INNISFAIL - The final local hurdle for the creation of a 90-acre solar farm was cleared last week with the approval of a development permit by the town's Municipal Planning Commission.
The local commission's (MPC) approval is considered a major "milestone" in the project's development process as it's required for other agency permit approvals, including one from the Alberta Utilities Commission (AUC).
For the development permit to remain valid the company needs to start construction within 12 months. There is also a three-week appeal period for the Oct. 2 MPC decision.
The commission's approval follows year-long discussions and negotiations between the town and Innisfail Solar Corp (ISC)., a partnership between U.K.-based Temporis Developments and local entrepreneur Robert Bilton. The ultimate plan is to construct a $20-million, 20-megawatt facility on lands adjacent to Highway 54 and north of the Innisfail Golf Club that will generate enough power for up to 4,000 homes.
The solar farm project has the potential to bring in tens of thousands of dollars of additional revenues for town coffers once it's up and running. The 26-year lease agreement between the town and ISC calls for the town to receive $500 an acre annually in addition to property tax revenues, and $20,000 a year for local groups through a new community endowment fund.
"Certainly financially it is a good thing for the town. We are looking at $500 an acre (annually), plus $1,000 a megawatt for a community fund, so it is a very financially viable situation for the town and we are embracing and getting on board for new technology," said Coun. Jean Barclay, a member of MPC, adding the town is currently getting negligible leasing monies for the land. She added there are no plans to start residential development on the property for decades. "You think of the payback, $70,000 a year over 26 years. That is a pretty decent payback."
There was also a public consultation process initiated by ISC through an open house last June that was attended by 28 citizens. A report to MPC said a "clear majority" supported the project,. There were minor concerns from two residents and a second meeting with them was held in August. Neither resident planned to raise any objection to the proposed solar farm project, said the report.
"I wouldn't say it was a relief but obviously it is a great milestone to get to in the development timeline of the project," said Robbie Donaldson, managing director of Temporis. "We were always confident we would get the permit but of course we wanted to make sure we listened to concerns (and) feedback from the town and community members to make sure that ultimately (what) we submitted for the permit application was the right thing.
"Working with the town staff we were able to achieve that. We are very pleased and looking forward to keeping the momentum of the project moving forward," he added.
While obtaining the development permit from the town was a key step for ISC, the company must now obtain a building permit from the town and another from the AUC, the provincial regulator of investor-owned utilities. The AUC decision is expected in the new year following a favourable report from a mandatory Alberta Environment ecology review.
If all of this is successful, ISC is aiming to have shovels in the ground for the project in the early summer of next year, but that timeline could be extended into 2020.
"That is not necessarily because the funding is not secure, it's then seasonality becomes into play and we would delay construction by six months potentially to build in better weather," said Donaldson, conceding project funding remains a challenge. "It is not unusual for it to be challenging. It is something we can't tie down until we have the permits in place. To have meaningful financial conversations we really need these processes to be complete, which we expect in the new year."
