Is the Yukon’s ambitious plan to connect to B.C.’s power grid even a good idea?
As Prime Minister Mark Carney calls for nation-building projects across Canada, a recent memorandum signed between the Yukon and B.C governments has sparked interest in a potential 765-kilometre power line project. The aim of this project is to connect the Yukon territory to the North American power grid, with Ottawa providing $40 million for a feasibility study.
Yukon Premier Ranj Pillai has been actively lobbying for infrastructure funding, including for the grid connection, emphasizing the nation-building potential of such a project. However, concerns have been raised about the exorbitant costs associated with the power line. A 2016 study estimated the cost to be $1.7 billion to Iskut, B.C., with inflation likely pushing the current cost beyond $2.1 billion. Using the Handy Whitman Index, which tracks electrical equipment costs, the estimate could exceed $3.2 billion.
One Whitehorse engineer, John Maissan, expressed apprehension about the financial implications of the project, suggesting that unless Ottawa covers the entire capital cost, Yukon consumers may face significant rate hikes. Moreover, there are doubts about B.C.’s capacity to supply surplus power, as most of its renewable energy is already committed or sold to higher-priced markets like California.
The grid tie project has been linked to potential mining developments in the Yukon, particularly the Casino project, which requires substantial power resources. While Western Copper and Gold, the company behind Casino, plans to build its own power plants, a hydro grid connection could reduce carbon emissions and enhance energy sustainability.
Despite the allure of large-scale projects like the grid tie for Ottawa, some experts advocate for smaller, more sustainable solutions to meet the Yukon’s power needs. Suggestions include grid-scale batteries paired with wind turbines and the Atlin hydro expansion project. By strategically investing in these initiatives, the Yukon could achieve energy security and price stability in the long term without relying solely on federal funding.
