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District energy presents a unique opportunity to transform Edmonton’s local energy systems to be low-carbon while stimulating the local economy and increasing access to affordable renewable energy.
Edmonton is warming twice as fast as the globe, and has one of the highest per capita rates of emissions in the world. Since 1885, the city’s average temperature has increased by 2.3°C — more than double the global average.
As part of its City Plan and Community Energy Transition Strategy, the City of Edmonton has set an ambitious target to be carbon neutral in its corporate operations by 2040, and for the entire community to produce net-zero greenhouse gas emissions by 2050. Addressing how we heat and cool our buildings is a critical factor in building a climate-resilient city. This is where district energy comes in.
District energy systems are a proven energy solution that will bring Edmonton closer to its climate goals. Integrating energy efficiency and alternative and renewable energy technologies, district energy systems produce low-carbon thermal energy (heating and/or cooling) and distribute it to connected buildings.
The City’s District Energy Strategy is a transformational initiative that offers the opportunity to significantly reduce emissions by an estimated 230,000 tonnes of carbon dioxide (CO2) per year across all district energy opportunity areas.
District energy systems have been operating in Canada for almost 150 years, with more than 250 systems running today. (Source: CEEDC database)
For decades, they have been the heating systems of choice at military bases and universities, including the University of Alberta. More recently, municipalities like Vancouver, Markham, Ont., Toronto, Calgary and Ottawa have turned to district energy to help them reach climate change and energy transition goals.
Through a range of technologies and energy sources, district energy systems generate (or extract) heat and cooling at a central energy site. This thermal energy is then transferred to a fluid and distributed through a piping network to connected buildings. These connected buildings — residential, commercial and/or industrial — use the thermal energy supplied by district energy for space and water heating and cooling.
City Approves Growth of Downtown District Energy Initiative
July 2, 2025
Multiple areas across Edmonton have been identified as a priority for district energy. Refer to the District Energy Strategy for a full list of opportunity areas.
Current areas in operation or under development include:
The City of Edmonton has partnered with EPCOR to deliver Phase 1 of the Downtown District Energy Initiative (DDEI). Construction started in 2024, with the system expected to be operational by fall 2025. Initially, the system will be powered by natural gas boilers.
A plan to incorporate other low-carbon energy sources, which may include a combination of electric boilers, supplied with renewable electricity, wastewater heat recovery and geoexchange, is in place for the full district energy system build out.
The system is designed to connect up to 50 buildings at full build-out by 2050. Three buildings will be connected as part of Phase 1 — the Winspear Centre for Music, Chancery Hall and Century Place — and three as part of Phase 1A — the Citadel Theatre, Stanley A. Milner Library and City Hall. Design work has begun on Phase 2, which will connect up to 20 buildings — primarily privately owned.
The exact reduction will depend on the technology that City Council chooses to invest in over time. At full build-out, which is expected by 2050, the entire downtown system is designed to connect around 50 buildings and has the potential to operate emissions-free.
Reports by the United Nations and the private sector have recognized that, due to the complexity of utility development and the urgency of climate change, municipal governments play an essential role in developing district energy systems. Edmonton’s District Energy Strategy is designed to reduce City investment and public sector risk over time by increasing private sector participation. This approach has worked in other Canadian cities, such as Toronto, Vancouver and Markham, Ont.
District energy systems require a lot of capital investment. Because the City is funding the DDEI, it is important to build a financially sustainable utility from the outset. District energy systems are often built using natural gas boilers to start, as they are cost-effective to install and operate. As the utility gains experience and builds its customer base, operating revenues and other funding can be used to “switch out” the fuel to lower-carbon sources. However, even when powered by natural gas, district energy leads to increased energy efficiency.
To provide the best environmental benefits and economic value, the first two phases of the DDEI will only provide heat. However, the expansion of the system into Phase 2 and beyond could see the addition of cooling services through the addition of emission-reducing technology like geoexchange. City Council would need to approve the implementation of cooling, as further capital investment would be required.
Blatchford Renewable Energy is a City-owned utility that has been in operation since 2019 and currently supplies the neighbourhood with environmentally friendly heating, cooling and hot water services. The utility has been recognized with international awards for its sustainable and innovative design.
The Blatchford development has an ambitious and exciting vision to be a sustainable community that uses 100% renewable energy, is carbon-neutral, significantly reduces its ecological footprint, and empowers residents to pursue a range of sustainable lifestyle choices.
Blatchford Renewable Energy’s District Energy Sharing System plays a major role in helping to achieve that vision. Blatchford Renewable Energy currently utilizes geoexchange as the renewable energy source, with highly efficient heat pumps. Plans to incorporate sewer heat recovery in the future are in progress.
The City has completed district energy feasibility studies for the River Crossing and Exhibition Lands redevelopments. The feasibility studies identify the preferred low-carbon energy source and technology, infrastructure requirements, site service area and system phasing for business case development.