Aecon Partnership Inks Agreement for Simcoe Battery Energy Storage System Project

Canadian infrastructure leader Aecon Group Inc. (TSX: ARE) announced today that Simcoe Battery Project General Partnership Inc., in which Aecon Concessions holds an equity interest, has executed a significant Energy Storage Facility Agreement with Ontario's Independent Electricity System Operator (IESO). This agreement covers the build, ownership, and operation of the 150-megawatt (MW) / 1,200-megawatt-hour (MWh) Simcoe Battery Energy Storage System Project in Norfolk County, Ontario.

The project's ownership partners include Aecon Concessions, Six Nations of the Grand River Development Corporation (SNGRDC), Mississaugas of the Credit Business Corporation (MCBC), Sitka Power Inc., and NRStor. This consortium will provide electricity storage services to the IESO under a 20-year agreement. Under the terms, the partners will receive capacity payments from the IESO, along with additional revenue from energy sold into the Ontario electricity grid and ancillary services. Aecon will also serve as the exclusive Engineering, Procurement, and Construction (EPC) provider for the balance of plant works, with an EPC agreement for these services expected to be finalized shortly.

Commercial operations for the Simcoe Battery Project are targeted to commence in 2030. Steve Nackan, Executive Vice President and President of Aecon Concessions, stated that the project will strengthen grid reliability, support the integration of renewable generation, and provide critical storage capacity essential for economic growth and meeting Ontario's increasing electricity demand. This initiative is considered a crucial step towards Ontario achieving its net-zero carbon emission goals.

This new development further expands Aecon's energy storage portfolio in Ontario. The company's involvement complements its ownership interest in the Oneida Energy Storage Project, which has been successfully operating since May 2025. With the Simcoe Project included, Aecon's completed or under-delivery battery energy storage systems in Ontario now represent approximately 1 gigawatt (GW) of capacity. The company's related work in the province also includes the completed York Battery Energy Storage System (BESS) and Goreway BESS facilities, as well as the ongoing South March BESS and Trail Road BESS projects.

Ontario has been taking proactive steps to increase its energy storage capacity recently. The IESO selected three projects for 640 MW of new battery energy storage capacity under its Long-Term 2 (LT2) Capacity Window 1 procurement program. These projects aim to secure the lowest-cost power through competitive processes and often feature Indigenous partnerships, ensuring direct economic benefits to local communities. Such investments are vital for strengthening the province's energy infrastructure and securing a reliable electricity supply to meet growth and increasing demand.

Analysts note that Aecon's strategic focus on power infrastructure and energy storage opportunities across North America is reinforced by projects like the Simcoe Battery Project. Long-term agreements, such as this one, can provide stable revenue streams for the company, positively impacting its financial performance. Furthermore, partnerships with Indigenous communities enhance project social acceptance and contribute to economic reconciliation objectives. These types of investments play a critical role in Canada's transition to clean energy and form a cornerstone for future energy security.