On average, Yukon Energy meets over 90% of the Yukon's electricity needs each year with clean, renewable power because of our large supply of hydroelectricity. However, hydroelectricity supply tends to be less available in winter, when demand is at its highest.
Population growth, along with the increasing use of electricity as a cleaner alternative to fossil fuels for heating and transportation, is driving up power demand in the Yukon. Between 2017 and 2023, the peak demand for electricity increased by 24% and this trend is expected to continue with an additional 40% increase in non-industrial peak by 2030. The way Yukoners are using electricity is also changing, as more Yukoners generate their own electricity through Yukon government’s Micro-Generation Program and Independent Power Production Policy.
The Yukon government’s climate change strategy Our Clean Future sets a target for 93% of electricity generated on the Yukon’s main grid to be renewable by 2030. Achieving this, while also ensuring an adequate supply of reliable and sustainable electricity now and in the future, requires a clear focus on:
In 2019, Yukon Energy completed its 10-Year Renewable Electricity Plan. Through this work we learned many valuable lessons, including that large-scale renewable projects require strong partnerships with First Nations to be successful. We also know that government funding is necessary for these projects to keep electricity rates affordable for Yukoners.
As we look to the future, we are working to advance our grid-scale battery in Whitehorse, upgrade our hydro generating stations, launch the next version of our demand side management program, Peak Smart Home, and replace end-of-life thermal generation. These projects will help to address growing demand, but we know that additional resources are still needed in the short- and long-term.
Great opportunities exist for Yukon Energy to partner with First Nation governments and development corporations, and other levels of government to build the sustainable energy future that Yukoners need. First Nations' involvement in the energy sector provides opportunities for meaningful economic development while ensuring projects are built with respect for environmental stewardship.
Building new generation resources takes time to plan, design, and build. We recognize that some generation resources we need to fill the winter gap can be built more quickly than others. For now, we continue to rent diesel generators each winter to meet peak demands for power during emergencies until new projects can be completed. This is why we are taking a two-step approach to our next phase of energy planning in the Yukon.
Actions over the next five years will ensure we have a robust and reliable electricity system, regardless of the season. Our short-term actions, focused on infrastructure renewal, increasing winter capacity, and ensuring a resilient transmission and distribution system, are essential to meet our future climate targets. We need a strong foundation to set us up for a modern, adaptable grid that can safely integrate the next generation of renewables. These detailed actions will be released in early 2025 after the approval of Yukon Energy’s 5-year capital plan.
Through the development of our strategic plan and an integrated resource plan, we will establish and articulate our long-term strategic vision as we work to build a clean, resilient electricity grid. These documents will provide a framework for us to deliver reliable and sustainable electricity to Yukoners for the next twenty-five years. Ultimately, the work we are undertaking will chart a path to net-zero, as we explore options for the next set of large-scale renewable energy projects and emerging technologies needed to support future growth and achieve our long-term clean energy goals.
As these planning processes unfold, we will provide updates and opportunities to learn more about our journey ahead.