Indigenous-led solar project secures $28.6M in funding for Yukon’s largest solar farm
A 2.85-megawatt solar with battery energy storage plant is expected to be fully operational in Watson Lake by summer 2027
An Indigenous-led initiative to build a 2.85-megawatt solar farm with battery energy storage has secured more than $28.6 million in funding through joint investments from the federal and territorial governments, along with First Kaska Utilities LP.
The Sādę Solar Initiative, to be developed on the traditional territory of the Liard First Nation, will connect to Watson Lake’s micro-grid. Once operational, it is expected to replace more than 24 per cent of the community’s diesel-generated electricity, according to a federal news release.
The transition to solar power is projected to reduce annual diesel consumption by roughly 1,020,300 litres and cut greenhouse gas emissions by 3,509 tonnes, according to ATCO Electric Yukon. In 2023, Watson Lake relied on diesel generators for 6.4 megawatts of power, Yukon Bureau of Statistics data shows.
Construction began last week, with crews currently upgrading road infrastructure and preparing the site for the installation of industrial-scale solar panels. The project will be brought online in two phases, initially operating at reduced capacity to ensure grid stability. Full commissioning is expected by summer 2027, following the installation of a battery energy storage system and microgrid controller.
During peak season, the Sādę Solar Initiative is expected to generate more electricity than Watson Lake consumes at full capacity. First Kaska Utilities LP says revenue from the project could be reinvested into future clean energy ventures, including biomass and wind power.
To support long-term viability, a power purchase agreement has been finalized, allowing surplus electricity to be sold to ATCO Electric Yukon. The agreement could generate up to $40 million for the Liard First Nation over the next 25 years, according to a news release from ATCO.
“The Sādę Solar Initiative presents an opportunity for our First Nation to take advantage of these technologies that embody our values of living in balance with our land in perpetuity,” said Chief Stephen Charlie of the Liard First Nation.
The project is the largest solar development ever undertaken in the Yukon and the first utility-scale solar farm in the territory led by an Indigenous-owned company, according to the federal government.
Funding includes $16.4 million from the federal government through the Green Infrastructure Stream of the Investing in Canada Infrastructure Program. The Yukon government contributed $5.9 million, while First Kaska Utilities LP invested $6.3 million.
“This is reconciliation in action,” said federal Minister of Housing, Infrastructure and Communities Sean Fraser in the release.
Fraser said the project not only reduces emissions but also strengthens Indigenous leadership in the clean energy economy, aligning with Canada’s climate and reconciliation goals.
The Sādę Solar Initiative is part of a broader shift toward Indigenous-led renewable energy in the territory. In Whitehorse, the Haeckel Hill wind project—launched in 1993—has expanded to four operational turbines generating 4.1 megawatts. The project now powers more than 650 homes annually and has displaced over 40 million litres of diesel, according to the Yukon government.
Construction of the Sādę Solar Initiative is also expected to generate local employment and skills training opportunities, embedding long-term benefits within the community, similarly to Kwanlin Dün First Nation’s Heckell Hill renewable energy project in Whitehorse.
Contact Jake Howarth at jake.howarth@yukon-news.com