The Town of Innisfail will likely have to wait until next year to begin the development of its new revenue-generating solar farm.
The westside project, which is expected to cost about $4 million and generate up to $700,000 annually for the municipality, has been put on hold for almost a year due to the provincial government’s seven-month moratorium on all new renewable electricity generation projects.
The moratorium was lifted in late February and the town was immediately busy with answering questions about its project from the Alberta Utilities Commission (AUC).
At town council’s regular meeting on July 8, Steven Kennedy, director of operations for the Town of Innisfail, told council that after the town began its application process for the SW Industrial Park Solar Farm development last February the town provided the AUC with two responses for clarification or additional information.
Those responses included clarification on the type of land and reclamation requirements, as well as providing a reclamation cost estimate from a consulting firm.
Kennedy’s report to council also stated there also needs to be additional clarification under Section 25 of the Electrical Utilities Act, a process that must be assigned to an independent assessor.
“Due to the unknown timeframe for the Section 95 assessment, the AUC has put a pause on the application,” said Kennedy, adding the assessment process began on July 8.
“We have engaged an accounting firm to satisfy those requirements, and that is a 30-day working day period time. That's probably two months in the works now to get that process done.
“In the meantime, everything has been put on hold until we get that result and finalized,” added Kennedy. “We were hoping to get construction this year, but this does move it into next year.”
Council was told there would be an extra cost to the town to meet all requirements.
Kennedy’s report to council said the cost to the town for the independent assessor will be about $45,000, and additional consultant fees for the responses to the AUC application will come in at about $10,000.
Those funds will come from the town’s General Capital Reserve.
Coun. Don Harrison asked Kennedy if he could anticipate any new conditions placed on the town that would delay the project further.
“We won't have anything new come up because the project has been put on hold,” said Kennedy. “Other than the additional items here we're optimistic that nothing new will come up but I guess until we finalize the process it's hard to say for sure.”
As for mayor Jean Barclay, she told the Albertan the additional delay is not surprising.
“We knew we had to hire the consultant, so nothing was surprising,” said Barclay. “The good news is that a firm has been hired.
“So, it was just a matter of getting through the process and hoping the recommendations going to the minister's office is favourable to the Town of Innisfail because this is a revenue stream for us.”
Council unanimously approved Kennedy’s report as information.
