An executive at N.B. Power maintains the belief that a large-scale battery system would be more costly than a contentious gas and diesel project, despite an unsolicited proposal suggesting otherwise. NRStor, an energy storage developer, submitted a proposal outlining an eight-hour, 400-megawatt battery system, claiming it would cost less than half of the estimated $3.5 billion for the gas and diesel plant. However, N.B. Power’s Coady stated that the utility’s cost data from 2023 and 2024 was deemed the most accurate, and they did not see a significant cost advantage with batteries.
Coady mentioned that he could not provide comments on NRStor’s pricing as he had not reviewed the proposal. N.B. Power did not disclose the recipients of the Dec. 9 proposal or its handling process. The utility plans to assess the proposal within the framework of its ongoing call for smaller 50-megawatt battery projects, initiated on Dec. 17 and closing by the month’s end.
Concerns raised by N.B. Power revolve around the perceived reliability issues of a large-scale battery system compared to the gas and diesel project. By 2028, N.B. Power determined the necessity for an additional 400 megawatts of power for the grid during extreme weather events or when other generation sources are unavailable. Both batteries and gas-fired turbines can provide the required capacity, but Coady highlighted the difference in their operational timelines.
N.B. Power emphasized the need for a peaking resource capable of sustaining power for extended periods, a requirement that a gas and diesel plant fulfills efficiently. The utility expressed concerns about the challenges of recharging a battery system during critical periods, citing instances when imported energy sources were insufficient for charging due to maintaining essential services for customers.
In contrast to a battery system, which would need significant capacity to match the gas and diesel plant’s capabilities, N.B. Power highlighted the potential cost disparity. NRStor’s proposed battery system, storing up to 3,200 megawatt-hours of energy, closely aligns with the utility’s capacity requirements. NRStor’s executive, Jason Rioux, emphasized the reliability of battery systems during extended cold snaps and suggested utilizing existing assets like diesel generating stations for recharging purposes.
N.B. Power’s apprehensions regarding the integration challenges of a 400-megawatt battery system were countered by Rioux’s explanation of the flexibility and adaptability of battery storage projects. Warren Mabee, from the Queen’s Institute for Energy and Environmental Policy, acknowledged the cost considerations between battery systems and traditional technologies like gas and diesel plants, emphasizing the importance of exploring various options before committing to large-scale projects.
In a rapidly evolving energy landscape, utilities are encouraged to adopt a technology-agnostic approach to evaluate diverse capacity solutions effectively. This approach allows for a comprehensive assessment of different technologies to determine the most suitable fit for meeting specific energy demands in New Brunswick.