Planning to connect the isolated Yukon to the main North American grid is underway with a $40-million injection from the federal government, according to Yukon MP Brendan Hanley.
In an exclusive interview with the News ahead of the formal announcements on Sept 20, Hanley said pre-development work is happening on a 765-kilometre, 200-kv transmission line connecting the Yukon to British Columbia. He couldn't get into the technical specifics of what that entails.
Hanley noted the Yukon’s energy capacity has been an “issue.” For example, some Yukoners were just hit with a power outage on Sept. 19.
“We do have a critical need to increase our energy capacity, even for a growing population. But there is no question that there are huge advantages to have that grid connectivity as a stable and reliable energy supply,” Hanley said.
“If we look at the potential for Yukon to contribute critical minerals, to the global need for critical minerals, then one of the essential elements that we need is the energy capacity and the reliability of energy. So, you know, we can't really offer that if we have supply disruptions, local outages.”
Grid connectivity will also allow the Yukon to export surplus energy and diversify energy sources in the face of increasing climate variability, Hanley explained.
Hanley said one of the main asks from potential mining investors has been around power.
He said the proposed Casino mine will have a need for energy that’s equivalent to the Yukon’s total energy capacity, while the amount of power grid connectivity will bring could support up to 11 mining projects over time.
Hanley and Premier Ranj Pillai have been talking about grid connectivity for the past year and a half, per Hanley.
Consultation with and providing support to Indigenous communities with territories along the proposed line will start in this phase, Hanley said.
The funding will come from the pre-development stream of the Critical Minerals Infrastructure Fund. Hanley didn’t know the total cost of the project offhand.
“This is the fund that we've been advocating for to get started on a transmission line project to connect Yukon to the North American grid through B.C.,” Hanley said.
“The future of critical mineral development, or Yukon’s contribution to critical mineral development, depends on having a reliable energy capacity to support it, and energy capacity ultimately needs to come from that connected grid.”
When asked if Yukoners can expect price hikes or cuts or the status quo when it comes to paying for power, Hanley indicated that’s beyond the scope of this phase of the project.
Hanley said the project is about connecting the "core" of the southern Yukon to the big grid, so places on "island grids" like Old Crow might get left out. He anticipates they may get there one day, but not yet.
There's currently no estimated timeline for completion on this multi-year project, per Hanley.
“First and foremost, this is for the people of Yukon,” Hanley said.
Secondly, it’s to support economic opportunities for Yukon First Nations, Yukon-based businesses and mining companies.
“It's a huge, ultimately, a huge capital build, but also mining development is a major, major part of our economy,” Hanley said.
“We need to provide that incentive for Outside investment as well, and all of that will support the local economy, not just around mining.”
On Sept. 20, Jonathan Wilkinson, federal minister of Energy and Natural Resources, told a press conference in Vancouver that this electricity infrastructure project was the Yukon government’s top priority.
“On the one hand, we can choose to lead by recognizing where the world is heading and aggressively pursuing major areas of economic opportunity. That is the choice this federal government has made. On the other hand, we can choose to bury our heads in the sand,” Wilkinson said.
During the press conference down South, Pillai spoke about the potentially severe consequences of the Yukon losing power in the dead of winter. Pillai noted grid connectivity will permit the Yukon to tap into power from other jurisdictions during urgent times.
“This means that we must rely on our old, locally-built electricity generation infrastructure to power our communities, especially during long, cold winters. Unlike other jurisdictions on the North American grid, there's no calling our neighbours in times of emergency,” he said.
Pillai said it’s premature to state what route power lines will connect to the Yukon through.
The work announced Sept. 20 is key to defining the total capital costs, per Pillai.
“This is about getting a real significant understanding of exactly what the project will look like,” he said.
Pillai cited a 2016 study that pegged the entire project at almost $2 billion back then.
For context, the Yukon’s entire 2024-25 budget is slightly north of $2 billion.
Pillai anticipates a substantial reduction in fossil fuel usage by displacing thermal-generated, for example natural gas and diesel, energy with imported “clean energy.”
The project is projected to decrease reliance on diesel by 74 million litres and liquefied natural gas by 426 million litres each year, per the premier.
“This is a significant step toward meeting our environmental goals and addressing climate change, which disproportionately affects northern communities,” Pillai said.
"You can't have North America without the North."
Territorial Energy, Mines and Resources Minister John Streicker joined Hanley at an “echo” announcement in Whitehorse at a Yukon University room where Streicker used to teach about climate change.
“This is a very big day for the Yukon,” he said.
“It's a small step, and it's a journey that we're on.”
Streicker said the Yukon government submitted its funding application in February.
He said the territory will still need backup energy sources but will rely on them much less.
Streicker noted technical and community-based items, as well as how to pay for the transmission line project, are steps that need to be taken before the Yukon connects to the grid.
“I don't even think it's going to stop with just B.C., my sense is that eventually we'll want to connect with Alaska, as well,” Streicker said.
Contact Dana Hatherly at dana.hatherly@yukon-news.com
