The first project to be funded under Canada’s new $1B Green Infrastructure Fund, part of the government's Economic Action Plan, will be the enhancement of existing hydro power infrastructure at the Mayo hydro facility along with Phase 2 of the Carmacks-Stewart transmission line.

The Mayo B initiative will be carried out by a partnership of the Canadian government, Yukon First Nations and the Federal government and is aimed at expanding significantly the country’s proportion of hydro-generated power.

Due to Yukon’s current reliance on diesel for much of its electricity, it is expected that the project will reduce forecast diesel generation in 2012 by over 40%. In turn, this will reduce greenhouse gases from energy production by 50% from current levels.

The governments of Canada and Yukon will be contributing funding for this project, the national government’s share being estimated at up to $71M of an estimated total cost of $160 million.

Upgrades to the Mayo facility will include building a new powerhouse downstream from the existing one, while Phase 2 of the Carmacks-Stewart transmission line will complete the development of a transmission line connecting Yukon’s two grid systems.

This investment also supports the Canadian government’s integrated Northern Strategy that is focused on ‘strengthening Canada’s sovereignty, protecting its environmental heritage, promoting economic and social development and improving and devolving governance.

The $1B over five years for the Green Infrastructure Fund is to support sustainable energy generation and transmission, along with municipal wastewater and solid waste management infrastructure. It is part of the government’s 2009 Economic Action Plan for investment in infrastructure with almost $12B in new infrastructure stimulus funding over two years.