If Canada continues to pursue the same energy policies that have clouted Europe with sky-high energy prices, the nation will find itself dealing with the very same crisis, a study by Canada’s Fraser Institute warns..The Fraser Institute, an independent, non-partisan Canadian public policy think-tank, is making a clear statement regarding the dangers of an absence of more creative policy-making about energy security..“The current energy crisis in Europe predates Russia’s invasion of Ukraine, and is largely the result of self-inflicted wounds brought about by unsound energy policies — policies that the Canadian federal government is also pursuing, which could lead to similarly disastrous results in Canada,” said Robert P. Murphy, a senior fellow with the Fraser Institute and co-author of Can Canada Avoid Europe’s Energy Crisis?.The study concludes the Canadian federal government, and many European countries and the European Union, are both implementing similar aggressive climate policies that have largely contributed to energy prices skyrocketing in continental Europe..In July 2021, natural gas prices were 670% higher in Europe than just one year prior, and from 2020 to 2021, electricity prices soared to record levels in Europe, rising more than 200% in Germany, the UK, Spain, and France, and more than 450% in Scandinavia..“Many European countries, in particular Germany, mandated the phase-out of conventional coal-fired and nuclear electricity generation and accelerated the transition to renewable energy sources, such as solar and wind power,” the Fraser Institute said..“But given the intermittent nature of renewables, transitioning to renewables actually made the region’s power market highly dependent on natural gas as a back-up supplier in times of high electricity demand. Not only did this increase the price of natural gas, it also made the continent dependent on Russia as a natural gas supplier. Not surprisingly, higher natural gas prices have in turn increased electricity prices for most Europeans.”.The federal government in Canada also mandated the phasing-out of coal-fired electricity plants and has sped up a transition to renewables to support its target of 90% non-emitting electricity generation by 2030..“Europe’s ongoing energy crisis is a result of government intervention in energy markets,” said Elmira Aliakbari, director of Energy studies at the Fraser Institute and study co-author..“The policies enacted in Europe that helped create the current energy crisis are the same policies the Canadian federal government is pursuing, and the results will be the same — higher energy prices, higher costs of living, and lower economic growth,” Aliakbari said.
