GUELPH – It wasn’t a unanimous decision, but county council has approved an official plan amendment that will allow Aypa Power to proceed with a battery energy storage system (BESS) just south of Fergus.
The amendment, approved on Sept. 25, was the project’s final hurdle for Elora BESS LP, which is owned by Aypa Power.
A zoning amendment for the facility, located on farmland near the intersection of Guelph Street and 2nd Line, was approved by Centre Wellington council in May.
Several county councillors questioned the system’s rehabilitation plan, which calls for the facility to be decommissioned in 25 years and the land returned to agricultural use.
“I’m curious about your rehabilitation plan, which I gather could be quite expensive,” said councillor Campbell Cork.
“Is the funding for that in place?”
“Yes it is accounted for … there will be financial security put in place against that,” replied Ondrej Benjik, Aypa Power’s director of development.
Cork then asked when the full funding will be available to rehabilitate the property.
“There are two aspects of the projects funds. One is direct community contribution from the project revenues itself,” Benjik said.
“The second part is financial security specific to decommissioning which … is going to be decided through the site planning approval process.”
The community contribution refers to two separate Elora BESS LP agreements with Centre Wellington Township and the Centre Wellington Community Foundation.
The company will pay $800 per megawatt (about $160,000 a year) and $300 per megawatt (about $60,000 annually) respectively to the township and foundation.
“Why would [the project] ever be decommissioned?” asked councillor Steve O’Neill, noting the province is in a power crisis.
“I don’t think in 20 years we’re going to be using less power. This facility is going to be there for basically forever.”
Benjik explained the Independent Electricity System Operator (IESO) contract is finite, meaning there is no indication of possible renewal.
“The second part of the answer is the technology … [batteries] do have a degradation aspect … it cannot be there infinitely,” Benjik said.
Councillor Doug Breen agreed with O’Neill, stating, “to suggest we’re not going to need this in 25 years seems shortsighted.”
Councillor James Seeley said the “interim land use is just a way to give the community a false sense that this thing won’t be there forever …
“To my understanding there is no hard stop at 25 years that says ‘thou shall remove that use at 25 years.’”
Benjik repeated that the IESO offers no renewal provision and the contract has a definite ending.
“There’s nothing more permanent than something temporary – and this to me is exactly that,” said councillor Andy Lennox.
Defending the application
Councillor Shawn Watters, also mayor of Centre Wellington, defended the proposal, stating, “We feel comfortable as a township with the application.”
“We can’t anticipate the future, we just know what’s in front of us.”
Planner Pierre Chauvin, who represents Aypa Power, told council, “This is a type of use that is interim. It can be easily removed and restored back.”
He also noted county staff agreed with the planning analysis for the application.
Canadian Union of Skilled Workers spokesperson Jason MacDonald said the BESS facility “is expected to create approximately 200 good-paying jobs.”
He also called it “exactly the kind of infrastructure Ontario needs.”
The BESS facility will be located on the property of Cindy Lindsay and her husband, at 6235 Guelph Street, just south of Fergus.
“We are facing pressures of urban growth such as the south Fergus development and the loss of rental farm land that occurs,” said Lindsay.
“Partner this with increasing growth of the more corporate farms out-pricing the land market makes it a challenge for family farms to grow and succeed.”
Lindsay noted she has carefully considered the project, which includes plans for soil protection, site remediation, restoration and safety.
“Ensuring a future for the next generation in our family to continue farming will be made possible with this project,” she said.
Ultimately county council approved the official plan amendment by a vote of 13-2, with councillors O’Neill and Mary Lloyd opposed.
Councillor Gregg Davidson was absent from the meeting.
