Medicine Hat City Council has approved millions of dollars in funding for a solar energy project. (Image Credit: CHAT News Today)

By Jett Schwaier

Medicine Hat council approves $131M for solar project

Feb 3, 2026 | 9:57 AM

Medicine Hat city council 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.

Funding will come from the city’s Energy Transition Reserve and debt financing.

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.

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Council’s 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.

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

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