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Lesson 5 of 6Liveable Communities
Unit 5 · Lesson 5 of 6

Energy Use in Communities: Policy and Choices

How communities use energy for buildings, transportation and industry; how government policies (building codes, green standards, the coal phase-out, programs for heat pumps), corporate decisions and individual choices affect energy use and production; community-scale solutions such as district energy and heat pumps; and what these choices mean for the sustainability of Canadian communities.

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Key things to remember

  1. 1Buildings produced about 12 percent and transportation about 22 percent of Canada's greenhouse gas emissions in 2024 (Environment and Climate Change Canada).
  2. 2Ontario's electricity is mostly low-emission (nuclear, hydro, wind, solar) since coal was phased out in 2014, so electrifying heating and transportation cuts emissions there.
  3. 3A heat pump moves heat instead of making it, typically delivering two to three units of heat for each unit of electricity over a season, and it also cools in summer.
  4. 4Governments (codes, standards, rebates, zoning), corporations (buildings, fleets, power purchases) and individuals (heating, vehicles, where to live) all shape community energy use.
  5. 5District energy, such as Toronto's Deep Lake Water Cooling (since 2004) or Oujé-Bougoumou's wood-waste heating, serves many buildings from one efficient system.

On a January night in Ontario, millions of furnaces switch on at once. Most of them burn natural gas, piped in from Western Canada or the United States. Heating, cooling and lighting buildings produced about 12 percent of Canada's greenhouse gas emissions in 2024 (Environment and Climate Change Canada), and cars and trucks added much more (Lesson 4). Every community makes energy decisions: how its buildings are built, how its streets are laid out, where its electricity comes from. Some of those decisions are made by governments, some by companies and some by you. This lesson looks at how those decisions add up.

Where a community's energy comes from

Ontario's electricity — majority nuclear, no coal since 2014.55%24%9%8%Nuclear55%Hydroelectric24%Wind9%Natural gas8%Solar & biomass4%Coal was phased out in 2014 — at the timethe largest single greenhouse-gas reductionmeasure in North America.Percentages vary year to year with demand,water levels and reactor refurbishment.
Fig 1Ontario's electricity generation in an earlier typical year (around 2021) shown as a bar: about 55 percent nuclear, 24 percent hydroelectric, 9 percent wind, 8 percent natural gas and 4 percent solar and biomass, with notes that coal was phased out in 2014 and that the shares change from year to year. In 2025 the mix was closer to 46 percent nuclear, 22 percent hydro, 19 percent natural gas and 9 percent wind.

Ontario's electricity is mostly low-emission, from nuclear, hydro, wind and solar, since the province closed its last coal-fired plant in 2014 (see Energy in Unit 3). But electricity is only part of the picture. Most Ontario homes are heated with natural gas, and most vehicles run on gasoline or diesel. That is why a key strategy for cutting a community's emissions is electrification: switching heating and transportation from burning fuels to running on clean electricity, while making buildings use less energy in the first place. The catch is that more electric heating and vehicles mean the grid must grow, and decisions about how to supply that extra power (more nuclear, more gas, more renewables and storage) are debated.

Three kinds of decision-makers

Decision-makerExamples of energy decisionsEffect on the community
Governments (federal, provincial, municipal)Building codes that set insulation and efficiency standards; Ontario's coal phase-out (completed 2014); Toronto Green Standard for new buildings (since 2010); rebates for heat pumps and insulation; zoning that allows denser, walkable neighbourhoodsSet the rules and incentives that shape millions of other decisions for decades
Corporations and utilitiesBuilding efficient warehouses and offices; buying renewable power; switching delivery fleets to electric vehicles; utilities building transmission lines, storage or new power plantsLarge single decisions with big effects on emissions, energy prices and jobs
Individuals and householdsThermostat settings; adding insulation; choosing a heat pump, an electric car or transit; where to live and how far to commuteSmall choices that add up, and that depend on income, housing type and what options are available
Government, corporate and individual decisions all shape energy use in communities.

Heat pumps and efficient buildings

A heat pump works like a refrigerator running in reverse: instead of making heat by burning fuel, it uses electricity to move heat from the outside air (or the ground) into the house, even on cold days. Because it moves heat rather than making it, a heat pump typically delivers two to three units of heat for every unit of electricity it uses over a season, and in summer it runs backward as an air conditioner. Modern cold-climate models keep working in temperatures far below freezing, though very cold snaps may need backup heat. The other half of the story is the building envelope: walls, roofs, windows and air sealing. A well-insulated, airtight building needs much less energy no matter how it is heated, which is why building codes and green standards focus on it.

If a heat pump delivers 3 units of heat for each unit of electricity, it needs one third as much electricity as an electric baseboard heater for the same heat.

Energy at the community scale

  • District energy: one central plant heats or cools many buildings through underground pipes. Toronto's Deep Lake Water Cooling system, run by Enwave since 2004, draws water at about 4 °C from deep in Lake Ontario to cool downtown office towers, using far less electricity than conventional air conditioning; much of that water then continues into the city's drinking-water supply.
  • Oujé-Bougoumou, a Cree village in northern Québec built in the early 1990s and designed by the community with architect Douglas Cardinal, heats its homes and buildings with a district heating system fuelled by waste wood from a sawmill.
  • Community-owned renewables: First Nations in Ontario own or co-own wind, solar, hydro and battery projects (Unit 3), keeping energy revenue in the community.
  • Replacing diesel in remote communities: many remote First Nations have relied on diesel generators, with fuel flown or trucked in on winter roads; Wataynikaneyap Power, a transmission company 51 percent owned by 24 First Nations, has connected a dozen or more remote northwestern Ontario First Nations to the provincial grid since 2018; construction of its transmission system was finished in December 2024.
  • Compact, mixed-use design: shorter trips, shared walls in townhouses and apartments, and district energy all work best when buildings are close together (Lesson 2).
Energy choices and fairness
Upgrades such as heat pumps, insulation and electric cars cost money up front, even when they save money later. Renters usually cannot change their heating system, and low-income households spend a larger share of their income on energy. When analysing an energy policy, ask who pays, who benefits, and whether rebates and programs reach the households that need them most.
Linking energy to sustainability
Environmental: does the decision lower emissions and air pollution? Economic: does it lower long-term costs and support local jobs, or raise prices? Social: is it affordable and fair, and does it make homes healthier and more comfortable (for example, cooling during heat waves)? A strong energy decision does well on all three pillars of sustainable development (Unit 3).

Worked examples

Reveal one step at a time and try to beat it to the next line.

Example 1
A house needs 12 000 kWh of heat over a winter. How much electricity would it use with electric baseboard heaters (1 unit of heat per unit of electricity) and with a heat pump that averages 3 units of heat per unit of electricity?
Example 2
Classify each decision as government, corporate or individual, and say whether it mainly affects energy consumption or energy production: (a) Ontario closing its coal-fired power plants; (b) a grocery chain installing efficient refrigeration and rooftop solar; (c) a family adding attic insulation; (d) a city requiring new buildings to meet a green standard.
Example 3
Assess Toronto's Deep Lake Water Cooling system as a sustainable energy strategy.

Where marks get lost

  • Thinking a heat pump creates heat like a furnace. It moves heat from outside (or the ground) inside, which is why it delivers more heat than the electricity it uses.
  • Assuming electrification always cuts emissions. It does where electricity is low-emission, as in Ontario or Québec; where electricity comes mostly from fossil fuels, the benefit is smaller.
  • Focusing only on individual choices. Building codes, zoning and utility decisions shape what choices are even available to individuals.
  • Ignoring cost and fairness. Upgrades save money over time but cost money up front, and renters often cannot make them.

Flashcards 7

Electrification
Heat pump
Building envelope
District energy
+ 3 more

Practice

1
A heat pump delivers 2.5 units of heat for every unit of electricity. How many kWh of electricity does it need to deliver 10 000 kWh of heat?
kWh
2
Why does switching from a gas furnace to a heat pump cut emissions more in Ontario than in a province that burns mostly coal for electricity?
3
Match each energy decision to who made it.
Requiring new buildings to meet the Toronto Green Standard
Closing the province's last coal-fired power plant in 2014
Switching a delivery company's vans to electric
Turning down the thermostat at night
4
What term describes one central plant that heats or cools many buildings through a network of underground pipes?
5
Put the steps of Toronto's Deep Lake Water Cooling system in order.
  1. 1The cold lake water passes through heat exchangers at a pumping station
  2. 2The chilled loop water is piped to downtown buildings to cool them
  3. 3The heat exchangers chill a separate closed loop of water
  4. 4Cold water (about 4 °C) is drawn from deep in Lake Ontario
6
Which is the best example of a policy that reduces a community's energy CONSUMPTION?
7
Why might a family that rents an apartment find it hard to switch to a heat pump?

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