Developing a Downtown District Energy System for the City of Guelph using a CHP Facility

The City of Guelph conducted a feasibility study for creation of a district energy system at three major sites: the University of Guelph, Guelph General Hospital and the downtown core. Options for combined heat and power (CHP) using various sources of renewable energy (solar and wind power generation, solar heating, ground source heating and cooling) as well as upgraded refuse-derived fuel in the form of pellets from landfills were examined. The study also explored other options for increasing energy sustainability, such as improved power demand management by enhancing the cooling system, and using a life-cycle analysis to evaluate and compare the environmental and social impacts of each option. The final proposal included draft designs, preliminary cost estimates, implementation schedules and required regulatory approvals. The implementation of a district energy system for CHP was expected to reduce overall energy system costs, reduce carbon emissions by more than 50 per cent, improve local air quality, create local employment, attract green businesses and eliminate line loss of electricity over distance. It would also reduce the need to import less clean and more expensive electricity during peak demand. Since no other CHP installation of this scale existed in Canada, this project was seen as a possible model for other mid-sized urban centres.