Yukon’s $3.2B power line plan aims to connect to B.C.’s grid, but critics warn of soaring costs, uncertain supply, and rising electricity rates.
Massive Grid Plan Raises Questions in Yukon
A high-stakes proposal to link Yukon’s power grid with British Columbia’s has triggered national debate, with engineering experts, energy analysts, and policymakers weighing its feasibility, cost, and necessity.
Governments Back Study With Federal Funds
In late May, Yukon and British Columbia signed a memorandum to explore building a 765-kilometre transmission line connecting Yukon to the North American power grid. Ottawa is contributing $40 million for a feasibility study. Premier Ranj Pillai has framed the proposal as a “nation-building” project, echoing Prime Minister Mark Carney’s call for bold infrastructure investments.
Estimated Costs Far Exceed Early Projections
While a 2016 report estimated the cost at $1.7 billion, Whitehorse engineer John Maissan now warns that using industry-specific inflation indices like the Handy Whitman Index suggests a price exceeding $3.2 billion. “Unless Ottawa covers the full cost, Yukoners may face sharp rate hikes,” he cautioned.
Critics Question B.C.’s Ability to Supply Power
Proponents say the intertie would tap into B.C. Hydro’s clean energy. But Maissan and other observers note that B.C. may not have surplus electricity to sell, as it prioritizes sales to high-rate markets like California and meets its own growing energy demands—including powering critical mineral mines and phasing out fossil-fuel plants.
Mining Industry Push Linked to Power Plan
The project’s justification appears intertwined with Yukon’s mining ambitions. The proposed Casino mine, which would require 200 MW—far beyond Yukon’s current 148 MW capacity—has publicly supported the grid tie. Pillai, however, insists the intertie isn’t tailored for any one project. Still, the feasibility study is funded through a federal program aimed at supporting critical mineral development.
Environmental Review and Project Timelines Loom
Despite the enthusiasm, major hurdles remain. The Casino mine is still undergoing the territory’s most rigorous regulatory process. Its environmental submission is expected this July, meaning actual construction and power demands are years away.
Alternatives Offer Lower-Cost, Local Solutions
Maissan and other critics suggest Yukon explore more scalable and immediate options, like wind farms paired with grid-scale batteries or reviving the shelved Atlin hydro expansion. Rosa Brown of the Pembina Institute acknowledged that the project aligns with federal themes like “energy security,” but stressed smaller, decentralized solutions could better serve Yukon’s needs long-term.
Conclusion
As Yukon positions itself for a future rooted in clean energy and critical minerals, its grid ambitions face scrutiny over costs, supply reliability, and economic fairness. The path forward will depend not just on technical feasibility, but also on public trust and financial prudence.
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