Yukon struggles to meet electrical energy demand

April 26, 2012

The Yukon uses about 400 GWh (gigawatt hours) of electricity and is expecting mines to need 237 GWh as new ones come on stream.

The prime energy producer is the Yukon Energy Corporation (YEC), owned by the territorial government. The regulator is the Yukon Utilities Board (YUB).

The problem is that there is no apparent way to meet the increasing demand. Yukon is the second fastest growing jurisdiction in Canada and has several new mines that could potentially come onto the territory’s isolated electrical grid.

• demand side management could provide 32-48% of new power needs through reduced consumption and efficiency
• the territory has about 6 Tcf of natural gas, stranded in the north by Eagle Plains, but no power plants that use gas. Even if nat. gas were priced at 85% of the cost of diesel, it may still be cheaper to use diesel, due to the CAPEX requirement. 
• there is hydro potential, but any large projects would be at least a decade away
• the territory has lots of coal, but it would not pass muster from an environmental standpoint.
• demand for home heating and for electronic appliances is exploding

Commentary

In Whitehorse, 80% of new homes planned for a new Whistle Bend subdivision are planning to use electrical heat. The YUB has not raised rates in 13-14 years. Territorial electrical rates are too low. The upshot of low rates is that consumers have no incentive to move off electricity. YEC will soon be in a position of having to burn diesel for electrical generation, at first just in the winter, then all year round.

Sources

• a)Josh Kerr, "Mulling over Yukon's electricity woes", Yukon News, 25-Apr-12, p.23.