Thermal Energy Networks in Canada

Unlocking Impact Potential and Advancing Enabling Policy
September, 2025

Thermal Energy Networks (TENs) are a promising part of Canada’s decarbonization toolkit. Flexible and efficient, modern fourth- and fifth-generation TENs can help reduce emissions, improve energy resilience, and create local economic opportunities when used strategically, often at a lower cost than other low-carbon alternatives.  

Despite this promise and growing momentum, TENs serve only 3% of Canada’s heating demand. Co-authored with Dunsky Energy + Climate Advisors, Thermal Energy Networks in Canada: Unlocking Impact Potential and Advancing Enabling Policy looks at the broad benefits TENs can provide, the barriers to expanding their use, and the roles policymakers, regulators, utilities, municipalities, and developers can play in unlocking the potential of TENs.  

Flexible as they, TENs’ versatility presents its own challenges. Regulatory uncertainty, the lack of standardized planning tools, and the complexity of coordinating multiple stakeholders are all holding back TENs from reaching their potential in Canada. Alongside the report, we’ve also collected case studies from across Canada exploring real-world examples of successful models, each with their own benefits and challenges.