Project approved that will convert wells into solar plays
By COLLIN GALLANT on October 1, 2021.
cgallant@medicinehatnews.com@CollinGallant The first project to convert orphaned oil and gas sites in southeast Alberta to small-scale solar pads has been approved by provincial utility regulators. That sets a precedent about how potentially hundreds of similar projects that fall between two sets of permitting procedures could be dealt with in the future, according to Keith Hirsche, the head of RenuWell. “It was a test case to see if we could meet proposed rules,” Hirsche told the News of the process to permit the “Barnwell Solar Project.” “Everyone is in a learning phase, but once we’re through this one, we’ll have a clearer picture moving forward.” Hirsche’s company and a number of partner groups are proposing to repurpose petroleum sites on dry corners or less valuable pasture to house solar panel arrays over a couple acres once well remediation has taken place. They say the flat sites that are already connected to power lines and roadways are ideal, and could operate at a profit while lowering the burden to the well-owner, maintain surface rights payments to the land owner and pay local taxes. However, plants with relatively small capacity don’t typically feed power for sale on to the provincial grid, and while previously didn’t require full AUC approval, they would need to work with the Alberta balancing pool, which does. An AUC decision released on Sept. 24 states the “Barnwell Solar Project” in the Municipal District of Taber doesn’t negatively affect any party and qualifies under the community generators and small-scale generators policy as long as capacity doesn’t exceed 999 kilowatts (just under a one-megawatt limit). Facilities of that size typically don’t sell energy onto the Alberta grid, but the decision also creates the need and ability for Barnwell to deal with the Alberta balancing pool, which handles payments. The owner of the project is the Irrigation Canal Power Cooperative, Ltd., or IRRICAN, which is jointly owned by the St. Mary’s, Taber and Raymond irrigation districts. It states they forecast the project to generate $3.6 million in revenue over its 25-year lifespan, as well as pay the unstated terms of a surface rights agreement and provide $7,900 annually in property tax payments. General industry estimates suggest the cost of the project would be in the range of $1.2 million. The well-site, located 10 kilometres south of the town of Taber, is in the care of the Alberta Orphan Well Association. Hirsche said initial plans to begin construction at Barnwell and another site this fall will likely be delayed by supply chain issues. Work could begin next spring, at which time a training partnership with Medicine Hat College may be finalized. 16-15
