PowerBank Corporation (renewable energy developer) has entered into a development agreement targeting Ontario's second long-term capacity procurement window, positioning the Toronto-listed energy company to compete for battery energy storage contracts in one of Canada's most active electricity markets.

The Agreement and Its Scope

PowerBank Corporation, traded on Nasdaq, Cboe Canada, and the Frankfurt Stock Exchange, announced on August 31, 2026, that it has signed a Fee for Service Development Agreement with 1001634281 Ontario Inc., an entity connected with the Electric Vehicle and Green Energy Advancement Association Canada.

Under the terms of the agreement, PowerBank will provide early-stage development services for a battery energy storage project opportunity to be submitted under the Independent Electricity System Operator's Second Long-term capacity-stream two procurement, known as the LT2(c-2) request for proposals.

Should a contract be awarded under the LT2(c-2) program, PowerBank will enter into a fee-for-service arrangement to advance the project to the notice-to-proceed stage, a milestone defined as the point at which full permitting has been obtained.

The agreement also grants PowerBank the right of first refusal to serve as the Engineering, Procurement, and Construction provider for the project if a contract is granted. In addition to the procurement-related work, PowerBank will assist 1001634281 Ontario Inc. with exploring a potential 18 megawatt battery energy storage system in Hamilton, Ontario.

Ontario's Electricity Market Context

The IESO is the independent 18-megawatt for-profit corporation responsible for operating Ontario's electricity market and directing the day-to-day operation of the province's power system.

In response to forecast electricity demand growth, the IESO is conducting the Long-Term 2 Request for Proposals as its primary competitive procurement mechanism to secure new capacity and energy resources through the 2030s and beyond.

The LT2(c-2) RFP is the second capacity-stream window of that broader procurement process. The first capacity window, LT2(c-1), has already concluded and resulted in contracts being awarded exclusively to battery energy storage projects, a result that underscores the technology's competitive standing relative to other capacity resources in the province.

The IESO has indicated that a considerable amount of additional energy storage will be needed to connect to the Ontario grid to help manage system peaks and maintain reliability as older generation resources are retired or taken offline for planned outages.

The IESO expects Ontario's electricity demand to grow substantially over the coming decades, driven by population growth, electric vehicle adoption, data center development, and the broader electrification of the economy.

PowerBank's Strategic Rationale

Dr. Richard Lu, Chief Executive Officer of PowerBank Corporation, described Ontario as being at the leading edge of a structural shift in how North America powers itself.

In a statement accompanying the announcement, Lu said battery storage is becoming one of the defining infrastructure opportunities of this decade and that the agreement puts PowerBank in a position to compete for that opportunity in one of the most active procurement markets on the continent.

Lu also referenced the company's prior work in Ontario, noting that the agreement expands on PowerBank's experience from the development of its BESS SFF 06 project. He characterized the deal as an early step in what the company expects to be a much larger presence in the Ontario energy storage market.

PowerBank describes itself as an independent renewable and clean energy project developer and owner focused on distributed and community solar projects in Canada and the United States.

The company develops solar and battery energy storage system projects that sell electricity to utilities as well as commercial, industrial, municipal, and residential customers.

Debt Settlement Announced Alongside Agreement

Concurrent with the development agreement announcement, PowerBank disclosed that it has entered into debt settlement agreements covering an aggregate of USD 1,396,717 in outstanding debt.

The debt represents legal fees owed to an arm's-length third-party law firm, with the fees having been incurred by the company's subsidiary, Solar Flow-Through Funds Ltd., in connection with certain corporate transactions and debt financings.

Under the settlement terms, USD 817,332 of the total debt will be resolved through the issuance of approximately 1,297,352 common shares in the capital of the company at a deemed price of USD 0.63 per share. The remaining portion of the debt not covered by the share issuance will be payable in cash upon the completion of certain project debt transactions.

All common shares issued in connection with the debt settlement will be subject to a statutory hold period of four months and one day, in accordance with the policies of the Cboe Canada Exchange and applicable securities laws.

The issuance of the shares remains subject to conditions including receipt of all necessary regulatory approvals, including approval from the Cboe Canada Exchange.

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