In recent months, we have witnessed the cancellation of several important clean energy projects due to escalating costs, from a small modular reactor project in Utah to offshore and onshore wind initiatives. On top of those cancellations, there seems to be a slew of other pauses or recalibrations happening, including: California's alterations to rooftop solar tariffs, shifts in electric vehicle production forecasts by car companies, a pause on new renewable projects in Alberta, and the uncertain status of the carbon tax and Clean Electricity Regulations in Canada. These all give rise to concerns about the ability to achieve decarbonization targets in North America.
What is going on? Has the energy transition been cancelled?
Not at all. Instead, a necessary reckoning is occurring between those who optimistically proclaim a free and easy transition and those taking a more pragmatic approach. Governments aren't doing us any favours by promoting 'cheaper' clean energy without an honest discussion about the time and cost involved in these projects. We need to engage in transparent conversations about the practicalities of achieving net-zero goals, including the need to use energy differently.
To date, there's been too much emphasis on reaching net zero and not enough on understanding the challenges and realistic strategies required to get there.