The energy choices we make today can lock in carbon emissions for the lifetime of a building—particularly in large buildings like condominiums, where centralized systems serve hundreds of residents and are costly to retrofit later. But what if there’s an alternative to high-emission heating and cooling systems?
There is. Across Canada, geo-exchange systems are gaining traction, offering developers a cost-effective and low-emission alternative.
Geo-exchange systems can be installed below buildings before they are constructed. This technology, also known as geothermal energy systems, uses the earth as a thermal battery, storing heat in the summer and extracting it in the winter. It’s a proven technology, and it’s quietly reshaping how we think about energy sources in cities.
As is often the case with ground-breaking technologies, scaling geo-exchange requires more than just technical know-how. That’s where Eolectric Inc. comes in. Based in Brossard, Quebec, Eolectric specializes in the development, financing, construction, and operation of renewable energy projects. Eolectric’s latest project is a 15-building portfolio of geo-exchange heating and cooling systems serving over 3 million square feet of condominium developments across the Greater Toronto Area. Eleven systems are already operational; four more are under construction.
Vancity Community Investment Bank (VCIB) provided Eolectric and its co-investors with $31.5 million in project financing for the portfolio. This clean energy project came with complexities that could have added prohibitive costs for Eolectric. Instead, VCIB worked closely with Eolectric to structure the financing in a way that optimized due diligence costs across the portfolio.
“Incorporating geo-exchange into our built environment is the kind of innovation we need in order to address the climate crisis,” says Kapil Kalra, Senior Climate Finance Manager at VCIB, pictured right. “We were determined to make this project work, so we took the time to understand the challenges and make proposals that worked for everyone involved.”
The ‘block’ financing for this portfolio, Kapil explains, showcased a pragmatic problem-solving approach to climate finance.
And the impact is tangible. Once fully operational, these 15 geo-exchange systems will provide residents with energy efficient heating and cooling while avoiding carbon dioxide emissions of 2,100 tonnes each year —the equivalent of taking nearly 500 gas-powered cars off the road each year, or 40,000 cars over the expected life of the buildings.
Under an energy-as-a-service model, Eolectric will continue operating the systems after installation, much like a telecommunication company receives fees for internet service in a building. This model has proven vital for financing and investment in clean energy solutions across Canada, making low-carbon options more accessible to developers without passing high up-front costs on to residents.
Eolectric has been a strong backer of geo-exchange for many years, investing in the space since 2017. “VCIB brought creative solutions to the table to make this financing happen,” says Guy Painchaud, President and founder of Eolectric. “VCIB understands geo-exchange technology’s environmental benefits, and sees the advantages that the technology offers communities, developers, owners and other stakeholders. Our financing partnership with VCIB is a testament to the maturity and broad market acceptance achieved in the field.”
VCIB uses the tools of finance to accelerate Canada’s transition to a sustainable future. Behind every clean energy project—from rural wind farms to urban electric delivery fleets—is a financing partner willing to approach partnerships from a different perspective.
If you’re a developer or organization looking to finance a low-carbon solution or project, get in touch.
