Recently, Chamber members had the opportunity to meet with the City of Medicine Hat’s Energy, Land, and Environment team. The session offered clarity around the Saamis Solar project and the broader direction of the City’s Energy Transition efforts. Members were able to engage and ask direct questions and discuss what this major new project means for existing and new local businesses.

About the Saamis Solar Project

Saamis Solar presents a significant opportunity for the City of Medicine Hat to harness its greatest natural advantages: abundant sunshine, available land, and the city’s unique ability to generate, distribute, and market electricity locally—without having to incur provincial transmission and connection fees.

The project includes a two‑year construction phase that is expected to stimulate economic activity, followed by a 30–35 year operational life. It is anticipated to help attract and retain large commercial and industrial businesses with carbon and social environmental interests, while providing long‑term financial returns to Medicine Hat residents and taxpayers.

City representatives shared that years of due diligence have been completed by a team of experienced internal professionals and consultants. While commercially sensitive details remain confidential, the project will not proceed unless it meets several key criteria that are designed to increase confidence in the project’s success.  The requirements that need to be achieved in order to break ground on the project’s construction are articulated within City Council’s approved motion from Feb 2, 2026:

1. A related long-term energy sales contract with terms and conditions satisfactory to the City Manager and City Solicitor is executed by the City; And that staff will provide periodic updates to Council on the energy sales contract negotiations, in accordance with section 197 of the Municipal Government Act;
2. The Alberta Utilities Commission approves the required siting permits;
3. That Council approves required Debenture Bylaw 4874-2026 (post motion note – this is complete); and
4. Access to maximum tax credit is confirmed through use of a special purpose vehicle.

There is further clarification provided through the Shape your City page including the approved budget of $131.5 million to construct the initial 75MW solar park. The City has applied to build up to 75MW as a first phase, representing 9-12% of the City’s annual energy supply. Most of the expenditure will occur with the actual construction, which isn’t expected until 2027. The funding committed for Saamis Solar comes from three sources:

1. the City’s Energy Transition Reserve (which was created specifically for these kinds of opportunities), and
2. debt financing
3. tax incentives between 15% and 30% of the cost of construction

The project would expect to see net proceeds from the project (and not net cost) over its lifecycle with the cost of reclamation built into the financial analysis and lifecycle plan.

The current 75‑MW phase will be built on underutilized leased land in the north end of Medicine Hat by the end of 2028. Despite intermittent fluctuations in solar generation, the project is expected to contribute roughly 9-12% of the city’s overall electricity supply—similar to Alberta’s provincial generation mix.

For generations, Medicine Hat has relied heavily on natural gas-powered electricity. Much of that gas—about 90%—is purchased from outside the region, and associated carbon costs continue to rise. Solar power, by contrast, is emissions‑free, naturally occurring, and has lower operating costs.

The Chamber acknowledges the unique position of operating a municipally owned utility in an ever-changing industry and regulatory environment. The Chamber recognizes measured diversification efforts is needed for energy transition.

Why this matters for Southeast Alberta?

From the Southeast Alberta Chamber of Commerce’s perspective, the diversification of the energy portfolio and the investment in renewables will:

1. Attract and retain large-scale investors to the region.
2. Create steady financial returns, including dividends and linear tax revenue back to the municipal reserves.
3. Strengthen local energy security and maintain Medicine Hat’s unique position as a community that produces its own power.
4. Mitigate long‑term regulatory and economic risk, ensuring the region can adapt to changing provincial, federal, and international emission standards and rate regulations.

Where to find more information

For more information and the opportunity to engage, members are encouraged to visit the City of Medicine Hat’s Shape Your City Saamis Solar Project website and the Environment & Energy Transition page.