Dawson Diesel Replacement & Relocation Project

2023 update

We are still moving ahead with this project, which involves replacing two end-of-life diesel engines at our downtown plant with one new engine in the Callison Industrial Area. At the same time, we’re also planning to add a second diesel generator at the Callison substation to prevent prolonged outages during emergencies. In the short term, we plan to have 6.5 megawatts of diesel generation installed at Callison.

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 will be assessing the potential long-term effects of 15.5 megawatts of diesel generation at the Callison substation this year.

Get involved

This project will go through an Executive Committee screening under the Yukon Environmental and Socio-economic Assessment Act. This means that before we submit our project proposal, you will have the opportunity to provide input through the Yukon Environmental and Socio-economic Assessment Board’s Pre-submission Engagement process. The feedback received during this process will help to identify issues of concern, define values and ultimately inform our project proposal.

To get involved in this process, please visit YESAB's online registry and look for Yukon Energy’s Callison Electricity Generation Project.

 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.

  1. Diesel helps to ensure Dawsonites have the electricity they need, when they need it
Diesel ensures Yukoners have reliable electricity service during winter peaks, emergencies and whenever renewable resources aren’t available. The local diesel engines also help us keep the lights on in Dawson City during maintenance outages taking place elsewhere in the system, and in case of trouble on the transmission line that connects the community to hydro power on the grid. Finally, additional diesel generation will help to provide firm back-up power as more wind and solar projects are added in and around Dawson.

 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?

Four diesel engines will remain at our downtown diesel plant after this project is done. Our goal is to eventually move all of the diesel engines out of downtown and into our substation in the Callison industrial area.

When exactly? We can’t say for sure. The timing of that move will depend on when those engines reach the end of their life and when it becomes cost-effective to move them. Moving all the units out to Callison right now would cost too much and put upward pressure on electricity rates – something that we also want to avoid.

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

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