Overview
The NCR DES is a centralized system that provides heating and cooling to multiple buildings in Ottawa and Gatineau, including the Parliament Buildings and the Supreme Court of Canada.
One of North America’s oldest and largest, the system is made up of four energy centres and two distribution networks that deliver heating and cooling to connected buildings using over 14 km of underground pipes. Built between 50 and 100 years ago, the NCR DES was completely modernized between 2020-2026 to be safer, more efficient, and to reduce greenhouse gas (GHG) emissions from its own operations. The NCR DES is now 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 four energy centres and two distribution networks that deliver heating and cooling to connected buildings using over 14 km of underground pipes. Built between 50 and 100 years ago, the NCR DES was completely modernized between 2020-2026 to be safer, more efficient, and to reduce greenhouse gas (GHG) emissions from its own operations. The NCR DES is now 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 greening 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 and cooling to buildings connected to the system in Ottawa and Gatineau.
The project entailed the complete overhaul and modernization of the aging system, along with the mechanical conversion of all buildings connected to the NCR DES. By completing the modernization between 2020-2026, a significant greenhouse gas (GHG) reductions are expected, compared to 2005 baselines.
In 2026, a balanced mix of energy sources will be used to heat and cool connected buildings, including electricity and natural gas. This flexible and balanced approach allows the system to respond to seasonal demands and deliver reliable, efficient, and cost-effective services. While this strategy may involve trade-offs in greenhouse gas (GHG) reductions, it reflects a pragmatic step toward long-term sustainability and resilience. Through ESAP, the GoC remains committed to delivering low-carbon energy and supporting Canada’s clean energy future.
Public Services and Procurement Canada (PSPC) launched ESAP to improve the overall efficiency and cost-effectiveness of the NCR DES, which provides heating and cooling to buildings connected to the system in Ottawa and Gatineau.
The project entailed the complete overhaul and modernization of the aging system, along with the mechanical conversion of all buildings connected to the NCR DES. By completing the modernization between 2020-2026, a significant greenhouse gas (GHG) reductions are expected, compared to 2005 baselines.
In 2026, a balanced mix of energy sources will be used to heat and cool connected buildings, including electricity and natural gas. This flexible and balanced approach allows the system to respond to seasonal demands and deliver reliable, efficient, and cost-effective services. While this strategy may involve trade-offs in greenhouse gas (GHG) reductions, it reflects a pragmatic step toward long-term sustainability and resilience. Through ESAP, the GoC remains committed to delivering low-carbon energy and supporting Canada’s clean energy future.
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 used outdated technologies and many of its components were 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 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 has delivered a unique, ground-breaking system that helps position the Government of Canada as a world leader in the fight against climate change.
The Government of Canada entered 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 has delivered a unique, ground-breaking system that helps position the Government of Canada as a world leader in the fight against climate change.
The modernization of the NCR DES began in 2020 and involved 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 included 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 included 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, the User Building Conversion Plan (UBCP) team undertook the conversion of all connected buildings in parallel with the modernization work. The building conversion component of ESAP was initiated in 2017 and was completed in 2025. This entailed the installation of an Energy Transfer System (ETS) in each connected building.
Benefits
ESAP offers significant advantages for both operations and communities such as:
1. Operational Efficiency and Cost Savings
ESAP significantly reduces the energy intensity of heating and cooling across its network, generating almost half a billion dollars in savings from the time the modernized system is in operation through 2055. These upgrades also improve the safety and reliability of heating and cooling operations, ensuring a resilient and efficient system for decades to come.
2. Community and Environmental Benefits
By building energy centres mostly underground, ESAP frees up surface space for urban parks, lush gardens, courtyards, and improved connections for walking, rolling, and cycling. This transformation from “grey to green” creates vibrant, accessible public spaces that enhance community life and contribute to sustainability.
3. Education and Global Leadership
ESAP provides public education through Undercurrents, an immersive multimedia experience at the new Cliff Energy Centre, helping Canadians learn about clean energy and sustainability. Beyond education, ESAP sets a global precedent for low-carbon infrastructure that can be replicated nationally and internationally, positioning Canada as a leader in green technology. The modernized system also enables the deployment of other low-carbon energy solutions to all connected users, supporting future innovation.
1. Operational Efficiency and Cost Savings
ESAP significantly reduces the energy intensity of heating and cooling across its network, generating almost half a billion dollars in savings from the time the modernized system is in operation through 2055. These upgrades also improve the safety and reliability of heating and cooling operations, ensuring a resilient and efficient system for decades to come.
2. Community and Environmental Benefits
By building energy centres mostly underground, ESAP frees up surface space for urban parks, lush gardens, courtyards, and improved connections for walking, rolling, and cycling. This transformation from “grey to green” creates vibrant, accessible public spaces that enhance community life and contribute to sustainability.
3. Education and Global Leadership
ESAP provides public education through Undercurrents, an immersive multimedia experience at the new Cliff Energy Centre, helping Canadians learn about clean energy and sustainability. Beyond education, ESAP sets a global precedent for low-carbon infrastructure that can be replicated nationally and internationally, positioning Canada as a leader in green technology. The modernized system also enables the deployment of other low-carbon energy solutions to all connected users, supporting future innovation.
ESAP’s energy centres are 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 are designed to 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 are some of the new faces of clean energy in Canada. Transforming “grey into green,” the centres have converted former parking lots into memorable spaces like no other in the region. They are designed to be architecturally pleasing, adding to the community’s use and enjoyment with accessible gardens, courtyards, and improved connections for walking, rolling, and cycling.
There is a new conferences and events space at the Cliff Energy Centre known as “The Cliff”. 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 is a new conferences and events space at the Cliff Energy Centre known as “The Cliff”. 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 replace the system’s older heating and cooling plants and are among the new faces of clean energy in Canada. They 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 finding 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 finding 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
According to the International Energy Association (IEA), the buildings sector accounts for over one third of global energy consumption and emissions. By fundamentally changing how federal buildings connected to the NCR DES are heated and cooled, ESAP greatly reduces their environmental footprint, achieving 15 per cent of PSPC’s total net-zero target for its real property operations by 2050, a significant contribution for a single initiative.
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. As a result of ESAP, the NCR DES now operates using low-temperature hot water for heating and electric chillers for cooling, resulting in a significant reduction in GHGs from 2005 levels. By 2030, the system aims to further lower its carbon footprint to support Canada’s broader sustainability commitments.
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. As a result of ESAP, the NCR DES now operates using low-temperature hot water for heating and electric chillers for cooling, resulting in a significant reduction in GHGs from 2005 levels. By 2030, the system aims to further lower its carbon footprint to support Canada’s broader sustainability commitments.
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 which 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 low-carbon 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 operates:
• 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 significantly reduces 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 significant decrease in GHGs (from 2005 levels) to heat and cool buildings connected to the NCR DES.
• The third innovation was the decision to join together three of the system’s four 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, resulting in added capacity (at peak times) and redundancies to ensure the NCR DES can continuously operate.
• A fourth innovation was leveraging Smart Buildings technology to provide continuous monitoring of the system’s energy efficiency. This included the integration of a modern digital control and monitoring system that oversees and optimizes DES operations in real time. By using advanced analytics and automation, the system actively reduces energy consumption while improving the comfort and performance of connected buildings. These smart technologies ensure that the network operates at peak efficiency, delivering both environmental and operational benefits.
Among ESAP’s many innovations, there are three that are foundational to how the NCR DES operates:
• 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 significantly reduces 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 significant decrease in GHGs (from 2005 levels) to heat and cool buildings connected to the NCR DES.
• The third innovation was the decision to join together three of the system’s four 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, resulting in added capacity (at peak times) and redundancies to ensure the NCR DES can continuously operate.
• A fourth innovation was leveraging Smart Buildings technology to provide continuous monitoring of the system’s energy efficiency. This included the integration of a modern digital control and monitoring system that oversees and optimizes DES operations in real time. By using advanced analytics and automation, the system actively reduces energy consumption while improving the comfort and performance of connected buildings. These smart technologies ensure that the network operates at peak efficiency, delivering both environmental and operational benefits.
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 have modernized 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 set an important precedent that can be replicated in other jurisdictions globally, positioning Canada as a leading innovator in low-carbon 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 have modernized 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 set an important precedent that can be replicated in other jurisdictions globally, positioning Canada as a leading innovator in low-carbon buildings and leading-edge green technology.
The NCR DES currently provides heating and cooling services to 61 buildings connected to the network, in Ottawa and Gatineau. There are still several buildings undergoing renovations and will connect post-modernization.
With a capacity of 195 MW for heating and 151.5 MW for cooling, ESAP can double the number of connected buildings and is working toward sharing the benefits of clean, reliable energy to other buildings, other levels of government, and even private sector partners.
A milestone moment came with the connection of Ādisōke, the new joint facility of the Ottawa Public Library and Library and Archives Canada. As the first new client added to the network, Ādisōke shows how the NCR DES can serve landmark community projects as well as federal ones.
Plans include laying 2.5 kilometres of underground distribution piping along Laurier Street in Hull and connecting two major Public Services and Procurement Canada office complexes. This project will create a fully looped district energy system, bridging two provinces, strengthening resilience, and offering redundancy in the face of climate change.
With a capacity of 195 MW for heating and 151.5 MW for cooling, ESAP can double the number of connected buildings and is working toward sharing the benefits of clean, reliable energy to other buildings, other levels of government, and even private sector partners.
A milestone moment came with the connection of Ādisōke, the new joint facility of the Ottawa Public Library and Library and Archives Canada. As the first new client added to the network, Ādisōke shows how the NCR DES can serve landmark community projects as well as federal ones.
Plans include laying 2.5 kilometres of underground distribution piping along Laurier Street in Hull and connecting two major Public Services and Procurement Canada office complexes. This project will create a fully looped district energy system, bridging two provinces, strengthening resilience, and offering redundancy in the face of climate change.
By significantly reducing the energy intensity of heating and cooling of 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 resulted in creating numerous job opportunities, most of which were 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 Anishinaabe First Nations. They have involved and ensured that a strong Algonquin presence is on the project sites. 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 installations at the GEC and Cliff Energy Centre. In another example of reconciliation in action, ESAP has engaged the Kitigan Zibi Anishinabeg (KZA) and the Algonquins of Pikwakanagan First Nation (AOPFN) Guardians to develop and execute a river water monitoring program to ensure the protection of the Ottawa River.
In addition, ESAP resulted in creating numerous job opportunities, most of which were 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 Anishinaabe First Nations. They have involved and ensured that a strong Algonquin presence is on the project sites. 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 installations at the GEC and Cliff Energy Centre. In another example of reconciliation in action, ESAP has engaged the Kitigan Zibi Anishinabeg (KZA) and the Algonquins of Pikwakanagan First Nation (AOPFN) Guardians to develop and execute a river water monitoring program to ensure the protection of the Ottawa River.
Path to an even lower carbon footprint
In 2026, the modernized NCR DES significantly reduces the GHGs emitted from the heating and cooling of the buildings connected to the network, compared to 2005 baseline levels. By 2030, the system aims to further lower its carbon footprint to support Canada’s broader sustainability commitments.
With a capacity of 195 MW for heating and 151.5 MW for cooling, ESAP is working to share the benefits of clean, reliable energy to other buildings, other levels of government, and even private sector partners.
With a capacity of 195 MW for heating and 151.5 MW for cooling, ESAP is working to share the benefits of clean, reliable energy to other buildings, other levels of government, and even private sector partners.
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 energy options, including waste to energy, renewable natural gas, waste biomass, heat pumps, wind and solar systems, micro-modular reactors (MMRs), etc.
By 2030, the system aims to further lower its carbon footprint to support Canada’s broader sustainability commitments.
By 2030, the system aims to further lower its carbon footprint to support Canada’s broader sustainability commitments.