September 18th, 2024

Energy strategy due at committee Thursday

By Collin Gallant on September 4, 2024.

The layout of the Saamis Solar Park as proposed to the Alberta Utilities Commission.--Supplied photo

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A promised overview of the city’s “energy business strategy” that led to the planned purchase of a huge solar farm will be presented to a committee meeting Thursday.

Administrators told the News last week they see the acquisition of the Saamis Solar Park proposal – a 1,600-acre planned facility that represents a near double capacity increase – as a unique opportunity that will improve the division’s bottom line.

It was announced one week ago to a chorus of concern and questions among critics of the city-owned power plant and ahead of a third-party review of the energy business model due in late 2024.

This week the Medicine Hat Utility Ratepayers Association called for clarification on a number of financial, technological and regulatory considerations.

As well a separate clean-energy strategy was due to be updated this fall.

Top administrators say the two are closely related, but evaluation of low-carbon options and how renewables will affect the sector has been ongoing for several years.

However, it is currently written to reflect quick paced innovation and regulatory uncertainty in the sector.

Thursday’s meeting of council’s energy committee will hear an update and overview of the city’s action plan, which will be forwarded to council Sept. 16.

Two years ago, the division put out a policy paper on how it was analyzing potential options to reduce emissions, comply with proposed net-zero targets and maintain a strong business models

Instead calling it an opportunity for “energy expansion,” the guiding statement presumes that additions of no- and low-carbon generation sources would supplement existing gas-fired generation to meet growing demand into the 2030s while the regulatory, technological and financial picture became settled.

The city’s application to the Alberta Utilities Commission states that, if approved, a city-owned Saamis project would proceed in phases, the first with a 74-megawatt capacity that would provide most power during the peak summer season.

The division is also considering carbon capture and storage for the 299-megawatt gas-fired generators, as well as blending a portion of hydrogen into the natural gas supply to fuel the power plant.

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