HYDRO YEC Background Paper2

Yukon Energy Corporation
Yukon’s Hydroelectric Resources

Yukon Energy Charrette Background Paper
Prepared by: AECOM

Project Number: 60196946
Date: March 2011
Table of Contents
1. Hydropower Background 2 4. Energy Costs 19
1.1 How Hydropower Works 2 4.1 Potential Hydro Projects – Energy Costs 19
1.2 History of Hydro in Yukon 4 4.2 Potential Hydro Projects – Capital Costs 20
4.3 Hydropower Electricity Cost Considerations 21
2. Hydropower Resource Capacity 5
2.1 Current Hydro Facilities in Yukon 5 5. Hydropower – Complimentary Applications 22
2.2 Current Hydro Development 6 5.1 Additional Applications 23
2.2 Current Role of Hydro in Yukon 7
6. Probability to Market 24
3. Energy Potential 8
3.1 Overview of Hydro Potential in Yukon 8 7. Time to Market 25
3.2 Seasonal Considerations 9
3.3 Hydro Potential – Range of Opportunities 10 8. Regulatory Considerations 25
3.4 Hydro Potential – Site Screening 11
3.5 Large Hydro Initial Evaluation 13 9. Environmental Considerations 26
3.6 Annual Average Energy – Small Sites 16 9.1 Hydropower – Sustainability 27
3.7 Annual Average Energy – Large Sites 17
3.8 Hydro Potential – Total Annual Energy 10. Hydropower - Conclusions 28
Potential of Evaluated Hydro Sites 18
11. References 29
Technical Notes 31
Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt
1. Hydropower Background
1.1 How Hydropower Works
Hydroelectricity is the production of electrical power through the use of the gravitational force of falling or flowing water.
(from Yukon Development Corp. 2001)
Hydroelectric generation requires a flow of water and a drop, or “head”. A large drop (high head) with low flow can
generate a similar amount of energy as a small drop (low head) and high flow.
Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 2

Electricity is generated by water spinning a turbine
and generator.
Hydroelectric generation is a relatively simple,

mature technology that is robust. Hydro has been
in use since the late 19th century for electrical
generation.
Hydropower It is the most widely used form of

renewable energy worldwide (REN21 2010).
Hydroelectric generation produces very low
amounts of green house gasses (GHGs) and no
local air or noise pollution.

1.2 History of Hydro in Yukon
Hydropower has played a key role in the Yukon’s history over the last century. Milestones in hydropower
development in the Yukon:
� 1907 to 1920 – The Yukon’s first hydro-plant was the

1.2MW Twelve-Mile River developed to power the dredges
near Dawson City.
� 1911 to 1966 - North Fork Klondike River hydro plant.
� 1950 - the 1.6MW Fish Lake hydro scheme was
developed near Whitehorse.
� 1952 – Mayo hydro developed to serve the Keno and
Elsa mines. 2.5 MW, expanded in 1957 to 5.1 MW
� 1956 – Whitehorse Rapid hydro plant developed to
provide electricity for Whitehorse. Initially 11MW,
expanded to 19.5 MW in 1966, and then 40 MW in 1985.
� 1966 – Transmission line built from Whitehorse to Faro to
service the Faro mine.
� 1974 – 30MW Aishihik Lake hydro developed to keep
pace with rising electrical demand in Yukon
� 2003 – Mayo-Dawson transmission line completed to
Whitehorse dam under construction in 1957
provide hydroelectricity to Dawson City from the Mayo
(Lister 2008)
dam.
(from The Power of Water, Yukon Development Corp. 2001)

2. Hydro Resource Capacity
2.1 Current Hydro Facilities in Yukon
There are four hydroelectric

generation facilities in the Yukon that
supply the public energy grid:
1. Aishihik
2. Whitehorse
3. Mayo
4. Fish Lake

(adapted from Yukon Energy Corp. 2008)
2. 2 Current Hydro Development
Current capacity and annual energy from the Yukon’s hydro infrastructure is listed below. Additionally, two projects are
currently under construction that will enhance the capacity and energy from these facilities:
1. Mayo B – 10 MW additional capacity

2. Aishihik 3rd Turbine – 7 MW additional capacity
Facility Currently Installed Annual Energy, Enhanced Capacity, Enhanced Annual

Capacity, MW GWh/yr (Current) MW Energy, GWh/yr
Whitehorse 40 245 40 245
Aishihik 30 105 37 110
Mayo 5.4 40 15 76
Fish Lake 1.3 7 1.3 7
Total 76.7 397 93.3 438

2.3 Current Role of Hydro in Yukon
94% of all the Yukon electricity in 2009 was generated from

hydropower. 99% of electricity on the Whitehorse, Aishihik, Faro
(WAF) and Mayo-Dawson grids is provided by hydropower.
Yukon has enjoyed the lowest GHG emissions per capita in

Canada . This emission rate was 10.5 tonnes of CO 2/year/person
in 2008 (National Inventory Report 1990–2008: Greenhouse Gas
Sources and Sinks in Canada (Environment Canada 2010) and is
partially because of our renewable-based electric generating
system.
(compiled from Yukon Energy Corp. 2010 and

Yukon Bureau of Statistics, 2010)

3. Energy Potential
3.1 Overview of Hydro Potential in the Yukon
Much of the Yukon has mountainous terrain and abundant water, creating
numerous hydropower opportunities. However, there are few “easy”
hydropower sites. Few sites exist in the Yukon with a significant drop in
elevation (head) and with significant flow, especially during winter months.
The Yukon’s existing hydro facilities have taken advantage of natural lakes to
provide storage during winter months. Many of the potential new hydropower
sites require creation of a reservoir to store water.
Run-of-river hydropower schemes are of lower value because they provide

significantly less power during winter months, when the power is needed the
most. Hoole Canyon on the Pelly R.

3.2 Hydropower – Seasonal Considerations
Energy demand is highest during winter months in Yukon, however stream flow is lowest during winter months.
Accordingly, hydropower needs storage to

generate energy during winter months. This
makes run-of-river projects (i.e. Hydro
projects without storage) of reduced value in
Yukon.
Additionally, year-to-year hydrology (stream

flow) can vary significantly, making
generation variable each year. However, to
date we have not seen long-term declining
or increasing stream flow trends.
(from Vector Research, 2007)

3.3 Hydro Potential – Range of
Opportunities
The Yukon’s hydro site inventory has 171 known

potential hydro sites:
� 36 Large Sites (>100 MW)

� 30 Mid-Size Sites (20-100 MW)
� 85 Small or Micro Sites (<20 MW)
� 20 Unrated or Storage/Diversion Sites

(from AECOM 2010)
3.4 Hydro Opportunities – Site Screening
Many of known hydro “sites” in the Yukon have not undergone detailed or recent assessment, and therefore the viability
of many hydro sites in the Yukon is uncertain.
Four studies have been conducted in the last 10 years that reviewed or evaluated some of the known hydro sites for
potential viability:
1. Watson-Teslin area – BC Hydro 2003 – 7 sites

2. Mayo-Dawson area – BC Hydro 2003 – 6 sites
3. Potential Hydro Sites Assessment – KGS 2008 – 8 sites
4. Large Hydro Initial Evaluation – AECOM 2010 – 21 preferred sites
Between these four studies, a total of 29 potentially viable known sites have been looked at recently, including the hydro
enhancement projects (Marsh Lake, Atlin Storage and Gladstone Diversion). The location of these sites is shown on the
following map.

.
Recently Reviewed
.
Hydro Sites

(adapted from AECOM 2010)
3.5 Large Hydro Initial Evaluation
In 2009/2010 an initial evaluation of known large hydro sites was completed by AECOM to identify preferred sites for
further study. The evaluation used a sustainability based evaluation criteria, evaluating known sites relative to each
other to identify the relatively best site(s). The qualitative, equally weighted evaluation considered:
1. Economic,
2. Environmental, and
3. Social aspects.
The objective of the Large Hydro Initial Evaluation was to identify a set of preferred hydro sites:
� 2 sites in the 20-40 MW range;
� 1 site in the 100 MW range; and
� 1 site in the 200 MW range.

Large Hydro Initial Evaluation – General Approach
Data Compilation
(175 Hydro Schemes)
Pre-Screening
(58 Hydro Schemes)
Preferred Sites Note:

(25 Hydro Schemes) • Only previously proposed projects
were considered in this study
• The study consisted of a
Recommendations for contemporary review earlier works
further study (4 Hydro
Schemes)

Initial Evaluation Recommended
Best Large Hydro Sites for Further
Study

(from AECOM 2010)
3.6 Hydro Potential – Annual Average Energy
Small Sites (<10 MW)
This figure shows

the current
estimated annual
average energy
potential for small
hydro sites
(<10MW) that
have been
reviewed in the
last 10 years.
(compiled from BC Hydro 2003a & 2003b; KGS

2008; AECOM 2010)

3.7 Hydro Potential – Annual Average Energy
Medium & Large Sites (>10 MW)
This figure shows

the current
estimated annual
average energy
potential for
medium and large
hydro sites
(>10MW) that
have been
reviewed in the
last 10 years.
(compiled from BC Hydro 2003a & 2003b; KGS 2008;

AECOM 2010)

3.8 Hydro Potential – Total Annual Energy Potential of Evaluated Hydro Sites
Based on the known sites that are likely viable

hydropower sites, there is over 10 times more
hydroelectric potential in the Yukon than required to
meet the Yukon’s current energy demands.
In other words, all of the Yukon’s electricity needs

could be met with hydroelectricity.
(compiled from BC Hydro 2003a

& 2003b; KGS 2008; AECOM
2010) 18
4. Energy Costs
4.1 Yukon Potential Hydroelectric Projects – Energy Costs
Annual Energy Range Levelized Cost of Energy, Weighted Average
/ Site LCOE Range1,3 ($2009) LCOE2
(GWh/yr)
Hydro Enhancements 6.7 to 28 $0.068 to $0.09 / kWh $0.068 / kWh
Small Hydro (<10 MW) 5 to 76 $0.07 to $0.31 / kWh $0.137 / kWh
Medium Hydro (10-100 MW) 70 - 659 $0.06 to $0.19 / kWh $0.095 / kWh
Large Hydro (>100 MW) 585 - 2100 $0.05 to $0.11 / kWh $0.065 / kWh
Hydroelectric energy costs are largely controlled by the construction cost of the project (capital expenditure) and the
amount of energy produced. Operation and maintenance costs are relatively low and there are no ongoing fuel
requirements.
Energy costs vary considerably from project-to-project, but generally large projects produce lower cost energy than
smaller projects.

4.2 Yukon Potential Hydroelectric Projects – Capital Costs
Hydropower development is capital intensive to develop, but has a very long service life (>60 years) and
relatively low ongoing costs (low operation and maintenance).
Medium and Large Sites (>10 MW) Small Sites (<10 MW) and Hydro Enhancements
Current estimates of hydropower development

opportunities in the Yukon are illustrated above.
Note that the quality of the estimates vary
substantially depending on the level of study to date.
As such, these estimates should be considered
(compiled from BC Hydro 2003a & general order of magnitude only and are subject to
2003b; KGS 2008; AECOM 2010) 3 change based on project design and other
considerations.
4.3 Hydropower Electricity Cost Considerations
When evaluating the electricity cost from hydropower, there are a number of key items that must be taken into
consideration, including:
• Cost of electricity generated from hydropower is largely a function of project construction cost.
• Sites further from the grid become more expensive because transmission line costs need to be considered.
• There are no on-going fuel costs with hydropower or risk of fuel cost escalation & variability.
• Year-to-year variation in hydrology (amount of water available for hydroelectric generation) can be significant , and
up to 60% year-to-year variability can be seen in the Yukon.
• Hydro generation of electricity must be useable to be of value:

� Winter generation is important and generation of large quantities of electricity in summer months is of limited
value.
� Storage of water is required to generate power in winter months when flows are lowest, but energy demand
is greatest. Multi-year storage is desirable to accommodate year-to-year variation in hydrology.
• Climate change effects on hydroelectric production could be positive (increased stream flow) or negative
(decreased winter flows) depending on location in the Yukon.

5. Hydropower - Complimentary Applications
Hydropower is somewhat unique in that can compliment other

energy options well due to hydro’s flexibility. Specifically:
1. Hydropower has a quick response time relative to many other

electrical generation options. Hydro can respond well to load
fluctuations or generation upsets elsewhere in the system.
2. Hydropower is flexible and can “store” energy by storing

water until needed. This can help deal with day-to-day
fluctuations as well as inter-seasonal and even multi-year
variability.
3. Excellent generation option to integrate with intermittent

renewables (e.g. wind and solar) because hydro responds
well to variability in generation. Typically natural gas
electrical generation is used to compliment intermittent
renewables in areas without hydro (Hagens 2010). As such,
the Yukon is fortunate to have significant hydro assets as this
can accommodate and compliment windpower without
requiring natural gas electrical generation.
Haekel Hill Wind Turbines (Government of Yukon 2009)

5.1 Hydropower – Additional Applications
An additional applications for hydropower development include

pumped storage. Pumped storage is a hydro-based energy
storage option that pumps water to a higher elevation reservoir
for storage until needed for generation.
Pumped storage can provide high capacity energy storage and

could help make more of intermittent renewables’ (wind/solar)
energy usable.
Additional uses and benefits of hydro development can also

include:
� Flood control
� Flow regulation
� Recreational opportunities Llyn Stwlan, the upper reservoir of the Ffestiniog
pumped storage scheme in north Wales. Energy
� Irrigation stored: 1.3 GWh (MacKay, 2008)

6. Probability to Market
Hydropower is a well established, relatively simple and mature
technology, making overall development risk low. The Yukon and
Canada has long experience with hydro. This includes
developers, contractors and operators with experience building
and operating hydropower facilities.
Project costs and long-term energy generation can be estimated

with good confidence given the maturity and relative simplicity of
the technology. Hydropower projects are not subject to fuel cost
escalation risk or fuel short-supply risk. However, as with all
construction projects, hydropower developments are at risk of
capital cost over-runs during construction.
Good hydrology information, including a long stream flow data Fish Lake Hydro #1 in 1972. In the background is the
record, are important to accurately estimate power generation original Pelton wheel turbine from Engineering Mine.
potential. Year-to-year fluctuations in stream flow can cause Fish Lake hydro has been quietly generating renewable
energy generation to vary substantially from year-to-year. energy since 1950. (Yukon Development Corp, 2001)

7. Time to Market
Hydropower projects can have lengthy development times, ranging from 5 to more than 10 years. Larger projects
generally take longer to develop, partially due to rigorous regulatory process. Depending on the size of the project,
construction time can take 1 to 2 years, followed by a reservoir filling period, if required.
8. Regulatory Considerations
There is a long history of hydropower development in Yukon and Canada, and therefore there is good certainty that
hydropower projects can be permitted and developed. Environmental effects are well studied and understood.
However, hydropower projects are often controversial as water is a highly valued resource.
Environmental assessment and regulatory process can delay project development by several years and increase
project costs. Furthermore, environmental and social mitigation can reduce the initially-estimated power benefits of a
project.

9. Environmental Considerations
When considering hydropower development, there are a number of environmental considerations that should be taken
into account. Some of these include:
1. New larger hydro development in the Yukon will likely require the creation of reservoirs. This causes
flooding/inundation of land. Existing hydro developments in the Yukon (Whitehorse, Aishihik, Mayo and Fish Lake)
have all used existing lakes for storage, resulting in limited new inundation.
2. Hydropower produces very low greenhouse gas (GHG) emissions. In the boreal environment, GHG emissions
associated with hydropower are limited to the first 3 to 5 years after creating a reservoir, and after that they reduce
to levels consistent with natural lakes (Temblay et al., 2004)
3. Hydropower development effects stream flow, which can impact fish and fish habitat, fish migration, etc. Project
mitigation and compensation is required to address fisheries impacts.
4. Hydropower developments can effect navigation or recreational water usage. Conversely, some sites are located at
reaches of rivers or streams that are not navigable (e.g. canyons, falls, rapids).

9.1 Hydropower - Sustainability
Energy Return on Energy Investment (EROI) for Various
When planning for a society with low or reduced Energy Options
dependence on fossil fuels, hydropower is a
resilient energy option for the following reasons:
• Hydropower assets are long-lived; they are

investments that benefit multiple generations.
• Hydropower has the highest Energy Return

on Energy Investment (EROI) of any primary
energy source.
• Clean energy source with no local air or

noise pollution and very low GHG emissions.
(from Murphy and Hall, 2010)

10. Hydropower - Conclusions
Hydropower may be considered a “good-fit” for the Yukon, considering
our geography, our infrastructure (e.g. isolated grid) and particular
unique challenges faced in the Yukon such as a small and dispersed
population. Some considerations as to why hydropower is a resilient
energy option for the Yukon include:
• Yukon has a long history and experience with developing,

operating and maintaining hydropower facilities.
• Hydropower requires low maintenance limited operator

intervention, and is a relatively simple technology.
• Hydropower is robust.
• Hydro is a flexible energy source that can respond well to

The three turbines at Whitehorse (shown above)
fluctuations in load, source and changing conditions.
are still in operation, surviving the fire of 1997 that
burned the powerhouse to the ground above the
• Hydropower is immune to fuel source variation and is a long-lived turbines.
asset that provides relatively consistent energy costs for many
years.

11. References
AECOM, 2010:
2009 Large Hydro Stage 1: Initial Evaluation. Prepared for Yukon Energy Corporation. Whitehorse, Yukon. Project Number 60158164.
BC Hydro Engineering, 2003a:

Mayo / Dawson Small Hydro Assessment. Prepared for Yukon Energy Corporation. Project Number E210
BC Hydro Engineering, 2003b:

Watson / Teslin Small Hydro Assessment. Prepared for Yukon Energy Corporation. Project Number E211
Government of Yukon, 2009.

Wind Energy. Department of Energy, Mines and Resources. http://www.energy.gov.yk.ca/wind.html Accessed February 28, 2011.
Environment Canada, 2010:

National Inventory Report 1990–2008: Greenhouse Gas Sources and Sinks in Canada. http://www.ec.gc.ca/ges-ghg
Hagens, N., 2010:

The Fake Fire Brigade Revisited #4 – Delivering Stable Electricity. The Oil Drum. September 16, 2010.
http://www.theoildrum.com/node/6957.
KGS Group, 2008

Potential Hydroelectric Development Projects. Concept Phase Study. Draft Report. Prepared for Yukon Energy Corporation. Winnipeg,
MB. Project No. 07-1404-01
Lister, A., 2008:

Building of the Whitehorse Dam. Presentation prepared for Yukon Energy Corporation.
http://www.yukonenergy.ca/community/multimedia/dam/

References continued
MacKay, D., 2009:
Sustainable Energy – without the hot air. Cambridge, England.
Murphy, D.J. and C.A.S. Hall, 2010:

Year in Review: Energy Return on (Energy) Investment. New York Annals of Science, 1185: Ecological Economics Reviews.
REN21, 2010:
Renewables 2010 Global Status Report (Paris: REN21 Secretariat).
http://www.ren21.net/Portals/97/documents/GSR/REN21_GSR_2010_full_revised%20Sept2010.pdf
Temblay, A., L Varflvy, C. Roehm and M. Garneau, 2004:

The issue of greenhouse gases from hydroelectric reservoirs: from boreal to tropic. In: Proceedings of the United Nations Symposium on
Hydropower and Sustainable Development, Beijing, China, October 27-29, 2004.
Vector Research, 2007:

Yukon Energy Strategy Technical Workshop. Energy Sector Scoping Presentation. Whitehorse, Yukon.
Yukon Bureau of Statistics, 2010:

Yukon Statistical Review, 2009 Annual Report. Executive Council Office, Government of Yukon
Yukon Development Corporation, 2001:

The Power of Water: The Story of Hydropower in the Yukon. Whitehorse, Yukon.
Yukon Energy Corporation, 2008:

2007 Annual Report. Whitehorse, Yukon
Yukon Energy Corporation, 2010:

2009 Annual Report. Whitehorse, Yukon
Technical Notes
1. Levelized Cost of Energy (LCOE): calculated using YEC’s methodology for calculation of LCOE (January 2011).
Levelized cost of energy includes all capital and operating expenses over the life of the energy project. All
energy estimates are at generating station and before transmission losses.
2. Weighted Average Energy Cost: Average LCOE of projects weighted based on project energy estimates.
3. Cost Estimates: Project cost estimates and energy estimated are from BC Hydro 2003a&b, KGS 2008 and
AECOM 2011. Cost estimates from BC Hydro 2003 escalated by 60% to have a consistent cost basis with more
recent project cost estimates.

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Yukon Energy Corporation

Yukon’s Hydroelectric Resources

Prepared by: AECOM

(from Yukon Development Corp. 2001)

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 2

Hydroelectric generation is a relatively simple,

Hydropower It is the most widely used form of

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 3

� 1907 to 1920 – The Yukon’s first hydro-plant was the

(from The Power of Water, Yukon Development Corp. 2001)

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 4

There are four hydroelectric

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 5

1. Mayo B – 10 MW additional capacity

Facility Currently Installed Annual Energy, Enhanced Capacity, Enhanced Annual

Aishihik 30 105 37 110

Fish Lake 1.3 7 1.3 7

Total 76.7 397 93.3 438

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 6

94% of all the Yukon electricity in 2009 was generated from

Yukon has enjoyed the lowest GHG emissions per capita in

(compiled from Yukon Energy Corp. 2010 and

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 7

Run-of-river hydropower schemes are of lower value because they provide

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 8

Accordingly, hydropower needs storage to

Additionally, year-to-year hydrology (stream

(from Vector Research, 2007)

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 9

The Yukon’s hydro site inventory has 171 known

� 36 Large Sites (>100 MW)

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 10

1. Watson-Teslin area – BC Hydro 2003 – 7 sites

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 11

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 13

Preferred Sites Note:

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 14

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 15

This figure shows

(compiled from BC Hydro 2003a & 2003b; KGS

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 16

This figure shows

(compiled from BC Hydro 2003a & 2003b; KGS 2008;

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 17

Based on the known sites that are likely viable

In other words, all of the Yukon’s electricity needs

(compiled from BC Hydro 2003a

Small Hydro (<10 MW) 5 to 76 $0.07 to $0.31 / kWh $0.137 / kWh

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 19

Current estimates of hydropower development

• Hydro generation of electricity must be useable to be of value:

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 21

Hydropower is somewhat unique in that can compliment other

1. Hydropower has a quick response time relative to many other

2. Hydropower is flexible and can “store” energy by storing

3. Excellent generation option to integrate with intermittent

Rpt1-2010-03-03 YEC Charrette_Hydro BG_fkp-60196946.ppt 22

An additional applications for hydropower development include