Overview
The NCR DES is a centralized system that provides, in Ottawa and Gatineau, heating to 80 federal buildings and cooling to 67, including the Parliament Buildings and the Supreme Court of Canada.
One of North America’s oldest and largest, the system is made up of five heating and cooling plants and four distribution networks that deliver steam and cold water across over 14 km of underground pipes. Built between 50 and 100 years ago, the NCR DES is currently being modernized to reduce greenhouse gas (GHG) emissions from its own operations. Once completed in 2026, it will be one of the greenest of its kind and scale in North America.
One of North America’s oldest and largest, the system is made up of five heating and cooling plants and four distribution networks that deliver steam and cold water across over 14 km of underground pipes. Built between 50 and 100 years ago, the NCR DES is currently being modernized to reduce greenhouse gas (GHG) emissions from its own operations. Once completed in 2026, it will be one of the greenest of its kind and scale in North America.
ESAP represents one of the Government of Canada’s most impactful climate change initiatives when it comes to reducing GHG emissions from its own operations.
Public Services and Procurement Canada (PSPC) launched ESAP to improve the overall efficiency and cost-effectiveness of the NCR DES, which provides heating to 80 federal buildings and cooling to 67, in Ottawa and Gatineau.
The project entails the complete overhaul and modernization of the aging system, along with the mechanical conversion of all buildings currently connected to the NCR DES. By significantly reducing the energy intensity of heating and cooling buildings on the network, ESAP will create savings of almost half a billion dollars (for the period of 2026 to 2055) and will reduce GHG emissions by 92 per cent compared to 2005 emissions baseline. By 2030, the entire system will be in a position to be carbon neutral.
By modernizing the way that PSPC delivers heating and cooling services, ESAP will achieve 15 per cent of the department’s target of net-zero carbon real property operations by 2050. This is a significant contribution for a single initiative.
Public Services and Procurement Canada (PSPC) launched ESAP to improve the overall efficiency and cost-effectiveness of the NCR DES, which provides heating to 80 federal buildings and cooling to 67, in Ottawa and Gatineau.
The project entails the complete overhaul and modernization of the aging system, along with the mechanical conversion of all buildings currently connected to the NCR DES. By significantly reducing the energy intensity of heating and cooling buildings on the network, ESAP will create savings of almost half a billion dollars (for the period of 2026 to 2055) and will reduce GHG emissions by 92 per cent compared to 2005 emissions baseline. By 2030, the entire system will be in a position to be carbon neutral.
By modernizing the way that PSPC delivers heating and cooling services, ESAP will achieve 15 per cent of the department’s target of net-zero carbon real property operations by 2050. This is a significant contribution for a single initiative.
A DES is a highly efficient and environmentally sustainable way of providing heating and/or cooling to multiple buildings. It consists of one or more central energy centres that send hot and/or cold water to buildings connected through a network of pipes.
According to the United Nations’ Environment Programme (UNEP), DESs are “one of the least-cost and most efficient solutions for reducing greenhouse gas emissions and primary energy demand.”
District energy systems have been used for centuries around the world. Large DESs exist in several major cities, such as Helsinki, Copenhagen, Paris, London, Berlin, Seattle, New York City, San Francisco, Vancouver, Toronto, and many others.
According to the United Nations’ Environment Programme (UNEP), DESs are “one of the least-cost and most efficient solutions for reducing greenhouse gas emissions and primary energy demand.”
District energy systems have been used for centuries around the world. Large DESs exist in several major cities, such as Helsinki, Copenhagen, Paris, London, Berlin, Seattle, New York City, San Francisco, Vancouver, Toronto, and many others.
The NCR DES is one of North America’s oldest and largest public systems. Built between 50 and 100 years ago, it uses outdated technologies and many of its components are at the end of their service life.
By 2026, the NCR DES will leverage sustainable energy resources, resulting in a 92 per cent decrease in GHGs from 2005 baselines - making it one of greenest district energy systems of its kind and scale. As the system’s modernization will significantly reduce the energy intensity of heating and cooling buildings on the network, ESAP will also create savings of almost half a billion dollars (for the period of 2026 to 2055).
By 2026, the NCR DES will leverage sustainable energy resources, resulting in a 92 per cent decrease in GHGs from 2005 baselines - making it one of greenest district energy systems of its kind and scale. As the system’s modernization will significantly reduce the energy intensity of heating and cooling buildings on the network, ESAP will also create savings of almost half a billion dollars (for the period of 2026 to 2055).
The NCR DES – one of North America’s oldest and largest public systems – was built between 50 and 100 years ago and uses outdated technologies. Many of its components are at the end of their service life.
ESAP is being implemented as part of a collaborative partnership between the federal government and Innovate Energy, a locally based consortium with global expertise.
The Government of Canada entered in 2019 into a 35-year contract with Innovate Energy to design, build, finance operate and maintain (DBFOM) the NCR DES. Innovate Energy is composed of PCL Constructors, Black & McDonald as Design-Builders and EQUANS as the Operation & Maintenance Provider, with the support of WSP engineers, bbb architects, and others.
Through their combined resources and experience, Innovate Energy is delivering a unique, ground-breaking system that will help position the Government of Canada as a world leader in the fight against climate change and the race to carbon-neutral emissions.
The Government of Canada entered in 2019 into a 35-year contract with Innovate Energy to design, build, finance operate and maintain (DBFOM) the NCR DES. Innovate Energy is composed of PCL Constructors, Black & McDonald as Design-Builders and EQUANS as the Operation & Maintenance Provider, with the support of WSP engineers, bbb architects, and others.
Through their combined resources and experience, Innovate Energy is delivering a unique, ground-breaking system that will help position the Government of Canada as a world leader in the fight against climate change and the race to carbon-neutral emissions.
The modernization of the NCR DES began in 2019 and involves the conversion of the existing steam-based system to a more energy-efficient low-temperature hot water heating system with electric chillers for cooling. The modernized DES will be completely transformed and operational in 2026.
The project also includes the construction of some of the greenest energy centres of their kind in North America, three of which are new builds and one an upgrade of an existing facility. In addition, work is being done to increase the system’s resilience and redundancy by better connecting the network of underground pipes, resulting in two distribution loops, down from four.
The project also includes the construction of some of the greenest energy centres of their kind in North America, three of which are new builds and one an upgrade of an existing facility. In addition, work is being done to increase the system’s resilience and redundancy by better connecting the network of underground pipes, resulting in two distribution loops, down from four.
As part of ESAP, PSPC is also undertaking the conversion of all buildings currently connected to the system in parallel with the modernization of the NCR DES. Given the transition to a low-temperature hot water system for heating and electric chillers for cooling, the User Building Conversion Plan (UBCP) team is working to convert the heating and/or cooling systems within connected buildings to ensure compatibility with this new technology by installing Energy Transfer Systems (ETS). The building conversion component of ESAP was initiated in 2017 and is aiming for completion in 2024-2025.
Benefits
By significantly reducing the energy intensity of heating and cooling buildings on the network, ESAP will create savings of almost half a billion dollars (for the period of 2026 to 2055).
ESAP’s modernized energy centres will be among the new faces of clean energy in Canada. Constructing the buildings mostly underground allows for the space over top to be used as expansive accessible urban parks, benefiting the surrounding communities. They will be architecturally pleasing, adding to the community’s use and enjoyment through public gardens, courtyards, and improved connections for walking, rolling, and cycling.
ESAP’s modernized energy centres will be among the new faces of clean energy in Canada. Constructing the buildings mostly underground allows for the space over top to be used as expansive accessible urban parks, benefiting the surrounding communities. They will be architecturally pleasing, adding to the community’s use and enjoyment through public gardens, courtyards, and improved connections for walking, rolling, and cycling.
ESAP’s modernized energy centres will be among the new faces of clean energy in Canada. Constructing the buildings mostly underground allows for the space over top to be used as expansive accessible urban parks, benefiting the surrounding communities. They will be architecturally pleasing, adding to the community’s use and enjoyment through public gardens, courtyards, and improved connections for walking, rolling, and cycling.
ESAP’s modernized energy centres will be some of the new faces of clean energy in Canada. Transforming “grey into green,” the centres will convert former parking lots into memorable spaces like no other in the region. They will be architecturally pleasing, adding to the community’s use and enjoyment with accessible gardens, courtyards, and improved connections for walking, rolling, and cycling.
There will also be a new Visitor Education Centre (VEC) at the Cliff Energy Centre. This will provide education on climate action, including Canada’s leadership in green technologies. It will also showcase the system’s renewable technology and environmental benefits. The centre will also include windows with views of the mechanical rooms, allowing members of the public to see and learn about ESAP’s innovations.
There will also be a new Visitor Education Centre (VEC) at the Cliff Energy Centre. This will provide education on climate action, including Canada’s leadership in green technologies. It will also showcase the system’s renewable technology and environmental benefits. The centre will also include windows with views of the mechanical rooms, allowing members of the public to see and learn about ESAP’s innovations.
ESAP’s modernized and architecturally pleasing energy centres will replace the system’s older heating and cooling plants and will be among the new faces of clean energy in Canada. They will add to the community’s use and enjoyment with lush gardens, courtyards, public art, and improved connections for walking, rolling, and cycling.
One of the project’s major innovations was to find architectural solutions to the traditional plant design. In the past, these heating and cooling plants had very utilitarian designs that did not fit well with their surrounding communities. Energy centres are designed with the community in mind, making them spaces for the public to enjoy.
One of the project’s major innovations was to find architectural solutions to the traditional plant design. In the past, these heating and cooling plants had very utilitarian designs that did not fit well with their surrounding communities. Energy centres are designed with the community in mind, making them spaces for the public to enjoy.
Scale and significance
The modernization of the NCR DES will significantly advance the Government of Canada’s efforts to meet its climate change targets. By fundamentally changing how the federal buildings connected to the NCR DES are heated and cooled, ESAP will greatly reduce their environmental footprint. ESAP will contribute to 15 per cent of PSPC’s target of net-zero carbon real property operations by 2050. This is a significant contribution for a single initiative.
According to the International Energy Association, the buildings sector accounts for over one third of global energy consumption and emissions. This includes GHG emissions created from constructing, heating, cooling, and lighting buildings (such as homes and businesses), as well as supplying the appliances and equipment installed in them.
The Government of Canada has committed to greening its own operations to support Canada’s sustainability goals established under the Paris Agreement on climate change. It set a goal of reducing its own GHG emissions by 40 per cent by 2025 and by at least 90 per cent below 2005 levels by 2050 – this includes federal buildings and fleets of vehicles. Already, ESAP’s modernization efforts have resulted in a 30 per cent decrease in the NCR DES’s GHG emissions, from 2005 baselines. By 2026, the system will operate on low-temperature hot water for heating and electric chillers for cooling, resulting in a 92 per cent decrease. By 2030, the entire system will be in a position to be carbon neutral.
According to the International Energy Association, the buildings sector accounts for over one third of global energy consumption and emissions. This includes GHG emissions created from constructing, heating, cooling, and lighting buildings (such as homes and businesses), as well as supplying the appliances and equipment installed in them.
The Government of Canada has committed to greening its own operations to support Canada’s sustainability goals established under the Paris Agreement on climate change. It set a goal of reducing its own GHG emissions by 40 per cent by 2025 and by at least 90 per cent below 2005 levels by 2050 – this includes federal buildings and fleets of vehicles. Already, ESAP’s modernization efforts have resulted in a 30 per cent decrease in the NCR DES’s GHG emissions, from 2005 baselines. By 2026, the system will operate on low-temperature hot water for heating and electric chillers for cooling, resulting in a 92 per cent decrease. By 2030, the entire system will be in a position to be carbon neutral.
The NCR DES’s transition from fossil fuels to clean energy represents a major shift in conventional thinking for how to heat and cool buildings. This significantly advances Canada’s efforts to meet its climate change targets. It also sets an important precedent that can be replicated in other jurisdictions nationally and globally, positioning Canada as a leading innovator in carbon-neutral buildings and leading-edge green technology. In keeping with Canada’s role as a global leader in clean technology and renewable energy use, ESAP can serve as a future case study for how other jurisdictions worldwide can decarbonize their building operations.
Among ESAP’s many innovations, there are three that are foundational to how the NCR DES will operate:
• The first involves North America’s first conversion of a large public district energy system from steam to a low-temperature hot water heating system with electric chillers for cooling. This will significantly reduce the energy intensity of heating and cooling buildings on the network, resulting in savings of almost half a billion dollars (for the period of 2026 to 2055) and greatly reduces GHG emissions.
• The second innovation was the decision to leverage Hydro-Québec’s 99 per cent (99%) carbon-free electricity to replace natural gas as the district energy’s primary energy source. This will result in a 92 per cent decrease in GHGs from 2005 baselines, starting in 2026. Smart Buildings technology has also been introduced to provide continuous monitoring of the system’s energy efficiency.
• The third innovation was the decision to join together three of the four existing distribution networks to create one large heating and cooling loop for the downtowns of Ottawa and Gatineau. This involves connecting the Gatineau Energy Centre to the Cliff and Tunney’s Pasture Energy Centres by expanding the system’s underground network of pipes. This will result in added capacity (at peak times) and redundancies to ensure the DES can continuously operate.
Other innovations are being studied to introduce, by 2030, new sustainable energy sources to position the entire system to be carbon neutral.
Among ESAP’s many innovations, there are three that are foundational to how the NCR DES will operate:
• The first involves North America’s first conversion of a large public district energy system from steam to a low-temperature hot water heating system with electric chillers for cooling. This will significantly reduce the energy intensity of heating and cooling buildings on the network, resulting in savings of almost half a billion dollars (for the period of 2026 to 2055) and greatly reduces GHG emissions.
• The second innovation was the decision to leverage Hydro-Québec’s 99 per cent (99%) carbon-free electricity to replace natural gas as the district energy’s primary energy source. This will result in a 92 per cent decrease in GHGs from 2005 baselines, starting in 2026. Smart Buildings technology has also been introduced to provide continuous monitoring of the system’s energy efficiency.
• The third innovation was the decision to join together three of the four existing distribution networks to create one large heating and cooling loop for the downtowns of Ottawa and Gatineau. This involves connecting the Gatineau Energy Centre to the Cliff and Tunney’s Pasture Energy Centres by expanding the system’s underground network of pipes. This will result in added capacity (at peak times) and redundancies to ensure the DES can continuously operate.
Other innovations are being studied to introduce, by 2030, new sustainable energy sources to position the entire system to be carbon neutral.
DESs have been used for centuries around the world. Large-scale DESs exist in several major cities, and many are actively modernizing their systems to enhance efficiency, reduce carbon emissions, and promote sustainability. A key advantage of modern DESs is that they make it possible to provide heating and cooling using a variety of low carbon and renewable energy solutions, including mico-modular reactors (MMRs), renewable natural gas, waste biomass, heat pumps, wind and solar systems, etc.
The specific initiatives and projects vary from one city to another, but here are a few examples of cities that are modernizing their public district energy systems:
• Copenhagen, Denmark
• Helsinki, Finland
• Stockholm, Sweden
• Oslo, Norway
• Vancouver, Canada
• Paris, France
• New York City, USA
• Toronto, Canada
• Vienna, Austria
• Reykjavik, Iceland
According to the United Nations’ Environment Programme (UNEP), DESs are “one of the least-cost and most efficient solutions for reducing greenhouse gas emissions and primary energy demand.” As other cities begin to follow suit, ESAP sets an important precedent that can be replicated in other jurisdictions globally, positioning Canada as a leading innovator in carbon-neutral buildings and leading-edge green technology.
The specific initiatives and projects vary from one city to another, but here are a few examples of cities that are modernizing their public district energy systems:
• Copenhagen, Denmark
• Helsinki, Finland
• Stockholm, Sweden
• Oslo, Norway
• Vancouver, Canada
• Paris, France
• New York City, USA
• Toronto, Canada
• Vienna, Austria
• Reykjavik, Iceland
According to the United Nations’ Environment Programme (UNEP), DESs are “one of the least-cost and most efficient solutions for reducing greenhouse gas emissions and primary energy demand.” As other cities begin to follow suit, ESAP sets an important precedent that can be replicated in other jurisdictions globally, positioning Canada as a leading innovator in carbon-neutral buildings and leading-edge green technology.
From 2019 to 2026, Innovate Energy is responsible for the Design, Build, Finance, Operations, and Maintenance (DBFOM) of the NCR DES. Innovate Energy will convert the NCR DES’s steam-driven system to a more energy-efficient low-temperature hot water heating system with electric chillers for cooling, while continuing to provide heating and cooling by operating the existing facilities.
The project also includes the construction of some of the cleanest energy centres of their kind in North America:
• The new Cliff Energy Centre, near Parliament Hill
• The new Tunney’s Pasture Energy Centre, just west of Ottawa’s downtown
• The new Gatineau Energy Centre (GEC), in Hull, Gatineau
• The upgraded and modernized Confederation Heights Energy Centre in Confederation Heights, Ottawa
To ensure greater resilience and redundancy, construction work is underway to better connect the system’s distribution networks, resulting in two distribution loops: one large heating and cooling loop for the downtowns of Ottawa and Gatineau, interconnecting the Gatineau Energy Centre to the Cliff and Tunney’s Pasture Energy Centres; the second loop is located at the Confederation Heights federal employment campus.
Work is also being done on each building that is connected to the DES to have their heating and cooling systems updated, as required, to ensure compatibility with the modernized system.
The design and construction contract is valued at $1.3 billion and will be completed by 2026. The second part of the contract is for the operation and maintenance of the NCR DES over a 35-year period (2019-2055) and is valued at $2.1 billion. In 2021, the project was ranked the 23rd largest infrastructure project in Canada, with over 1,800 construction workers involved.
The project also includes the construction of some of the cleanest energy centres of their kind in North America:
• The new Cliff Energy Centre, near Parliament Hill
• The new Tunney’s Pasture Energy Centre, just west of Ottawa’s downtown
• The new Gatineau Energy Centre (GEC), in Hull, Gatineau
• The upgraded and modernized Confederation Heights Energy Centre in Confederation Heights, Ottawa
To ensure greater resilience and redundancy, construction work is underway to better connect the system’s distribution networks, resulting in two distribution loops: one large heating and cooling loop for the downtowns of Ottawa and Gatineau, interconnecting the Gatineau Energy Centre to the Cliff and Tunney’s Pasture Energy Centres; the second loop is located at the Confederation Heights federal employment campus.
Work is also being done on each building that is connected to the DES to have their heating and cooling systems updated, as required, to ensure compatibility with the modernized system.
The design and construction contract is valued at $1.3 billion and will be completed by 2026. The second part of the contract is for the operation and maintenance of the NCR DES over a 35-year period (2019-2055) and is valued at $2.1 billion. In 2021, the project was ranked the 23rd largest infrastructure project in Canada, with over 1,800 construction workers involved.
The NCR DES currently heats 80 buildings and cools 67, in Ottawa and Gatineau.
ESAP is working to offer its environmental benefits to others, exploring the possibility of expanding the NCR DES’s network and allowing buildings to tap into ESAP’s loop.
In anticipation of this, ESAP’s modernization efforts include the installation of extra production capacity for future expansion. The energy centers have also been designed with extra space to accommodate additional boilers and chillers.
ESAP is working to offer its environmental benefits to others, exploring the possibility of expanding the NCR DES’s network and allowing buildings to tap into ESAP’s loop.
In anticipation of this, ESAP’s modernization efforts include the installation of extra production capacity for future expansion. The energy centers have also been designed with extra space to accommodate additional boilers and chillers.
By significantly reducing the energy intensity of heating and cooling of the many buildings on the network, ESAP will create savings of almost half a billion dollars for the period of 2026 to 2055.
In addition, ESAP is creating jobs, most of which are located in the National Capital Region. With over 1,800 construction workers involved, the project was ranked in 2021 the 23rd largest infrastructure project in Canada.
ESAP has also been engaging with the Algonquin Anishinabe First Nation. They are exploring ways to involve and ensure a strong Algonquin presence is integrated into the project. In doing so, ESAP is creating economic opportunities for Algonquin communities and advancing the government’s reconciliation efforts. One such initiative is the inclusion of commemorative and cultural installations at the GEC and Cliff Energy Centre. In another example of reconciliation in action, ESAP has engaged the Kitigan Zibi Anishinabeg (KZA) Guardians to develop and execute a river water monitoring program to ensure the ongoing protection of the Ottawa River.
In addition, ESAP is creating jobs, most of which are located in the National Capital Region. With over 1,800 construction workers involved, the project was ranked in 2021 the 23rd largest infrastructure project in Canada.
ESAP has also been engaging with the Algonquin Anishinabe First Nation. They are exploring ways to involve and ensure a strong Algonquin presence is integrated into the project. In doing so, ESAP is creating economic opportunities for Algonquin communities and advancing the government’s reconciliation efforts. One such initiative is the inclusion of commemorative and cultural installations at the GEC and Cliff Energy Centre. In another example of reconciliation in action, ESAP has engaged the Kitigan Zibi Anishinabeg (KZA) Guardians to develop and execute a river water monitoring program to ensure the ongoing protection of the Ottawa River.
Path to carbon-neutratlity
Once completed in 2026, the modernized NCR DES will result in a 92 per cent reduction in the GHGs emitted from the heating and cooling of the buildings connected to the network, compared to 2005 baselines. By 2030, the system will be in a position to be carbon neutral.
Studies are underway to explore whether the NCR DES can be expanded to offer its clean energy services to more buildings.
Studies are underway to explore whether the NCR DES can be expanded to offer its clean energy services to more buildings.
There are many steps involved in the greening of the NCR DES.
Currently, the system uses natural gas to produce steam. The switch from steam to a low-temperature hot water heating system with electric chillers for cooling significantly reduces the energy intensity required to heat and cool the many buildings connected to the network. For the NCR DES downtown loop, power will be mostly sourced from Hydro-Québec’s 99 per cent (99%) carbon-free electrical grid, replacing fossil fuels as the district energy’s primary energy source.
By 2026, the DES will be mostly electrified, resulting in a 92 per cent decrease in GHGs from 2005 baselines. By 2030, the system will be in a position to be carbon neutral.
Currently, the system uses natural gas to produce steam. The switch from steam to a low-temperature hot water heating system with electric chillers for cooling significantly reduces the energy intensity required to heat and cool the many buildings connected to the network. For the NCR DES downtown loop, power will be mostly sourced from Hydro-Québec’s 99 per cent (99%) carbon-free electrical grid, replacing fossil fuels as the district energy’s primary energy source.
By 2026, the DES will be mostly electrified, resulting in a 92 per cent decrease in GHGs from 2005 baselines. By 2030, the system will be in a position to be carbon neutral.
Modern DESs make it possible to provide heating and cooling using a variety of low carbon and renewable energy solutions. ESAP is currently looking into a suite of renewable energy options, including waste to energy, renewable natural gas, waste biomass, heat pumps, wind and solar systems, micro-modular reactors (MMRs), etc.
ESAP is leading a number of studies to explore the feasibility of introducing, by 2030, new sustainable energy sources and position the entire NCR DES to be carbon neutral.
ESAP is leading a number of studies to explore the feasibility of introducing, by 2030, new sustainable energy sources and position the entire NCR DES to be carbon neutral.