Low carbon in the National Capital Region’s buildings

From: Public Services and Procurement Canada

Learn how the Energy Services Acquisition Program will modernize the system that heats and cools over 80 federal and non-federal buildings in the National Capital Region and how it will help the government to meet its goal of reducing the greenhouse gas emissions (GHG) in its own operations by 40% by 2030.

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Heating and cooling buildings in the National Capital Region

Over 80 buildings in Ottawa, including the Parliament Buildings, are on a district energy system that connects to central plants using over 14 kilometres of underground piping to provide heating by steam and cooling by chilled water.

The current system was built between 50 and 100 years ago. It uses outdated technologies and many of its components are at the end of their service life. In the same way that you might replace an old furnace in your home with a more energy efficient model, we are modernizing the system to both cut greenhouse gas emissions and save money.

Infographic: How district energy works

Energy Services Acquisition Program: How district energy works - image description below

Click on the image to enlarge.

Image description

The infographic title is Energy Services Acquisition Program: How district energy works. It depicts a cityscape, with a cluster of high-rise buildings including the Centre Block of the Parliament Buildings. On the far left is an industrial-type building with steam coming out of chimneys, representing a central heating and cooling plant.

In front of the buildings is a road with several vehicles. Below the road are lines underground showing how the heating and cooling plant is connected to the buildings through red and blue lines, with arrows pointing up. The lines represent pipes that circulate hot water, steam and chilled water.

Three blocks of text are shown above the buildings:

  • A district energy system is a set of central plants that heats buildings with hot water or steam and cools buildings with chilled water. They are used all over the world
  • This uses less energy and is more efficient than having equipment in each individual building
  • The government district energy system in Ottawa serves more than 80 buildings, including the Parliament Buildings. It is being modernized to cut greenhouse gas emissions and costs

One block of text is shown below ground on the lines representing pipes:

  • The water circulates through underground pipes connected in a loop

At the bottom of the page there is a quote from the United Nations Environmental Programme report, District Energy in Cities: Unlocking the Potential of Energy Efficiency and Renewable Energy:

  • “… modern district energy systems in cities is one of the least-cost and most-efficient solutions for reducing greenhouse gas emissions and primary energy demand”

Benefits for Canadians

The Energy Services Acquisition Program will modernize these plants to reduce greenhouse gas emissions, save money and improve safety.

By modernizing this system we have an opportunity to contribute to climate change commitments by:

  • transitioning to a low-carbon economy
  • stimulating the clean technology sector

The modernization will also save on costs. With the current system, it would cost almost $4 billion to heat and cool the buildings on the network over the next 40 years. Modernization will save over $750 million over the same time period. 

Green heating and cooling plants

The Energy Services Acquisition Program will modernize the heating and cooling plants and the 80 plus buildings on the network in two stages.

Stage 1: Implementing newer technologies from 2017 to 2025

The first stage of the program will:

  • convert the system from steam to low temperature hot water
  • switch from steam to electric chillers
  • use Smart Building technology to pinpoint opportunities for better energy efficiency

These actions will reduce greenhouse gas emissions by an estimated 63%. This is the equivalent of taking 14,000 cars off the roads in Canada.

In the first stage we will also test carbon neutral fuels like biomass and bio-oil to replace natural gas and other fossil fuels.

Stage 2: Using alternative fuels for the future starting in 2025

The conversion to low temperature hot water will create a bridge to carbon neutral energy and opportunities for even greater environmental benefits.

At this stage, natural gas will be replaced with carbon neutral fuel sources such as:

  • biomass
  • solar
  • industrial waste recapture
  • green gas from natural sources
  • waste to energy
  • bio-oil

We estimate that this will reduce greenhouse gas emissions by an additional 28%. This is the equivalent of taking an additional 7,000 cars off the roads in Canada.

We will also expand the network to more buildings. The 80 plus buildings currently on the network could potentially be increased to 600, which would triple the overall greenhouse gas reduction. 

Infographic: Energy Services Acquisition Program: Greener federal buildings

Infographic: Energy Services Acquisition Program: Greener federal buildings - image description below

Click on the image to enlarge.

Image description

The infographic title is “Energy Services Acquisition Program: Greener Federal Buildings.” In the bottom left corner, there is a cityscape in which high-rise buildings of different shapes, sizes and colours are represented. From the bottom center to the right corner, there are windmills, trees and solar panels. From the left corner to the right is a road.

2 text boxes are shown above the cityscape on the left side:

  • “Government is greening itself. Goal: to cut GHGs by 40% by 2030 at the latest”
  • “One way this will be achieved is by modernizing the network of plants that heat and cool over 80 buildings in the capital which will reduce GHGs by 60%” (Reductions use 2005 as the baseline for greenhouse gas measurement)

2 text boxes are shown above the windmills, trees and solar panels on the right side.

On the left side of the first text box, we can read “Stage 1.” On top of the text box, we can read “How the Government of Canada will achieve this:”

The first text box contains 3 bullets which are represented by 3 pictograms. Each bullet is followed by an arrow that leads to a text.

  • “Implementing Smart Buildings.” The pictogram associated with this text is a building with a small tree leaf, which is on the top left corner. The text following the arrow is “GHG reductions of: 10%”
  • “Using low temperature hot water instead of using steam.” The pictogram associated with this text is a thermometer and a water drop. The text following the arrow is “GHG reductions of: 32%”
  • “Switching from steam to electric chillers.” The pictogram associated with this text is a connection cable attached to a tree leaf. The text following the arrow is “GHG reductions of: 21%”

On the left side of the second text box, we can read “Stage 2.” On top of the text box, we can read “These technologies also build a bridge to bigger reductions in GHGs:”

The second box text box contains 2 bullets which are represented by 2 pictograms. Each bullet is followed by an arrow that leads to “GHG reductions of 28%.”

  • “Using carbon neutral energy sources.” The pictogram associated with this text is a solar panel
  • “Increasing the number of buildings on the system.” The pictogram associated with this text is a building with a plus sign on the left side

Animation: Energy Services Acquisition Program

Transcript: Energy Services Acquisition Program

Video length: 1:21 minutes

Start of a clip.

(On screen a graphic image of the bars and leaf of a Canadian flag changing from red to green.)

Text displayed: The Government of Canada is greening.

(A graph showing greenhouse gases (GHGs) on the vertical axis and years on the horizontal axis, with markings for the years 2005, 2025 and 2030. A jagged line moves down from the top left to the bottom right.)

Text displayed: By cutting greenhouse gases (GHGs) by 40% by 2030 at the latest.

(A cityscape with a cluster of high-rise buildings including the Centre Block of the Parliament Buildings and an industrial-type building representing a central heating and cooling plant. In front of the buildings is a road with several vehicles moving along in both directions. Below the road red and blue lines, with arrows pointing and moving upwards, represent pipes that circulate water and steam.) 

Text displayed: We’ll be modernizing the network of plants that heat and cool over 80 buildings in the capital.

(Columns of cars build one by one, 5 cars in the first column, 6 in the second and 7 in the third.)

Text displayed: These changes will be the equivalent of taking 21,000 cars off the road (14,000 cars for stage 1 and 7,000 cars for stage 2.)

(A thermometer showing red to the top at first and then falling as a counter shows a reduction from 186 to 70 degrees Celsius, with the numbers dropping alongside the red line.)

Text displayed: This includes:Using lower temperature water instead of steam.

(An electrical plug with a green cord that goes down and then around the plug, turning into a leaf as it becomes a full circle.)

Text displayed: This includes:Switching from steam to electric chillers.

(A five-story building connected by an arrow to a circle with a leaf in it.) 

Text displayed: This includes:Implementing Smart Buildings.

(The same columns of cars seen earlier reappear and then shrink as 5 more columns appear to the right, each higher than the last, with the last column having 12 cars.)

Text displayed: These technologies also build a bridge to bigger cuts in GHGs that will be the equivalent of taking 60,000 cars off the road.

(On screen are two windmills and then a tractor drives across from left to right as 3 trees appear behind it, each shedding a few leaves.) 

Text displayed: Using carbon neutral energy sources.

(High rise buildings pop up one-by-one into a cluster of 15.)

Increasing the number of buildings on the new system.

(A bar graph shows a column headed “Energy usage” going down while a column headed “Cost savings” goes up.)

Text displayed: Using less energy will also generate annual cost savings.

(Energy Services Acquisition Program)

Text displayed: For more information contact us at Canada.ca/greening-government

(Canada wordmark)

(Public Services and Procurement Canada departmental signature)

End of clip.

Frequently asked questions

Find the answers to frequently asked questions about the Energy Services Acquisition Program.

What is a district energy system?

A district energy system is made up of central plants that heat buildings with hot water or steam and cool buildings with chilled water. The water circulates through underground pipes connected in a loop. This process uses less energy and is more efficient than having equipment in each individual building.

District energy systems are used around the world. According to the United Nations’ Energy Programme modern district energy systems in cities “is one of the least-cost and most-efficient solutions for reducing greenhouse gas emissions and primary energy demand” (District Energy in Cities: Unlocking the Potential of Energy Efficiency and Renewable Energy).

How does the program fit with other government efforts to meet its targets for greenhouse gas reductions?

In the Pan-Canadian Framework on Clean Growth and Climate Change we commit to reducing greenhouse gas emissions across all parts of the economy and all parts of the country to protect the environment while driving innovation and increasing the adoption of technology.

The Archived—Federal Sustainable Development Strategy commits the Government of Canada to becoming a leader on climate change.

The Greening Government initiative, led by the Treasury Board of Canada Secretariat, commits the Government of Canada to leading by example and greening its own operations by reducing emissions from our buildings and fleets by 40% below 2005 levels by 2030 at the latest. The first stage of the Energy Services Acquisition Program will cut greenhouse gas emissions by 63% below 2005 levels and future plans include carbon neutral energy sources and working to increase the number of government buildings on the network.

How much money will this save?

The district energy system was built between 50 and 100 years ago and much of the infrastructure is beyond its useful life. Without the modernization, it would cost almost $4 billion just to heat and cool the buildings on the network over the next 40 years. The modernization will save over $750 million over what it would have cost to run the old, inefficient system.

When will the new system be up and running?

This is a long term project that will put the structure and process in place for managing the system for 30 years. The new technologies will be implemented between now and 2025. Public-private partnership (P3) contracts are expected to be awarded in 2019, with conversions completed by 2025. The operations and maintenance contract will be for 30 years, from 2025 to 2055.

Why not shift to carbon neutral energy sources now?

It’s the conversion to using low temperature hot water that opens up possibilities for using carbon-neutral renewable energy sources.

In the first stage of the program, between now and 2025, we will be converting the buildings and testing new fuel sources.

Why not make buildings more energy efficient instead of spending on a new heating and cooling system?

We’re doing both. Find information on energy consumption in commercial and institutional buildings in Canada.

Why is this being done through a public-private partnership contract?

The program will be delivered as a public-private partnership (P3) through long term contracts that will leverage the strengths and resources of industry. A public-private partnership (P3) contract offers the highest value for money and least risk to taxpayers.

Commercial opportunities

A public-private partnership (P3) will be used to manage the modernization through long term contracts that will leverage the strengths and resources of industry. There will be commercial opportunities at various stages available on buyandsell.gc.ca.

A Archived—Letter of interest (EP-635-173247/A) was published in March 2017 to inform industry of upcoming contracting opportunities.

The request for qualification – ESAP (ES635-173247/B) was published on August 31, 2017 to evaluate interested companies and consortia on their experience in projects of similar size and complexity and to develop a short list of three potential proponents to continue to the request for proposals stage.

The request for proposals will be published in early 2018 and will set out the conditions and specifications of the project. The three proponents will be invited to submit binding technical and financial proposals. A contract is expected to be finalized with a private sector partner in the spring of 2019.

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