Connecting the Yukon to the B.C. electrical grid is potentially $2-billion dollars and ten or more years out. Territorial opposition party leaders want to know what the Yukon government is doing in the interim to address what the Yukon Party and Yukon NDP have called an “energy crisis."
For example, in a late-September interview, Yukon NDP Leader Kate White noted Faro recently experienced an outage where they were offline for just about 24 hours — and it’s not even winter yet.
The federal government is putting up $40 million for an engineering study on connecting to the big grid, which Yukon Party Leader Currie Dixon said isn’t a bad thing.
“We think that the grid connection is a good thing to be studying and thinking about going forward,” he said.
“But we know that's that is a very long-term, very high-cost solution that is billions of dollars and probably decades away.”
Dixon wants to know how the Yukon government plans to meet the need for electricity on the Yukon grid today and in the next few years as electricity needs keep growing.
“To date, from the Yukon Liberals’ energy strategy, every single project they've committed to, every single project they've lauded over the years, has failed,” he said.
Dixon cited the proposed Atlin hydro expansion project, which Premier Ranj Pillai told the News this fall has a lot of work to be done, and the Moon Lake pumped storage project in Northern B.C. as examples.
As for the Haeckel Hill wind project, which did come online, Dixon said it doesn’t provide any base-load capacity, which is what’s needed.
“We think projects like Haeckel Hill are good and they should be added to the grid, but there needs to be base-load capacity. That's what we're missing,” Dixon said.
“We're missing the actual reliable, dependable capacity that keeps the lights on when the winter is coldest and darkest, and we haven't seen any investment in that so far.”
For the last eight years, Dixon said, the territory has been reliant on rented diesel generators to supply backup power, which his party has been critical of.
Energy Minister John Streicker told reporters on Sept. 20 that grid connection is important for mining critical minerals, supporting Arctic security and addressing population growth in the Yukon which has increased demand on the system.
During an Oct. 16 interview with the News, Streicker noted the territory will always be somewhat reliant on some fossil fuels for backup.
Streicker acknowledged that thermal energy consumption using fossil fuels has been up lately.
On Oct. 16, thermal made up more than 18 per cent of consumption compared to hydro, according to Yukon Energy Corporation's online consumption tracker. The minister said that’s because of low water levels at the Aishihik hydro plant — down by 35 per cent — due to a lack of rain around the Haines Junction area.
Recently, thermal consumption has hovered around 20 per cent.
Streicker believes it’s more helpful to look at the year-over-year comparisons, as opposed to daily or monthly.
Given the government doesn’t control the weather, Streicker said, there’s nothing that can be done about those low water levels.
He said the Yukon government is investing in energy infrastructure to address rising demand on the electrical grid now and in the years to come. That includes looking into making broader, bigger investments in partnership with First Nations, for example, on grid connection.
A new grid-scale battery storage system, which the Yukon Energy Corporation’s website states is located on Kwanlin Dün First Nation Settlement Land on Robert Service Way near the Alaska Highway in Whitehorse, is due to be done this fall, per Streicker. He said it will need to be commissioned before it comes online.
Off the Yukon grid in Watson Lake, a “really big solar array” is due to be complete in 2026, Streicker said.
Other projects Streicker said are on the horizon include a Kluane wind project and the Beaver Creek solar project.
Streicker noted the Old Crow solar and Haeckel Hill wind projects have already come online.
Streicker indicated revamping the relicensing system is another step to be taken. He said major facilities in Whitehorse, Aishihik and Mayo are all undergoing relicensing.
“The current system needs to have some attention to it as we put more demand on it all the time. It needs to be upgraded and modernized, and that includes, in my mind, relicensing,” he said.
“On the Whitehorse relicensing, we've got two First Nations that have agreed we should go for a 20-year relicensing. And one First Nation, which is saying we should go for five year, but really, that, if you go for five year, you're just, you need to restart relicensing right away, each time, and it's a huge investment.”
In an email statement, communications manager Lisa Wiklund of the Yukon Energy Corporation said wind energy, battery storage and hydro generation to meet winter demands are options being contemplated as part of its Integrated Resource Plan, set to be complete in 2025.
Wiklund said thermal use is up lately because “as an isolated grid, where Yukon Energy cannot sell or buy power from other provinces or territories, diesel plays a critical role in preventing power outages when maintenance is needed on the system or when equipment fails, and to restore power outages quickly when they do happen.”
B.C. interconnect is 10 to 15 years away at the earliest, and whether or not it goes ahead, investments in local infrastructure and sources of dependable power are needed, Wiklund said.
Some steps the Crown corporation is taking include proposing up to 15.5 megawatts of diesel generation near Dawson City and launching the next phase of the Peak Smart program, which helps shift electricity demand away from peak times, in turn reducing strain on the grid.
“Yukon Energy is working to optimize the use of wind and solar to minimize the use of thermal resources for energy. The battery will help to do this by smoothing out the variability of wind and solar as well as reduce peak winter loads,” Wiklund said.
A grid modernization study is underway with the Yukon government, Yukon Development Corporation and ATCO Electric Yukon.
When a piece of equipment broke at the Takhini substation in September, the grid was split in two (north and south) and hydro power generated in Whitehorse and Aishihik couldn’t reach communities in central or northern Yukon. Running diesel generators in Faro, Dawson City and Mayo provided electricity until the gear could be replaced.
The northern and southern grids have been reconnected, although diesel generators are still being used to prevent power outages while crews complete fixes.
Contact Dana Hatherly at dana.hatherly@yukon-news.com
