YUKON S ENERGY CONTEXT

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YUKON S ENERGY CONTEXT An overview of the territory s energy supply and demand, both renewable and non-renewable, for electricity, heating and transportation in the residential and commercial sectors.

ELECTRICITY is home to just over 38 thousand people, 77 per cent of which live in or near to the City of. The remaining 23 per cent live in or near to s 17 towns, villages and unincorporated communities. All but one of these communities are connected to each other and to the rest of North America by road. All but five of these communities are connected to each other by an electrical transmission network, called the Integrated System (YIS) but known as the grid. See Figure 1 which shows s transmission and generation facilities. The grid is not connected to the rest of North America. Close to 94 per cent of s electricity is generated by four hydro plants and with one wind turbine. The remaining 6 per cent is generated by diesel and liquefied natural gas (LNG) to provide seasonal peaking capacity and backup. The renewable power plants and their capacities are shown in Table 1. Cover photos: wood chips used as biomass fuel for the Raven Recycling Centre s waste wood boiler and a pickup truck converted from gas to electricity pilot project. Photo credit: Government of. Government of 2017 1

s Transmission and Generation Facilities 2014 Old Crow GENERATING STATIONS YEC Diesel YEC Hydro YEC Wind YEC LNG ATCO Diesel ATCO Hydro Taku River Tlingit First Nation Hydro Minto Mine Diesel TRANSMISSION AND DISTRIBUTION LINES 138 kv 66/69 kv 34 kv 2 kv 14.4 kv YEC SYSTEM (in MW) Hydro Facilities 40.0 Aishihik 37.0 Mayo 1.1 Total 92.1 Wind Facilities Haeckel Hill 0.6 LNG Facilities 8.8 Diesel Facilities 1.0 Faro 8. Dawson.1 Mayo 2. Total 31.1 TOTAL YEC SYSTEM 132.6 Plant Name Location Owner Aishihik Hydro Aishihik Lake Energy Mayo Hydro Mayo Energy Rapids Hydro Energy Fish Lake Hydro ATCO Electric Haeckel Hill Wind Energy Capacity in Megawatts (MW) TOTAL RENEWABLE CAPACITY 93.9 TABLE 1: s Renewable Electrical Generation Plants. 37 1 40 1.3 0.6 ATCO SYSTEM (in MW) Dawson City Beaver Creek Minto Mine Burwash Landing Carmacks Elsa Keno Mayo Stewart Crossing Pelly Crossing Faro Ross River FIGURE 1: s communities, roads, electrical generation facilities and transmission lines. Map courtesy of Energy. Hydro Facilities Fish Lake 1.3 Diesel Facilities Carmacks 1. Haines Junction 1. Teslin 1. Ross River 1.0 Watson Lake.0 Beaver Creek 0.9 Destruction Bay 0.9 Old Crow 0.7 Pelly Crossing 1.2 Stewart Crossing 0.1 Swift River 0.3 Total 14.6 TOTAL ATCO SYSTEM 1.9 The five communities not connected to the grid are served by four micro-grids that are powered 100 per cent by diesel generators. Those plants and their capacity are shown in Table 2. Communities Served Generation Location Owner Beaver Creek Beaver Creek ATCO Electric Burwash Landing & Destruction Bay Destruction Bay ATCO Electric Watson Lake Watson Lake ATCO Electric Old Crow Old Crow ATCO Electric Capacity in Megawatts (MW) TOTAL MICRO-GRID CAPACITY (DIESEL) 7. 0.9 0.9 0.7 Destruction Bay Haines Junction Aishihik Haeckel Hill Fish Lake Marsh Lake Carcross Jake s Tagish Corner Johnson s Crossing Teslin Swift River Watson Lake Other Diesel Minto Mine 8.0 TOTAL YUKON CAPACITY 16.6 MW TABLE 2: s Micro-grid plants. 2 Atlin 3

FIGURE 2: s electrical demand from 1990 to 2016. Electrical Generation in (GWh) The total electrical generation for from 2010 to 2016 has averaged about 436 GWh per year. In 201 total generation was 428 Gigawatt hours (GWh), or 1,40,800 Gigajoules (GJ). By far, most (94 per cent) of that generation was renewable. Figure 2 shows a brief history of s electrical demand from 1990 to 201 broken down by thermal (diesel and LNG) and non-thermal (hydro and wind) generation along with milestones for major events that may have impacted the demand. Combination of heavy precipitation and unusually warm winter. Faro Mine re-opens. Faro Mine closes. Bonus 20 kw wind turbine installed. Extremely cold winter. Faro Mine closes in March and re-opens in Nov. Faro Mine final closure. OIC disallows YEC s use of the last two feet of its licensed draw down on the Asihihik reservoir. Vestus 660 kw wind turbine installed. Energy Solutions Centre is established in the fall. YEC secondary sales begin. Improvements begin, rewinding electrical generator at Aishihik facility Improvements at Aishihik facility completed, capacity increased from 30 to 31.4 MW. Transmission line from Mayo hydro facility to Dawson City completed in late summer. International wind conference held. First full year of service for the Mayo to Dawson City transmission line. Hot dry summer with forest fire in Dawson City area results in lines being de-energized and diesels used for 16 days to power Dawson City. Fish Lake hydro out of service in June. YEC secondary sales discontinued in Sept. Alexco becomes industrial customer in Nov North and South grids connected. Third turbine (7 MW) installed at Aishihik facility. Mayo B completed. Minto and Alexco mines are on the system for a full 12 months. Government Micro-generation policy issued Oct. YEC LNG plant operationalized in June. Population and Heating Degree Days Heating Degree Days Year $/Watt (W) Installed 2014 $.0 201 $4.7 2016 $3.0 2017 $3.00 TABLE 3: Average cost for installing solar electric system in. An increasing number of residents are choosing to generate some of their own electricity with micro-generation systems and feed it into their local grid. As of July 2017, had 106 micro-generators connected to a utility grid with a total capacity of 72 kw, generating approximately 0.8 GWh per year. This number is growing rapidly thanks to the Government of s Micro-generation Policy and production incentive. The 2013 Micro-generation Policy and its resulting production incentive program provides the opportunity for residential and commercial electricity customers to generate electricity from renewable energy sources and sell surplus electricity to the grid. Producers also minimize their electricity consumption in order to maximize the amount of electricity they export to the grid. The scope of the Micro-generation program extends to small-scale (less than 0 kilowatt (kw)) alternative energy systems in both grid-tied and off-grid communities. The program applies to customers in residential, general service, and industrial classes who want to generate electricity primarily for their own consumption. The production incentive is $0.21 per kilowatt hour (kwh) on the grid and $0.30 per kwh on s four diesel-powered micro-grids. Figure 3 shows the number of micro-generation systems and their capacity for all communities in pre-program and for each year since the program began. All of the micro-generation systems accounted for in Figure 3 are solar electric systems. s solar resource is predictable, reliable and becoming increasingly economical, with costs falling each year as shown in Table 3. The government s Energy Branch has estimated the average installation cost for solar electric systems based on Micro-generation program participant data. Accumulated # of systems FIGURE 3: Micro-generation system installations in. 80 70 60 0 40 30 20 10 0 Pre-program Number of Systems Accumulated peak generating capacity Year 1 (2014 201) Year 2 (201 2016) Year 3 (2016 2017) 00 40 400 30 300 20 200 10 100 0 0 Peak Capacity [kwp] 4

HEATING Solar electric system data from Micro-generation program participants systems located near show that on average, energy production rapidly increases during the spring and peaks between April and June. Energy production then gradually tapers off into the winter with only marginal production during December and January. s wind resource, though less predictable than its solar resource, is becoming better understood and has the advantage over solar of being available during the winter and at other times when the solar resource is weak. Winds in are strongest on mountain ridges and in the winter when demand for energy in is greatest. It is most suitable for development on a commercial scale due to the resource being weaker in valleys (where most people live) and due to the higher installation and maintenance costs compared to solar electric systems. There are likely less than five wind micro-generating systems in and only one commercial-scale wind development. Interest in developing commercial scale wind farms is high and growth is expected once the government s Independent Power Production policy is fully implemented. The government would like to encourage more wood heating in and released its Biomass Energy Strategy in February 2016. The strategy aims to reduce s dependence on fossil fuels, reduce heating costs for ers, reduce greenhouse gas emissions, create new jobs in the local forest and heating industries, and move the territory towards sustainable renewable energy use and greater energy self-sufficiency. In 2009, the majority (approximately 6 per cent) of space heating in buildings was provided by oil, 9. per cent by propane, 17. per cent by wood and 8 per cent by electricity. However, on the Old Crow FIGURE 4: Existing and Proposed Biomass Projects Integrated System, there is a trend to switching from oil to electricity. This trend started in the commercial sector, particularly in new construction, but is now extending to the residential sector for a number of reasons: insurance companies have implemented new rules and are requiring replacements of oil tanks which are considered cumbersome enough to make the switch to an electric heating system more convenient; owners of rental units or social housing appreciate the reduced maintenance and increased safety of electric heating systems; and small, super-insulated homes require much less heat, making it difficult to find fossil fuel heating systems small enough to operate efficiently within them. In s diesel-powered communities, the utilities are discouraging the use of electric space heating due to the high costs of providing electricity on those micro-grids. In 201 s total energy used for space heating was approximately 2 million GJ, with 2 per cent of that being provided by renewable sources. All communities lie within the boreal forest, giving ers access to cordwood for space heating. Approximately 1 to 2 per cent of homes are heated with wood as either a primary or backup heat source. Most of the wood is from although an increasing number of homes are heated with wood pellets imported from British Columbia. currently harvests 13,000 cords (30,000 m 3 ) of wood per year to heat homes and buildings in the territory. Approximately 7 per cent of this wood is burned in. Forest harvesting is well below the regulated allowable harvest level established for each region, suggesting a growth of s forest industry is feasible. Four biomass projects with a combined nameplate capacity of over 2 MW are currently installed and operational. A further 2.8 MW and.04 Megawatt electric (MWe) are planned for installation in the near future. Table 4 lists the currently installed systems and their heating capacities. Figure 4 shows where the current and planned systems are or are planned to be installed. Existing Project (as of May 2017) Proposed Project (as of May 2017) 1 Dawson City Elsa Keno Mayo Stewart Crossing PROJECT LIST 1 2 3 4 Dawson Sewage Treatment Facility (~720kW h name plate capacity, locally produced chips) Correctional Facility (~90kW h name plate capacity, pellets) Raven Recycling Waste Wood Boiler (~100kW h mix of locally produced and imported chips) College Volter Pilot (~40kW e and 100 kw h, locally sourced chips) Burwash Landing District Heating System (~90kW h locally sourced cordwood) Facility Name Feedstock Heating Capacity (MW) Kluane First Nation District Heating Cord Wood (Outdoor wood boiler) 0.9 Raven Recycling Waste Wood (Pallets) 0.1 Dawson City Water Treatment Plant Wood Chips 0.72 Correctional Centre Wood Pellets 0.9 TOTAL 2.36 Beaver Creek Destruction Bay Minto Mine Burwash Landing Carmacks Aishihik Pelly Crossing Faro Ross River 6 7 8 Teslin District Heating System (~1,000 1,400kW h locally sourced chips) Haines Junction District Heating System (~400kW h locally produced chips) Watson Lake District Heating System (no information currently available) 6 TABLE 4: Commercial-scale biomass heating systems in. Haines Junction 7 2 4 3 Carcross Johnson s Crossing Jake s Tagish Corner 6 8 Teslin Swift River Watson Lake 7

TRANSPORTATION GREENHOUSE GASES The City of operates s only public transit system. There is no inter-community public transit service. Electric vehicles are new to, with less than one per cent of s fleet being comprised of electric vehicles. No public charging infrastructure is in place at this time. In 201, s total energy used for transportation was,184,73 GJ. In 201, 60 kilotonnes of carbon dioxide equivalent (CO 2e ) emissions were produced by ers using energy. By far the largest amount of that came from the transportation sector (373. kilotonnes, 7 per cent), followed by heating (103.8 kilotonnes, 21 per cent), then just 19.3 kilotonnes, or four per cent by the s electrical sector. (See Figure 6.) The government has begun working on a new strategy for that addresses the relationship between energy, economy and climate change for all of. This work is being undertaken in partnership with First Nations, communities, businesses, and other stakeholders and ers. FIGURE 6: s 201 Greenhouse Gas Emissions for residential and commercial sectors. 4% 21% 7% TOTAL ENERGY USE Electricity Heating Transportation FIGURE : Total energy consumption for transportation, space heating and electricity in 201 for the residential and commercial sectors (GJ). 9,000,000 7,000,000,000,000 3,000,000 ers total energy use for transportation, heating and electricity in the residential and commercial sectors in 201 was approximately 8,727,609 GJ per year: 9 per cent of that was used by the transportation sector, 23 per cent by the heating sector and 18 per cent by the electrical sector. With approximately 2 per cent of the heating energy, 94 per cent of the electrical energy and close to none of the transportation energy being provided by renewable resources, about 22 per cent of the total energy used was provided by renewable energy sources (see Figure ). 1,000,000 Transportation Heating Electricity Total Non renewable content (GJ) Renewable content (GJ) 8 9

Energy Branch Department of Energy, Mines and Resources Government of Mailing address: P.O. Box 2703, (Canada) Y1A 2C6 Phone: 867-393-7063 E-mail: energy@gov.yk.ca Location: 206A Lowe St. - first floor