PowerBank’s 4.99 MW SFF-06 BESS to Begin Jan 2026 Under $1,221/MW IESO Contract
PowerBank’s SFF-06 project will commission 4.99 MW of energy storage, delivering 4.74 MW daily capacity for 251 business days under a 22-year IESO contract at $1,221/MW per business day. Acquired for $45 million in July 2024, the project qualifies for a 30% Clean Technology Investment Tax Credit.
1. Project Commissioning and Capacity Delivery
PowerBank’s SFF-06 Battery Energy Storage System in Cramahe, Ontario is entering the final stages of “hot” commissioning with EVLO and is expected to reach Commercial Operation during January 2026, subject to regulatory approval. Once operational the facility will provide 4.99 MW of energy storage and deliver 4.74 MW of daily contract capacity for 251 business days each year, integrating nine EVLO battery containers through a Hydro grid interconnection.
2. Financial and Strategic Implications
PowerBank holds a 50% stake in the 1000234763 Ontario Inc. vehicle for SFF-06, with First Nations partners owning the balance. This project was acquired as part of a $45 million purchase of Solar Flow-Through Funds Ltd. in July 2024, positioning the Company within a battery storage market forecast to reach USD 31.2 billion by 2029 at a 16.3% CAGR. The SFF-06 installation qualifies for the 2024 Clean Technology Investment Tax Credit, allowing a refundable 30% reimbursement of eligible capital costs and enhancing project returns.
3. Contract Terms and Incentives
In July 2023 SFF-06 secured a 22-year agreement through the Independent Electricity System Operator’s Expedited Long-Term RFP with a fixed capacity payment of CAD 1,221 per MW per business day, compared to an industry average of CAD 876. This above-market contract underpins strong long-term revenue visibility. PowerBank has adjusted final completion deadlines and agreed to pay a CAD 512,000 extended warranty for both SFF-06 and its 903 project, while terminating OZ-1 equipment supply and service agreements for a total settlement of CAD 575,000.