Study: Community Energy Systems

• The applicant must be a Canadian municipal government (e.g., municipality, region, district, local council) or an eligible municipal partner (private-sector entity, municipal corporation, regional/provincial/territorial organization providing municipal services, NGO, non-profit, or research institute such as a university).
• An Indigenous community may apply as the lead applicant if it partners with a Canadian municipal government on an eligible project or has a shared-services agreement with a Canadian municipal government related to municipal infrastructure, climate change mitigation, or climate adaptation.
• The project must be a feasibility study that describes the design/concept of a proposed community energy system using low-carbon/renewable energy sources (e.g., district energy, solar, geothermal heat pumps, wind, heat recovery).
• The feasibility study must confirm the practicality and viability of building and operating the proposed system and define the final concept with estimated costs and potential revenue sources.
• The feasibility study must assess potential environmental, social, and economic impacts/benefits and identify risks and mitigation measures (including climate risk assessment, where applicable).

Who is eligible?

• Canadian municipal governments (e.g., municipalities, regions, districts, local councils)
• Private-sector entities partnering with a municipality
• Municipal corporations
• Non-governmental organizations (NGOs) and non-profit organizations
• Research institutes (e.g., universities)

Eligible expenses

• Detailed project design and engineering fees for the proposed community energy system.
• Studies and verification costs to confirm the availability of local energy sources.
• Costs to confirm energy off-takers (energy customers) and other end-users of products created by the proposed system.
• Detailed financial analysis costs (e.g., cost estimates, revenue forecasts, return-on-investment analysis, financing options).
• Preparation of tendering/procurement documents for the capital project.
• Stakeholder engagement and public consultation costs.
• Regulatory approval process costs.
• Impact assessment process costs.
• Climate risk assessment costs.

Eligible geographic areas

• Canada (Canadian municipalities and eligible partners).
• Northern Canada: Yukon, Northwest Territories, Nunavut, and the northern parts of Newfoundland and Labrador, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia (as defined by Statistics Canada codes).
• Quebec (specific submission process for Quebec municipalities via the Ministère des Affaires municipales et de l’Habitation).

• Projects are assessed to prioritize the most innovative initiatives and those expected to have the greatest impact (meeting eligibility requirements alone does not guarantee funding).

• Funding applications are accepted on an ongoing basis, but this offering may end once all available funds have been allocated.
• A detailed feasibility study describing the proposed low-carbon community energy system concept is the expected deliverable.
• It is strongly recommended to complete a business case before the feasibility study; a business case and feasibility study can also be carried out in parallel within the same project.
• For Quebec municipalities, the Ministère des Affaires municipales et de l’Habitation (MAMH) reviews applications before they are submitted to the Federation of Canadian Municipalities (FCM).