Medicine Hat solar project funding approved

Medicine Hat city council approved a $131-million budget to move forward with the 75-megawatt phase of the Saamis solar project.

But construction is contingent on securing a power purchase agreement with a committed customer.

The mayor says the project is forecast to improve the city’s financials and enhance dividends from its energy business.

There will be no property tax increase or electric rate increase related to the project—the funding is coming from the city’s energy transition reserve and debt financing.

“Medicine Hat has a bit of a unique history in energy, and regardless of where the electrons are coming from, we are in the energy business, and so when we have opportunities to increase our revenue to the municipal side, we want to make sure we’re taking those,” said Linnsie Clark, Medicine Hat’s mayor.

The 75-megawatt phase is part of a larger approved 325-megawatt project north of Parkview Drive Northeast.

If a buyer is secured, the project could be operational in 2028.