Yukon Premier Ranj Pillai, left, and B.C. Premier David Eby signed a memorandum of understanding in May to pursue construction of a line connecting Yukon to the North American power grid.Crystal Schick/The Canadian Press
Canada’s renewed push for Arctic sovereignty and energy security puts a $2-billion-plus proposal to link Yukon’s electricity grid to British Columbia’s in the realm of nation-building projects, the head of the territory’s development corporation says.
Yukon Premier Ranj Pillai and B.C. Premier David Eby last month signed a memorandum of understanding to pursue construction of about 1,000 kilometres of high-voltage line that would allow electricity to flow in both directions as needed. It would connect Yukon to the North American grid for the first time.
The project, led by Yukon Development Corp., the Crown corporation responsible for Yukon Energy Corp., ticks a lot of boxes in the quest to deal with Canada’s current geopolitical and trade problems, said Gary Gazankas, YDC’s chief executive officer.
That includes building up the resilience of the country’s electricity network, powering future critical minerals mines, providing clean power to remote northern communities and offering Indigenous peoples equity stakes, he said in an interview last week.
These are all attributes of nation-building projects that Prime Minister Mark Carney has said Canada requires to buttress the national economy, Mr. Gazankas said. “We’re definitely putting our best foot forward to be able to define this as one of those projects of national interest.”
On Friday, the federal government unveiled legislation to remove internal trade barriers between provinces and create an office that would streamline approvals for “nation-building” projects ranging from energy and transport infrastructure to nuclear power plants.
The proposed One Canada Economy Act sets out criteria to declare a “major project” in Canada’s national interest, including the likelihood of a proposal’s completion, and whether it strengthens economic resiliency, advances the interests of Indigenous people and meets climate change objectives.
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The Yukon-B.C. grid connection project is not a quick proposition. The agency is currently studying technical feasibility, costs and funding options while exploring partnerships with First Nations, industry players and other governments.
Based on current expectations, it could be eight years before electricity flows.
“But when you look at any other major infrastructure project in Canada that they would potentially be looking at, whether that’s gas pipelines or significant wind projects, I think those are in the realm of longer-term, but nation building,” Mr. Gazankas said.
“The quick win is really getting these projects going and the ability to work with First Nations in terms of partnership opportunities, ownership opportunities.”
Earlier this year, Ottawa awarded the project $40-million over five years from its Critical Minerals Infrastructure Fund. YDC, meanwhile, has contributed $13-million.
Like all of Northern Canada, many Yukon communities are reliant on fossil fuels for base-load electricity generation and are seeking to strengthen resilience by adding renewable power.
Demand for heating surges in the frigid winter, while hydro power dwindles. Meanwhile, population growth and the prospect of new mines mean more draw on the system, and imports would be highly beneficial, said Mr. Gazankas, who previously held senior positions at Brookfield Renewable Partners and Northwest Territories Power Corp.
In the summer, Yukon has a surplus of renewable energy, which means it could be net exporter, he said: “There’s always a need for the [diesel-power] backup, but the reliance on running it daily in the winter when it’s minus-30 C to minus-40 C, that goes away.”
It is not the only major power connection under consideration between north and south. Manitoba Premier Wab Kinew has proposed construction of a 1,200-kilometre transmission line to send 50 megawatts of hydro power to the Kivalliq region of Nunavut.
The Yukon-B.C. project could involve a transmission line that matches the 500-kilovolt system that B.C. Hydro operates, though many of the technical details have yet to be worked out, Mr. Gazankas said.
Peter Lonergan, spokesperson for B.C.’s department of energy and climate solutions, said in a statement that the agreement with Yukon reaffirms the province’s comment to clean energy development, regional infrastructure planning and Indigenous collaboration.
Mr. Gazankas said equity participation by First Nations will be key to the development.
“We’re having initial conversations,” he said. “We haven’t made any decisions because we want them here and now in a true partnership, and relationship environment.”