What is Energy Security and why does it matter?
Energy security means having a stable and affordable energy supply.
In modern Canadian society, we have come to rely heavily on our strong energy security. Having a high degree of energy security is important to maintaining the way we live. Energy security is as simple as consistently knowing that we can turn the lights on in our homes and workplaces. And it is as complex as our economy depending on reliable and consistent pricing of fossil fuels, which have a big impact on prices of goods and services and on inflation overall.
Right now, there is significant pressure globally on energy security. Climate change, global conflicts, and supply chain disruptions have exposed the vulnerabilities of relying on fossil fuels. There is also pressure on energy security due to the anticipated increase in energy consumption over the next half-decade (by 2030) as a result of economic growth in Asia, India and Africa, and increased power consumption required by Data Centers.
I’m not here just to bring doom & gloom. I’m here to bring a solution: home energy upgrades.
Let’s look at how they can improve our energy security.
Electrification: an enhancement for energy security
Installing electric appliances in your home increases the energy security of both you and your household individually and (in aggregate) of the energy security of your community and society. Electrification:
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Reduces Dependence on Fossil Fuels: Switching to electric heating, cooling, and appliances removes reliance on oil and gas, which are subject to larger price swings and supply shocks than electricity.
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Local and Renewable Energy Integration: Electrification enables the use of local energy sources like hydro, wind, and solar, which are more stable than imported fuels (due to their protection from global market shocks and inexhaustible nature of renewable energy).
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Grid Resilience and Backup Options: Technologies like battery storage and smart energy management systems improve energy resilience, keeping homes powered even during outages.
The Financial Stability of Electrification
Electrification also increases financial security – by controlling of some or all energy-producing assets required to heat and cool their home, homeowners can reliably predict their costs of heating & cooling. This is particularly the case in contrast with using fossil fuels – which are notoriously price volatile.
At an individual level, this means much more control over your bills. In 2022, heating oil prices in Canada increased by more than 60% due to global supply shocks, whereas electricity prices remained stable. At a societal level, energy is such a vital input to many of our goods and services, that energy price spikes are closely linked to inflation at the country level. During this same period of oil prices in Canada, increased fossil fuel prices increased Canada’s inflation by 33%.
Ready to take control of your energy and increase your energy security?
Dawn can help!
