An executive at N.B. Power maintains the belief that a large-scale battery system would be more expensive than a gas and diesel project, despite a proposal suggesting otherwise. NRStor, an energy storage developer, submitted a proposal indicating that an 8-hour, 400-megawatt battery system would cost less than half of the estimated $3.5 billion for a gas and diesel plant. However, the utility’s executive, Coady, argued that the cost information gathered in 2023 and 2024 was the most accurate and did not see a significant cost advantage with batteries. N.B. Power is open to evaluating NRStor’s proposal as part of their current call for smaller battery projects.
Coady expressed concerns that a large-scale battery system might not offer the same reliability as the gas and diesel project, especially in meeting the utility’s projected 400-megawatt power requirement by 2028 during extreme weather conditions. While both batteries and gas-fired turbines can provide the needed capacity, Coady emphasized the importance of having a peaking resource that can sustain for days, a feature better suited for a gas and diesel plant.
NRStor’s proposed battery system, although closer in capacity to the utility’s needs, raised questions about its integration into N.B. Power’s network due to its significant size. However, NRStor’s successful Oneida Energy Storage Project in Ontario demonstrates the adaptability and flexibility of battery systems in responding to fluctuating energy demands.
Energy expert Warren Mabee highlighted the cost considerations between battery systems and traditional technologies like natural gas, emphasizing the importance of exploring various options before committing to large-scale projects. He suggested a technology-agnostic approach where different solutions compete based on their ability to meet specific capacity requirements. This approach allows utilities to assess all available options to determine the most suitable solution for their needs.