Dawson Diesel Replacement & Relocation Project

2025 update

In the short term, we plan to have 6.5 megawatts of diesel generation installed at the Callison substation near Dawson.

In future years, we expect more diesel generation at the substation as demand for power in Dawson City continues to grow, more sources of wind and solar power come online, and we continue to move diesel generators from downtown to Callison. To prepare for that, we assessed the potential long-term effects of 15.5 megawatts of diesel generation at the Callison substation.

In November of 2024, the Yukon Environmental and Socio-economic Board’s Executive Committee recommended to the Decision Body, the Government of Yukon, that the project proceed. In January of 2025, the Government of Yukon agreed with the Executive Committee’s recommendation and allowed the project to proceed without terms and conditions. An air emissions permit was issued on January 24, 2025. 

The full YESAB project proposal is available here.

 why do we still need diesel in Dawson City?

1. Demand for electricity in Dawson City is growing

As the second-fastest-growing community in the Yukon, the addition of people, homes and community infrastructure are all contributing factors to an increasing demand for electricity. This, coupled with the switch from propane and heating oil to electricity for heating and transportation, means we expect to see demand for electricity in Dawson City double in the next five years.

2. Diesel helps to ensure Dawsonites have the electricity they need, when they need it

 why Callison? 

Installing the new engines at Yukon Energy’s Callison substation offers several benefits to the Dawson City community:

• Moves about half of the diesel power generated in Dawson City out of a residential neighbourhood and into an industrial subdivision
• Reduces noise and air emissions from the diesel engines in the downtown core
• Shortens the duration of power outages for customers south of downtown – including the C4, Dome, Callison, Dredge Pond and Henderson subdivisions 
• The site has the space needed to accommodate the future relocation of the four diesel engines that will remain downtown after this project.

what’s the future of diesel in downtown Dawson?

Our goal is to eventually move all of the diesel engines out of downtown to our substation in the Callison industrial area. However, they will stay downtown for the foreseeable future. The timing will depend on when the engines reach the end of their life and when it becomes cost-effective to move them. 

what we heard

During our last round of engagement, the majority of Dawsonites we talked to were eager for us to move the diesel generators from downtown to our substation in Callison. We also heard that diesel was an important back-up source of electricity for the community and provided peace-of-mind that Dawsonites would receive the electricity they need, when they need it.

more information

• Site Design Considerations