✅ Updated CDM guidelines recognize storage at all grid levels.

✅ Standardized connection rules for DERs effective Oct 1, 2022.

✅ Innovation Sandbox supports pilots and temporary regulatory relief.

The energy sector is in the midst of a significant transition, where energy storage is creating new opportunities to provide more cost-effective, reliable electricity service. The OEB recognizes it has a leadership role to play in providing certainty to the sector while delivering public value, and a responsibility to ensure that the wider impacts of any changes to the regulatory framework, including grid rule changes, are well understood. 

Accordingly, the OEB has led a host of initiatives to better enable the integration of storage resources, such as battery storage, where they provide value for consumers.

Energy storage integration – our journey 
We have supported the integration of energy storage by:

Incorporating energy storage in Conservation and Demand Management (CDM) Guidelines for electricity distributors. In December 2021, the OEB released updated CDM guidelines that, among other things, recognize storage – either behind-the-meter, at the distribution level or the transmission level – as a means of addressing specific system needs. They also provide options for distributor cost recovery, aligning with broader industrial electricity pricing discussions, where distributor CDM activities also earn revenues from the markets administered by the Independent Electricity System Operator (IESO).
 
Modernizing, standardizing and streamlining connection requirements, as well as procedures for storage and other DERs, to help address Ontario's emerging supply crunch while improving project timelines. This was done through amendments to the Distribution System Code that take effect October 1, 2022, as part of our ongoing DER Connections Review.
 
Facilitating the adoption of Distributed Energy Resources (DERs), which includes storage, to enhance value for consumers by considering lessons from BESS in New York efforts. In March 2021, we launched the Framework for Energy Innovation consultation to achieve that goal. A working group is reviewing issues related to DER adoption and integration. It is expected to deliver a report to the OEB by June 2022 with recommendations on how electricity distributors can assess the benefits and costs of DERs compared to traditional wires and poles, as well as incentives for distributors to adopt third-party DER solutions to meet system needs.
 
Examining the billing of energy storage facilities. A Generic Hearing on Uniform Transmission Rates is underway. In future phases, this proceeding is expected to examine the basis for billing energy storage facilities and thresholds for gross-load billing. Gross-load billing demand includes not just a customer’s net load, but typically any customer load served by behind-the-meter embedded generation/storage facilities larger than one megawatt (or two megawatts if the energy source is renewable).
 
Enabling electricity distributors to use storage to meet system needs. Through a Bulletin issued in August 2020, we gave assurance that behind-the-meter storage assets may be considered a distribution activity if the main purpose is to remediate comparatively poor reliability of service.
 
Offering regulatory guidance in support of technology integration, including for storage, through our OEB Innovation Sandbox, as utilities see benefits across pilot deployments. Launched in 2019, the Innovation Sandbox can also provide temporary relief from a regulatory requirement to enable pilot projects to proceed. In January 2022, we unveiled Innovation Sandbox 2.0, which improves clarity and transparency while providing opportunities for additional dialogue. 
Addressing the barriers to storage is a collective effort and we extend our thanks to the sector organizations that have participated with us as we advanced these initiatives. In that regard, we provided an update to the IESO on these initiatives for a report it submitted to the Ministry of Energy, which is also exploring a hydrogen economy to support decarbonization.

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Oxford Battery Energy Storage Project will store surplus renewable power near South-West Oxford and Woodstock, improving grid stability, peak shaving, and reliability, pending IESO approval and Hydro One transmission interconnection in Ontario.

Key Points

A Boralex battery project in South-West Oxford storing surplus power for Woodstock at peak demand pending IESO approval.

✅ 2028 commercial operation target

✅ Connects to Hydro One transmission line

✅ Peak shaving to stabilize grid costs

A Quebec-based renewable energy company is proposing to build a battery energy storage system in Oxford County near Woodstock.

The Oxford battery energy storage project put forward by Boralex Inc., if granted approval, would be ready for commercial operation in 2028. The facility would be in the Township of South-West Oxford, but also would serve Woodstock businesses and residences, supported by provincial disconnect moratoriums for customers, due to the city’s proximity to the site.

Battery storage systems charge when energy sources produce more energy than customers need, and, complementing Ontario’s energy-efficiency programs across the province, discharge during peak demand to provide a reliable, steady supply of energy.

Darren Suarez, Boralex’s vice-president of public affairs and communications in North America, said, “The system we’re talking about is a very large battery that will help at times when the electric grid has too much energy on the system. We’ll be able to charge our batteries, and when there’s a need, we can discharge the batteries to match the needs of the electric grid.”

South-West Oxford is a region Boralex has pinpointed for a battery storage project. “We look at grid needs as a whole, and where there is a need for battery storage, and we’ve identified this location as being a real positive for the grid, to help with its stability, a priority underscored by the province’s nuclear alert investigation and public safety focus,” Suarez said.

Suarez could not provide an estimated cost for the proposed facility but said the project would add about 75 jobs during the construction phase, in a sector where the OPG credit rating remains stable. Once the site is operational, only one or two employees will be necessary to maintain the facility, he said.

Boralex requires approval from the Independent Electricity System Operator (IESO), the corporation that co-ordinates and integrates Ontario’s electricity system operations across the province, for the Oxford battery energy storage project.

Upon approval, the project will connect with an existing Hydro One transmission line located north of the proposed site. “[Hydro One] has a process to review the project and review the location and ensure we are following safety standards and protocols in terms of integrating the project into the grid, with broader policy considerations like Ottawa’s hydro heritage also in view, but they are not directly involved in the development of the project itself,” Suarez said.

The proposal has been presented to South-West Oxford council. South-West Oxford Mayor David Mayberry said, “(Council) is still waiting to see what permits are necessary to be addressed if the proposal moves forward.”

Mayberry said the Ministry of Natural Resources and Forestry also would be reviewing the proposed project.

Thornton Sand and Gravel, the location of the proposed facility, was viewed positively by Mayberry. “From a positive perspective, they’re not using farmland. There is a plus we’re not using farmland, but there is concern something could leak into the aquifer. These questions need to be answered before it can be to the satisfaction of the community,” Mayberry said.

An open house was held on Sept. 14 to provide information to residents. Suarez said about 50 people showed up and the response was positive. “Many people came out to see what we planned for the project and there was a lot of support for the location because of where it actually is, and how it integrates into the community. It’s considered good use of the land by many of the people that were able to join us on that day,” Suarez said.

The Quebec-based energy company has been operating in Ontario for nearly 15 years and has wind farms in the Niagara and Chatham-Kent regions.

Boralex also is involved in two other battery storage projects in Ontario. The Hagersville project is a 40-minute drive northwest of Hamilton, and the other is in Tilbury, a community in Chatham-Kent. Commercial operation for both sites is planned to begin in 2025.

South-West Oxford and Woodstock will see some financial benefits from the energy storage system, Suarez said.

“It will help to stabilize energy costs. It will contribute to really shaving the most expensive energy on the system off the system. They’re going to take electricity when it’s the least costly, taking advantage of Ontario’s ultra-low overnight pricing options and utilize that least costly energy and displace the most costly energy.”

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Toronto Olli 2.0 Self-Driving Shuttle connects West Rouge to Rouge Hill GO with autonomous micro-transit. Electric shuttle pilot by Local Motors and Pacific Western Transportation, funded by Transport Canada, features accessibility, TTC and Metrolinx support.

Key Points

An autonomous micro-transit pilot linking West Rouge to Rouge Hill GO, with accessibility and onboard staff.

✅ Last-mile link: West Rouge to Rouge Hill GO

✅ Accessible: ramp, wheelchair securement, A/V announcements

✅ Operated with attendants; funded by Transport Canada

The city of Toronto, which recently opened an EV education centre to support adoption, has approved the use of a small, self-driving electric shuttle vehicle that will connect its West Rouge neighbourhood to the Rouge Hill GO station, a short span of a few kilometres.

It’s called the Olli 2.0, and it’s a micro-shuttle with service provided by Local Motors, in partnership with Pacific Western Transportation, as the province makes it easier to build EV charging stations to support growing demand.

The vehicle is designed to hold only eight people, and has an accessibility ramp, a wheelchair securement system, audio and visual announcements, and other features for providing rider information, aligning with transit safety policies such as the TTC’s winter lithium-ion device restrictions across the system.

“We are continuing to move our city forward on many fronts including micro-transit as we manage the effects of COVID-19,” said Mayor John Tory. “This innovative project will provide valuable insight, while embracing innovation that could help us build a better, more sustainable and equitable transportation network.”

At the provincial level, the public EV charging network has faced delays, underscoring infrastructure challenges.

Although the vehicle is “self-driving,” it will still require two people onboard for every trip during the six- to 12-month trial; those people will be a certified operator from Pacific Western Transportation, and either a TTC ambassador from an agency introducing battery electric buses across its fleet, or a Metrolinx customer service ambassador.

Funding for the program comes from Transport Canada, as part of a ten-year pilot program to test automated vehicles on Ontario’s roads that was approved in 2016, and it complements lessons from the TTC’s largest battery-electric bus fleet as well as emerging vehicle-to-grid programs that engage EV owners.

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Wind farm reliability services now compete in wholesale markets, as FERC and NERC endorse market-based solutions that reward performance, bolster grid resilience, and compensate ancillary services like frequency regulation, voltage support, and spinning reserve.

Key Points

Grid support from wind plants, including frequency, voltage, ramping, and inertial response via advanced controls.

✅ Enabled by advanced controls and inverter-based technology

✅ Compete in market-based mechanisms for ancillary services

✅ Support frequency, voltage, reserves; enhance grid resilience

American Wind Energy Association CEO Tom Kiernan has explained to a congressional testimony that wind farms can now compete, as renewables approach market majority, to provide essential electric reliability services. 

Mr Kiernan appeared before the US Congress House Energy and Commerce Committee where he said that, thanks to technological advances, wind farms are now competitive with other energy technologies with regard to reliability and resiliency. He added that grid reliability and resilience are goals that everyone can support and that efforts underway at the Federal Energy Regulatory Commission (FERC) and by market operators are rightly focused on market-based solutions to better compensate generators for providing those essential services.

AWEA strongly agreed with other witnesses on the panel who endorsed market-based solutions in their submitted testimony, including the American Petroleum Institute, Solar Energy Industries Association, Energy Storage Association, Natural Resources Defence Council, National Hydropower Association, and others. However, AWEA is concerned that the Department of Energy’s recent proposal to provide payments to specific resources based on arbitrary requirements is anti-competitive, and threatens to undermine electricity markets that are bolstering reliability and saving consumers billions of dollars per year.

“We support the objective of maintaining a reliable and resilient grid which is best achieved through free and open markets, with a focus on needed reliability services – not sources – and a programme to promote transmission infrastructure.”

Kiernan outlined several major policy recommendations in his testimony, including reliance on competitive markets that reward performance to ensure affordable and reliable electricity, a focus on reliability needs rather than generation sources and the promotion of transmission infrastructure investment to improve resilience and allow consumers greater access to all low-cost forms of energy.

The CEO of the North American Electric Reliability Corporation (NERC) has recently testified that the state of reliability in North America remains strong and the trend line shows continuing improvement year over year. Technological advances and innovation by over 100,000 US wind workers enable wind farms today to provide the grid reliability services traditionally provided by conventional power plants. NERC’s CEO emphasised in its testimony at last month’s hearing that “variable resources significantly diversify the generation portfolio and can contribute to reliability and resilience in important ways.”

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Nova Scotia’s West Wind Clean Energy Project aims to harness offshore wind power to deliver renewable electricity, expand transmission infrastructure, and position Canada as a global leader in sustainable energy generation.

What is West Wind Clean Energy?

The West Wind Clean Energy Project is Nova Scotia’s $60-billion offshore wind initiative to generate up to 66 GW of clean electricity for Canada’s growing energy needs.

✅ Harnesses offshore wind resources for renewable power generation

✅ Expands grid and transmission infrastructure for clean energy exports

✅ Supports Canada’s transition to a sustainable, low-carbon economy

Nova Scotia has launched one of the most ambitious clean energy projects in Canadian history — a $60-billion plan to build 66 gigawatts (GW) of offshore wind capacity, as countries like the UK expand offshore wind, capable of meeting up to 27 per cent of the nation’s total electricity demand.

Premier Tim Houston unveiled the project, called West Wind, in June, positioning it as a cornerstone of Canada’s broader energy transition and aligning it with Prime Minister Mark Carney’s goal of making the country both a clean energy and conventional energy superpower. Three months later, Carney announced a slate of “nation-building” infrastructure projects the federal government would fast-track. While West Wind was not on the initial list, it was included in a second tier of high-potential proposals still under development.

The plan’s scale is unprecedented for Canada’s offshore energy industry, as organizations like Marine Renewables Canada pivot toward offshore wind to accelerate growth. However, enormous logistical, financial, and market challenges remain. Turbines will not be in the water for years, and the global offshore wind industry itself is facing one of its most difficult periods in over a decade.

“Right now is probably the worst time in 15 years to launch a project like this,” said an executive at a Canadian energy company who requested anonymity. “It’s not Nova Scotia’s fault. It’s just really bad timing.” He pointed to failed offshore wind auctions in Europe, rising costs, and policy reversals in the United States as troubling signals for investors, even as New York’s largest offshore wind project moved ahead this year. “You can’t build the wind and hope the lines come later. You have to build both — together.”

Indeed, transmission infrastructure is emerging as the project’s biggest obstacle. Nova Scotia’s local electricity demand is limited, meaning most of the power would need to be sold to markets in Ontario, Quebec, and New England. Of the $60 billion budgeted for West Wind, $40 billion is allocated to generation, and $20 billion to new transmission — massive sums that require close federal-provincial coordination and long-term investment planning.

Despite the economic headwinds, advocates argue that West Wind could transform Atlantic Canada’s energy landscape and strengthen national energy security, building on recent tidal power investments in Nova Scotia. Peter Nicholson, chair of the Canadian Climate Institute and author of Catching the Wind: How Atlantic Canada Can Become an Energy Superpower, believes the project could redefine Nova Scotia’s role in Canada’s energy transition.

“It’s very well understood where the world is headed,” Nicholson said, noting that wind power is becoming increasingly competitive worldwide. “We’re moving toward an electrical future that’s cleanly generated for economic, environmental, and security reasons. But for that to happen, the economics have to work.” He added that the official “nation-building” designation could give Nova Scotia “a seat at the table” with major utilities in other provinces.

The governments of Canada and Nova Scotia recently issued a notice of strategic direction to the Canada–Nova Scotia Offshore Energy Regulator, aligning with Ottawa’s plan to regulate offshore wind as it begins a prequalification process and designs a call for bids later this year. The initial round will cover just 3 GW of capacity — smaller than the originally envisioned 5 GW — but officials describe it as a first step in a multi-decade plan.

While timing and economics remain uncertain, supporters insist the long-term potential of offshore wind in Nova Scotia is too significant to ignore. As global demand for clean electricity grows and offshore wind moves toward a trillion-dollar global market, they argue, West Wind could help secure Canada’s place as a renewable energy leader — if government and industry can find a way to make the numbers work.

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Canada’s clean energy sector is expanding as Indigenous communities lead electricity transmission projects, drive sustainable growth, and strengthen energy independence through renewable power, community ownership, and grid connections across remote and regional areas of Canada.

What is Canada’s Clean Energy Sector?

Canada’s clean energy sector encompasses industries and initiatives that generate, transmit, and manage low-carbon electricity to meet the country's national climate goals. It emphasizes Indigenous participation, renewable innovation, and equitable economic growth.

✅ Expands renewable electricity generation and transmission

✅ Builds Indigenous-led ownership and partnerships

✅ Reduces emissions through sustainable energy transition

Canada’s clean energy sector is entering a pivotal era of transformation, with Indigenous communities emerging as leading partners in expanding electricity transmission and renewable infrastructure, including grid modernization projects that are underway nationwide. These communities are not only driving projects that connect remote regions to the grid but also redefining what energy leadership and equity look like in Canada.

At a recent webinar co-hosted by the Canadian Climate Institute and the Indigenous Power Coalition, panellists discussed the growing wave of Indigenous-led electricity transmission projects and the policies needed to strengthen Indigenous participation. The event, moderated by Frank Busch, featured Margaret Kenequanash, CEO of Wataynikaneyap Power; Kahsennenhawe Sky-Deer, Grand Chief of the Mohawk Council of Kahnawà:ke; and Blaise Fontaine, Co-Founder of ProACTIVE Planning Inc. and Indigenous Power Coalition.

The discussion comes at a crucial moment for Canada’s clean energy transition. As the country races to meet its climate commitments and zero-emissions electricity by 2035 targets, demand for clean power is rising rapidly. Historically, energy development in Canada occurred on Indigenous lands without consent or fair participation, but today, Indigenous communities collectively represent the largest clean energy asset owners outside Crown and private utilities.

“There is a genuine appetite for Indigenous communities to not just own transmission projects but to also lead,” said Fontaine. He noted that Indigenous communities are increasingly setting the terms of engagement, selecting partners, and shaping projects in line with their cultural and environmental values.

One of the strongest examples of this transformation is the Wataynikaneyap (Watay) Power Project in northern Ontario, a 1,800-kilometre transmission line connecting 17 remote First Nations communities to the provincial grid. “Communities must fully understand what they are getting into, since it is their homelands that will be impacted,” said Kenequanash. She emphasized that the project’s success came from five years of inter-community meetings to agree on shared principles before any external engagement.

The panel also highlighted the Hertel–New York Interconnection Line, co-owned by Hydro-Québec and the Mohawk Council of Kahnawà:ke, as another milestone in Indigenous energy leadership. Sky-Deer noted that the project’s co-ownership model required Quebec’s National Assembly to pass Bill 13, a first-of-its-kind legal framework. “That was a breakthrough,” she said, “but it also shows that true partnership still depends on one-off exceptions rather than standard policy.”

Panellists agreed that Canada’s regulatory systems have not kept pace with Indigenous leadership. Fontaine called on governments to “think outside the box to avoid staying stuck in the status quo,” emphasizing the need for enabling policies that align with an electric, connected and clean vision for Canada while making Indigenous-led ownership the norm rather than the exception.

Financial readiness is another key factor driving Indigenous participation. Communities are now accessing capital through partnerships with financial institutions and government loan programs, and growing evidence that a 2035 zero-emissions grid is practical and profitable is strengthening investor confidence. The collaboration between the Mohawk Council of Kahnawà:ke and the Caisse de dépôt et placement du Québec exemplifies tailored financing and long-term investment that supports community ownership and sustainable growth.

True equity, however, goes beyond financial participation. “It’s not just about having a percentage stake,” Fontaine explained. “True equity means meaningful decision-making power and control.” Indigenous leaders are insisting on co-governance structures that align with their worldviews, prioritizing environmental protection, cultural respect, and intergenerational stewardship.

The benefits of this approach extend far beyond project economics. Communities involved in ownership experience tangible local benefits, including employment and training opportunities, as well as new investments in education and culture. Hydro-Québec’s $10 million contribution to the Kahnawà:ke Cultural Arts Center is one example of how partnerships can support cultural renewal and community development.

As Canada looks to build east–west electricity interties and expand renewable energy generation, including solar where Canada has lagged in deployment nationwide, Indigenous leadership is becoming increasingly central to national energy policy. Fontaine noted that this shift offers “even greater opportunities for Indigenous-led transmission as Canada connects its provinces rather than just exporting power south.”

In particular, Alberta's energy profile highlights both rapid growth in renewables and ongoing fossil fuel strength, informing intertie planning and market design.

On the National Truth and Reconciliation Day, panellists urged reflection on both the barriers that remain and the opportunities ahead. Indigenous leadership in Canada’s clean energy sector is proving that reconciliation can take tangible form, through ownership, partnership, and shared prosperity.

This transformation represents more than an energy transition; it’s a rebalancing of power, respect, and responsibility, carried out “in a good way,” as the panellists emphasized, and essential to building a clean, inclusive energy future for all Canadians while strengthening the global electricity market position of the country.

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