Medicine Hat city council (Image Credit: Jett Schwaier/CHAT News)

By Jett Schwaier

CITY HALL

Medicine Hat city council approves funding for Saamis Solar Project on Monday

Feb 3, 2026 | 5:33 AM

Medicine Hat city council has approved a $131.5 million budget to move forward with the 75-megawatt phase of the Saamis Solar project on Monday, contingent on securing a power purchase agreement with a committed customer before construction begins.

The councillors said during a debate session that the project is expected to be profitable, improve the city’s financial position and increase dividends from its municipally owned energy business, without raising property taxes or electricity rates.

The debate followed a brief recess, as Mayor Linnsie Clark and the city councillors were overwhelmed by the disorderly comments from the audience.

Dozens of individuals attended the meeting opposing the solar project, interrupting the council on several occasions throughout the meeting.

Project funding will come from the city’s energy transition reserve and debt financing.

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City of Medicine Hat energy head Rochelle Pancoast said the project is forecast to pay linear taxes to the city and generate additional revenue through positive earnings.

Coun. Chris Hellman said that while he was campaigning, the number one thing he heard was a desire for economic development, and this project checks a big box there.

“There is a green customer out there that is in search of that kind of electricity that we don’t have to offer. If we don’t make that available in our community, we are going to lose that opportunity,” Hellman said.

“I heard some chuckles in the gallery there about property taxes. It won’t raise your property taxes. In fact, it might do the opposite. It’s going to pay in the neighbourhood of $1.5 million in property tax,” he added.

“That does not take into consideration if it attracts new business, that relocates here and builds, and they’ll pay property tax too. So in fact, it does the opposite of raising your property tax.”

Council’s unanimous approval includes a firm requirement that a long-term energy sales contract be finalized before breaking ground, a statement that councillors said limits financial risk to taxpayers.

The initial 75-megawatt phase will be built on the northwest portion of the approved project lands, part of a larger 325-megawatt site north of Parkview Dr. NE.

The land is not expected to be needed for residential development for more than 30 years, according to a press release.

“A solar farm really is the highest and best use of this land, until it is required for future residential growth,” said Mayor Linnsie Clark.

Clark was referring to the ability for fixed solar panels to be installed on the portion of the parcel that is registered as contaminated and unable to be disturbed. 

The city will next seek amendments to Alberta Utilities Commission approvals, finalize the project structure to maximize incentives and secure an energy sales agreement.

Council also gave first reading to a bylaw to incur debt in the amount of $65.75 Million for the purpose of the Saamis Solar Final Investment Decision.

Second reading will be considered at the City Council meeting on Feb. 17.

Coun. Hellman said there is potential for federal government funding support with upwards of 30 per cent of the project being paid for by another level of government.

If milestones are met, Saamis Solar is expected to be operational in 2028.

Residents can follow along with the project on the City of Medicine Hat’s dedicated webpage for Saamis Solar.

— With files from Jesse Gill.