A proposed layout of the Saamis Solar to accommodate a potential first, 75-megawatt phase of the 325-megawatt plan in northern Medicine Hat.--Supplied Image
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Talks between city energy officials and a local political group organizing opposition to the Saamis Solar Park could be back on the table, both sides tell the News.
Earlier this month, the Alberta Utilities Commission approved the city’s acquisition of the proposal to erect solar energy arrays on 1,600 acres of barren land north of Crescent Heights, and asked the city to redraw and reapply to build the facility in smaller stages.
The Medicine Hat Utility Ratepayers Association had applied to formally oppose that transfer before the AUC, and at that time energy division officials told the News they consciously cut off communications and information sharing, citing the process while the issue was before regulators.
After the overall approval was granted Feb. 4 however, top city administrators said they had extended the invitation to restart discussions about the project, and the head of the group says they hope for meetings next month.
“We’re still waiting for the public engagement that was promised, but we have requested a meeting and we’ll hopefully be doing that in March,” said MHURA president Sou Boss on Wednesday.
“We’d like more information about how they are proceeding.”
City officials announced the deal to buy the proposal, first unveiled last August, and closed on Feb. 19, but gave no other update on next steps.
They did acknowledge the request from MHURA and said they would “do our best to accommodate that,” according to a written statement.
MHURA formed in response to higher power prices in the summer of 2023, and now says it focuses on affordability issues related to city finances and utilities.
The group has sought out third-party evaluation of the project’s merits and states that their analysis is unfavourable, and that they believe costs will eventually land with taxpayers.
“We want to gather more information before it goes to a council, we’d like to see the financial data that shows it will be good for the community,” said Boss. “The numbers don’t add up; it’s not going to benefit the community or help make us more money.”
“Actually, it’s probably going to cost taxpayers more money,” she claimed. “But if they show us, ‘No, we get a pretty idea of how it’s going to work,’… then we want to see that. At the end of the day they need to be accountable.”
Some solar advocates and city officials have said the project is a valuable addition to the energy portfolio, and would add low-cost power production to the city’s portfolio with a proven technology that would also earn carbon credit revenue.
Last fall, energy division head Rochelle Pancoast said planners are watching several issues that will be key in cost-benefit analysis before presenting a final investment decision to council for an initial phase, estimated to cost between $115 million and $135 million.
Aside from the solar park issue, the larger energy business plan to address a “low-carbon” transition is dependent on obtaining a long-term view of carbon pricing (potentially after the coming federal election) and several other issues.
It terms of a general business plan, the city is also awaiting changes at the provincial level to grid pricing, and transmission changes affecting the city’s export revenue are also due this year.
Some transmission changes could be proposed in the current sitting of the Alberta legislature, which resumes this week.
Boss told the News the now public construction estimates are about where her contracted consultants place the project, but repeated her view that the investment may not be worth it.
City officials state they will rework the plan to see the entire 325-megawatt capacity project developed in phases, starting with an initial phase of 75 megawatts.
That could involve a budget amendment at council this spring, Pancoast told the News this month, but could be covered in existing budgets if the amount is nominal.
The city has not confirmed a purchase price of the project, but in the spring of 2023, council approved $7 million for a “clean energy opportunity,” which coincides with discussions between the city and Irish renewable developer, DP Energy.
That firm began developing the site plan in 2017 and held a long-term lease agreement for the 1,600-acre site with land owner Viterra, as well as developed two other projects on other former industrial sites in Calgary owned by the agri-food company.
Atco has operated those sites, which have a total capacity of 72-megawatts, since 2022.
