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  • Writer's pictureTalia Beckett Davis

Battery Energy Storage Offers A Bright Future For Canada

Updated: Jun 7, 2022

As energy sources such as solar and wind become more popular, developers have turned their attention to finding ways to store climate safe energy for later use. The ability to store renewable energy allows for the replacement of fossil fuels with more environmentally friendly energy supplies, while keeping up with electricity demands.

The creation of battery energy storage systems has shown to be crucial to the availability of these resources when customers need them most. Stored energy is also significantly cheaper than reliance on fossil fuels.

These devices are capable of storing renewable energy, such as solar and wind, and then releasing the energy when necessary. As energy comes in from a solar panel or wind turbine, the battery recharges itself. The larger the battery, the more charge it can hold at any given time. Battery systems use software made up of algorithms that are able to coordinate energy production and control when to store the energy and when to release it to the electric grids.

While the Canadian government has started to take steps to significantly reduce harmful emissions, the need for more energy storage is becoming increasingly apparent. As more and more energy storage systems are developed, Canadians stand to save millions of dollars in energy costs over time. As the cost of lithium-ion batteries decreases, storage systems are now essentially equal in cost to natural gas plants. When you factor in reduced greenhouse gas emissions, battery systems suddenly become invaluable.

What Makes This Such An Amazing Opportunity?

Investing in battery energy storage systems might be the game-changer you've been looking for in your portfolio! Renewable energy storage means less reliance on the national grid, without worrying about a break in service during peak times or energy shortages. Less dependence on natural resources will also help businesses mitigate issues such as rising costs due to climate change.

Green energy projects are often eligible for incentives from the government or even the companies themselves. Additionally, there are financing opportunities that enable organizations to appreciate savings almost immediately. Corporations that are already generating power from solar and wind could see even more significant savings and control of energy demand peaks.

As a company, when you invest in renewable energy storage, you are showing a commitment to environmentally friendly business practices that can set you apart from your competitors, and attract new customers who want to use products and services from green businesses.

How Can RE Royalties Help?

RE Royalties is committed to providing unique financing solutions to companies looking to develop renewable energy systems. As a result, we allow our clients the opportunity to grow their business while reducing greenhouse gas emissions, without worrying about financial restrictions.

For example, our recent agreement with Switch Power Ontario Battery Operations Corp. (“Switch OpCo”), a wholly owned subsidiary of Switch Power Corporation (“Switch Power”), for a $2.3 million loan, will help to finance the acquisition by Switch OpCo of a portfolio of four operational energy storage projects (1.97 MW/4.38 MWh total) (the “Operating Projects”) located in Ontario.

  • Switch has acquired four operational BESS assets and plans to complete a second of its ten final stage development projects, all located in the Toronto area.

  • In total, the portfolio represents 25 MW and 44 MW (MWh) of energy capacity and $26 million in capital development over the next 18 months.

  • The portfolio is estimated to offset approximately 1,170 tonnes of CO2 Per year

  • With the acquisition, Switch will secure an estimated 20% market share in high-growth markets.

The financing for this transaction was completed through a combination of cash and an acquisition term loan from RE Royalties. RE Royalties is also in discussion to provide financing through a construction loan to support the buildout of the development portfolio as part of the second closing.

Bernard Tan, CEO of RE Royalties stated,

“We are pleased to support Switch Power on this portfolio acquisition in the Ontario battery storage market. We have worked side-by-side with the Switch Power team over the past few months and they have a very experienced team in operating these assets. We look forward to working with them in the future with the expansion of their energy storage portfolio.”

We believe it is vital to invest in sustainable infrastructure to take action on climate change, create a net-zero emissions future, and create energy security for citizens. Likewise, we support operators who are looking for solutions to fight climate change and meet future energy reliability needs in a more sustainable way.

If your organization is ready to take a step forward in the fight against climate change, RE Royalties is ready to help you meet your financing needs. Contact us here.


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