TVA Enters 10-year Power Purchase Agreement with Argo and Brookfield’s Smoky Mountain Hydro Facilities
November 19 2024 - 5:35PM
Business Wire
- 10-year PPA to deliver power from Argo and Brookfield’s Smoky
Mountain Hydro Facilities located in east Tennessee and western
North Carolina
- The hydro facilities will provide 377 MW of reliable, clean
energy to meet demand growth in TVA’s service territory
- The PPA will support TVA’s energy transition goal to achieve
net-zero by 2050
Tennessee Valley Authority (“TVA”) together with Argo
Infrastructure Partners, LP (“Argo”) and Brookfield Asset
Management (“Brookfield”) (NYSE: BAM, TSX: BAM), with its listed
affiliate Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC)
today announced the signing of a landmark 10-year power purchase
agreement (“PPA”) with power to be delivered by the Cheoah,
Calderwood, Chilhowee and Santeetlah dams, together known as the
Smoky Mountain Hydroelectric facilities (“Smoky”), which is jointly
owned by Argo and Brookfield.
Smoky will begin delivering power through the PPA starting in
2025 and over the next decade, will supply more than 14 gigawatt
hours of carbon-free energy to TVA customers, advancing TVA's
transition towards its 2050 net-zero goal.
Smoky currently owns and operates a 377-megawatt portfolio of
four hydroelectric power facilities across east Tennessee and
western North Carolina. This portfolio generates an annual average
of 1.4 million megawatt-hours of carbon-free energy—equivalent to
approximately 1.1 million tons of CO2 emissions avoided each
year.
“TVA appreciates this partnership that enables more reliable,
clean megawatts to be available when they’re needed,” said Chris
Hansen, TVA vice president, Origination and Renewables Solutions.
“We have a long history of effectively using hydroelectric power to
provide affordable, reliable energy to our region, and this
agreement builds on that success.”
Jason Zibarras, founder of Argo stated, “We are delighted to
partner with Brookfield on this landmark PPA with TVA, set to
deliver over 14 GWh of renewable energy and avoid 11 million tons
of CO2 emissions for TVA’s customers over the next ten years.”
Brice Soucy, Argo Senior Director and Smoky Board member commented,
“This agreement strongly supports the region's energy transition
goals, where unprecedented growth in data centers, manufacturing,
and other industries has increased the demand for carbon reduction
and renewable energy options.”
“We are thrilled to partner with TVA and deliver clean power
solutions at scale to accelerate the energy transition,” said
Stephen Gallagher, CEO of Brookfield Renewable North America. “We
are well positioned to meet increasing demand for power from
digitalization and electrification with one of the largest
renewable power platforms in the U.S., including our strategically
important portfolio of hydro assets that can provide scale
dispatchable clean power.”
Argo Infrastructure Partners
Argo Infrastructure Partners LP, founded by Jason Zibarras, is
an independent fund manager with a long-term approach to
infrastructure investing. Argo invests in high-quality
infrastructure businesses and assets that provide essential
services to their communities over their long operational lives,
including investments in utilities, renewable energy, digital
infrastructure, and other long duration infrastructure assets.
Argo’s investment philosophy couples sound investment return with
responsible and sustainable investing. As of July 2024, Argo
manages over $6 billion in assets on behalf of its investor
partners. For more information, visit www.argoip.com.
Tennessee Valley Authority (“TVA”)
The Tennessee Valley Authority is the largest public power
utility in the United States, providing reliable electricity to
over 10 million people across seven states in a 80,000 square mile
service territory. TVA is a corporate agency of the United States,
receiving no taxpayer funding, deriving virtually all of its
revenues from sales of electricity. In addition to operating and
investing its revenues in its electric system, TVA provides flood
control, navigation, and land management for the Tennessee River
system, and assists local power companies and state and local
governments with economic development and job creation.
As a leader in clean energy innovation, TVA plays a critical
role in supporting sustainable development and economic growth in
the region, while driving initiatives that align with its
commitment to reducing carbon emissions and advancing a cleaner
energy future. Hydroelectric generation already makes up
approximately 9% of TVA’s total generation portfolio and about 56%
of TVA’s power production is carbon-free.
Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a
leading global alternative asset manager with over $1 trillion of
assets under management. We invest client capital for the long-term
with a focus on real assets and essential service businesses that
form the backbone of the global economy. We offer a range of
alternative investment products to investors around the world —
including public and private pension plans, endowments and
foundations, sovereign wealth funds, financial institutions,
insurance companies and private wealth investors.
Brookfield operates Brookfield Renewable Partners (NYSE: BEP,
TSX: BEP), one of the world’s largest publicly traded platforms for
renewable power and sustainable solutions. Our renewable power
portfolio consists of hydroelectric, wind, utility-scale solar,
distributed generation and storage facilities in North America,
South America, Europe and Asia. Our operating capacity totals over
35,000 megawatts and our development pipeline stands at
approximately 200,000 megawatts. Our portfolio of sustainable
solutions assets includes our investments in Westinghouse (a
leading global nuclear services business) and a utility and
independent power producer with operations in the Caribbean and
Latin America, as well as both operating assets and a development
pipeline of carbon capture and storage capacity, agricultural
renewable natural gas and materials recycling.
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Media Contact: Ira Gorsky Edelman Smithfield
ira.gorsky@edelmansmithfield.com
TVA Media Contact: Adam May amay0@tva.gov 270-839-8228
www.tva.com/newsroom Follow TVA news on Facebook, LinkedIn,
Instagram, and X (formerly Twitter)
Brookfield Media Contact: Rachel Wood
Rachel.wood@brookfield.com 980-428-3539
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