Yukon s energy context

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Yukon s energy context An overview of the Yukon territory s energy supply and demand, both renewable and non-renewable, for electricity, heating and transportation in the residential and commercial sectors.

Government of Yukon 2018

Electricity Yukon is home to over 38 thousand people, 78 per cent of which live in or near to the City of Whitehorse. The remaining 22 per cent live in or near to Yukon s 17 towns, villages and unincorporated communities. All but one of these communities are connected to each other and to the rest of North America by road. All but five of these communities are connected to each other by an electrical transmission network, called the Yukon Integrated System (YIS) but known as the Yukon grid. See Figure 1 which shows Yukon s transmission and generation facilities. The Yukon grid is not connected to the rest of North America. Close to 93 per cent of Yukon s electricity is generated by four hydro plants and with one wind turbine. The remaining 7 per cent is generated by diesel and liquefied natural gas (LNG) to provide seasonal peaking capacity and backup. The renewable power plants and their capacities are shown in Table 1. 1

Yukon s transmission and generation facilities 2014 Generating stations YEC diesel YEC hydro YEC wind YEC LNG ATCO diesel ATCO hydro Taku River Tlingit First Nation hydro Minto Mine diesel Old Crow Transmission and distribution lines 138 kv 66/69 kv 34 kv 25 kv 14.4 kv Figure 1: Yukon s communities, roads, electrical generation facilities and transmission lines. Map courtesy of Yukon Energy Corporation. Dawson City Elsa Keno Mayo Stewart Crossing Beaver Creek Minto Mine Pelly Crossing Burwash Landing Carmacks Faro Ross River Aishihik Destruction Bay Haines Junction Haeckel Hill Fish Lake Marsh Lake Carcross Whitehorse Jake s Tagish Corner Johnson s Crossing Teslin Swift River Watson Lake 2 Atlin

YEC system (in MW) Hydro facilities Whitehorse 40.0 Aishihik 37.0 Mayo 15.1 Total 92.1 Plant Name Location Owner Aishihik Hydro Aishihik Lake Yukon Energy Corporation Mayo Hydro Mayo Yukon Energy Corporation Whitehorse Rapids Hydro Whitehorse Yukon Energy Corporation Capacity in Megawatts (MW) 37 15 40 Wind facilities Haeckel Hill 0.65 LNG facilities Whitehorse 8.8 Diesel facilities Whitehorse 15.0 Faro 8.5 Dawson 5.1 Mayo 2.5 Total 31.1 Total YEC system 132.65 ATCO system (in MW) Hydro facilities Fish Lake 1.3 Diesel facilities Carmacks 1.5 Haines Junction 1.5 Teslin 1.5 Ross River 1.0 Watson Lake 5.0 Beaver Creek 0.9 Destruction Bay 0.9 Old Crow 0.7 Pelly Crossing 1.2 Stewart Crossing 0.1 Swift River 0.3 Total 14.6 Total ATCO system 15.9 Other diesel Minto Mine 8.0 Fish Lake Hydro Whitehorse ATCO Electric Yukon Haeckel Hill Wind Whitehorse Yukon Energy Corporation Total renewable capacity 93.9 Table 1: Yukon s Renewable Electrical Generation Plants. The five communities not connected to the Yukon grid are served by four micro-grids that are powered 100 per cent by diesel generators. Those plants and their capacity are shown in Table 2. Communities served Generation location Owner Beaver Creek Beaver Creek ATCO Electric Yukon Burwash Landing & Destruction Bay Destruction Bay ATCO Electric Yukon Watson Lake Watson Lake ATCO Electric Yukon Old Crow Old Crow ATCO Electric Yukon 1.3 0.6 Capacity in Megawatts (MW) Total micro-grid capacity (diesel) 7.5 Table 2: Yukon s Micro-grid plants. 0.9 0.9 5 0.7 Total Yukon capacity 156.6 MW 3

Figure 2: Yukon s electrical demand from 1990 to 2017. Electrical generation in Yukon (GWh) Combination of heavy precipitation and unusually warm winter. 500 Faro Mine re-opens. Extremely cold winter. Faro Mine closes in March and re-opens in Nov. Faro Mine final closure. OIC disallows YEC s use of the last two feet of its licensed Energy Solutions Centre is established in the fall. YEC secondary sales begin. Improvements beg 400 GWh 300 200 Faro Mine closes. Bonus 250 kw wind turbine installed. Impro from 3 to Da confe 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Diesel generation Hydro and wind generation LNG Year An increasing number of Yukon residents are choosing to generate some of their own electricity with micro-generation systems and feed it into their local grid. As of June 2018, Yukon had 155 micro-generators connected to a utility grid with a total capacity of 1,384 kw, generating approximately 1.5 GWh per year. This number is growing rapidly thanks to the Government of Yukon s Micro-generation Policy and production incentive. Year $/Watt (W) installed 2014 $5.50 2015 $4.75 2016 $3.50 2017 $3.00 Table 3: Average cost for installing solar electric system in Yukon. The 2013 Micro-generation Policy and its resulting production incentive program provides the opportunity for residential and commercial electricity customers to generate electricity from renewable energy sources and sell surplus electricity to the grid. Producers also minimize their electricity consumption in order to maximize the amount of electricity they export to the grid. The scope of the Micro-generation program extends to small-scale (less than 50 kilowatt (kw)) alternative energy systems in both grid-tied and off-grid communities. The program applies to customers in residential, general service, and industrial classes who want to generate electricity primarily for their own consumption. The production incentive is $0.21 per kilowatt hour (kwh) on the Yukon grid and $0.30 per kwh on Yukon s four diesel-powered micro-grids. 4

The total electrical generation for Yukon from 2010 to 2017 has averaged about 442 GWh per year. In 2017 total Yukon generation was 485 Gigawatt hours (GWh), or 1,746,000 Gigajoules (GJ). By far, most (93 per cent) of that generation was renewable. Figure 2 shows a brief history of Yukon s electrical demand from 1990 to 2017 broken down by thermal (diesel and LNG) and non-thermal (hydro and wind) generation along with milestones for major events that may have impacted the demand. draw down on the Asihihik reservoir. Vestus 660 kw wind turbine installed. in, rewinding electrical generator at Aishihik facility Fish Lake hydro out of service in June. YEC secondary sales discontinued in Sept. Alexco becomes industrial customer in Nov. 40000 Government Micro-generation policy issued Oct. 35000 vements at Aishihik facility completed, capacity increased 0 to 31.4 MW. Transmission line from Mayo hydro facility wson City completed in late summer. International wind rence held. First full year of service for the Mayo to Dawson City transmission line. Hot dry summer with forest fire in Dawson City area results in lines being de-energized and diesels used for 16 days to power Dawson City. North and South grids connected. Third turbine (7 MW) installed at Aishihik facility. Mayo B completed. Minto and Alexco mines are on the system for a full 12 months. YEC LNG plant operationalized in June. 30000 25000 20000 15000 10000 Population and heating degree days 5000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total generation Population Heating degree days Figure 3 shows the number of micro-generation systems and their capacity for all communities in Yukon pre-program and for each year since the program began. All of the micro-generation systems accounted for in Figure 3 are solar electric systems. Yukon s solar resource is predictable, reliable and becoming increasingly economical, with costs falling each year as shown in Table 3. The Yukon government s Energy Branch has estimated the average installation cost for solar electric systems based on Micro-generation program participant data. Accumulated # of systems Figure 3: Micro-generation system installations in Yukon. 1600 140 120 100 80 60 40 20 0 Number of Systems Accumulated peak generating capacity Pre-program Year 1 (2014 2015) Year 2 (2015 2016) Year 3 (2016 2017) Year 4 (2017 2018) 1400 1200 1000 800 600 400 0 Peak Capacity (kwp) 5

Heating Solar electric system data from Micro-generation program participants systems located near Whitehorse show that on average, energy production rapidly increases during the spring and peaks between April and June. Energy production then gradually tapers off into the winter with only marginal production during December and January. Yukon s wind resource, though less predictable than its solar resource, is becoming better understood and has the advantage over solar of being available during the winter and at other times when the solar resource is weak. Winds in Yukon are strongest on mountain ridges and in the winter when demand for energy in Yukon is greatest. It is most suitable for development on a commercial scale due to the resource being weaker in Yukon valleys (where most people live) and due to the higher installation and maintenance costs compared to solar electric systems. There are likely less than five wind micro-generating systems in Yukon and only one commercial-scale wind development. Interest in developing commercial scale wind farms is high and growth is expected once the Yukon government s Independent Power Production policy is fully implemented. All Yukon communities lie within the boreal forest, giving Yukoners access to cordwood for space heating. Approximately 15 to 25 per cent of Yukon homes are heated with wood as either a primary or backup heat source. Most of the wood is from Yukon although an increasing number of homes are heated with wood pellets imported from British Columbia. Yukon currently harvests 13,000 cords (30,000 m 3 ) of wood per year to heat homes and buildings in the territory. Approximately 75 per cent of this wood is burned in Whitehorse. Forest harvesting is well below the regulated allowable harvest level established for each region, suggesting a growth of Yukon s forest industry is feasible. Six biomass projects with a combined nameplate capacity of close to 4 MW are currently installed and operational. Table 4 lists the currently installed systems and their heating capacities. Figure 4 shows where the current systems are installed. Facility name Feedstock Heating capacity (MW) Dawson City Water Treatment Plant Wood Chips 0.72 Whitehorse Correctional Centre Wood Pellets 0.95 Raven Recycling Waste Wood (Pallets) 0.10 Yukon Gardens Wood Chips 0.54 Kluane First Nation District Heating Cord Wood (Outdoor wood boiler) 0.59 Teslin District Heating System Wood Chips 1.00 Total 3.90 Table 4: Commercial-scale biomass heating systems in Yukon. 6

The Yukon government would like to encourage more wood heating in Yukon and released its Yukon Biomass Energy Strategy in February 2016. The strategy aims to reduce Yukon s dependence on fossil fuels, reduce heating costs for Yukoners, reduce greenhouse gas emissions, create new jobs in the local forest and heating industries, and move the territory towards sustainable renewable energy use and greater energy self-sufficiency. In 2009, the majority (approximately 65 per cent) of space heating in Yukon buildings was provided by oil, 9.5 per cent by propane, 17.5 per cent by wood and 8 per cent by electricity. However, on the Yukon Old Crow Figure 4: Existing biomass projects Integrated System, there is a trend to switching from oil to electricity. This trend started in the commercial sector, particularly in new construction, but is now xtending to the residential sector for a number of reasons: insurance companies have implemented new rules and are requiring replacements of oil tanks which are considered cumbersome enough to make the switch to an electric heating system more convenient; owners of rental units or social housing appreciate the reduced maintenance and increased safety of electric heating systems; and small, super-insulated homes require much less heat, making it difficult to find fossil fuel heating systems small enough to operate efficiently within them. In Yukon s diesel-powered communities, the utilities are discouraging the use of electric space heating due to the high costs of providing electricity on those micro-grids. In 2016 Yukon s total energy used for space heating was approximately 2 million GJ, with 26 per cent of that being provided by renewable sources. Project list (as of August 2018) 1 Dawson Sewage Treatment Facility (~720kW h, name plate capacity, chips) 1 Dawson City Elsa Keno Mayo 2 3 Whitehorse Correctional Facility (~950kW h, name plate capacity, pellets) Raven Recycling Waste Wood Boiler (~100kW h, chips) Stewart Crossing 4 Yukon Gardens (~540kW h, chips) Beaver Creek Destruction Bay Minto Mine Burwash Landing 5 Carmacks Aishihik Pelly Crossing Faro Ross River 5 6 Burwash Landing District Heating System (~590kW h, cordwood) Teslin District Heating System (~1,000W h, chips) Haines Junction 2 4 3 Carcross Whitehorse Jake s Tagish Corner Johnson s Crossing 6 Teslin Swift River Watson Lake 7

Transportation The City of Whitehorse operates Yukon s only public transit system. There is no inter-community public transit service. Electric vehicles are new to Yukon, with less than one per cent of Yukon s fleet being comprised of electric vehicles. No public charging infrastructureis in place at this time. In 2016, Yukon s total energy used for transportation was 5,033,294 GJ. Total energy use Yukoners total energy use for transportation, heating and electricity in the residential and commercial sectors in 2016 was approximately 8,743,814 GJ per year: 58 per cent of that was used by the transportation sector, 24 per cent by the heating sector and 19 per cent by the electrical sector. With approximately 26 per cent of the heating energy, 93 per cent of the electrical energy and close to none of the transportation energy being provided by renewable resources, about 24 per cent of the total energy used was provided by renewable energy sources (see Figure 5). Figure 5: Total Yukon energy consumption for transportation, space heating and electricity in 2016 for the residential and commercial sectors (GJ). 9,000,000 7,000,000 5,000,000 3,000,000 1,000,000 Transportation Heating Electricity Total 8 Non renewable content (GJ) Renewable content (GJ)

Greenhouse gases Figure 6: Yukon s 2016 greenhouse gas emissions for residential and commercial sectors. In 2016, 490 kilotonnes of carbon dioxide equivalent (CO 2e ) emissions were produced by Yukoners using energy in the residential, commercial and transportation sectors. By far the largest amount of that came from the transportation sector (362.5 kilotonnes, 74 per cent), followed by heating (108.2 kilotonnes, 22 per cent), then just 19.1 kilotonnes, or four per cent by the Yukon s electrical sector. (See Figure 6.) The Yukon government has begun working on a new strategy for Yukon that addresses the relationship between energy, economy and climate change for all of Yukon. This work is being undertaken in partnership with Yukon First Nations, communities, businesses, and other stakeholders and Yukoners. 4% Electricity 22% Heating 74% Transportation 9

Energy Branch Department of Energy, Mines and Resources Government of Yukon Mailing address: P.O. Box 2703 Whitehorse, Yukon (Canada) Y1A 2C6 Phone: 867-393-7063 E-mail: energy@gov.yk.ca Location: 206A Lowe St. - first floor