Yukon Energy’s 20 year view

July 27, 2012

Yukon Energy Corporation, the crown-owned main energy provider in Yukon has provided a comprehensive 20-year resource plan for public discussion and comment.

The summary the 2011-30 Resource Plan considers:

· Current Challenges and Opportunities;
· Background on Yukon Power System;
· Future Yukon Power Requirements – Overview;
· Range of Resource Supply Options;
· Yukon Utilities – Default Diesel Portfolio Requirements;
· Near-Term Resource Options to Default Diesel;
· Longer-Term Resource Options to Default Diesel; and
· Summary Conclusions & Recommended Plans

YEC’s current and committed generation capacity in Yukon includes approximately 138 MW of installed generation on the integrated grid (approximately 92 MW YEC hydro, 0.8 MW YEC wind, 37 MW YEC diesel, 1.3 MW YECL hydro, and 6.8 MW of YECL diesel) and 8.4 MW of diesel generation in five separate off-grid facilities.

Overall, forecast Yukon power requirements highlight the extent to which off-grid mine loads are expected to grow and dwarf grid loads within the next 5 to 10 years. To the extent this occurs, a fundamental shift will occur in Yukon power generation – affecting near-term opportunities for new fuel or other resource supply development options, ongoing Yukon GHG emissions, and potential options for future grid expansion concurrent with development of new longer-term legacy supply options in Yukon.

The off-grid industrial load is expected to really take off late this decade as several large mines are expected to begin operations: Wolverine, Casino, Selwyn, MacTung, Northern Dancer, Coffee, White Gold. YEC states that overall, only a few of the available non-diesel resource options offer large scale energy generation supply potential relative to forecast Yukon diesel generation loads:LNG supply is the only option that can potentially displace all diesel energy loads as well as all new diesel capacity requirements at any near-term load.

YEC suggests a few strategies:

• that it continue to carry out planning studies to identify and plan priority longer-term greenfield hydro development opportunities as recommended in the 2011 Resource Plan, including Hoole and Finlayson sites, and seek funding support for these activities.
• Continue to examine for initial development the feasibility of smaller wind projects in the range of 10 MW to meet suitable grid loads.
• Carry out scaled down geothermal investigations and look for funding support for geothermal exploration and studies, and seek funding support for these activities.
• Continue to explore opportunities to extend the grid within Yukon, and to connect the Yukon grid to British Columbia and/or Alaska (including Skagway)
• Identify and pursue opportunities for a small scale (e.g., 2 to 3 MW) wood biomass pilot project, potentially in association with existing wood operations at Haines Junction, and seek funding support for this pilot project.

Commentary

YEC has done a great job in producing a thoughtful and comprehensive document. They do a great job at community engagement in their energy plans.

Sources

• a)http://www.yukonenergy.ca/downloads/db/1184_2012%20Resource%20Plan%20Overview.pdf