Energy Security Means Something Different Depending on Where You're Standing

Geopolitical shocks in Europe and the Middle East, and Washington’s trade war with Canada, have brought "energy security" into sharp focus. But the term means something different depending on who is using it.

The national picture: a $129-billion trade surplus

In 2023, Canada exported $165 billion in energy to the United States and imported about $36 billion back — a surplus of around $129 billion. Some pundits suggest this gives Canada leverage with our neighbour to the south. As a net exporter of energy, the federal government seeks to position Canada as a global energy superpower. Bringing more of Canada’s natural gas to a global market is predicted to increase prices at home.

The regional picture: Ontario's exposure runs the other way

The national surplus hides a regional dependency. Until the early 2000s, Alberta supplied most of eastern Canada's natural gas. Then the market shifted to closer, lower-cost U.S. sources. Ontario and Quebec get 70% of their natural gas from south of the border. Rebuilding an all-Canadian supply route would mean billions in new pipeline infrastructure in addition to higher delivery tolls — costs that would land on ratepayers. Increased investment in nuclear power has been announced to reduce reliance on U.S. gas imports. As one of the most expensive ways of generating electricity, turning to nuclear power will significantly increase the cost of electricity for Ontario ratepayers.

The local picture: Supply is only half of the story

Supply is only half of the energy security story. Affordability is the other half. A Canadian household behind on heating bills or having to choose between food and warmth is not energy secure regardless of where the energy comes from.

What energy conscious communities do instead

This is where local action can change the story. Energy conscious communities treat energy security as something to build locally: avoid unnecessary energy demand, capture more useful service out of every unit of energy already used, and shift toward local renewable flows instead of imported fuel.

Ontario communities have been here before. At the turn of the 20^th century, disruptions in coal supply from south of the border and escalating prices led communities to invest in local electricity systems.  

Repatriating energy dollars

Reducing unnecessary energy demand, capturing more useful service from every unit of energy and shifting to renewable flows all reduce a community's energy imports.

On average, somewhere between $4,000 and $5,000 per resident leaves a community every year to pay energy bills, and less than 15% of that spending stays in the local economy. Every dollar brought back into a local economy builds a more resilient community. When those dollars pay for a fossil fuel, repatriating them back into the community also reduces greenhouse gas emissions.

Use the Community Energy Cost Calculator at Energy Conscious Communities to estimate how many energy dollars leave your community.

We need a better definition of energy security

A larger national trade surplus does not guarantee your household's energy security — rising energy prices show that it can move in opposite directions depending on policy choices. Reducing demand and generating energy locally changes a community's exposure regardless of what is happening at the border or in Ottawa. The levers a community controls are not trade talks or mega-projects. It is how much energy they need to import in the first place.