This week’s renewable energy developments highlight continued growth in battery storage, renewable electricity deployment, and clean energy infrastructure. From Ontario’s LT2 procurement process to expanding U.S. battery storage investments and rapidly declining renewable electricity costs, the clean energy transition continues to accelerate across global markets.
1. Ottawa LT2 Procurement Advances Renewable Energy Development
The City of Ottawa released an update on Ontario’s Long-Term 2 (LT2) electricity procurement process following the preliminary results of Window 1 under the Energy Stream.
The LT2 procurement is designed to secure new electricity resources to support growing power demand beginning in 2029 and 2030. The process includes renewable electricity generation projects such as solar and wind, alongside battery energy storage developments under the Capacity Stream.
Several Ottawa-based renewable energy projects previously received Municipal Support Confirmations from City Council, including four solar developments, three rooftop solar projects, and one battery energy storage proposal located in West Carleton-March.
Although none of the City-supported solar projects were selected during this procurement window, the battery energy storage proposal remains under review as part of the active Capacity Stream process.
Across Ontario, the LT2 Window 1 procurement selected 14 wind and solar projects representing approximately 1,315 megawatts of new electricity generation capacity and more than 3 terawatt-hours of annual electricity production.
Future LT2 procurement windows are expected to continue as Ontario expands renewable electricity capacity to support long-term energy demand growth. Previously approved Municipal Support Confirmations may continue to apply for future procurement submissions if project details remain unchanged.
The City is also developing a Municipal Host Agreement framework to guide future renewable energy and battery storage projects in upcoming procurement rounds.
2. U.S. Expands Battery Storage and Manufacturing Investments
The U.S. Department of Energy announced a new funding initiative worth up to $500 million to strengthen domestic battery manufacturing, recycling, and energy storage development.
The initiative focuses on expanding battery materials production, improving recycling technologies, and supporting large-scale battery deployment across the country. These investments are expected to support growing demand from electric vehicles, grid storage systems, and renewable energy integration.
Battery energy storage continues to expand rapidly across the United States. In 2024, batteries became the country’s largest form of energy storage, surpassing pumped hydro storage for the first time.
Nearly 1,000 battery storage projects are currently operating or under development nationwide, with significant growth taking place in states with large renewable energy deployment such as California and Texas.
Large-scale battery systems are increasingly being paired with renewable electricity projects to stabilize grid operations and deliver electricity during periods of peak demand.
One notable example is the Moss Landing Energy Storage Facility in California, one of the largest battery storage installations in the United States. The facility combines large-scale battery storage with existing power infrastructure to support grid reliability and renewable energy integration.
The initiative also supports battery recycling technologies capable of recovering valuable materials from used batteries and manufacturing waste, helping improve supply chain resilience while reducing environmental impacts.
At the same time, the U.S. electric vehicle battery manufacturing market continues to grow steadily. Industry projections estimate the sector could expand from approximately $16.36 billion in 2025 to nearly $28.46 billion by 2031.
As renewable electricity generation continues to increase, battery storage systems are becoming increasingly important for maintaining grid stability, balancing solar and wind generation, and supporting long-duration clean energy supply.
Continued investment in battery storage infrastructure is expected to play a major role in supporting future clean energy deployment across North America.
3. Solar, Wind, and Battery Storage Continue to Reduce Electricity Costs
Solar and wind energy paired with battery storage are becoming increasingly cost-competitive while delivering reliable 24/7 electricity supply.
Firm renewable electricity costs for solar-plus-storage systems now range from approximately USD 54 to USD 82 per megawatt-hour in high-quality solar regions. In many markets, these costs are already lower than new coal and gas-fired power generation.
Wind-plus-storage systems are also becoming increasingly competitive across global markets, with projected costs expected to continue declining through 2030 and beyond.
The rapid decline in renewable energy costs continues to drive this shift. Since 2010, solar photovoltaic installation costs have fallen by 87%, onshore wind costs by 55%, and battery storage costs by 93%.
Hybrid renewable systems that combine solar, wind, and battery storage are also improving grid efficiency by shifting electricity supply to higher-demand periods while reducing exposure to energy price volatility.
These systems are increasingly positioned to support electricity-intensive industries such as artificial intelligence infrastructure and data centres that require uninterrupted power supply.
Renewable hybrid projects are also being developed faster than many conventional fossil fuel power facilities. Many solar, wind, and battery storage projects can now be completed within one to two years after permitting and grid approval.
Continued growth in manufacturing scale and technology improvements are expected to drive further cost reductions across renewable energy and battery storage systems.
In some high-performing regions, firm renewable electricity costs could fall below USD 50 per megawatt-hour by 2035.
Combining solar, wind, and battery storage technologies also helps reduce overall system costs by balancing electricity generation patterns and lowering storage requirements.
As renewable energy deployment continues to accelerate globally, hybrid renewable systems are expected to play an increasingly important role in delivering reliable and cost-effective electricity.
Looking Ahead
Battery storage, renewable electricity generation, and clean energy infrastructure continue to scale rapidly as countries and industries transition toward lower-cost and more reliable energy systems.
Falling renewable energy costs, expanding battery deployment, and continued investment in clean electricity infrastructure are expected to remain major drivers shaping the future global energy landscape.
The continued integration of solar, wind, and battery storage technologies is also expected to improve grid reliability while supporting long-term decarbonization goals across multiple industries.
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References
- Ottawa.ca – Memoranda issued by Strategic Initiatives Department
https://ottawa.ca/en/city-hall/open-transparent-and-accountable-government/public-disclosure/memoranda-issued-members-council/memoranda-issued-strategic-initiatives-department/memo-preliminary-results-independent-electricity-system-operator-ieso-long-term-2-lt2-procurement - Carbon Credits – DOE Launches $500M Funding Drive to Strengthen U.S. Battery Supply Chains and Critical Minerals Processing
https://carboncredits.com/doe-launches-500m-funding-drive-to-strengthen-u-s-battery-supply-chains-and-critical-minerals-processing/ - IRENA – 24/7 Renewables Outcompete Fossil Fuels on Costs
https://www.irena.org/News/pressreleases/2026/May/24-7-Renewables-Outcompete-Fossil-Fuels-on-Firm-Costs
