TERIC Power Ltd. Business Model

Core Business Structure

TERIC Power operates as an integrated developer, owner-operator model in the battery energy storage sector. Rather than functioning solely as a service provider or consultant, TERIC develops projects internally, retains ownership stakes, and operates the assets long-term to capture multiple revenue streams. This vertical integration provides distinct competitive advantages in project execution and financial returns.tericpower+2​

The company positions itself as "the largest BESS developer in Canada", with a portfolio spanning over 120 MW of conceptualized and developed projects, 80 MW currently operational, and over 300 MW in advanced development stages.tericpower+1​

Revenue Streams

TERIC's multi-layered revenue model extracts value from battery storage assets through several distinct mechanisms:

1. Energy Market Arbitrage

TERIC operates standalone battery projects that charge during low-price periods (typically when renewable generation is abundant and prices are suppressed) and discharge during high-price periods (typically peak demand times). This energy time-shifting directly captures the price differential in Alberta's wholesale electricity market. The Fluiditi Battery Storage Project exemplifies this strategy, designed to "reduce peak power prices" through strategic market participation.tericpower+1​

2. Ancillary Services Revenue

Battery storage systems provide operating reserves, regulating reserves, and other grid reliability services procured through Alberta Watt Exchange Limited (Watt-Ex) and competitive contract processes. TERIC facilities earn revenue by standing ready to respond to grid emergencies and frequency deviations. These services are distinct from energy sales and represent a secondary revenue stream that can operate simultaneously with energy arbitrage.aeso+1​

3. Capacity/Availability Payments

Some TERIC projects are contracted for transmission or distribution capacity services, ensuring generation availability during peak periods or transmission constraints. The Pioneer Power Centre project, for example, will provide "peaking power during periods of high demand, grid instability, or renewable power intermittency". These services generate revenue independent of actual energy output.tericpower​

4. Behind-the-Meter Industrial Solutions

TERIC develops customized battery systems for large industrial consumers (10+ MW loads) that simultaneously serve two functions: (1) reduce the facility's electricity costs by shifting consumption away from peak-price periods, and (2) earn additional revenue by allowing TERIC to deploy the batteries for grid services during periods when the facility doesn't require them. This dual-use model maximizes asset utilization and return on capital.tericpower​

5. Development and Consulting Services

TERIC provides full-lifecycle development services to third parties, capturing professional services revenue separate from asset ownership. These services include:tericpower​

• Project origination and conceptualization

• Economic modeling and financial structuring

• Engineering and interconnection support

• Regulatory and permitting guidance

• Construction management and commissioning oversight

• Merger and acquisition support and asset due diligence

This consulting business allows TERIC to monetize its expertise while building relationships with potential financing partners and customers.tericpower​

Revenue Stacking Strategy

TERIC emphasizes that BESS projects are "multi-purpose tools for extracting value" through revenue stacking. A single battery storage asset can simultaneously participate in:tericpower​

• Energy markets (buying low, selling high)

• Frequency regulation services

• Operating reserves and standby reserves

• Capacity/transmission services

• Behind-the-meter load management for host facilities

The complexity of optimizing this revenue stack—determining project sizing, configuration, market participation strategy, and operational protocols—represents a key barrier to entry and source of competitive advantage for TERIC.aeso+1​

Project Development and Financing Model

TERIC secures government grant funding from programs like Emissions Reduction Alberta to de-risk emerging battery storage technologies and commercial structures. In 2024, TERIC won $11.7 million in ERA grants (35% of the total $33 million funding round), demonstrating government confidence in the company's projects. These grants reduce capital requirements and improve project economics, making borderline projects commercially viable.tericpower+2​

TERIC also partners with strategic investors, most notably securing a transformational equity investment from Idea Well Capital Partners in May 2022. This capital enables project development and working capital financing ahead of construction.newswire+1​

Historical Project Diversification

TERIC's business model extends beyond battery storage. The company previously developed flare gas power generation projects, including a 750 kW facility near Kerrobert, Saskatchewan that converted waste flare gas into electricity. This demonstrates experience in identifying unconventional energy monetization opportunities and executing small-scale distributed generation projects.saskpower​

Competitive Positioning

TERIC differentiates itself through:

1. End-to-end expertise: Handling AUC licensing, community engagement, EPC contractor management, and commissioning—areas many developers struggle withtericpower​

2. Operational sophistication: TERIC retains operational control of assets and deploys advanced data analytics to optimize market participation strategiestericpower​

3. Market timing: TERIC originated many of Alberta's first utility-scale battery projects, building a first-mover advantage and accumulated operational data

4. Risk management: Experience navigating changing market rules, interconnection challenges, and supply chain volatility in battery storagetericpower​

Revenue Dependency and Risks

TERIC's financial performance depends on:

• Alberta wholesale electricity price volatility (energy arbitrage margins)

• AESO ancillary services pricing and demand

• Continued government grant support for de-risking emerging projects

• Successful interconnection and commissioning of development-stage projects

• Battery technology costs and performance (Tesla Megapack pricing)

• Regulatory stability in Alberta's restructured energy market

The company's shift toward ownership-operator models—rather than pure development fees—exposes TERIC to commodity price risk but enables higher long-term returns if market conditions remain favorable.

1. https://tericpower.com/solution/development-services/
2. https://ca.linkedin.com/company/teric-power-ltd
3. https://tericpower.com/what-we-do/
4. https://tericpower.com/wp-content/uploads/2024/06/Saddle-Hills-Stakeholder-Notification-Package.pdf
5. https://tericpower.com/project/fluiditi-battery-storage-project/
6. https://www.aeso.ca/market/market-participation/ancillary-services/
7. https://aesoengage.aeso.ca/47679/widgets/200783/documents/155820
8. https://tericpower.com/project/pioneer-power-centre/
9. https://tericpower.com/insight/battery-energy-storage-systems-bess-help-large-energy-consumers/
10. https://tericpower.com/teric-awarded-two-significant-grants-through-emissions-reduction-alberta/
11. https://www.eralberta.ca/projects/details/fluiditi-storage-project-enabling-renewables-offsetting-ghg-emissions/
12. https://www.linkedin.com/posts/glenphelps_fluiditi-storage-project-enabling-renewables-activity-7179595578497019904-oTHK
13. https://www.newswire.ca/news-releases/teric-power-announces-transformational-investment-amp-addition-of-renewable-energy-pioneers-to-the-team-867745544.html
14. https://tericpower.com/transformational-investment-addition-of-renewable-energy-pioneers-to-the-team/
15. https://www.saskpower.com/about-us/media-information/news-releases/2018/03/new-flare-gas-project-launches-under-saskpowers-self-generation-program
16. https://www.ieso.ca/-/media/Files/IESO/Document-Library/engage/esag/esag-20200326-EPRI-presentation.pdf