Accelerating community energy systems

What we fund

We fund studies that:

• identify, evaluate and prioritize opportunity areas for low-carbon community energy systems (CES), (including renewable energy and district heating and cooling systems); and,
• assess and develop mechanisms to support implementation.

These studies are intended to lay the groundwork for more focused work on a community energy systems initiative, such as developing a business case, conducting a feasibility study or implementing a capital project.  

Your study will need to:  

1. Identify, evaluate and prioritize opportunity areas for community energy systems (CES) within the municipality (if this has not already been done). This should include a geospatial analysis to identify which neighbourhoods are likely to have the optimal conditions (e.g., density, land uses) to support successful implementation. The analysis should consider:
   • development density (existing and planned)
   • energy-intensive land uses (e.g., industrial parks, data centres—existing or planned)
   • potential "anchor" loads for district energy systems (e.g., pools, arenas—existing or planned)
   • potential thermal energy sources (e.g., paper mills, wastewater treatment plants)
   • proximity to existing or planned district energy systems capable of expansion  
   • availability of municipally owned land
   • ease of access and other constraints (e.g., environmental)
2. Model the anticipated baseline energy demand in each of the priority areas, including:
   • current and projected energy consumption of land uses 
   • anticipated seasonal load profiles
3. Articulate concrete next steps for each prioritized area to develop new community energy systems and increase connections to existing systems where applicable (e.g., completing a feasibility study for a municipal community energy system; assessing CES ownership models and contracting arrangements; partnering with a local industry or business park). This step must include a policy review to identify any barriers to implementation.
4. Develop a robust and inclusive stakeholder engagement strategy that aims to identify key stakeholders, build buy-in for community energy systems and lay the groundwork for partnerships.  
5. Identify, assess and prioritize implementation mechanisms that will help accelerate community energy development within the priority areas and/or municipality at-large (e.g., property tax rebates, fast-tracked approval processes, increased density allowances, committing to connecting municipally owned buildings to district energy systems, setting up a municipal district energy utility).
6. Advance one or more of the prioritized implementation mechanisms (e.g., by articulating the legal, financing, technical and regulatory requirements).
7. Develop municipal land-use policies which enable community energy systems, such as spatially identifying and creating policies for CES land-use zones.
8. Conduct market research to:  
   • gauge general awareness and/or support for district energy system deployment from identified audiences and key stakeholders
   • understand availability and readiness for industry, and interest in various partnership opportunities

Studies designed to create a thermal decarbonization plan for the municipality by identifying CES opportunities and other options are eligible if the scope includes the specified elements above.

As part of your study, you will need to conduct an equity assessment that answers, at minimum, the following questions:

• Which equity-deserving groups might benefit the most from the project, and/or be burdened, directly or indirectly, by the project or decision? How are these groups positively or negatively impacted by the project or decision?
• What strategies can be used to address barriers or mitigate negative impacts?
• What data sources, reports, or mapping resources can help illuminate equity issues in your local context?

What your project needs to achieve

Only projects that meet the criteria on this page are eligible. Please note that we consider several factors in making a funding decision. We strive to fund the most innovative and impactful initiatives, so not all eligible projects will be approved for funding. Note that applicants must commit to actively participating in the learning cohort to be considered for funding.  

Preference will be given to initiatives that:

• have the potential to lead to significant GHG reductions
• benefit from strong support from political leaders, senior municipal staff, the local community, and implementation partners (e.g., utilities, developers, landowners)
• are supported by at least one of the following: an official plan, a secondary plan, a community energy plan or a climate action plan (or their equivalent)
• are led by a multidisciplinary team, representing key departments (e.g., planning, sustainability, finance, energy, climate, land development, operations, facilities)
• are conducted in collaboration with key implementation partners (e.g., utilities, developers, landowners)
• are conducted in collaboration with equity-deserving groups or with an Indigenous community
• demonstrate a strong integration of multi-solving approaches such as:
  • maximizing environmental and socio-economic benefits (e.g., increased housing supply and diversity, supporting transit-oriented development, fostering the creation of compact, complete neighbourhoods)
  • advancing equity, diversity, inclusion and Reconciliation objectives
  • increasing climate resilience

Equity considerations

GMF recognizes that many urgent social issues are interrelated, and that climate action and sustainability initiatives need to be designed to ensure fair distribution of benefits and burdens, across all segments of a community and across generations. Projects will be assessed on their potential to result in improved socio-economic outcomes and a more equitable distribution of benefits and burdens among the community, for present and future generations. While projects can be eligible without incorporating these considerations, preference is given to projects that:

• integrate principles of Reconciliation, anti-racism, equity and inclusion
• apply inclusive community engagement practices
• implement social procurement
• generate significant socio-economic benefits, such as increased accessibility, improved outdoor spaces, and inclusive employment and apprenticeship

As you develop your project approach, consider the following questions:

1. How can you design an engagement approach that would enable you to consider the diverse needs, experiences, and voices of all stakeholders and rights holders in this project?
2. Which equity-deserving groups might benefit the most, and/or be burdened, directly or indirectly, by this project? How are these groups positively or negatively impacted?
3. Are there opportunities to address or mitigate negative impacts?
4. Are there opportunities to rectify existing or potential biases, discrimination, or exclusionary practices in your project planning, design, funding, and implementation?
5. How can you maximize the socio-economic benefits that your project generates?
6. How can you leverage your procurement practices to generate more positive social, economic and environmental outcomes within your community and region?