Statement by Keith Brooks, Programs Director, Environmental Defence

Toronto | Treaty Lands and Territory of the Mississaugas of the Credit First Nation, and the traditional territory of the Anishinaabeg, the Haudenosaunee, and the Wendat – We celebrate today’s announcement for one of the largest battery storage procurement in Ontario’s history. The province awarded 640 MW of capacity to battery storage projects in the Town of Greater Napanee (300 MW), the District of Kenora (190 MW), and Norfolk County (150 MW) at an average price of $563.48/MW-Business Day. Batteries went head-to-head with gas plants in a competitive auction and won, proving they are a long-run reliability solution and less expensive than new gas capacity.

What makes this result even more remarkable is that the playing field was tipped in favour of new gas plants at the expense of battery storage projects. Gas plants were awarded extra points in the procurement over batteries without any justification. Batteries won anyway.

Battery storage costs have dropped over 90 per cent in the last decade, and battery storage is outcompeting gas in markets from the U.S. to the U.K. to Australia. Today’s result isn’t an anomaly — it’s a global trend. The economics of energy have shifted and no amount of rule-tipping will change that.

The implications go beyond cost. This is also a win for energy security at a critical moment. Right now, roughly 70 per cent of Ontario’s gas supply comes from the United States, creating vulnerability to price shocks and supply disruptions exactly when Canada is attempting to increase economic sovereignty. Batteries reduce the need for gas, gas peaker plants in particular, allowing for higher levels of renewables penetration.

Background

  • Battery Energy Storage Systems help reduce local air pollution by displacing gas-plant emissions and can lower electricity costs.
  • Battery storage has already proven its reliability in Ontario: during Winter Storm Fern in January 2026, up to 2,400 MW of gas-fired capacity was reduced, while batteries helped keep the system reliable by providing energy and operating reserves.
  • Battery storage currently plays only a peripheral role in Ontario’s electricity plan, never exceeding a few per cent of total system capacity between 2025 and 2050.
  • Gas-fired power generation is projected to grow from 19 per cent to 25 per cent of electricity supply by 2030, with roughly 70 per cent of gas used in Ontario being imported from the U.S.-linked supply.
  • Gas generation proposals are still a possibility including the Riverside Generating Station proposed by Atura Power—a 500 MW gas-fired peaker plant in St. Clair Township, Lambton County—that could emit approximately 250–300 tonnes of CO₂ per hour at full output.

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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For more information or to request an interview, please contact:
Tamara Latinovic, media@environmentaldefence.ca