Government of Canada marks launch of modernized National Capital Region District Energy System

GATINEAU, QC, June 23, 2026 /CNW/ - The Government of Canada is committed to reducing greenhouse gas emissions, leading by example to green its own operations.

Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, marked the launch of the modernized National Capital Region District Energy System (NCR DES), delivered through the Energy Services Acquisition Program (ESAP), one of the federal government's most significant initiatives to reduce greenhouse gas emissions from its operations.

The announcement coincides with the International District Energy Association's 2026 conference in Ottawa, where global industry leaders are gathering to share knowledge and advance low-carbon district energy systems.

The modernized system provides heating and cooling to federal and non-federal buildings across Ottawa and Gatineau, while significantly reducing emissions, improving reliability and supporting long-term cost effectiveness.

Through ESAP, Public Services and Procurement Canada (PSPC) has transformed a system originally built 50 to 100 years ago into a modern, efficient and flexible network powered primarily by low-carbon electricity. The modernization replaces high-temperature steam with a low-temperature hot water system and electric chillers, improving energy efficiency, reliability and safety.

Delivered through a public-private partnership with Innovate Energy, the $3.4-billion project includes $1.3 billion for design and construction and $2.1 billion for long-term operations and maintenance. This approach provides long-term cost certainty and supports performance over the life of the contract.

The modernized NCR DES is designed to operate using a balanced mix of energy sources, primarily low-carbon electricity, complemented by natural gas to meet peak seasonal demand. This ensures reliable, efficient and cost-effective service while reducing greenhouse gas emissions.

Designed for future expansion, the system will enable additional buildings, including those from other levels of government and the private sector, to connect to clean and reliable energy in the years ahead.

Quotes

"Canadians understand the need to protect the air we breathe, particularly in cities, where people, cars and infrastructure are more concentrated. District energy systems are among the most efficient ways to reduce emissions in urban environments, and the Energy Services Acquisition Program reflects our government's commitment to build a more sustainable future in the National Capital Region. From design and construction through long-term operations and maintenance, this project will be a lasting source of good jobs in the region as we continue to strengthen Canada's low-carbon economy."

The Honourable Joël Lightbound
Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant

"ESAP is an extremely important project in the National Capital Region, and working with the Government of Canada to help them achieve their sustainability goals was a perfect fit for EQUANS. In the case of ESAP, the public-private partnership worked as we all have the same goal in mind: to decarbonize and green the Government of Canada's heating and cooling operations in the National Capital Region."

Tom Burton
General Manager, EQUANS Services Inc.

"The International District Energy Association 2026 conference in Ottawa reflects the industry's focus on strengthening partnerships, improving system integration and accelerating progress through collaboration. We're bringing our international community together to help cities and campuses meet their energy and resilience goals. The Energy Services Acquisition Program is the proof point the world needs to see, and Ottawa is a working model for what federal ambition and district energy expertise can achieve together."

Rob Thornton
President and Chief Executive Officer, International District Energy Association

Quick facts

• The system is connected to Hydro-Québec's electricity grid, supporting increased use of low-carbon electricity and reducing reliance on natural gas over time.
• The system includes four energy centres: the Tunney's Pasture, Cliff and Gatineau energy centres, as well as the modernized Confederation Heights facility and two pump houses that support system operations.
• The upgraded network includes more than 14 kilometres of distribution piping connecting key components across the National Capital Region.
• The system is designed for expansion, with a heating capacity of approximately 200 megawatts and a cooling capacity of approximately 150 megawatts.
• An agreement was signed with Innovate Energy for the modernization of the NCR DES. Innovate Energy is a consortium of partners working on the project, through a 35-year public-private partnership (P3) contract delivery model. Partners include: PCL Constructors Canada Inc., PCL Investments Canada Inc., EQUANS Services Inc. and Black & McDonald.
• The project demonstrates the Government of Canada's commitment to reconciliation, with PSPC engaging Indigenous communities on commemorative installations and environmental monitoring initiatives, and integrating Indigenous knowledge and perspectives throughout.

Associated links

• Low carbon in the National Capital Region
• Federal Sustainable Development Strategy (Environment and Climate Change Canada)
• Greening Government Strategy (Treasury Board of Canada Secretariat)
• Smart Buildings initiative
• Green buildings 

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SOURCE Public Services and Procurement Canada

Contacts: Laurent de Casanove, Director of Communications, Office of the Honourable Joël Lightbound, [email protected]; Media Relations, Public Services and Procurement Canada, 819-420-5501, [email protected]