RENEWABLE ENERGYOpportunities &

Challenges

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Michael BrandtVice President

October 6, 2016

2015 Electricity Sales& Generation Profile

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10%

42%

49%

Industrial Residential Commercial & Institutional

99.6% Renewable

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Map – Northern Service Areas & Facilities

Asset Profile – Hydro & Transmission

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Mayo Hydro: 15 MW

Aishihik Hydro: 37 MW

Whitehorse Hydro: 41 MW

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270

290

310

330

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370

390

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430

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Ene

rgy

Ge

ner

atio

n (

GW

h)

Load Growth

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Growth Period:

- Population growth

- Economic activity

- Some colder winters

Recent decline:

- Warmer weather

- Population growth slowed

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270

290

310

330

350

370

390

410

430

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Ener

gy G

ener

atio

n (

GW

h)

Load Growth & Project History

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Mayo B Hydro

(10 MW)

Aishihik 3rd turbine

(7 MW)

LNG Backup

(8.8 MW)

Carmacks-Stewart Transmission Line I

Carmacks-Stewart Transmission Line II

Stewart-Keno Transmission Line

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Change, Collaboration & Opportunity(and Challenge)

Climate Change

Policy Environment

Social License

PARTNERSHIPS

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Opportunities

FIRST NATION PARTNERSHIPS

Investment

Partner

Social License

Proponent

NEW SUPPLY OPTIONS

Technology

Sustainable Electricity

IPP Program Standing Offer Program

Renewable Energy Supply Options

• Wind

• Solar

• Geothermal

• Biomass

• Biogas

• Pump Storage

• Small Hydro

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2016 Resource Plan

A comprehensive electricity road map that reflects Yukoners’ needs and values.

Load Forecast(Demand Scenarios)

Resource Options

Portfolio Analysis

Action Plan

Challenges

• Business Case (Technical & Financial)

• Volatile Demand Scenarios

– Mining is a binary variable

• Seasonal Electricity Demand

– Need reliable winter energy

– Surplus Summer Power

• Integrating Renewables into the Grid (System Impact)

• IPP

– Viable and Affordable despite small scale

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• Long Term, capital intensive assets for shorter term identified demand

• Commercial versus public policy objectives

• Mitigating IMPACT

– Environmental

– Socio-economic

– Rate$

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Evaluation Criteria

A Values Survey will be incorporated into the weighting of evaluation criteria for all of the supply options

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SUMMARY

Renewable energy development is an important opportunity

Partnership is required to address and overcome the challenges

The IPP Policy and the Standing Offer Program provides the most immediate short term opportunity and will be a case study for future developments under the Call for Power Program

Q & A