
Written by: Eyad El Madhoon, P.Eng, MBA, CEM, CMV
Introduction
District heating systems are a popular approach to modernizing heating systems. District heating typically depends on underground infrastructure to efficiently transport thermal energy from a central energy plant to multiple buildings. Central heating plants generate steam or hot water, which is then distributed through underground thermal piping networks that are typically well-insulated. This configuration reduces the reliance on individual boilers by efficiently transferring thermal energy between assets.
Compared to traditional small-scale heating and cooling systems implemented on a building-by-building basis, district heating and cooling may boost energy efficiency, reduce greenhouse gas emissions, and provide better fuel flexibility. District heating and cooling can offer various advantages such as cost reduction, streamlined building operations, essential infrastructure supply, and the development of important employment opportunities.

(Reference: https://www.alfalaval.my/industries/hvac/district-cooling/what-is-district-cooling-system)
District heating and cooling systems have many advantages for heat modernization. One major advantage is the ability to connect multiple buildings to a district system, that facilitates scaling and utilization of more efficient and resilient local energy resources. On a larger scale, there are many highly efficient and cleaner system possibilities that can be adopted. These include combined heat and power, wastewater heat recovery, biomass, geothermal, and other forms of renewables. Implementing these systems on a building-by-building basis would be very challenging. These options have the potential to greatly reduce emissions.
Using district heating systems can help consumers avoid the costly installation, operation, service, repair, and replacement expenditures associated with local boilers. This is considering all thermal energy is delivered to buildings in a convenient form and is managed via different local energy providers. Energy infrastructure, such as district heating networks, plays an essential part in enhancing the durability and sustainability of cities, communities, and campuses. District heating streamlines building operations, provides customers with precise heating control, and offers flexibility to accommodate changing occupant needs or improved building efficiency.
How big are Canadian district heating and cooling systems? A newly released study by Environmental group pollution found that 217 district heating and cooling systems are implemented in Canada, these systems provide 2.2% of heating needs.
District heating and cooling are essential components of the climate action plan. For instance, Ottawa has begun work on the development of a new district heating and cooling system in the downtown area. The new district heating and cooling system will include 4 major energy centers with the most sustainable technologies and reduce emissions by 63% compared to 2005 baseline levels. Toronto and Edmonton foresee DHC as a key energy transition component.

(Reference: https://arborus.ca/what-we-do/northern-community-energy-systems/)
Why is Canada expanding district heating?
Canada considers sustainable district heating and cooling systems one of the most reliable systems that would significantly reduce GHG emissions by 2050 for multiple reasons:
- UN claims that scaling up District heating and Cooling (DHC) systems can lead up to 90% operational efficiency gains, which is significant for future, and encourages investing in sustainable energy systems.
- District heating systems can reduce carbon emissions by incorporating renewable sources like geothermal, seawater, wastewater, and solar thermal energy. These heating systems maximize energy efficiency and can achieve nearly Net Zero GHG emmisions. These systems have less impact and life cycle cost compared to building-by-building systems.
- DHC systems can increase Energy flexibility and resilience. They use multiple energy sources in parallel, improving energy security and reducing fossil fuel dependence.
- District heating enables economies of scale, optimized production and distribution, Lower energy costs, and avoids fossil fuel price volatility.
Final Thoughts
District energy system promote local economies by generating employment opportunities in various areas such as design, construction, equipment manufacturing, operation, and maintenance. District heating energy efficiency projects can also contribute to the growth of local economies and seamlessly integrate with sustainable construction practices. To achieve a successful implementation of the Net Zero future in our residential, industrial, and institutional sectors, district heating and cooling is essential. I have reservations about the effectiveness of DHC in addressing all decarbonization challenges. However, it is vital for decarbonization. Tackling the issue of greenhouse gas emissions in large buildings. Small-scale efforts can be challenging due to cost and efficiency considerations. Many renewable heating methods have limitations when it comes to low ambient and hot water temperatures. As a result, a secondary peaking system is often necessary, which adds complexity to the setup, control, and maintenance of the system. On the other hand, local municipal or governmental institutions typically handle the implementation of large district heating and cooling systems, ensuring adequate funding and expertise in design and service. These improvements enhance the performance of renewable heating and cooling systems, making them more effective, durable, and capable of lowering greenhouse gas emissions and energy expenses.
References:
- District heating. District Heating – International District Energy Association. (n.d.). https://www.districtenergy.org/topics/district-heating
- CBC/Radio Canada. (2024, February 14). Imagine a furnace that heats the whole neighbourhood, not just your home | CBC news. CBCnews. https://www.cbc.ca/news/science/district-heating-explainer-1.7113827


Eyad El Madhoon, P.Eng, MBA, CEM, CMVP
Mechanical/Energy Transition Engineer
Eyad is a Senior Mechanical & Energy Engineer with Dillon Consulting. He has extensive experience overseeing, and planning large scale projects for manufacturing, and managing HVAC systems that are both energy and cost-effective. Eyad has over 20 years of experience as HVAC applications engineer, an energy manager, and mechanical project manager in both HVAC & Energy Systems sector. Eyad holds a BSc. degree in mechanical engineering, and is registered professional engineer in Ontario. Eyad has also recently obtained Master of Business administration degree (MBA) from Carleton University.
