Factsheet: Electrification when renovating municipal buildings in Quebec

Candiac: Example of a completed project

Quebec municipalities manage a large number of buildings, such as town halls, arenas, community centres and municipal garages. Many of these buildings will need to be renovated, modernized or maintained over the next five to ten years. In this context, the choices made when replacing equipment (particularly for heating and hot water production) will have a direct impact on operating costs and energy performance, and can often result in significant amounts of greenhouse gas emissions (GHGs), which often leads to a nearly 100% reduction in these emissions.

The electrification of municipal buildings is a more relevant option for renovation projects, given the evolution of technologies, the availability of predominantly renewable electricity in Quebec and the GHG emission reduction targets. It does, however, raise important issues related to costs, planning, operation and availability of electricity.  

This factsheet is intended for municipal elected officials, managers, professionals and building officials who wish to better understand the electrification of municipal buildings in a renovation context. The sheet aims to present what electrification means, its key benefits and the key considerations that must be taken into account to support informed decision-making relevant to municipal realities. 

What does electrification mean in the context of municipal buildings? 

In municipal buildings, electrification refers to the reduction in or elimination of the use of fossil fuels (e.g., natural gas, oil or propane) in favour of electricity, primarily for building heating and domestic hot water production. For example, when renovating a community centre, a municipality may choose to replace an end-of-life natural gas boiler with an electric system or a hybrid system combining electricity and fuel.  

This approach is an important element of the municipal energy transition, as more than 99 per cent of the electricity produced in Quebec comes from renewable sources—mainly hydro-electricity—but also wind and solar energy. This makes electrification a solution that emits fewer greenhouse gases than fossil fuel systems. 

Key decisions related to electrification are typically made at strategic moments in the management of the municipal housing inventory, including:

• when replacing end-of-life heating equipment
• major renovation or upgrade projects
• when planning long-term asset maintenance investments

While electrification is a central tool to help decarbonize buildings, it is not always the most appropriate solution in all contexts. Its relevance depends in particular on the energy consumption profile (the electrification of buildings with a high heating demand can lead to a significant increase in electrical power demand) of the building and on technical or budgetary constraints. It is therefore essential to evaluate the various options in order to use the right energy at the right time and to optimize the installation and operating costs over the entire life-cycle of the buildings, ideally taking into account the asset maintenance needs in the short, medium and long terms. 

Benefits of electrification to the local community

The electrification of municipal buildings has a number of benefits for the municipal government and the community, including upgrading the building stock, controlling long-term operating costs and significantly reducing GHG emissions. Beyond energy, electrification can also be an opportunity to improve occupant comfort and indoor air quality and support climate goals. 

Infrastructure modernization and asset management 

Replacing end-of-life equipment is often a strategic opportunity to electrify municipal buildings. In infrastructure management, this means taking advantage of planned asset maintenance or renovation work to choose equipment that is more efficient, that is better adapted to future needs and that provides a return on investment.

The subsidies available for electrification and GHG reduction can help reduce project costs, while allowing municipalities to pass on more modern and efficient buildings to the community. Integrated planning helps avoid premature replacements and optimize investments. 

Reducing energy and life-cycle costs 

Electrification can improve the resilience of municipalities to fluctuations in fossil fuel prices. When combined with energy efficiency and power demand management measures, it can generate recurring cost savings.

Electrical equipment, such as heat pumps, generally offers greater energy efficiency than fossil fuel-based equipment. For example, a heat pump can provide two to three units of useful energy for each unit of electricity consumed, whereas a conventional natural gas boiler produces less than one unit of heat for one unit of energy consumed. This increased efficiency can result in lower operating costs, even when the lifespan of some equipment is shorter, provided that these aspects are taken into account in project planning. An economic analysis that takes into account the useful life of the proposed new equipment must therefore be performed upstream in order to choose the most appropriate solution. 

Reducing GHG emissions: benefits to the community 

By replacing oil, natural gas and propane equipment with electrical systems, municipalities can significantly reduce the GHG emissions associated with their buildings, particularly where Quebec electricity is largely renewable.

Electrification also reduces local emissions of air pollutants, which contributes to improved air quality. These improvements can have positive effects on the comfort, health and well-being of the occupants, while strengthening the exemplary role of municipalities in the fight against climate change. 

Improved occupant comfort

Electrification can also, in some cases, be an opportunity to install air conditioning systems to improve occupant comfort. The installation of a heat pump is an efficient way to electrify the heating while using the same system to cool. This option can be of considerable benefit, especially in the context of global warming and the proliferation of heat waves. 

Key considerations for the electrification of municipal buildings 

The electrification of municipal buildings raises a number of technical, financial and operational issues that must be taken into account in the early stages of a project. These considerations include the capacity of the electricity system, the cost of electrical power, system operation and maintenance, long-term investment planning and building resilience. An upstream analysis makes it possible to better align the technological choices with local realities, building constraints, the phasing of the work and the municipality’s decarbonization objectives. 

Validate electrical power availability and implement peak demand mitigation measures

Electrification of heating equipment increases the demand for electrical power, especially during periods of extreme cold when heating needs are high. The increase in electricity demand resulting from electrification may exceed the supply capacity of the local grid. It is recommended that municipalities consult with Hydro-Québec to assess the feasibility of their electrification projects and determine the conditions under which they can be carried out, to ensure that they do not exceed the capacity of the local distribution network.  

These peaks occur at critical times of high demand for the Hydro-Québec system and have a strong impact on the energy supply and on the distribution infrastructure. There are several ways to reduce the maximum demand. Here are some examples:  

• Energy efficiency: energy efficiency measures, such as improved building envelopes and the installation of efficient equipment, reduce the building’s electrical power demand.  
• Dual energy: the use of an alternate fuel energy source, that is, when electricity demand exceeds a certain power level, can be an effective solution to avoid overloading the electricity system.  
• Thermal or electrochemical battery storage: storing heat or electricity for reuse during periods of high demand can be a relevant solution for some buildings and again helps limit maximum power demand.  

From the planning and pre-project stage, it is recommended to assess the capacity of the existing electrical entrance, the potential connection times and the need to coordinate the work with Hydro-Québec. Before technology choices are finalized, demand management strategies, such as adaptive control sequences, backup sources or thermal storage solutions, should be considered. 

Consider available resources for equipment operation and energy management

Efficient electrified systems often rely on more complex equipment and controls than traditional fossil-fuel systems. To realize the expected energy and financial gains, it is essential that the resources responsible for development have the necessary skills, time and support.  

From the design stage and before the project is implemented, the municipality should assess the availability of staff, training needs and the possible use of external support to manage energy and mechanical systems. Providing training, clear documentation and post-implementation follow-up will support proper and sustainable operation of the systems. 

Perform commissioning of electromechanical equipment

Commissioning validates the proper operation of the systems for a specified period of time and ensures that operating personnel are trained to operate the systems. Commissioning is the ongoing process of adjusting and calibrating heating, ventilation and air conditioning systems to ensure that buildings are operating as efficiently as possible. In an electrification project, it is essential to validate the actual performance of heat pumps, controls and power management strategies.

Commissioning should be planned from the time of project design and should continue after implementation, particularly during the early cold periods. Without rigorous commissioning, systems may operate sub-optimally, reducing the expected energy savings and benefits.

What is dual energy?

Dual energy uses two sources of energy for heating: electricity, most of the time, and natural gas or another fuel, when it is cold and the demand for electricity is very high.  This means using the right source of energy at the right time and at the best possible cost. Hydro-Québec’s dual energy rate may apply in some cases.

 

Assess energy costs following the electrification of energy project and implement optimization measures

In many municipal buildings, the electricity bill depends not only on the energy consumed (measured in kWh on Hydro-Québec’s bill), but also on the maximum monthly power (measured in kW). High one-time demand in the winter impacts energy bills. Hydro-Québec’s “M” rate, often applicable to municipal buildings, bills the maximum monthly power demand and also applies a penalty during the summer months by charging at least 65% of the year’s highest demand during the summer months.

As a result of electrification, an increase in power during the winter season can result in additional operating costs, even when total annual consumption decreases. These issues are particularly important for buildings with high heating needs in the winter cold.

Before the technological choices are finalized, it is essential to analyze the price impacts based on the actual consumption profiles of the building, ideally at the pre-project stage. As part of a “Retrofit pathway for municipal buildings,” as recommended by the Green Municipal Fund, dual energy can be considered as a transitional solution to rapidly reduce the use of fossil fuels while limiting electrical power peaks. This approach can facilitate a gradual transition to complete decarbonization of a building. 

Consider the life of the equipment

Some electrical equipment, such as heat pumps, offer high energy efficiency and can generate significant savings, but their useful life may be shorter than that of conventional fossil equipment. This fact has a direct impact on investment planning and municipal asset maintenance.

It is recommended that a life-cycle cost approach be adopted from the preliminary design stage, incorporating initial costs, maintenance, future replacement and changes in energy costs. These elements should be linked to asset maintenance planning to avoid unforeseen medium- to long-term budget pressures. 

Assess building physical constraints, site and compatibility with existing systems

The physical constraints of the building and the site, such as space available for mechanical equipment, structural issues, architectural considerations, electrical entrance capacity and the immediate environment, can strongly influence the feasibility of an electrification project. In addition, the temperature of the existing heating system can be a barrier to the implementation of more efficient technologies such as heat pumps. Conventional heating systems typically operate at 180ºF. All terminal equipment (coils or heating cabinets) is therefore sized according to these temperatures.  Heat pumps, on the other hand, are most effective when temperatures are lower and generally cannot exceed 140ºF. The implementation of this technology in an existing building can therefore involve the complete replacement of terminal equipment, which significantly increases the cost and complexity of the work. The type of heat pump selected should also be evaluated based on site constraints and heating and cooling demand (see below,  ground source heat pumps vs. air source heat pumps).  

These elements should be evaluated at the earliest stages of the project, including during surveys and feasibility studies, to avoid costly adjustments during the design or construction phase. The city manager should verify with their consultant that the preliminary studies have considered these constraints. 

Heat pumps: Ground source vs. air source

Ground source

• More expensive to install.
• Better efficiency when outside temperature is cold.
• Need for outdoor space for wells.
• Risk of wells freezing if heating and cooling loads are not balanced.
• More planning required with completion of test wells.

Air source

• Easier to install.
• Reduced efficiency when outside temperature is cold.
• Generally shorter equipment life.
• External condenser visible and not aesthetically appealing.

 

Resilience to power outages

Replacing fossil-fuel heating systems with electrical systems can make some buildings more vulnerable if a power outage occurs, particularly those that provide essential services or that can serve as places of refuge. Some municipal buildings are equipped with generators to power critical loads such as emergency lighting in the event of a failure. When heating is converted 100 per cent to an electric system, it becomes essential to maintain the power supply to maintain the temperature. Full electrification can therefore involve adding or increasing the generator’s capacity for safety reasons.

When designing the project, it is relevant to assess the criticality of the building and consider solutions such as hybrid systems (electricity and fuel) or auxiliary equipment such as generators. Care must be taken to ensure that all critical equipment can have a workaround in the event of a failure. These decisions should be aligned with the municipality’s safety and business continuity plans. 

Phasing of work

Electrification projects are often located in occupied buildings, where municipal operations must continue. Seasonal constraints, access to mechanical spaces and continuity of services complicate the execution of the work.

It is recommended that the pre-project stage identify suitable work periods and plan a realistic phasing. During design, temporary solutions, such as backup heating, will ensure continuity of municipal services during construction. 

Stakeholder engagement

Electrification projects may raise concerns related to costs, impacts of the work or changes in building operations.

From the earliest stages of the project, it is important to involve elected officials, managers, operating staff and, where relevant, users, in order to encourage buy-in, support decision-making and ensure a smooth transition.