Yet, Manitoba Hydro and Centra Gas continue to invest in new natural gas infrastructure, despite the growing awareness of the devastating impact of fossil fuels on the environment.
The Problem with Natural Gas
A Fossil Fuel with a Dark Past
Natural gas is a fossil fuel that has been used for decades to heat homes and power industries. However, its extraction and combustion have severe environmental consequences. The burning of natural gas releases greenhouse gases, such as carbon dioxide and methane, which contribute to climate change. Moreover, the extraction process itself can lead to water pollution, land degradation, and the release of toxic chemicals. The extraction process involves drilling and pumping, which can contaminate groundwater and surface water sources. The use of hydraulic fracturing, or fracking, has been linked to increased seismic activity and earthquakes.
The world is moving towards a low-carbon economy, and the future of energy is clean and sustainable.
The Rise of Renewable Energy
The world is witnessing a significant shift towards renewable energy sources, driven by growing concerns about climate change, air pollution, and energy security. Renewable energy sources such as solar, wind, hydro, and geothermal power are becoming increasingly cost-competitive with fossil fuels, making them an attractive option for investors and consumers alike. Key statistics: + Renewable energy accounted for 26% of global electricity generation in 2022. + The cost of renewable energy has fallen by 69% over the past decade.
The Case for Geothermal Energy in Manitoba
Geothermal energy is a clean and renewable source of power that can be harnessed from the Earth’s heat. Manitoba, with its vast underground reservoirs of hot water and steam, is an ideal location for geothermal energy production. However, the province’s current commitment to 5,000 geothermal installations by 2028 is woefully inadequate.
Why Geothermal Energy Matters
The Current State of Geothermal Energy in Manitoba
Despite its potential, geothermal energy in Manitoba is still in its infancy.
The cost of energy is high, and the cost of carbon credits is high. The renewable energy industry is not yet mature enough to provide a reliable and efficient supply of energy.
The Challenges of a Carbon-Neutral World
The Current State of the Renewable Energy Industry
The renewable energy industry is still in its infancy, and it faces numerous challenges in its quest to provide a reliable and efficient supply of energy. One of the main challenges is the lack of economies of scale. Unlike traditional industries, the renewable energy industry is not yet large enough to benefit from the efficiencies of scale. This means that the cost of production is high, and the cost of carbon credits is also high. The industry is scattered and inefficient, with many small-scale installations that are not optimized for energy production. The lack of standardization and interoperability between different renewable energy technologies makes it difficult to integrate them into the grid.*
The Impact of a Carbon-Based Energy Supply
The current energy supply is largely based on fossil fuels, which are a major contributor to greenhouse gas emissions.
The longer we wait, the more costly it becomes for our customers. The longer we wait, we risk losing our market share to competitors who are investing in renewable energy sources.
The Challenges of a Fossil Fuel-Based Business Model
As a traditional utility, Centra Gas operates primarily on a fossil fuel-based business model. This model relies heavily on the extraction, transportation, and distribution of natural gas. However, this model is facing significant challenges in the face of climate change and the increasing adoption of renewable energy sources. The cost of transitioning to a low-carbon economy is significant, with estimates suggesting that the cost of transitioning to a low-carbon economy could be as high as €100 billion by 2050. The cost of renewable energy is decreasing dramatically, with the cost of solar and wind energy falling by over 70% in the last decade alone. The increasing adoption of electric vehicles is also driving demand for renewable energy, as these vehicles are becoming increasingly popular.
The Benefits of Investing in Renewable Energy
Despite the challenges, investing in renewable energy can bring significant benefits to Centra Gas and its customers.
Phasing out natural gas connections to transition to geothermal energy.
The Challenge of Phasing Out Natural Gas Connections
Centra Energy’s decision to phase out all new natural gas connections is a significant challenge for the company and the environment. The transition to a geothermal utility will require substantial investment and planning. Here are some key considerations:
The Benefits of Geothermal Energy
Geothermal energy is a clean and renewable source of energy that can provide significant benefits for the environment and the community. Here are some of the key advantages of geothermal energy:
The Benefits of Geothermal and Air-Source Heat Pumps
The conversion of gas systems to geothermal and air-source heat pumps is a significant development for Centra, offering numerous benefits for the community. By transitioning to these sustainable technologies, Centra can reduce its reliance on carbon-polluting natural gas, lower energy costs, and create new job opportunities.
Job Creation and Economic Benefits
Environmental Benefits
Tim Sale is a former member of the Manitoba Legislative Assembly.
