A proposed high-voltage transmission line connecting the Yukon to the North American power grid could unlock billions in economic growth, create thousands of jobs and dramatically reduce greenhouse gas emissions, according to a new report from the Yukon Development Corporation (YDC).
The $4-billion project, still in early planning, would link the Yukon’s isolated energy system to the Western continental grid at Bob Quinn Lake, B.C.
If built, the Yukon-B.C. grid connect could generate up to $7.6 billion annually in long-term economic benefits, support 36,000 jobs over 50 years and help replace nearly five million litres of diesel fuel each year in six northern communities, according to the report.
The Yukon currently operates on a stand-alone power system, relying mostly on hydroelectricity, diesel generators and liquefied natural gas. The proposed 765-kilometre transmission line would be the territory’s first connection to the broader North American grid, improving energy reliability.
The project took a step forward on May 23, when former Yukon premier Ranj Pillai and B.C. premier David Eby signed a memorandum of understanding to guide early-stage planning.
According to YDC’s report released Oct. 1, the transmission line could unlock 2,000 megawatts of renewable energy potential, enough to generate $2 billion in annual clean electricity revenue. It could also support electrification of homes and vehicles, helping stabilize electricity supply and make clean energy more accessible in remote communities.
Mineral-rich regions in the Yukon and B.C. could unlock an estimated $181.2 billion in growth to the mining sector, especially for deposits considered critical to Canada’s technology, defence and clean energy sectors. The report estimates the project could displace up to nine million tonnes of greenhouse gas emissions annually, roughly 1.3 per cent of Canada’s total emissions.
Increased energy capacity in the Yukon could attract major investment in the mining sector and reduce reliance on diesel, the report says.
The transmission line would cross First Nations lands and YDC says reconciliation is a guiding principle in its planning. The report highlights opportunities for Indigenous ownership and leadership in energy development, describing the project as a “nation-building” initiative.
YDC has begun energy planning discussions with Yukon First Nations, aiming to move the Yukon-B.C. grid connect project forward together. A connected grid could reduce investment risk and support Indigenous-led renewable energy projects.
Beyond energy, the Yukon-B.C. grid connect project could pave investment in roads, telecommunications and industrial facilities. The report cites $200 million in upgrades to transportation networks across northern B.C. and the Yukon as a potential benefit.
Reliable electricity is also a key part of Canada’s northern defence strategy. The report cites the Assembly of First Nations and defence experts as supporting energy infrastructure upgrades to bolster Arctic sovereignty and critical minerals development.
The project remains in the pre-feasibility stage, backed by $40 million from Canada’s Critical Mineral Infrastructure Fund and $13 million from the YDC Fund.
No final route has been selected, but two options are under review, one connecting Bob Quinn Lake to Ross River via the Robert Campbell Highway and another linking Bob Quinn Lake to Whitehorse via the Alaska Highway.
YDC says planning and construction will take several years and early collaboration between governments, First Nations and utility companies will be essential.
Contact Jake Howarth at [email protected]
