Minister of Energy submits letter in support of South March BESS

OTTAWA – Ontario’s Minister of Energy, King-Vaughan MPP Stephen Lecce, wrote Ottawa Mayor Mark Sutcliffe April 15 in support of Evolugen’s proposed South March Battery Energy Storage System (BESS) facility requesting the city not make the approval and permitting process “overly onerous,” endangering area growth.

It’s an important week for the BESS project, as tomorrow ((June 5) the city’s Agriculture and Rural Affairs committee (ARAc) will decide to either recommend or reject a Municipal Support Resolution for the  250-megawatt capacity Marchurst Road-based project.

The project has become controversial in the West Carleton community with both strong support and strong opposition of the project that is projected to help stabilize the province’s electricity grid (for complete coverage of BESS in West Carleton, click here).

The South March BESS is expected to occupy 10 acres on private land using lithium iron phosphate batteries stored in roughly 230 Sea Cans with fire suppression and heat monitoring equipment inside each steel container as well. The province’s Independent Electricity System Operator (IESO) approved the project last year under the condition Evolugen get a Municipal Support Resolution from the City of Ottawa for the BESS, as municipalities are responsible for siting approval.

West Carleton Online obtained the letter from Lecce earlier today (June 4).

In the letter, addressed to Ottawa Mayor Mark Sutcliffe, Minister Lecce acknowledges the city’s recent updates to its official plan and zoning bylaws to address the future placement of BESS facilities. He expresses appreciation for exempting major utility providers like Hydro Ottawa and Hydro One from the new requirements but also recommends extending that exemption to all BESS proponents to ensure fairness and encourage investment.

The Minister emphasizes the urgent need for energy solutions like battery storage as Ontario faces a projected electricity shortfall starting late this year in to next. He highlights how BESS can help meet growing demand, especially in key areas like Ottawa, by improving grid stability; supporting the integration of renewables; and reducing dependence on fossil-fuel-based peaker plants.

Minister Lecce warns overly complex or restrictive municipal approval processes for BESS projects could undermine regional growth and the province’s broader energy goals, noting electricity demand is expected to rise 75 per cent by 2050. He specifically calls attention to the South March BESS project, stressing the importance of timely municipal approvals ahead of IESO contractual deadlines.

The full letter is included below:

Dear Mayor Sutcliffe:

I understand the City of Ottawa has updated both its current official plan and zoning bylaw through an official plan amendment (OPA) and zoning bylaw amendment (ZBA) process under the Planning Act in order to provide a land-use policy framework to manage the future siting and location of BESS facilities.

Specifically, I would like to thank you for designating a number of utilities, including Hydro Ottawa and Hydro One Networks Inc., for an exemption. In addition to these utilities, I would encourage you to include all BESS proponents in this exemption, to ensure a level playing field.

After more than a decade of stable electricity supply, and at times, a surplus, the IESO has forecasted Ontario will see a capacity need emerging in 2025/26 and growing through the latter part of the decade, including in the Ottawa region.

To support energy needs in the Ottawa region and eastern Ontario more generally our government has already prioritized the construction of a new 230 kV transmission line from Dobbin Transformer Station to Clarington Transformer Station, which should help to address some of the constraints that could otherwise limit future load growth in the Ottawa area. The IESO is also undertaking bulk system planning in eastern Ontario and has identified the City of Ottawa as a ‘key focus area’ in their planning. While transmission expansions help to address local reliability, new generation and/or storage resources will be necessary to ensure local reliability is maintained, in a cost-effective and timely manner.

BESS facilities are one type of technology that will help the city and province meet its electricity needs. Battery storage systems play a crucial role in Ontario’s electricity system by providing flexibility and resilience. They help balance supply and demand, especially during peak hours, by storing excess energy when demand is low and releasing it when needed. This reduces reliance on traditional peaker plants; enhances grid stability; and is crucial for the integration of renewable energy sources like wind and solar.

Municipalities that make the approval and permitting process for BESS projects overly onerous or prohibitive endanger their region’s growth and the province’s ability to meet forecasted electricity demand, which is projected to increase by 75 per cent by 2050. If the province cannot address the grid’s capacity needs with battery storage systems, it will reduce the overall cleanliness of Ontario’s electrical grid, while also increasing costs for ratepayers.

The city’s proposed requirement of a site-specific zoning bylaw amendment for each BESS project will significantly lengthen their approval process, thus jeopardizing current contractual obligations with the IESO. Should the city proceed with requiring site-specific zoning bylaw amendments for BESS projects, we ask that the city promptly review and approve these planning applications before key IESO contractual deadlines (e.g., Jan. 8, 2026), specifically for the South March BESS site. We appreciate a Municipal Support Resolution (MSR) is also necessary for this project.

I would be happy to discuss this matter further with you.

Sincerely,
Stephen Lecce,
Minister.