Future funding uncertain for downtown district energy system

Edmonton city councillors are set to discuss whether to involve a private partner to make the downtown district energy system work economically. The system — which provides heating to the current Winspear Centre and its future expansion, Chancery Hall, and Century Place — was conceived as a way to reduce the city's CO2 emissions, but changes to federal policy regarding emissions have altered the utility's business case. Administration said "financial constraints and changing policy conditions" have forced the city to pause and consider how to proceed with the planned Phase 1A expansion to the Stanley A. Milner branch of the Edmonton Public Library, the Citadel Theatre, and City Hall, as well as the preliminary design work for Phase 2, which was expected to bring the system to up to 20 mostly private buildings and two new developments.

Administration is asking council to choose between three options: continuing with the status quo and completing Phase 1A; looking for alternative ways to expand with a minimal amount of city funding; or stopping the expansion. Coun. Ashley Salvador introduced a motion directing administration to go with the first option; Coun. Reed Clarke unsuccessfully moved to amend the motion to go with the second option; and after a long in-camera session, Salvador moved another motion that seemed to be a bit of a blend of the two. The motion called for Phase 1A to proceed; for the city to work with EPCOR to find options to expand the utility through partnerships; and to proceed with a request for information for connections to the Exhibition Lands, Edmonton City Centre, River Crossing, Village at ICE District, and Station Lands developments. However, councillors on the committee eventually requisitioned the decision to the Nov. 25 city council meeting without making a recommendation.

Several representatives of the Vancouver area's private and public district energy sector paid (virtual) visits to the committee meeting to give their two cents. Luke Gillies of Lonsdale Energy, a municipally owned community energy system in the City of North Vancouver, said its success is due to council support, which is not only financial but also regulatory, as it requires buildings to hook up to the utility. Creative Energy, a private utility that serves more than 200 buildings in downtown Vancouver, echoed that strong municipal development and environmental policy is essential to make viable business cases. Jason Owen of clean-energy developer Corix urged councillors to consider partnering with the private sector because it can help secure equity and scale the system. Sonja Wilson, a partner with Reshape Infrastructure Strategies, urged councillors to go with the first option, as it's one of the few ways a municipality can directly reduce emissions. All speakers agreed, though, that council should stay the course on district energy and keep long-term goals in mind. "These are generational investments that have many benefits over the long term," Owen said.