A local solar company is asking Chatham-Kent's (CK) council to lease land for proposed solar projects in Ridgetown and Bothwell.
At Monday night's council meeting, the municipality will be asked to enter into a long-term lease agreement with FLT Energy Inc. for 22 acres of municipally-owned industrially zoned land off of Mitton Line in Ridgetown to host a 6.5 Megawatt (MW) solar project.
If approved, the lease would begin on November 1, 2026, and be in effect until April 30, 2050.
According to a staff report going to council, FLT Energy would pay a lease rate of $500 an acre until the project reaches commercial operation in April 2030. Then it would pay a lease rate of $3,400 an acre annually.
FLT Energy Inc. will also be asking for a lease agreement for approximately 10 acres of vacant municipally-owned land off of Elm Street West in Bothwell for a 2.4 MW solar project.
The lease terms would be the same as the Ridgetown proposal, subject to approval, and the municipality noted the leases would generate approximately $2.2 million in rental payments over their term on vacant properties that are currently generating little revenue.
The Independent Electricity System Operator (IESO) forecasts annual electricity demand to grow by 75 per cent by 2050 due to economic growth, electrification, and evolving technologies.
The proponent needs municipal support in order to apply for IESO contracts for these two solar projects.
"If FLT Energy Inc. successfully secures IESO contracts for these projects, they would be subject to a number of approvals and permits from all levels of government before construction can commence," said the municipality.
Municipal officials noted solar projects of this scale are subject to the Environmental Protection Act and the Renewable Energy Approval, which requires approval from the Ministry of the Environment, along with local planning approvals, and eventually municipal building permits.
If FLT Energy doesn't obtain IESO contracts, the municipality said the lease agreements would be terminated immediately without penalty or liability. The company plans on consulting the public if IESO contracts are awarded.
