Niagara residents want clean energy but PC government pushes dirty gas

During the global energy crisis of the 1970s, Denmark was one of the first countries to shift its energy policy and adopt district heating solutions. The result? Greater efficiency and stable energy prices.

Today, nearly 70 percent of Danish households are connected to district heating systems powered by renewable energy, results that are detailed in a 2024 study.

Heating accounts for half of the world’s total energy consumption and more than 40 percent of global energy-related carbon dioxide emissions. 

Ontario’s electricity system in 2023.

(Independent Electricity System Operator)

In Ontario, 91 percent of electricity was produced from zero-carbon sources in 2021, with the majority coming from nuclear power, according to data from the Government of Canada. 

Despite this, more than 3.6 million homes and 160,000 businesses still rely on natural gas. In 2022, the oil and gas sector contributed 8.7 million tonnes of carbon dioxide equivalent emissions, with 2 million tonnes linked to production, processing, and transmission, and 6.7 million tonnes from petroleum refining and natural gas distribution.

In 2013, 63 percent of Canada’s residential energy use was for space heating while 19 percent was for water heating.

(Energy Efficiency Trends in Canada 1990 to 2013, Government of Canada) 

In 2013, 63 percent of Canada’s residential energy use was for space and water heating due to the country’s cold climate. However, “it might get higher with climate change,” Toronto and Region Conservation Authority (TRCA) program manager Gil Amdurski warned.

As climate change intensifies and populations grow, the global demand for sustainable heating and cooling solutions is increasing rapidly.

Denmark has been using district heating for nearly 100 years and serves as a model for regions like Niagara, which are now following in its footsteps, and transitioning away from natural gas in favor of more sustainable alternatives.

Ontario’s total energy demand was the second largest in Canada with energy demand in households being the third largest. 

Residents in the Niagara region are trying to do their part, and change those numbers. On November 7, experts and residents joined virtually to learn about sustainable heating and cooling solutions for a webinar organized by citizens environmental groups 50by30Niagara and Biodiversity & Climate Action Niagara.

One of the technologies that was discussed were heat pumps, a device that consumes energy to transfer heat from a cold heat sink to a hot heat sink. Specifically, the heat pump transfers thermal energy using a refrigeration cycle, cooling the cool space and warming the warm space.

Heat pumps are not a new, unheard of technology. In fact, it is likely that we interact with heat pump technology on a daily basis: refrigerators and air conditioners operate using the same principles and technology.

John Rathbone, engineer and founder of Rathco explained that a heat pump works by transferring heat from a cold space to a hot one. For example, in an air-source heat pump, it absorbs heat from the outside air and boosts it into your home. Essentially, it moves heat from a cooler area to a warmer one. “When used as an air conditioner, the process is reversed—taking heat from inside and releasing it outside. Both devices operate on the same principle, but we call them heat pumps or air conditioners depending on the direction of heat flow,” he said.

(Dandelion Energy)

But how does an air source heat pump work in winter?

“There’s no such thing as cooling, there’s only heat,” Rathbone said, before diving into a quick lesson on thermodynamics. 

He explained that temperature has a lower limit: minus 273 degrees Celsius, but no upper limit. Even at minus 5 degrees Celsius, there’s still over 265 degrees Celsius worth of heat in the air. A heat pump works by extracting that heat and transferring it into your home. By lowering the temperature of the "cold plate" to below minus 5 degree Celsius, the heat pump can pull heat from the air and raise it to a usable temperature, “typically around 40 degree Celsius,” before releasing it into the living space.

Port Colborne residents Tim and Rosy who installed an air source heat pump in 2019 say they found it effective even in temperatures as low as -15 degrees Celsius with the heat coming into their home being “subtle and clean.” 

“We are completely happy with our choice, both economically and environmentally, and have since electrified our home completely. Natural gas meter, and line, are gone and we only have to deal with one utility,” they shared.

Air source heat pumps are not only cost-effective, with lower upfront and utility costs, but they are also quieter, offer better dehumidification, and produce lower greenhouse gas emissions, Amdurski explained.

(Toronto and Region Conservation Authority)

While air-source heat pumps use the air as a heat source, some systems use the ground instead. These vertical exchange systems involve drilling down 200-300 feet to access the stable, consistent temperature of the earth. Thereby, improving the efficiency of the heat pump because a more reliable heat source requires less energy to maintain, reducing operating costs.

Steve and Emily, residents of Pelham, built their home in the summer of 2023 and opted for a geothermal heat pump system to accommodate their family of seven. “So far, we’ve been very happy with our decision…everything is electric here…our (monthly) electricity bill on average is between $180 to $200. I would definitely recommend anyone to invest in one, especially living in a more rural area,” they said.

The system, which doesn’t rely on fluctuating air temperatures, works by circulating cold water through underground loops. The water doesn’t interact with the groundwater—it simply absorbs heat from the bedrock, which is then transferred into the building.

Rathbone calls this geoexchange system “a massive thermal battery” that needs to be charged again. 

“If heat is continuously extracted from the ground without being replenished, the temperature of the bedrock will gradually decrease. Over time, this can reduce the system's effectiveness as a heat source, potentially causing it to fail,” he explained.

The question then becomes, "How is the heat put back into the ground?" 

In the summer, when cooling is needed, the system isn’t actually cooling the building in the traditional sense—it’s removing heat from it. Instead of simply venting that heat outside, the system returns it to the ground, effectively replenishing the thermal battery, he answered.

So, unlike traditional furnaces and water heaters, which burn fossil fuels like natural gas or use electricity to generate heat, heat pumps transfer heat using electricity, moving it from the air or ground into a building without the need for combustion.

A heat pump unit.

(Environmental Defence)

Amdurski also introduced webinar participants to heat pump water heaters, which use, on average, up to 70 percent less energy than standard electric water heaters. However, they are ideal for homes with basements and require adequate airflow around the unit for optimal performance.

Many municipalities are already adopting these systems, demonstrating their commitment to sustainability.

According to Efficiency Canada, over 840,000 heat pumps have been installed in homes across the country as of August 2023. 

Niagara Regional Housing’s (NRH) new affordable seniors' housing community in Welland is one of the first NRH buildings to achieve LEED certification, with heating and cooling powered by geothermal energy.

Lakeview Village rendering.

(City of Mississauga)

In Mississauga, Lakeview Village, being built on the site of the former coal-fired Lakeview Power Generating Station, will use district energy powered by wastewater from the nearby G.E. Booth Water Resource Recovery Facility, providing low-carbon heating and cooling for both residential and commercial buildings in the community.

Toronto’s Downsview Airport is working on implementing a district energy system that distributes heat from a central location through insulated pipes.

According to Toronto Hydro, more than 400,000 households across Ontario use electric heat pumps for heating and cooling as of 2023.

TRCA also ran a campaign called Smarter Home Heating for a few years, conducting case studies on homes in and around Toronto. In one example, a homeowner switched to fully electric heating and saved about $800 annually on utilities. “They also disconnected from the natural gas utility, saving an additional $300 per year by eliminating the gas bill,” Amdurski explained, noting that with traditional natural gas systems, homeowners still pay a connection fee even if no gas is used—something they were able to avoid.

Mark Freeman, a member of 50by30 Niagara and Biodiversity and Climate Action Niagara, noted that while specific statistics for the Niagara region are unavailable, given the population size and the region's relatively mild climate, it's “probably somewhere between 10,000 and 15,000 homes and buildings in the region that enjoys using heat pumps.”

This growing trend toward heat pumps aligns with recent decisions by the Ontario Energy Board (OEB) regarding natural gas connections.

Since 1998, the cost of connecting new homes to natural gas has been paid by existing gas customers through their delivery fees, adding over $250 million annually to their bills. 

On December 21, 2023, the Ontario Energy Board (OEB) ordered Enbridge Gas to end this practice, requiring new residential and small commercial customers to cover the full upfront cost of gas connections starting January 1, 2025, saving existing customers over $2 billion over the next five years and cutting Enbridge Gas's pipeline expansion budget by $250 million. 

The OEB’s move was in response to the global energy transition and Canada’s goal of reaching net-zero emissions by 2050, as well as Ontario's target to reduce GHG emissions by 30 percent by 2030. 

Under the decision, developers were required to pay the $4,500 cost for new gas connections, which could encourage more adoption of energy-efficient alternatives like cold climate heat pumps. 

However, just 15 hours after the OEB’s decision, Ontario’s Energy Minister Todd Smith, advised by a former Enbridge lobbyist, said he was “extremely disappointed” in the decision as it will lead to “skyrocketing costs” and vowed to use “all authorities” to reverse it, as stated in a press release.

In February 2024, Doug Ford’s government introduced Bill 165 or Keeping Energy Costs Down Act, to override the OEB’s decision, effectively reinstating subsidies for natural gas connections and weakening the OEB’s authority.

While local municipalities and regions like Niagara are actively pushing for sustainable energy solutions, the  PC government remains committed to fossil fuel infrastructure, including subsidies for natural gas.

Environmental Defence had called the bill “an insult to Ontarians” grappling with an affordability crisis. 

Contrary to the Bill’s ironic name, this piece of legislation will raise energy costs for nearly 4 million households in Ontario and saddle new home buyers with higher energy costs by making gas heating the default, instead of nudging home builders to install highly efficient heat pumps,” Environmental Defence programs director Keith Brooks said in a statement. “The provincial government has chosen to prioritize Enbridge’s profits over the people of Ontario. It’s shameful.” 

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