ELORA – Centre Wellington council didn’t make a decision on Monday about a proposal to allow the construction and operation of a battery energy storage system (BESS) facility just south of Fergus.
But it certainly heard from a long line of delegates on April 28 who argued why the facility should be allowed.
In a nutshell, it’s safe, it’s necessary, it’s green and forward thinking, it will generate employment opportunities and changes have been made to the original plan to mitigate concerns raised by locals, they said.
Aypa Power Canada wants to construct a BESS at 6235 Guelph Street, at the southeast corner of Guelph Street and 2nd Line.
The facility intends to capture energy that’s not in use and distribute it to the grid during peak times.
The property owner, a farmer, is willing to lease six hectares of the 43-hectare farm for 20 years to Aypa, after which time the company will restore the property to farming use.
Aypa is seeking a zoning bylaw amendment from the township and an official plan amendment from Wellington County so it can happen.
But first it needed approval from the Independent Electricity System Operator (IESO), which put out a call for proposals in 2024.
Even before the proposal officially landed with the township’s planning department, Aypa approached council seeking a letter of in-principle support, which would add weight to its proposal with IESO.
Centre Wellington councillors agreed to the letter in November with the understanding they still have the ability to vote against the proposal.
They also heard from many residents who raised concerns about the facility, including fire safety, proximity to future development in the Fergus South Secondary Plan and threats to groundwater.
Aypa also held a public meeting in November and officials with the company said it has altered the plan to mitigate some of the issues raised.
On April 28, IESO sector engagement director Marko Cirovic gave an overarching view of what the IESO has been tasked with.
IESO is a Crown corporation, independent of the private sector, that manages electricity in the province in real time.
Cirovic said with residential and industrial growth and a push toward electric vehicles, demand for electricity is forecast to grow by 75% by 2050.
And so IESO put out a request for proposals to private businesses that can help increase energy storage. Aypa was among the successful bidders.
“More electricity infrastructure must be built across the province to meet the needs of this decade,” Cirovic said, adding new transmission is part of the plan too.
Andrew Thiele, of the national trade organization Energy Storage Canada, spoke about the system-level need across the province and how the membership is striving toward a “greener” energy grid.
Energy storage is new technology, he said, “that is a novel opportunity.
“(BESS) provides flexible energy, reduces peak cost and enhances efficiency … It can reduce congestion on tie lines and makes electricity more reliable and more affordable.”
Pierre Chauvin, a planner with MHBC and agent for the applicant, and Ondrej Benjik of Aypa Power Canada, both spoke of the merits of the proposed facility and how it’s been modified since the public meeting.
Chauvin noted the company has added a 200-metre buffer from 2nd Line to the actual storage facility, more landscaping by the road, and a three-metre-high sound wall close to the facility.
This should mitigate noise and visual disturbance for residents in the future Fergus South Secondary Plan, he added.
Chauvin said the stormwater management pond is now planned to be a wet pond and has been relocated closer to 2nd Line with an outlet to the roadside ditch.
And he stressed that the land will be returned to agriculture, noting, “We will have a restoration plan.”
Benjik said it’s difficult to find a site for such a project.
It must be along an existing hydro corridor and cannot disturb protected species or fragment farmland.
“There are very few viable areas to site projects,” he said. “We submitted six and only two were viable.”
He said this project is part of the movement “to make Canada an energy superpower” with “energy independence and a strong Canadian supply chain.”
Councillor Jennifer Adams asked several questions about the ownership of Aypa Canada, which its website cites as being a “Blackstone portfolio company.”
Benjik said Aypa Canada “is independent and not influenced by Blackstone.”
On further questioning he acknowledged its North American headquarters are in Austin, Texas with a Canadian office in Toronto.
Jeff Roy of Canadian Solar and Douglas Crossman of Valard Construction, both emphasized their companies are Canadian and they will be part of the project if it is approved.
“If Ontario wants to enhance the grid, we’ll need strong partnerships,” Roy said. “Canadian Solar and Aypa have that.”
Crossman said Valard Construction would be part of the construction phase, which would provide some 200 jobs.
“These would be local job opportunities and opportunities for trade apprenticeships,” he said.
Bishoy N. Awad is a fire protection consultant with Fire and Risk Alliance. He said his team has developed standards and risk assessment on BESS facilities and the Elora BESS proposal meets the standard.
Deborah Whale, president of the Grand River Agriculture Society, said while she appreciates that council wants to save farmland from development, the society supports this proposal.
She has sat on the board of IESO and understands that between an aging electrification system and growing demand, Ontario will be in a deficit by next year.
She noted modern farms are increasingly technologically complex.
“Farmers need more energy too,” she said. “We use robotic equipment and electric vehicles and we’ve already experienced brown outs.”
“The need for electricity is great and the risk is well-mitigated… GRAS strongly urges Centre Wellington council to approve the battery energy storage system,” she continued.
In response to U.S. tariffs, Premier Doug Ford announced new procurement rules earlier in April that prohibit Ontario public sector entities from purchasing goods and services from American businesses with a few exceptions.
Lawyer Marina Sampson of McCarthy Tetrault LLP appeared on behalf of Aypa and spoke about the procurement rules.
She noted the contracts between IESO and Aypa were signed in 2024, meaning this is not a new procurement and is therefore not subject to the new rules.
As well, she said the policy does not apply to municipalities.
Township manager of planning services Marianna Iglesias updated council on the proposal later in the meeting.
As well as touching on the changes noted by Chauvin and Benjik, Iglesias explained the province, in its updated planning statement, has included battery energy storage facilities as a permitted on-farm diversified use.
She wrote in her report that staff will bring forward a recommendation for council’s decision, likely at the next meeting.
So no decisions were made at this meeting.
“If the application is recommended for approval, staff would recommend that township council endorses the county official plan amendment application, to help inform the county council decision on the matter,” Iglesius wrote.
“A future amending bylaw would be brought forward for enactment by township council in the event of a positive county council decision and upon adoption of a county official plan amendment.”
