Michelle Sterling, communications manager with Friends of Science, speaks at a town hall held by the Medicine Hat Utilities Ratepayer Association on Thursday night at Higdon Hall.--NEWS PHOTO BRENDAN MILLER
bmiller@medicinehatnews.com
As current gas-fired generators will become uneconomical to operate without addressing a move to net-zero electricity, called for by both the provincial and federal governments, staff are clarifying potential costs and timelines after the city secured purchase rights to the 1,600-acre solar power array located on the city’s north end.
Over a series of presentations throughout September city power officials looked over different strategies that could address low-carbon requirements that are now being developed. One of those strategies involves building a portion of the 325-megawatt DP Energy-developed “Saamis Solar Park.”
“We have no intention of spending $600 million anytime soon,” said energy division head Rochelle on Sept. 16. “We’d consider building a first phase (of 75-megawatt capacity) and then subsequent phases only when it makes sense.”
A project at that scale could cost more than $100 million using industry standards, however 15 per cent would be eligible for federal government capital grants.
On Thursday evening the Medicine Hat Utilities Ratepayer Association, a small group of local residents formed to challenge the city on decisions involving its energy division, held a town hall-style meeting that focused on potential risks and challenges associated with owning a large-scale solar project, including its long-term economic viability.
A pair of guest speakers spoke to more than 150 residents in attendance, including Michelle Sterling, communications manager with Friends of Science, an Alberta organization well known for opposing climate change consensus.
Sterling spoke for more than 30 minutes on topics including the effects of renewable energy on the overall electrical grid and its variable production throughout different weather conditions.
“The effect of renewables on reliability is very challenging,” she claimed while highlighting season variations in solar energy production and the potential negative impact fluctuating energy production levels could have on conventional power generators.
“In those times of low capacity, you must have reliable generation to fill that gap. In times of high capacity, it means that your conventional power generator may have to shut down.” she said, saying it could lead to costly and timely generator shutdowns, then negative power prices during periods of oversupply.
Sterling raised concerns over the long-term costs as well as the environmental impacts of solar projects, highlighting potential environmental and economic risks of solar farms.
“These are all tax dollars that are just being diverted to these green projects,” said Sterling, who criticized the price tag for the estimated construction of the solar farm despite the city reiterating that it won’t cost Hatters the full amount.
Regulators are expected to decide by the end of the year on whether the city can purchase the “Saamis Solar Park” under its unique power generation charter.
Several attendees at Thursday’s meeting supported the Medicine Hat Utilities Ratepayers Assocation’s call for a plebiscite on the project and have called for more information about the deal and the business plan. The association has filed for intervenor status as the Alberta Utility Commission decides the issue.
The AUC issued a notice in late September that it expects to request further information on issue depositions in 90-120 days from the application date of Aug. 27.
The city paid $10 million in carbon levies in 2024 and expects that to rise to $50 million in 2035 if nothing is done to offset costs, and estimates carbon credits from Saamis Solar would be worth $7 million per year in 2027, then rising with the escalating provincial carbon levies.
A review of the city’s power business is due later this month.
— with files from Collin Gallant
