Businesses who generate electricity using renewable energy sources can sell it to Yukon’s utilities under the Independent Power Production Policy.
Projects can become independent power producers (IPPs) through the Standing Offer Program.
Project size
Under the Standing Offer Program, the project's capacity must be between 30 kilowatts and 2,000 kilowatts.
Purchase rates
Independent power producers can sell their electricity to the utilities at the following rates.
| Yukon Integrated System (Grid): | $0.1837 per kilowatt hour |
| Watson Lake: | $0.2268 per kilowatt hour |
Standing Offer Program limits
There is an annual limit of electricity purchased by the utilities from independent power producers. Your project must fit within the remaining allotment of the annual limit. The available generation changes as projects are approved or confirmed or as energy demand changes.
IPP program queue – as of December 7, 2022
| Number of projects | Combined capacity (megawatts) | Combined energy (gigawatt hour) | Percentage of program cap (40 gigawatt hour) | |
|---|---|---|---|---|
| IPPs connected to the grid | 3 | 1.35 | 2.39 | 6% |
| IPPs with executed Energy Purchase Agreements; not yet connected | 4 | 8.00 | 15.32 | 38% |
| IPP with studies in progress | 5 | 8.25 | 24.19 | 60% |
| Total | 12 | 17.60 | 41.90 | 104% |
Risk of over-subscription
The Standing Offer Program is fully subscribed. Projects already under review exceed the current limits of the program. New applications will be accepted. They’ll be queued for later consideration if the current number of applications decreases. It’s important that you advance your project, as not all projects will fit in the program.
For Watson Lake as of August 1, 2022:
| Total annual limit: | 2,100 megawatt hours per year |
| Expected 2022 annual contribution: | 2,100 megawatt hours per year |
| Expected 2023 annual contribution: | 2,100 megawatt hours per year |
The Standing Offer Program is not accepting new applicants in Watson Lake.
Other locations
Due to the small size of their electrical load, projects located in Old Crow, Burwash Landing/Destruction Bay, and Beaver Creek are not eligible for the Standing Offer Program. These projects could be eligible under other government renewable energy programs. Contact the Energy Branch to discuss options.
Become an independent power producer
Establishing your business as an independent power producer under the Standing Offer Program includes major steps such as:
- preliminary eligibility and feasibility assessment;
- Yukon Environment and Socio-economic Assessment Board approval, if required;
- system interconnection study;
- applying for and signing an Electricity Purchase Agreement with the utilities; and,
- obtaining any required permits for development.
The Standing Offer Program Rules outline the full process.
The first step is to meet with the Energy Branch to discuss your project and ensure you understand the process before you begin your application.
Contact the Energy Branch to arrange a meeting:
In person: Climate Change and Energy Solutions Centre at 206A Lowe Street, Whitehorse. Our office is open Monday to Friday from 8:30 am to 4:30 pm.
By phone: 867-393-7063 or toll free in Yukon: 1-800-661-0408, ext. 7063.
Email: IPPAdministrator@yukon.ca
Forms and additional information
There are several forms and additional information you will need to apply to become an independent power producer. These documents are also available on the Yukon Energy and ATCO Electric Yukon websites:
- Standing Offer Program Rules
- Pre-application form
- Application form
- Statement of Project Changes form
- Standard Electrical Purchase Agreement
- Conflict of Interest Statement form
- Contractor Standards for Ethical Conduct
- Confidentiality and Compliance Agreement
Other ways to develop an independent power production project
Under the Independent Power Production Policy, there are 2 additional ways to develop an independent power production project:
Unsolicited proposals
The unsolicited proposal process is primarily for projects outside of Whitehorse. Generation projects can be proposed to the community’s utility at any time. The utility decides if they accept the project based on discussions with the proponent. The Government of Yukon can assist in these discussions.
Call for power
In the future, if there is a need for new electrical generation above the Standing Offer Program limits, Yukon Energy may release a Call for Power to incorporate large-scale projects into Yukon’s electrical system.
Read the Independent Power Production Policy to understand more about these processes.
Program review
The Government of Yukon commissioned a review of the Independent Power Production program. Read the program review report.