The Government of Yukon is taking direct action to reduce winter peak electricity demand and strengthen the reliability of the territory's isolated grid.
Rising electricity demand is putting significant pressure on the Yukon’s electricity system. In December 2025, winter peak demand hit a record 127 megawatts representing about 91 per cent of the grid’s generating capacity at the time. Overall electricity demand has grown 19 per cent since 2019, with winter peaks rising by 25 per cent over the same period. These peaks occur during extreme winter cold, driven largely by electric heating combined with everyday household loads.
Over the next five years, peak residential demand in the Yukon is expected to increase by an additional 40 megawatts with most of this growth attributable to the use of electric heating. When demand approaches the limit, any disruption to generation risks rolling blackouts. To address this, the Yukon government is ending the electric transportation rebates and redirecting its funding to the new Dependable Grid Program. Applications for the new program will open April 15, 2026, and eligibility for the program will be retroactive as of April 1, 2026.
Effective April 1, 2026, rebates for electric vehicles, electric vehicle chargers and electric bicycles will be terminated. The $946,000 reallocated from the existing budget will support the new Dependable Grid Program, which focuses on practical measures that deliver the biggest impact on peak winter demand and household resilience. The program will support a variety of home heating systems and encourage Yukoners to fulfil their home electricity needs in a way that does not strain the grid.
The Dependable Grid Program is a concrete step in the Government of Yukon’s efforts to restore stability to the territory’s electricity grid. It forms part of the government's commitment to develop a Winter Reliable Energy Plan that will guide further investments, programs and policies to keep the lights on and power affordable for Yukoners.
We are focused on what works: practical solutions that strengthen the grid without asking families to shoulder the burden alone. Rising winter electricity demand is pushing our isolated grid to the limit and we must act now to protect reliability and ensure public safety for all Yukoners. That is why we are redirecting the Government of Yukon’s limited financial resources from the electric vehicles initiative into the new Dependable Grid Program. This focused program delivers real incentives for dual fuel heating, backup systems and smart load management so families can reduce peak demand, stay warm during outages and keep their power bills under control.
The Dependable Grid Program will provide targeted incentives for homeowners to install:
- dual fuel heating systems such as pairing an energy-efficient electric heat pump with a wood, propane or oil backup system for use during extreme cold;
- secondary non-electric heating systems, including wood, propane and oil-fired units;
- primary non-electric heating systems such as propane or oil-fired boilers and furnaces;
- non-electric hot water systems such as propane or oil storage, on-demand and indirect water heaters;
- transfer switches to safely connect to a backup power source during outages; and
- smart vehicle outlets and managed charging programs to shift EV charging and other loads away from peak hours.
The program will also offer incentives for:
- highly efficient new homes with enhanced incentives for Tier 5 and Tier 4 homes as set out in building codes; and
- participation in Yukon Energy’s Peak Smart Home program that move heating demand to off-peak times.
These incentives are designed to help Yukoners lower their electricity use during critical winter peaks, increase home resilience to outages and save money on bills.
Tim Kucharuk
Press secretary, Cabinet Communications
867-335-2419
[email protected]
Kate Erwin
Communications, Energy, Mines and Resources
867-667-3183
[email protected]