FAQs
Saamis Solar Park
- Utility scale photovoltaic (PV) solar is the least expensive at $29-92/MWh**
- Community and commercial/industrial PV solar is in the middle at $54-191/MWh**
- Residential rooftop solar PV is the most expensive of the three, at $122-284/MWh**
- The City has applied to build up to 75MW as a first phase. This represents less than 5% of the City’s annual supply capability.
- Any subsequent phases would only occur if and when it makes sense for the City and our local needs.
- The City has applied to build up to 75MW as a first phase. This represents less than 5% of the City’s annual energy supply capability.
- Any subsequent phases would only occur if and when it makes sense for the City and our local needs.
- solar panels
- wind turbine components
- EV batteries
Why did the City of Medicine Hat apply for ownership of the Saamis Solar Park?
The City’s interest in this opportunity is driven by customer interest in green energy, regulatory risk mitigation, and financial value (plus secondary benefits, for instance, like learning how best to manage intermittent energy within our grid).
It is important to note that utility-scale solar is the least expensive form of solar. According to publicly available data from a commonly known industry resource (Lazard’s Levelized Cost of Energy* Analysis – Version 17.0):
* Levelized cost of energy takes all cost of ownership (capital, operating) through time and determines the total cost/MWh, before considering production revenue.
** The above estimates are in USD and assuming US-based locations, but they are directionally representative across the three categories of solar.
The City supports deployment of residential rooftop solar as shown through its ongoing Hat Smart(External link) program and the newer Clean Energy Improvement Program(External link). For electric generation, however, the most cost-effective approach is to pursue utility scale solar for the benefit of its customers.
How big is the Saamis Solar Park?
The full size of the Saamis Solar Project (which was approved by the Alberta Utilities Commission on Thursday, July 18, 2024 under ownership of DP Energy) is 325 MW on approximately 1,600 acres within the City of Medicine Hat's municipal boundary.
If the City receives the necessary approvals from the Alberta Utilities Commission to purchase Saamis Solar, the City will NOT be looking to build the full 325 MW (not anytime soon, or if at all).
Is the City building a 325 MW solar park?
No. If the City receives the necessary approvals from the Alberta Utilities Commission to purchase Saamis Solar, the City will NOT be looking to build the full 325 MW (not anytime soon, or if at all).
Where can I learn more about the Saamis Solar Project?
Since the Saamis Solar Park is currently owned by DP Energy, please review the following:
Why is the City considering renewables at all?
The City’s interest in renewables is driven by customer interest in green energy, regulatory risk mitigation, and financial value (plus secondary benefits, for instance, like learning how best to manage intermittent energy within our grid).
The City is expected to comply with regulatory standards, and identify the most cost-effective way of doing so while ensuring reliable energy supply to our customers.
The City does not weigh in on the science behind clean energy or climate change. We focus on being compliant with the rules that apply to us and remaining nimble to adapt to potential changes to those rules.
We will continue to advocate other levels of government for rules that support the ongoing economic reliance on our natural gas fired electric generation assets. They play a critical role in local energy reliability, now and into the future.
How much will Saamis Solar cost?
Staff will only recommend proceeding IF our additional due diligence, supported by third party experts, provides sufficient confidence that any investment the City makes in the project would expect to see net proceeds from the project (and not net cost) over its lifecycle, commensurate with industry expectations. An expected cost is $110-135M for the 75 MW project.
Why now?
The decision to request control of the Saamis Solar Park project was a unique matter of timing. Solar assets have matured in recent years, allowing them to more recently become competitive with other forms of energy. At the same time, a third party was interested in this site to develop Saamis Solar Park. The City's interest in the site largely comes down to available space and a 'ready to build' opportunity. This is likely the only land within the municipal borders that is large enough and suitable for utility-scale solar.
The City had attempted to participate in Saamis Solar Park in other ways and when it became clear that would not be an option, the City took efforts to purchase the site to attain the option to develop clean energy now or anytime into the future. Ultimately, if the City of Medicine Hat does not pursue this opportunity, another developer may and the benefits of ownership would be lost.
Can solar panels be recycled?
The City of Medicine Hat is in regular communication with the Canadian Renewable Energy Association (CREA) and the Alberta Recycling Management Authority (ARMA).
Effective April 1, 2025, renewable energy products will be designated as part of the Electronics Recycling Program administered by ARMA, including:
Implementation planning for this initiative is still underway with various provincial and federal bodies.