The Barlow Solar park in Calgary, developed by DP Energy and sold to Atco in 2021, is seen in an aerial photo. Like the Saamis Solar park would be, Barlow sits on contaminated land that used to be a tailings pond.--SUBMITTED PHOTO
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The company that drew up plans and won approval to build a 1,600-acre solar power park in Medicine Hat now says its sale to the City of Medicine Hat’s power company has been finalized.
Meanwhile, city energy officials have outlined a “high-level” estimate to build a first phase of the project at likely around $120 million, if approved by city council.
Ireland-based DP Energy stated in a release this week that after its work on Saamis began in 2017, the city has acquired “a ready-to-build solar project” with all the necessary permissions in place.
“As the largest urban solar development in North America, Saamis Solar Park is a project we are proud to have developed,” said Damian Bettles, head of DP Energy’s Canadian development office.
“With the sale to the City of Medicine Hat, it adds a dual aspect to the success story. Not only is it a productive use of a large area of contaminated land, it now also has the potential to contribute to the city’s energy transition to clean, renewable power.”
That site, located north of Crescent Heights, includes a former fertilizer tailings pond, where permanent development is barred due to contamination.
City elected officials and staff have said the renewable power project could reduce the energy division’s industrial carbon levies, charged by the province. The Alberta Utilities Commission certified the city’s calculations that it would also provide additional electricity at a lower cost production during peak demand periods in the summer.
City officials discussed the matter with national media this week, and confirmed to the News that a cited C$120-million figure to build an initial 75-megawatt phase was accurate.
“The high-level cost estimate for the Saamis Solar project (first phase) is estimated at $115 to $135 million,” wrote head of energy marketing and business analysis Travis Tuchscherer to the News.
That would include redrawing some already approved plans to tackle the 325-megawatt capacity project in stages, as well as connect the project to the city grid. Access roads and other initial civil engineering of the site would be captured in the Phase 1 budget.
In comparison, the city’s two most recent expansions of gas-fired capacity, adding Units Nos. 16 and 17 to the north-side power complex, cost a total of $100 million in 2017 and 2021. The two LM-6000 turbines added 84 megawatts of generating capacity. This fall, city council approved $110 million for lifecycle maintenance of gas-fired turbines, including a rebuild on Unit 16.
Administrators also told the News this month there is no immediate timetable to bring a final investment decision – which would green-light construction – to council for a vote.
Energy committee chair, Coun. Darren Hirsch, said the city must consider the political landscape – including future looks of industrial carbon pricing with an election looming – in the cost-benefit analysis.
Terms of the purchase are not being made public, but in April 2023 city council approved $7 million in reserve spending on a clean energy business proposal. That is believed to make up the bulk of the purchase price.
Additional funds to redesign the plan to be staged and also power redirected into the city’s distribution grid, opposed to the approved plan to export power to the Alberta grid, could come to council for approval this winter. There is no established timetable for a decision on general construction.
The city told regulators in its application to buy the project that it would proceed with construction in phases, starting in the northwest of the project footprint, closest to the CF Industries plant site and furthest from residences in Crescent Heights.
DP also developed two similar proposals to build ground-mounted, not pile-mounted, solar arrays on land held also by Viterra in Calgary. Those facilities were sold to Atco in 2021 and are now operating.
Bettles thanked Viterra and the city in the company’s statement.
Since the conditional sales agreement was signed, Viterra was acquired by fellow agri-business giant Bunge. City officials believe a transfer of the proposed lease will be a minor matter.
