Letter: City needs to better present its business case behind Saamis Solar purchase

By Letter to the Editor on October 30, 2024.

Dear editor,

I have been reading about the city utilities’ latest venture, the takeover of Saamis Solar Park. With a capacity of 325 MW, this would more than double its current generating capacity.

Considering Medicine Hat’s current growth rate, I find it hard to assume this extra generating capacity would be for existing local users but that it focuses more on our high returns during the summer of 2023 and selling onto the grid.

This summer however, we found it is not easy to replicate luck, since power revenues dropped by $50 million. I would ask all concerned citizens to request the city’s energy division to explain its business case, justify this project and explain why DP Energy Group is so willing to part with such an excellent investment.

These types of projects have a 20- to 30-year life cycle, and when the business case is done, it should include upcoming demand, competition and emerging technologies.

Currently, Amazon, Google and Microsoft have announced major investments in nuclear energy to power their needs in the future due to the unreliable nature of solar and wind.

It would be very careless to risk so much on a fading trend. This investment can drain our Heritage Fund if it becomes another under or non-producing asset, as gas fields like Freefight and Manyberries did for our resource unit.

The city already rushed into constructing Units 16 and 17 and now needs to add the cost of carbon capture due to defective market analysis, which does not consider the rising carbon tax and low carbon competition.

The city can’t afford to continue learning lessons at such a significant cost. Some citizens cannot pay their utility bills, rent, or feed their families. This project can profoundly affect this city’s citizens and needs to be adequately vetted.

Alan Rose

Medicine Hat

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