Yukon Energy has released its vision to increase stability and generate capacity on the territory’s electrical grid over the next five years.

The draft of the updated 20-year resource plan includes a new diesel generating plant to serve as an insurance policy in case the Aishihik Hydro Plant goes down when demand is at its peak during the coldest days of winter.

It includes adding a third generator at the LNG plant, building a facility for grid-scale battery storage and increasing water storage in the Southern and Mayo lakes.

Yukon Energy president Andrew Hall explained Thursday the draft resource plan is a living document with the flexibility to adapt if things change, such as not being able to obtain public approval for increasing storage in the Southern Lakes.

The plan does, however, put forward Yukon Energy’s best options of increasing stability and generation in the short-term under a medium-load scenario, he said.

“Right now we are short,” Hall said of the ability to meet peak winter demand without Aishihik.

“That is what the analysis shows us; that is where we are.”

The Yukon Energy president said if the Aishihik plant went down during the coldest winter days, the publicly owned utility might have to resort to rolling blackouts to supply customers, even if it fired up every back-up diesel and natural gas generator.

Yukon Energy has held public meetings and met with First Nations and other stakeholders over the past 18 months to put forward options to beef up the grid.

In addition to increasing dependency on diesel and natural gas, consideration was given to various forms of renewable energy, including solar, wind and geothermal.

The cost of using increased dependency on fossil fuels, additional water storage and upgrading existing hydro plants over the next five years to meet the demands under a medium-load scenario is estimated at $202 million.

Achieving the same increase in reliability and generation using only renewable generation such as wind and solar, the estimated cost is more than three times higher, according to the analysis included in the plan.

Yukon Energy is accepting comments on its draft proposal until March 15. It plans to submit the document for review by the Yukon Utilities Board this spring, at the same time it intends to file an unrelated application for a new rate increase.

Before Yukon Energy moves forward with any of these options, it will need to go before the environmental assessment board and back to the utilities board for the OK to proceed.

The nine short-term initiatives recommended in the draft plan under a medium load scenario are:

• 2018 – Begin additional demand-side management programs to promote further conservation, such as the existing programs promoting LED lighting and the use of timers on vehicle plug-ins. Estimated cost: $17.2 million.

• 2019 – Installing the third, 4.4-megawatt natural gas turbine at the LNG facility. This turbine was reviewed and approved as part of an initial LNG project. Estimated cost: $5.9 million.

• 2020 – Replacing or upgrading parts and equipment at the Aishihik and Whitehorse generating plants to increase efficiency and generation. Estimated cost: $12.6 million.

• 2020 – Expanding water storage in the Southern Lakes. Estimated cost: $15.4 million.

• 2020 – Installing four megawatts of battery storage at the Takhini substation along the Mayo Road.

Hall explained the batteries would be charged using excess water when demand is low and used to help meet demand during the morning and dinnertime peaks.

The Mayo Road site was chosen because Yukon Energy is out of room at the Whitehorse Rapids Dam, as the battery facility will require a lot of space, equivalent to about 20 shipping containers, he said.

Hall added the site is still close enough to the largest load that it makes sense. Estimated cost: $39.1 million.

• 2021 – Installing a diesel plant capable of generating 20 megawatts at the Takhini substation.

Hall explained the decision to go with diesel rather than LNG is linked to the difference in the capital cost between the two. The diesel plant is less expensive to build.

While it’s more expensive to run, it’s not expected to run much at all, given that it’s more of an insurance policy in case there’s a problem with the Aishihik plant or the transmission line connecting Aishihik to the grid, he said. Estimated cost: $62.2 million.

• 2022 – Refurbishing the two old 2.5-megawatt hydro units at the Mayo A hydro facility. Estimated cost: $28.6 million.

• 2022 – Increasing water storage in Mayo Lake. Estimated cost: $20.5 million.

• 2022 – Anticipating contributions to the grid from independent power producers, such as additional wind generation from a Haeckel Hill project are currently being studied.

For the medium-load scenario, the recommended options are based on activity at the Minto Mine ending in 2021 with two other mines operating – one on the grid and one off the grid.

A low industrial scenario contemplates activity at the Minto Mine ending in 2021 with one mine beginning to operate the same year.

The high load scenario contemplates four mines operating – two connected to the grid and two operating off the grid,

Under a high load scenario, the draft plan identifies the additional option of a small, eight megawatt hydro project at Drury Creek in 2023, at an estimated cost of $97.3 million.

The president of Yukon Energy said achieving the recommended level of investment into the grid over the short-term will require financial assistance from government.

In the last 10 years, the Crown corporation has invested $370 million on improvements, such as the expansion of the Mayo B hydro facility.

As well, it has received substantial contributions from the Yukon and federal governments, Hall pointed out.

“We have to start the conversation about how we get those dollars.”

While acceptance of the recommended initiatives will be required before Yukon Energy moves forward with any of them, Hall said, the corporation is actively planning and working on four of the initiatives: enhancement of water storage in the Southern Lakes, the addition of the third turbine at the LNG plant, as well as the addition of battery storage and the 20-megawatt diesel generating plant.

Under existing regulations, Yukon Energy must be able to offset the loss of its largest generating asset when demand is at its peak.

While the Whitehorse Rapids Dam is the largest generating asset in the summer when water flows are abundant, the Aishihik plant is the largest generating asset in the wintertime.

Aishihik Lake is used in the summer to store water for generation in the winter.