Yukon Energy is planning to build two new thermal power centres, associated infrastructure like power lines, and one new substation in the Whitehorse area to meet the territory’s electricity needs.
Updated January 29, 2026
Demands for electricity in the Yukon are increasing faster than firm sources of renewable electricity can be built. The Yukon’s population is growing and, with it, the demand for electricity. As Yukoners continue to transition away from fossil fuels for heating and transportation, that demand will only rise.
In the next five years, Yukon Energy will focus on increasing the supply of dependable winter power to meet growing demands and build a stronger, more resilient power system. To do this, we know that thermal capacity, like diesel or LNG, new substations and more transmission and distribution assets are required to meet the needs of Yukoners. While it might seem counterintuitive, thermal resources will play a crucial role in providing the stability needed to safely integrate more community solar and wind resources to the Yukon grid.
On our path to 2050, we want the flexibility to be able to respond to our electricity needs and integrate emerging technologies as they become available. If we reach a point where these thermal assets are no longer required, we will be able to sell or move some of them.
The new Whitehorse Power Centres will serve three main purposes:
Increase the size of the Yukon’s electricity system and provide additional sources of dependable capacity that Yukoners can rely on during the winter to keep homes warm and lights lit on the coldest of days, in drought years, and when intermittent renewable resources are not available.
Reduce Yukon Energy’s reliance on rental diesels in the long-term. Renting diesel units each winter, while cost-effective over a short period of time, comes with risks such as limited supply chain, lower reliability, and reliance on an external contractor for maintenance. The capacity installed at these new power centres will account for the capacity that rental diesels provide us each winter, plus additional capacity needed to address growing demands for power.
Provide the substation and transmission infrastructure needed to support the increased power Yukon Energy is expecting in each of these regions, and the potential for additional batteries to enhance grid stability and flexibility as more intermittent renewable resources are added to the grid.
Yukon Energy will build two new diesel power centres and one new substation in the Whitehorse area to meet electricity needs until 2040. The project will also include upgrades to the electricity system needed to connect the new power centres to the Yukon grid, as well as needed to modernize the grid with new automated technologies in the future. These upgrades will also help to reduce the likelihood of power outages in the Whitehorse area and help to restore them more quickly when they do happen. A third site is no longer being contemplated due to feedback received during the first round of engagement. Most of the feedback received indicated that people did not want the generation sites near residential neighbourhoods because of potential air and noise impacts. All of the sites now being contemplated are at least one kilometre away from nearby homes or businesses. Read more about site selection below.
This work will be carried out in phases, starting with the YESAB assessment process in 2025. Our load forecasts show that we will need 15 megawatts of electricity to meet demand in winter 2027–28. Either the north or south power centre will be built first, to meet this goal.
| Completion phase | Description | Expected in-service date |
|---|---|---|
| First Power Centre Build |
|
Winter 2027 |
| Second Power Centre Build |
|
Winter 2030 |
| Expand Power Centres |
|
Winter 2035 |
Yukon Energy has completed a detailed evaluation of potential sites for the Whitehorse Power Centres project and has short-listed the following locations, listed in no particular order:
Yellow markers indicates proposed north sites. Green markers indicate proposed south sites. Blue indicates proposed substation site.
| Owner | Government of Yukon |
|---|---|
| Current Use | Undeveloped (Greenfield site) |
| Location Notes |
|
| Distance to nearest residence | ~1,400 m |



| Owner | Government of Yukon |
|---|---|
| Current Use | Undeveloped (Greenfield site) |
| Location Notes |
|
| Distance to nearest residence | ~2,400 m |



| Owner | Ta’an Kwäch’än Council |
|---|---|
| Current Use | Abandoned gravel pit |
| Location Notes |
|
| Distance to nearest residence | ~2,000 m |



| Owner | Government of Yukon |
|---|---|
| Current Use | Undeveloped (Greenfield site) |
| Location Notes |
|
| Distance to nearest residence | ~2,000 m |


| Owner | Government of Yukon |
|---|---|
| Current Use | Beside abandoned sewage lagoon |
| Location Notes |
|


While no site is without challenges, the short-listed locations ranked highest based on engineering, social, environmental, and regulatory factors outlined below.
Identifying potential locations for the project began in early 2024. A total of 22 sites were identified through discussions with the Kwanlin Dün First Nation, Ta’an Kwäch’än Council, City of Whitehorse and Government of Yukon. This list of 22 sites was then narrowed down to 12 generation sites, which were included in Yukon Energy’s Project Description to YESAB. The sites were then narrowed down even further, to the list of five sites mentioned above.
Each site was assessed against multiple technical, environmental, social, and logistical factors, including (listed in no particular order):
In addition to engaging with the Kwanlin Dün First Nation, Ta’an Kwäch’än Council, Government of Yukon, and City of Whitehorse, we also met with multiple stakeholder groups and engaged with the public through the web, email, and in-person. A What We Heard report from the first phase of engagement can be found in the 'related downloads' section below. A full What We Heard report will be included in our Project Proposal to YESAB.
We are aware of concerns raised about what this project will mean for noise levels and air quality in nearby areas. The diesel generators used for this project will be newer, quieter and more efficient, than Yukon Energy’s older generators at the dam in Whitehorse.
We are currently conducting a second round of engagement. You can learn more about the shortlisted sites, ask questions and share your feedback at an open house:
Online – Link to be provided 24 hours before the open house here.
Watch the webinar below to learn about the project's background and why it is needed.
Online – Link to be provided 24 hours before the open house here.