Yukon-B.C. Electrical Grid Project Excluded from Major Initiatives

A significant electrical transmission project connecting the Yukon to the North American power grid via British Columbia was not included in the first round of major infrastructure initiatives announced by Prime Minister Mark Carney during a press conference in Edmonton on September 11, 2023. The proposed 765-kilometre, 200-kilovolt line, which aims to expand energy access in the region, was overlooked in favor of projects such as LNG Canada Phase 2 in Kitimat, the Darlington New Nuclear Project in Ontario, and the McIlvenna Bay Foran Copper Mine in Saskatchewan.

Carney stated that further announcements regarding major projects will be made by the Grey Cup in November 2023. He emphasized the government’s commitment to advancing initiatives that connect regional economies and enhance Canada’s global economic standing.

The newly formed Major Projects Office (MPO) has also been tasked with evaluating a proposed Northwest Critical Conservation Corridor. This initiative includes the aforementioned mine in British Columbia and aims to facilitate critical minerals development and clean power transmission, potentially linking to Alberta and the Yukon. According to Carney, “This is an initiative that presents multiple opportunities for critical minerals development and clean power transmission.”

With an estimated economic impact exceeding $60 billion and the creation of tens of thousands of jobs, the projects highlighted by Carney underline the government’s ambition to foster economic growth. The MPO will serve as a centralized entity to expedite the construction of what Carney described as “nation-building projects.”

One of the appointees to the Indigenous Advisory Council, which will guide the MPO, is Kluane Adamek from the Kluane First Nation. Although Adamek was unavailable for comment, her inclusion signifies the government’s intention to incorporate Indigenous perspectives in these significant developments.

Recent media reports indicate that the Yukon-B.C. grid connect project is among 32 candidates identified in a draft list of major projects that may receive expedited approval. This list, obtained by a local outlet, suggests a focus on various energy projects and mines based on submissions from provincial leaders. Yukon MP Brendan Hanley, who serves as parliamentary secretary to Northern and Arctic Affairs Minister Rebecca Chartrand, expressed cautious optimism regarding the project’s inclusion, noting the draft’s unofficial status.

Hanley stated, “It is very encouraging to see the grid-connect project included on the list. That said — I understand this is a leak of a draft, and the national interest projects list has not been published.” Both Yukon Premier Mike Pemberton and his predecessor, Ranj Pillai, have advocated for federal recognition of the grid connection as a project of national importance.

Commenting on the draft list, the Yukon government highlighted the potential benefits of advancing nationally significant projects. “We see great potential in the advancing projects of national significance and remain optimistic that the Yukon-B.C. grid connection project will be selected,” a spokesperson stated. They emphasized the project’s role in supporting clean energy development and enhancing energy security for Yukoners.

Support for the grid connection project extends to British Columbia, where Premier David Eby has expressed backing. The federal government has already allocated $40 million for feasibility and design work related to this initiative. In May, Pillai and Eby signed a memorandum of understanding to guide the project planning process.

The estimated cost of the grid connection project exceeds $2 billion, with plans for it to traverse multiple First Nations territories in northern British Columbia. Pillai underscored the project’s importance for Arctic and northern sovereignty, asserting that it would bolster the Yukon’s economy while benefiting northern British Columbia as well.

The introduction of Bill C5, which passed Parliament in June 2023, allows the federal government to designate projects for expedited approval. This legislation aims to streamline the approval process for “nation-building projects,” reducing barriers to internal trade and labor mobility.

The MPO, established in late August and based in Calgary, will collaborate with the Northern Projects Management Office in the Yukon. According to Privy Council Office spokesperson Pierre Cuguen, both offices will oversee major project reviews, particularly those deemed in the national interest, while exploring financing options that do not rely solely on federal spending.

Cuguen confirmed that the objective is to implement a “one project, one review” approach, streamlining the environmental assessment processes. The Yukon Environmental and Socio-economic Assessment Board will continue to inform decisions made by both territorial and federal governments regarding projects in the North.

As developments unfold, the future of the Yukon-B.C. electrical grid connection project remains uncertain, but its potential implications for energy security and economic growth in the region are significant.