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Current Initiatives

Saamis Solar Project (SSP)

  • by Mhura

The proposed Saamis Solar Project lies on 1,600 acres of land within the city limits, immediately north of Parkview Drive NE/Rotary Centennial Way NW – north of Northlands Co-op and Big Marble Go Center. City’s north side, within city limits, and is considered by the city to be a productive use of vacant land.  

The land was owned by Western Co-op Fertilizers Ltd. in the past and includes an area where a phospho-gypsum (a solid waste byproduct from processing phosphate ore in fertilizer production) stack exists. The phospho-gypsum stack was capped with clay by Western Co-op Fertilizers Ltd. a number of years ago to prevent radon seepage. 

Although not tested recently, the land is not considered yet ready for longer term urban/residential developmentDP Energy, of Ireland, initiated the Saamis Solar Project; A 375MW solar field when completed, with a bare minimum price tag of $600 MILLION.

Immediately after the Alberta Utilities Commission approved the project, the City purchased the rights to the project from DP energy for $7 MILLION.
The City plans to start with building this project in phases, with the first phase being 75MW, at a cost of over $120 MILLION.

 

Why is MHURA Challenging the SSP?

MHURA believes truth, transparency and Accountability for decisions made that cost YOU, the taxpayer and rate-payer, money is of the utmost importance.  Too often decisions made by Council seem to be more of a “back room” nature, and when the city does actually hold “Open Houses” they are felt to be more of a “sales pitch” than being informative and responsive. Time and again, the City employees that are placed in these sessions don’t have real knowledge and can’t answer real questions.
 
MHURA is not opposed to renewable energy sources, however, as residents and ratepayers of Medicine Hat, we did not agree to be the sole shareholders of a project costing $600 million and more. 
 
Please be aware that any purchase or project undertaken by the City can only be done with YOUR TAX DOLLARS AND UTILITY FEES. That includes this project’s construction and its operation, maintenance, insurance and liabilities for its life expectancy. NOTE: The estimated project cost does not include transmission lines, battery storage facilities, and ancillary facilities, nor does the city have an “end of life” plan in place, which would include renewal, disposal, and site reclamation. 
 
Further, with our continually increasing and high cost of living, and current economic volatility, including very recent decrease in provincial electric prices, along with recent changes and controversies in Provincial priorities, and Federal “Clean Energy” mandates, the development directions affecting renewables, extension of the Net Zero deadline, tariffs, the continuing weak Canadian dollar, etc., any further expenditure in the Saamis Solar Project is NOT in the best interests of Medicine Hat tax and utility ratepayers.
 
That could include if anything goes wrong, perhaps the market drops, as we have seen in the recent past, or we get one of our infamous, not uncommon hailstorms, or extreme windstorms that result in damage, again WE, THE TAXPAYERS AND/OR RATEPAYERS, as the sole shareholders will be covering those unexpected costs one way or another.  For example, at the April 7, 2025 City Council meeting another, $675,000 of YOUR MONEY was approved to carry out a due diligence (feasibility study) on the project. It is expected the report will be completed by October. 
 
Best business practice would have seen a feasibility report completed BEFORE the rights to the project were purchased for $7 MILLION or any other funds were expended.
 
In addition, during MHURA’s Intervenor Process with AUC, as well as in person meetings, the City of Medicine Hat Energy unit had stated that they plan to hold public engagements with citizens of Medicine Hat. This has not happened!
 
Since Medicine Hat taxpayers and Medicine Hat utilitiy ratepayers are the OWNERS, i.e. sole shareholders of the electric and gas utilities, the utilities should be managed for the benefit of Medicine Hatters on a cost-plus depreciation basis; and not be used to reap profits FROM from us!
 
On a side note…
Although the KPMG report that was commissioned by the City states:
“ In support of internationally negotiated climate change targets (to reach Net-zero greenhouse gas emissions by 2050), Federal and Provincial regulatory changes have, and are, expected to increasingly reduce allowable carbon emissions. The City of Medicine Hat must transition to lower carbon solutions to remain competitive with affordable energy product offerings.”
While that may have been a somewhat factual statement, if based on 2022 or 2023 statistics, in 2024, 2025 and beyond, that is not sound judgement. 
 
Solar projects are being halted, cancelled, and/or decommissioned throughout Alberta, e.g. Drakes Landing at Okotoks, Caroline…
 
In fact, over the past year large energy players have been scaling back and/or completely abandoning renewables; e.g. BP Energy, Shell…
 
And finally, more and more countries across the world are changing their strategies regarding non-traditional; renewable energy sources; e.g. European Union countries and the United States are scaling back, cancelling and/or decommissioning no-traditional renewable projects.

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