TC Energy deal to breathe new life into paused wind project
By COLLIN GALLANT on September 22, 2021.
cgallant@medicinehatnews.com@CollinGallant A deal with TC Energy will breathe new life into a paused wind project near Oyen as they agreed to purchase all the power produced from the Sharp Hills Wind Farm – production once earmarked for the provincial grid at record low green power prices. Spanish-based renewable utility developer EDPR won a supply contract for the major project under a wind auction held by the previous NDP government in late 2017, but delays have dogged the project. On Tuesday, pipeline giant TC Energy announced that it had finalized a supply contract to purchase the entire 297-megawatts of peak production at the planned windfarm, to be built between New Brigden and Sedalia, northeast of Oyen. “Sharp Hills has been thoughtfully developed for a number of years,” said Miguel Prado, EDP Renewables North America, in the release by TC Energy. “With the execution of this contract, we will soon commence construction of the project and supply cost-effective, reliable energy to Albertans for decades to come.” Prices were not disclosed, but the term will last for 15 years starting from a new completion date in 2023. EDPR’s contract to supply the provincial grid after winning a REP auction was to last 20 years beginning in 2020 – a term that was already ticking away with no power being produced after schedules were pushed back and applications were challenged by nearby landowners. Alberta government officials confirmed Tuesday to the Medicine Hat News that earlier this year EDPR exercised an out-clause in the contract, which at the time of signing was said to include record low prices less than today’s market price. The company states that 300 workers will be required for the construction, and 15 to 20 permanent jobs could result from the investment, which could be well over $400 million considering industry estimates. The company has agreement from 50 property owners to erect 67 turbine towers spread across 47,000 acres of land. It will produce enough electricity to power 160,000, according to the company. As the largest renewable procurement deal to date in Alberta, it adds to TC Energy’s statement that it is becoming increasingly aware of environmental sustainability. “TC Energy is focused on our own decarbonization efforts as well as being the provider of choice for carbon-free energy to the North America industrial, oil, and natural gas sectors,” said Corey Hesse, TC’s president of power and storage. Last year, TC Energy made a last pitch offer to U.S. federal administration to build renewable power stations along the Keystone XL pipeline route – making its operation carbon neutral – but the project was eventually cancelled by order of then-incoming U.S. President Joe Biden. It made a similar offsetting purchase of a solar power plant near Claresholm earlier this year. TC Energy will also retain offset credits from the province of Alberta with the 15-year power purchase agreement with EDP Renewables, which has apparently been released from its 20-year supply contract with the provincial electrical systems operator, the term of which began in early 2020. This year average Alberta power prices are more than double the average rate earned through the REP contracts, though specific bids weren’t released. Officials with the Associate Ministry of Electricity and Natural Gas were in the process of confirming that state of affairs on Tuesday. A statement by Associate Minister Dale Nally in the TC energy release lauded the deal and the compnies’ efforts to “diversify Alberta’s energy mix.” “Our province continues to experience significant investment growth in market-based renewable energy as a result of our commitment to an openly competitive electricity market,” said Nally. “As a result, Albertans can count on new investments to power our economy while lowering emissions for decades to come.” Sharp Hills, Capital Power’s Whitla Wind farm Phase I, and another project were awarded a provincial power supply contract under the previous government’s Renewable Energy Procurement program in 2017. Ministry officials confirmed to the News last year – following the election of the United Conservatives – that contracts would not be altered and the contract term had begun as scheduled. 21-20
