City says Saamis Solar needs to meet key conditions
City says Saamis Solar needs to meet key conditions
City says Saamis Solar needs to meet key conditions
By MEDICINE HAT NEWS on April 29, 2026.
Land south of the CF Industries fertilizer plant (left) is part of 2,270 acres on the city's north side that could eventually house the full 325 MW capacity of the Saamis Solar project. That being said, the city says it won't move ahead on the first 75 MW portion unless the project meets a set of four criteria.--NEWS FILE PHOTORepresentatives with the city say in order for the 75-megawatt phase of the Saamis Solar project to continue, it must meet four key criteria designed to increase public confidence in its success.
Recently, members of the energy, land and environment department met with members of the Southeast Alberta Chamber of Commerce to provide more clarity around the project and allow members to engage and ask direct questions.
Although sensitive details around the project have to remain confidential, staffers say the project will not proceed unless it meets the following criteria:
– The city executes a related long-term energy sales contract with terms and conditions satisfactory to the city manager and city solicitor. Staff will also provide periodic updates to council on the energy sales contract negotiations;
– The Alberta Utilities Commission approves required siting permits;
– Council approves a required debenture bylaw;
– Access to maximum tax credit is confirmed through use of a special purpose vehicle.
The approved budget for the 75MW phase of the project is $131.5 million, and if constructed will represent between nine and 12 per cent of the city’s annual energy supply.
Earlier in March, council unanimously approved borrowing $65.75 million toward the project. The city will borrow funding from the province and other authorized financial institutions, and is required to pay it back in 25 years at an interest rate that does not exceed 10 per cent.
According to the bylaw of indebtedness, which was required by the Municipal Government Act, the city must levy or raise municipal taxes, user fees or utility rates to pay back the debt.
Most of the expenditure won’t occur until construction begins in 2027 and funding commitments will come from three sources, the city’s Energy Transition Reserve, debt financing and a tax incentive that will cover 15-30 per cent of the entire cost of construction.
The chamber says from its perspective the diversification of the city’s energy portfolio, which is largely reliant on natural gas-powered electricity, will attract more large-scale investors to the region.
It also believes the project will create steady financial returns through dividends and strengthen local energy security.
The chamber hopes the solar farm will help mitigate long-term regulatory and economic risks so the region can adapt to changing emission standards and rate regulations, pressured by provincial and federal governments, as well as international standards.
The project includes a two-year construction phase to be followed by a 30- to 35-year operational life, and is anticipated to attract and retain commercial and industrial businesses that prioritize their carbon footprints.
The initial 75 MW phase is planned on the northwest area of approved project land, however the total footprint of the proposed expanded 325 MW project would be 2,270 acres north of Parkview Drive.
The city expects the project to be operational in 2028.
Online link: https://medicinehatnews.com/news/local-news/2026/04/29/city-says-saamis-solar-needs-to-meet-key-conditions/