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LETTER: Solar farm numbers don't add up

"If I went to the bank and said, 'I want to borrow $33.75 million to build a $26.1-million solar farm,' the bank would ask: 'Why would you not get a firm contract?'"
letter-sta

Re: "St. Albert approves $26.1M 15-megawatt solar farm," The Gazette, June 23.                                                          

Some things just do not add up in the article. Maybe it's because the whole solar proposal is shrouded in secrecy.

If the solar farm has net revenues of $2.42 million a year, and will do that for 30 years, my math goes something like: 2.42 x 30 = $72.6 million, not $41 million as mentioned. Where did that number come from?

If I went to the bank and said, "I want to borrow $33.75 million to build a $26.1-million solar farm," the bank would ask: "Why would you not get a firm contract?"

Contingencies are for the builder. Their risk; not yours. But this is still costing interest on $33.75 million. Since this is the City of St. Albert, they should be able to get an annual interest rate of 3.0 per cent or less, or about $1 million in interest costs per year. Thus, if net revenues are $2.42 million and the interest is about $1 million, and the operating cost is about $0.11 million, then total gross revenues need to be at least $3.53 million, more likely $4 million. Per year? Who is ATCO kidding?

If the city of Brooks, Alberta, has a solar power plant of 17 megawatts that powers about 3,000 homes when the sun shines. How come the St. Albert plant of 15 megawatts can power 25,000 homes? 

If the city owns the Badger Lands site, does the city still get property taxes and lease revenue and does it have a community benefits agreement as they do in Innisfail?

Of course, the city is aware that recycling solar panels is not really an option because, they are usually considered hazardous waste. Is ATCO?  And who pays? Is there a solid and enforceable agreement in place where the operator of this solar farm is legally required to restore the land to its current condition, including the removal of the thousands of concrete pilings?

Where are the examples of these mythical foreign investors? Are there examples of these investors flocking to a city with a solar farm? Or are these foreign investors from China, which produce these solar panels with slave labour and manufacture them with coal power?

Joe Prins, St. Albert




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