Community Energy Solutions: A key to tackling Canada’s emissions challenges

RE: Experts estimate modest drop in 2023 emissions, with big differences across sectors – Canadian Climate Institute, September 19, 2024

Canada’s 2023 emissions report from the Canadian Climate Institute reveals some progress, with a modest 1% decline in national emissions in 2023. However, the pace of reductions remains insufficient to meet the 2030 climate targets. With uneven progress across sectors like oil and gas and transportation, Canada can further enhance its efforts by integrating existing technologies and resources at the local level to accelerate sustainable energy transitions. Community energy solutions, coupled with integrated resource planning, offer a pathway toward building more resilient, cleaner energy systems—today.

The need for system integration

We know that reducing our dependence on fossil fuels is essential for long-term sustainability, but like it or not it’s a process that will take time—something we are quickly running out of. The good news is that there are more solutions at our disposal to reduce emissions in Canada than we are deploying at scale today.

The solutions lie in optimizing and integrating the energy systems we have in place, ensuring they are more efficient, flexible, and capable of reducing emissions. Energy system integration—connecting electricity, heating, transportation, and emissions planning—enables communities to maximize the use of current technologies and available energy sources while laying the foundation for future clean energy advancements.

A prime example of local system integration is Toronto’s Port Lands revitalization project. This large-scale urban redevelopment integrates electricity, heating, transportation, and emissions planning into a single, cohesive system.

The project includes a district energy system that provides heating and cooling to buildings through a centralized network, reducing the need for individual heating units. The system is powered by renewable energy sources such as deep lake water cooling, solar panels, and “bird-sensitive micro-wind turbines”, with backup provided by natural gas-powered chillers, minimizing the reliance on fossil fuels. The dual setup ensures that cooling services remain reliable even when the lake water system cannot fully meet demand. In addition, electric vehicle charging infrastructure is integrated into the area, promoting cleaner transportation.

This holistic approach is paired with emissions planning that sets ambitious targets for carbon reduction, aligning with Toronto’s broader climate goals. By combining these elements—local renewable energy generation, energy-efficient heating and cooling, and sustainable transport infrastructure—the Port Lands project demonstrates how integrated planning can reduce emissions, create resilient energy systems, and support economic growth at the community level.

This example highlights how a well-planned, interconnected energy system can significantly contribute to emissions reductions from multiple sectors while addressing current energy demands.

What is Integrated Resource Planning?

Today the term ‘Integrated Resource Planning’ is used independently by the electricity and natural gas sectors as a reference to vertical integration—from generation or production to end-use.

What we need is a holistic approach to managing all energy resources that accounts for the long-term sustainability, reliability, and cost-effectiveness of a community’s energy needs. Integrated resource planning needs to evolve to include:

• Optimized energy efficiency: Implementing smart grids, energy storage, and demand-response systems to balance supply and demand in real-time.
  
• Comprehensive emissions planning: Developing strategies that prioritize emissions reductions across sectors, including transportation, buildings, and heavy industry.
  
• Coordinated use of local resources: Utilizing renewable energy sources like solar, wind, and geothermal in tandem with traditional energy systems.

How integrated local solutions help meet the urgency of Canada’s climate goals

1. Localized energy systems: Community energy projects, which focus on the efficient use of energy in addition to generating and managing energy at the local level, play a critical role in integrated resource planning. By reducing demand in the first place and then blending renewable sources with existing infrastructure, communities can reduce emissions while maintaining reliable energy. These systems can work alongside the larger grid, providing flexibility and resilience, especially in times of peak demand.
2. Maximizing efficiency in buildings: The 6% drop in building emissions in 2023 shows the potential for improvement from the sector. Combining efficient heating systems (such as air source and ground source heat pumps, or high-efficiency gas furnaces) with renewable energy sources (such as solar, wind, biomass, and renewable natural gas) through technologies (such as district energy systems, combined heat and power, or hybrid heating systems) can reduce emissions further as is being done in the Portlands project. Community-driven solutions like retrofitting homes and businesses with energy-efficient and hybrid technologies also contribute to enhanced overall system performance.
3. Supporting cleaner transportation: Transportation remains a growing source of emissions, with a 1.6% increase in 2023. Community Energy and Emissions Plans that include land-use-based transportation solutions, such as 15-minute communities and robust public transit networks, can help accelerate the decarbonization of this sector. Land use planning directly influences travel behavior. For example, sprawled developments lead to car dependency, while compact, mixed-use developments reduce the need for trips. The type of motor (e.g., gasoline vs. electric) matters, but reducing vehicle miles traveled through thoughtful urban planning can have a significant impact on lowering transportation emissions.
4. Community-driven solutions: Community energy is about more than just renewable power generation; it is an essential, immediate strategy for accelerating the transition to a low-carbon future. By empowering local stakeholders to develop tailored energy and emissions plans, communities can accelerate the deployment of integrated solutions that make use of existing systems—such as wastewater treatment facilities adapted to capture biogas that is converted into renewable energy, reducing emissions and creating a local energy source. Cleaner technologies, like electric heat pumps with hybrid heating solutions, can also be deployed where grid reliability or grid capacity with extreme weather is a concern. For regions with sufficient population density, district energy systems offer another effective approach. According to the Canadian Climate Institute, 70% of Canada’s population resides in areas dense enough to support district energy. These comprehensive, community-led efforts are critical for driving meaningful emissions reductions now and in the future, ensuring a sustainable and swift transition to net zero.

Need to move beyond sector focus

To meet its climate targets, Canada needs to move beyond a sector-focused strategy and adopt a more integrated approach to energy and emissions planning. Community energy solutions and comprehensive integrated resource planning can deliver sustainable progress today by leveraging local resources and technologies. This integrated approach ensures that energy systems are optimized for efficiency and emissions reduction, without compromising reliability or economic growth.

Canada’s climate journey is about ensuring that every part of the energy system works together. By focusing on system integration, communities can play a local, leading role in reducing emissions while driving innovation and resilience.