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Opinion

The electrification pathway has some unanswered questions

By Allan Fogwill      

Moving to electricity will see a significant devaluation of the retail infrastructure for gasoline and natural gas. Will those companies be compensated for their stranded costs? How much are those stranded costs?

It is important to consider all the costs associated with the electrification pathway. CERI’s analysis has only costed the need for an expansion of the electricity grid. What about the added costs of these unanswered questions, writes Allan Fogwill. Photograph courtesy of Pexels

As Canada is deciding how to manage its carbon emissions, policy-makers are considering ‘electrification provided by renewable energy sources’ as a pathway. Currently, Canada’s grid is over 80 per cent non-emitting, and this percentage will increase as current policies are enacted. However, expanding our electricity systems to substitute existing fossil fuels with renewables creates several questions as to how the substitution might impact our economy.

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