Ontario Completes Three New Energy Storage Projects on Time and on Budget
November 6, 2026
New energy storage meets rising demand in two of Canada’s fastest-growing municipalities, with capacity to power roughly 80,000 homes
As part of its plan to protect Ontario and build a stronger, more self-reliant economy, the Ontario government is announcing the completion of three new energy storage projects as it builds the largest battery storage fleet in the country. Delivered on time and on budget, the Battery Energy Storage Systems (BESS) are now in service in Vaughan and Guelph, two of Canada’s fastest-growing municipalities, adding 80 megawatts (MW) of capacity to Ontario’s grid, enough to power roughly 80,000 homes during periods of peak demand.
“Vaughan and Guelph are home to some of our country’s most rapidly expanding communities, and ensuring these municipalities have access to the reliable electricity they need is essential to supporting new homes, businesses and jobs,” said Stephen Lecce, Minister of Energy and Mines. “Our government is building Ontario’s energy grid with a focus on affordability. This winter, the cost per kilowatt-hour is decreasing, and we’re expanding the energy savings programs that will lower bills. This builds on a series of large-scale nuclear, battery storage and transmission projects delivered on time and on budget.”
The three BESS projects were delivered by Ontario-based Alectra Energy Solutions, whose parent company, Alectra Inc., has long served as the electric utility for homes and businesses across Southern Ontario. Alectra was awarded the projects through the Independent Electricity System Operator’s (IESO) Expedited Long-Term 1 (E-LT1) competitive procurement, which was launched by the government in 2022 and supported the single largest battery procurement in Canadian history. With a focus on affordability and reliability at its core, the ELT-1 procurement ensures the province has the capacity to make the most of every megawatt, with battery storage projects like these capturing electricity when demand is low and delivering it back to the grid when families and businesses need it most.
The projects include:
- Vaughan 3 Energy Storage 1 LP (Vaughan 3), a 40 MW/160 MWh project in Vaughan.
- Vaughan 1E Energy Storage 1 LP (Vaughan 1E), a 20 MW/80 MWh project in Vaughan.
- Arlen Energy Storage 1 LP (Arlen), a 20 MW/80 MWh project in Guelph.
The City of Vaughan expects to be home to nearly 576,000 residents and more than 354,000 jobs by 2051, while the City of Guelph expects its population to grow by 40 per cent over the next 30 years. Built on existing municipal energy infrastructure, the three new lithium-ion facilities give these fast-growing communities the capacity to keep pace with rising demand. Three years ago, Ontario had just 228 MW of energy storage, most of it at a single pumped storage facility. Today, the government has secured nearly 3,000 MW of battery storage. By strengthening local electricity infrastructure today, Ontario is preparing for new homes, jobs and investments for generations to come.
In the face of U.S. tariffs and rising electricity demand, Ontario is taking an all-of-the-above approach to safeguarding our energy security. This includes leading the largest expansion of nuclear energy on the continent, advancing the largest energy transmission build-out in recent history and building the largest battery storage fleet in the country.
Battery storage supports the government’s plan to protect Ontario and is a key part of Energy for Generations, the government’s long-term approach to ensuring the province secures the reliable, affordable power it needs to drive economic growth. The government’s integrated approach and record-setting investments in energy infrastructure are also providing the certainty needed for Indigenous communities, municipalities, businesses and industry partners to invest confidently in Ontario’s future.
Quick Facts
- The three combined Alectra facilities account for 80 MW of the province’s E-LT1 target, directly working toward the provincial goal of building stable, non-emitting peaking capacity.
- The E-LT1 procurement was launched by the Ontario government to aggressively secure new capacity through streamlined processes, aiming to bring critical infrastructure online ahead of long-term system needs.
- The E-LT1 stream successfully contracted roughly 880 MW of clean electricity storage facilities. This initial wave expanded Ontario’s active battery storage fleet to five times larger than its previous capacity.
- Through its recent series of competitive procurements, Ontario has secured nearly 3,000 MW of battery storage capacity, establishing the largest single battery storage procurement in Canadian history.
- The IESO forecasts that Ontario’s electricity demand could increase by up to 90 per cent by 2050, driven by rapid population growth, historic investments in manufacturing and electrification.
Quotes
“Today’s announcement is a significant positive for our community, and for the province. Vaughan is growing fast, and with that growth, comes the need for a more robust and efficient electricity system. The two lithium-ion battery storage facilities here in Vaughan will meet the capacity needs of our community by relying on our formidable energy infrastructure and resource advantage and play a significant role in ensuring that affordable energy continues to power our growing, more independent economy.”
– Michael Tibollo
MPP, Vaughan-Woodbridge
“Thornhill is growing, and the completion of new energy storage projects will provide more reliable and affordable electricity to support the needs of our community. This means our businesses and families will continue to have access to dependable power. Our government is ensuring that the energy infrastructure our province relies on is equipped to meet our energy needs for years to come.”
– Laura Smith
MPP, Thornhill
“Bringing these three battery storage facilities into operation is an important milestone for Alectra Energy Solutions and Ontario’s electricity system. These projects will strengthen reliability and support our communities’ growing energy needs for years to come.”
– Brian Bentz
President and CEO, Alectra Inc.
“For Vaughan, one of Canada’s fastest-growing cities, continued investment in critical infrastructure is essential to supporting our city today and tomorrow. These new Battery Energy Storage Systems will help meet increasing demand on Ontario’s electricity grid and support the needs of Vaughan’s residents, businesses and future development. I want to thank the Government of Ontario for this important investment in Vaughan, and for building a more resilient and sustainable future for our communities.”
– Steven Del Duca
Mayor, City of Vaughan
“Battery projects are playing an increasingly critical role in keeping Ontario’s electricity system reliable and affordable, storing power and deploying it to the grid when it’s needed most. These projects are part of the over 9,000 MW of new and re-contracted domestic supply that has been secured over the past five years to power communities and businesses across the province.”
– Jason Fitzsimmons
President and CEO, Independent Electricity System Operator
“The Ontario Energy Association (OEA) congratulates Alectra Energy Solutions on completing three new Battery Energy Storage Systems (BESS) under Ontario’s Expedited Long-Term energy procurement. By using existing infrastructure, these resources reduce the need for more costly new infrastructure and benefit Ontario ratepayers. We commend the Government of Ontario and the Independent Electricity System Operator (IESO) for their leadership in procuring these resources. The OEA strongly supports innovative energy solutions that optimize existing infrastructure and recognizes Alectra as a leader in this work.”
– Vince Brescia
President and CEO, Ontario Energy Association
“APPrO applauds the completion of three Battery Energy Storage Systems (BESS) by Alectra Energy Solutions in its service area as part of Ontario’s necessary build-out of its electricity infrastructure. Such investments and expansions are required all along the electricity value chain – including generation, transmission, and distribution assets. Adding capacity to the grid with new battery storage projects plays a central role in the Government’s first-ever integrated energy plan to ensure Ontario has the affordable, reliable and clean electricity needed to power economic growth, attract investment, and protect the province’s long-term energy security.”
– Colin Anderson
President and CEO, APPrO
“As Ontario’s electricity needs continue to grow, investments in distributed energy resources that enhance grid flexibility, reliability and resilience are becoming increasingly important. Energy storage solutions, such as Alectra’s BESS projects, can play a valuable role alongside broader investments in distribution infrastructure, helping to modernize the grid and support the province’s evolving energy needs. This will ensure the delivery of affordable, safe, and reliable service to customers.”
– Teresa Sarkesian
President and CEO, Electricity Distributors Association (EDA)
“Energy storage is an important part of Ontario’s plan to build a reliable electricity system and a stronger, more self-reliant economy. These projects show how the Ontario Government’s integrated energy plan is translating into action, adding flexible capacity to the grid and helping meet the needs of growing communities. We congratulate our member, Alectra Energy Solutions and their partners, on bringing these projects into service and welcome Ontario’s continued investment in the resources needed to support new homes, attract investment and drive economic growth.”
– Justin Rangooni
President and CEO, Energy Storage Canada
“Congratulations to the Government of Ontario and Alectra on bringing these projects into service. Battery storage helps keep the lights on and manage costs as demand grows, and CanREA looks forward to building on this momentum through future procurements.”
– Vittoria Bellissimo
President and CEO, Canadian Renewable Energy Association
“As Vaughan continues to grow, businesses need confidence that the electricity system can support their operations and expansion plans. These new battery storage projects will help meet peak demand and strengthen the reliability of the power our community depends on. The Vaughan Chamber of Commerce welcomes the Ontario government’s and Alectra’s investment in the energy infrastructure needed to support new housing, attract business investment and create jobs.”
– Abdus Samad
Vice President of Government Affairs and Strategic Initiatives, Vaughan Chamber of Commerce