Statement from Minister Laking on winter peak electricity demand

Minister responsible for Yukon Development Corporation and the Yukon Energy Corporation Ted Laking has issued the following statement:

“Fellow Yukoners, I want to speak to you directly about the state of our electricity grid, especially as we continue through this prolonged cold snap.

“The reality is straightforward: our grid is under significant strain. Energy is a scarce resource in the Yukon. We are in a challenging position this winter and the next few winters ahead will be even tougher if we do not act decisively.

“On Monday, December 22, we set an all-time record peak demand of 123 megawatts. This exceeded the previous record set just a few weeks ago. In ideal conditions, with everything running at maximum, our system can produce about 140 megawatts. For a variety of reasons our energy infrastructure, such as renewables like wind and solar, cannot always deliver full output so we rarely reach the theoretical maximum.

“On December 12, when the LNG plant briefly went offline, we were operating at 90 per cent of capacity. Had we lost the Aishihik hydro connection at the same time, we would have been forced to prepare for rolling blackouts in Whitehorse. This is not the situation any of us want, but it is the current reality.

“As well, on Monday, December 22, an ATCO generator outage in Haines Junction will mean rolling blackouts in Haines Junction and put additional strain on the broader electrical grid.

“Looking ahead, Yukon Energy forecasts peak residential demand will grow by another 40 megawatts over the next five years. Over 60 per cent of this demand will be driven by new homes relying on electric heating. Without new dependable winter power, this strain will only worsen.

“My primary responsibility as Minister responsible for the Yukon Energy Corporation is to protect the integrity of the grid and ensure reliable power for Yukoners. That is why I have directed the Department of Energy, Mines and Resources, the Yukon Development Corporation and Yukon Energy to develop a comprehensive Winter Reliable Energy Plan. This plan will look at ways to ensure capital planning, housing and construction are done in a way that takes into consideration our energy challenges. A central part of this plan will also be moving forward quickly with the Whitehorse Power Centres Project.

“This project will deliver two new thermal power centres, a new substation and necessary transmission upgrades in the Whitehorse area. The new infrastructure will also modernize the grid, reduce outage risks and enable faster restoration when interruptions do occur. Importantly, these modular thermal units will give us the stability needed to safely integrate more renewables and future technologies as they become viable.

“In the short term, we will continue to rent diesel generators to buy the time needed for permanent solutions. This rental approach began nearly a decade ago when the decision was made to cancel plans for a new permanent thermal generation facility, intending it as a temporary measure while pursuing renewables. Those renewable projects did not materialize as planned and we have since spent over $70 million on temporary rentals instead of owning our own infrastructure. We are now dealing with the consequences and must rely on rentals until new reliable winter power assets can come online.

“We are also exploring options to bring smaller, incremental additions to the grid online more quickly.

“Yukon Energy, Community Services, ATCO and the City of Whitehorse have been refining emergency plans in case of extended outages and we are committed to improving our communications with you going forward.

“All Yukoners have a role to play in preparing for emergencies, including extended power outages. I encourage all Yukoners to make a plan to keep you and your family safe and prepare a 72-hour kit.

“In the meantime, I ask for your continued patience and help by reducing electricity use during peak hours when possible. These small actions ease pressure on the grid and help us avoid worse outcomes.

“This challenge is daunting, but it is not insurmountable. With the Whitehorse Power Centres and the broader Winter Reliable Energy Plan, we will build a stronger, more resilient electricity system that will serve Yukoners reliably for decades to come.

“As Yukoners enjoy celebrations with friends and family over the holiday season, I want to thank all those at Yukon Energy and ATCO Electric Yukon, who are working tirelessly to ensure the safe and reliable delivery of electricity in the coldest period of the year, as our system gets pushed to its limits.

“Thank you for your understanding and cooperation.”