What we fund

We fund feasibility studies that outline the design of a proposed community energy system. This funding helps Canadian cities evaluate local sources of renewable energy that will ultimately power multiple systems and buildings resulting in reduced operating costs, stable energy bills and resilient energy grids. Clean energy systems can include district energy systems (like district heating), solar energy, geothermal heat pumps, wind turbines and heat recovery. 

The proposed energy transition should help communities boost energy efficiency, strengthen local economies, create jobs, protect residents from rising energy costs and reduce the risk of widespread power outages during extreme weather events.

Your feasibility study should build on your business case assessing low-carbon energy systems viable for a given site and the capacity to implement each system. A business case and feasibility study may be undertaken together as one project, eligible for a grant of up to a maximum of $200,000 for the project as a whole.

Your study should aim to:

• Confirm the practicality and viability of constructing and operating the proposed energy system.
• Incorporate feedback from stakeholder engagement and public consultation.
• Complete system design and quantify expected costs and revenue streams.
• Quantify the environmental, social, and economic impacts and benefits.
• Confirm partnerships.
• Detail proposed business model, including project ownership, operations, and financing.
• Identify risks and mitigation options (including climate risk assessment).
• Assess the proposed site condition.

Your study will need to include, at minimum, the following:

• The GHG impacts of the solution or approach being studied.
• A confirmation of the proposed operational and financial model planned for the project.
• Climate risk assessment (required for projects studying new infrastructure assets valued over $2 million; optional for other projects).
• 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?

Eligible activities undertaken as part of your study include:

• Detailed project design.
• Verification of availability of local energy sources.
• Verification of end users for energy and other products created by the proposed system.
• Detailed financial analysis (e.g., cost estimates, revenue projections, return on investment (ROI), and funding options).
• Developing terms and conditions for going to tender for the capital project.
• Stakeholder engagement and public consultation.
• Regulatory approval processes.
• Impact assessment process.
• Climate risk assessment.

Ultimately, your study should equip you with the information you need to implement a capital project.

What your project needs to achieve

All 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.

It is strongly recommended that you complete a business case ahead of your feasibility study.

A business case and feasibility study may be undertaken together as one project, eligible for a grant of up to a maximum of $200,000 for the project as a whole.

Further information regarding the offer can be found in the Community Energy Systems application guide

Requirements for all Community Energy Systems projects

The following must be accounted for in the applicant’s business case, and fulfilled in their feasibility study:

• A minimum of two buildings are required for district energy projects, and renewable electricity systems should be able to power multiple systems and buildings.
• For thermal energy projects: Your initiative must reduce GHG emissions associated with fossil fuel or grid electricity use by at least 40 percent compared to current performance.  You must be able to achieve this target within three years of implementation.  
• Biomass combustion must be integrated into a broader low-carbon district energy system. Specific eligibility criteria apply:
  • For communities connected to a provincial or territorial electric grid, the following requirements apply:
    • Back-up source for heating:  Biomass is eligible for back-up heating only when it is integrated into a broader low-carbon system (i.e. heat recovery and renewable electricity integration).   
    • Biomass electricity: Combined heat and power (CHP) systems with biomass as the source cannot be submitted under the Community Energy Systems (CES) offer. *
    • Harvesting of biomass: In grid-connected communities, harvested wood is not eligible as a fuel source. Forest thinning practices to mitigate forest-fire risk are eligible.  
• *Northern communities with a fossil-fuel reliant electricity system are evaluated on a case-by-case basis. 

Resilience

Projects must meet minimum requirements related to climate resilience:

• Capital projects that include new infrastructure assets must be built outside the current 100-year floodplain of the most recent floodplain map, unless evidence can be provided of protection to safeguard the asset.
• Projects with new infrastructure assets valued over $2 million must conduct a Climate Risk Assessment (i.e., Infrastructure Canada Climate lens, ISO 14091, PIEVC High Level Screening Guide or equivalent) and address risks identified. A Climate Risk Assessment must be included in study workplans (where relevant) and is submitted as part of the pre-application for relevant capital projects.

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 anti-racism, equity, inclusion and reconciliation.
• 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?

Multi-solving

GMF seeks to fund the very best examples of municipal initiatives that achieve a multitude of benefits for the environment, communities and local economies. Higher application evaluation scores are given to projects that demonstrate excellence in one or more of the following areas:

• sustainable materials management
• biodiversity
• socio-economic benefits
• meaningful engagement and collaboration with rights holders and stakeholders.

What we fund

We fund business cases that result in a technical exploration of low-carbon and renewable energy systems viable for a given site and the capacity to implement each system. This funding helps Canadian cities and communities adopt a streamlined approach to assess and deploy a variety of clean energy systems, including district energy systems (like district heating), solar energy, geothermal heat pumps, wind turbines and heat recovery.

The proposed energy transition should help communities boost energy efficiency, strengthen local economies, create jobs, protect residents from rising energy costs and reduce the risk of widespread power outages during extreme weather events.

Your business case should prepare you for a feasibility study. A business case and feasibility study may be undertaken together as one project, eligible for a grant of up to a maximum of $200,000 for the project as a whole. 

Business cases are expected to identify a preferred community energy option(s) at a neighborhood scale, and should aim to:

• Determine the practicality and viability of a preferred energy system.
• Assess the potential environmental, social, and economic impacts and benefits.
• Quantify expected costs and potential revenue streams.
• Identify partnership opportunities.
• Define proposed business model, including recommendations for project ownership, operations, and financing.
• Identify risks and mitigation options.

Your business case will need to consider, at minimum, the following: 

• What are the GHG impacts of the solution or approach being studied?
• What is the economic benefit to the municipality?
• The stakeholders involved in the options considered (e.g., utilities, authority granting bodies, property holders, etc.).
• Considerations for successful implementation, including right of way, zoning and access.
• A financial analysis (e.g., cost estimates, revenue projections, return on investment (ROI), and funding options).
• 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?

Eligible activities that may be undertaken as part of your business case include:

• A scan and evaluation of available energy sources.
• A scan and evaluation of available local energy providers.
• An assessment of the market for energy and other products created by the proposed system.
• An evaluation of available sites and/or site viability for an energy system.
• An examination of the legal and regulatory context and implications for the project.
• An evaluation of the organization’s ability to deliver the solution.
• An assessment of partnership opportunities and business model options.
• An assessment of environmental, social, and economic impacts and benefits.
• Stakeholder engagement.

What your project needs to achieve

All 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.

Further information regarding the offer can be found in the Community Energy Systems application guide

Requirements for all Community Energy Systems projects

The following must be accounted for in the applicant’s business case, and fulfilled in their feasibility study:

• A minimum of two buildings are required for district energy projects, and renewable electricity systems should be able to power multiple systems and buildings.
• For thermal energy projects: Your initiative must reduce GHG emissions associated with fossil fuel or grid electricity use by at least 40 percent compared to current performance.  You must be able to achieve this target within three years of implementation.
• Biomass combustion must be integrated into a broader low-carbon district energy system. Specific eligibility criteria apply:
  • For communities connected to a provincial or territorial electric grid, the following requirements apply:
    • Back-up source for heating:  Biomass is eligible for back-up heating only when it is integrated into a broader low-carbon system (i.e. heat recovery and renewable electricity integration).   
    • Biomass electricity: Combined heat and power (CHP) systems with biomass as the source cannot be submitted under the Community Energy Systems (CES) offer. *
    • Harvesting of biomass: In grid-connected communities, harvested wood is not eligible as a fuel source. Forest thinning practices to mitigate forest-fire risk are eligible.  
• *Northern communities with a fossil-fuel reliant electricity system are evaluated on a case-by-case basis. 

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 anti-racism, equity, inclusion and reconciliation.
• 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?

Multi-solving

GMF seeks to fund the very best examples of municipal initiatives that achieve a multitude of benefits for the environment, communities and local economies. Higher application evaluation scores are given to projects that demonstrate excellence in one or more of the following areas:

• sustainable materials management
• biodiversity
• socio-economic benefits
• meaningful engagement and collaboration with rights holders and stakeholders