CIBCHave a $74.00 target. GLTA
EQUITY RESEARCH
September 20, 2021 Flash Research
TC ENERGY CORPORATION
Significant Wind PPA Adds To Alberta Portfolio
TC Energy and EDP Renewables SA (EDPR) have agreed upon a 15-year power purchase agreement (PPA) for the construction and operation of a 297-megawatt (MW) Sharp Hills wind farm. This project provides TC Energy with the rights to all of the power generated as well as all of the environmental attributes. The project is expected to come online in 2023 and generate enough electricity to power more than 164,000 average Alberta homes annually. This agreement is Alberta’s largest power purchase agreement for wind. We expect the company to remarket the power to industrial customers as part of its growing portfolio, rather than its internal requirements or repowering compressor stations. The company already markets close to 450 MW of power in Alberta, and it would not be surprising to see other additions to the power portfolio over time. We see this development as being on strategy for the company and capital efficient. The project is expected to contribute to the local Alberta communities through payments to local landowners and property tax revenue to the area board. The project will also create approximately 300 jobs during the construction period and 15-20 permanent jobs for the project’s ongoing operations.