Strathroy-Caradoc Council entered into an agreement this week to bring a renewable energy storage project to the area which would run for a term of 22 years and would see the municipality bring in at least $2.5 million not including property tax revenue on a yearly basis over the duration of the agreement. The Barley Energy Storage Project put forth by RES Group which is the world’s largest independent renewable energy company entered into a non-binding agreement with the Municipality. The project would take up no more than 20 acres of a 25 acre property that fronts onto Falconbridge Drive, and would be adjacent to the Longwoods transmission sub-station. The targeted commercial operation date is hoped to be around May 1, 2025.
RES Group listed 6 commitments to Strathroy-Caradoc including making a financial contribution annually, and beginning with the first year of the project. RES would also provide a one time first year payment of $500,000 minimum or $2000 per megawatt of capacity installed to Strathroy-Caradoc and for every subsequent year of operation, a commitment to paying the Municipality no less than $100,000 per year for the remaining 21-year life of the project.
Submission through the request for proposals process has a submission deadline of February 16th. RES Group told council that they have a contractual obligation to the land owner in year 23 of the agreement to decommission the project and restore the lands to their original condition.
The land would have to be rezoned to an industrial classification, and as part of that, the lands for this project would also generate significantly more property taxes for the municipality in the estimated ball park figure of $50,000 to $75,000 a year which would be additional financial revenue or and above RES groups’ annual financial contribution to the town.
In addition to financial commitments, RES would agree to enter into a road improvement and road use cost recovery agreement with the municipality.
written by: C. Soares