Energy Efficiency Solutions track

Introduction

For provinces, territories, utilities and Indigenous organizations with sufficient capacity and experience.

The Energy Efficiency Solutions Track supports the industrial energy efficiency initiatives undertaken by those entities that align with Government of Canada objectives. Under the Energy Efficiency Solutions Track, eligible projects include those that support the implementation of energy efficiency and energy management solutions. These activities are intended for industrial facilities that are engaged in energy consuming processes that involve the physical or chemical transformation of materials or substances into new products.

Funding details

The Energy Efficiency Solutions Track provides funding for industrial energy efficiency initiatives that align with the objectives of the Government of Canada. This track offers the following funding options:

For private sector for-profit organizations such as utilities, up to 75% of eligible implementation costs to a maximum of $20 million per proposal.

For Government, Indigenous and Not-for-Profit Organizations:

• up to 100% of eligible implementation costs
• maximum of $20 million per proposal

Eligible entities: provincial, territorial, and other government entities including utilities, as well as Indigenous and registered not-for-profit organizations

This funding aims to support projects that improve energy efficiency in industrial operations, contributing to Canada's sustainability goals.

How to apply

The call for proposals period for the Energy Efficiency Solutions track, closed on March 31, 2023. No further calls for proposals are planned at this time.

Key dates

The call for proposals for the Energy Efficiency Solutions Track is currently closed.

Eligible activities

Under the Energy Efficiency Solutions Track, eligible activities include energy efficiency measures in 6 distinct areas:

Training for energy management practitioners

Workforce development and training for energy management practitioners will raise competencies to ensure the Canadian industrial sector has adequate access to skilled energy practitioners to lead energy efficiency projects and guide energy management solutions.

This activity builds industry capacity, while supporting job creation, diversification, and upskilling in the workforce.

Energy assessments and audits

Energy assessments and audits identify opportunities to improve energy efficiency, reduce operating costs, increase business competitiveness, and reduce green house gas (GHG) emissions. This activity may also include Process Integration and Computational Fluid Dynamic studies, which are designed to determine where, when, why and how energy is being used in an industrial facility.

This activity is key to developing energy management programs because energy assessments and audits provide a starting point to assess the energy efficiency performance of an organization and pinpoint opportunities for energy efficiency and operational improvement.

Energy managers

Energy managers identify energy saving opportunities, build an energy-savings culture, and implement energy management systems. Industrial facilities require energy managers to identify energy and GHG emissions reductions opportunities and related cost-savings, to provide advice, and to make a compelling case to implement projects. The energy manager’s primary job function is energy, cost and GHG emissions reductions.

This activity contributes to improving energy efficiency, productivity, and competitiveness by improving overall energy performance of the organization.

Energy management systems

Energy management systems establish frameworks for organizations to systematically track, analyze and manage energy, set priorities, and adopt energy efficient practices that are proven to continuously improve energy performance. This activity may include Energy Management Information Systems (EMIS) in accordance with NRCan’s Guidelines, ISO 50001 compliant energy management systems recognized by the 50001 Ready Canada program, ISO 50001 certified energy management systems.

This activity supports the implementation of recognized and certified energy management systems to ensure persistence and continual improvement of energy performance.

Strategic Energy Management

Strategic energy management may involve a single industrial facility or cohorts that bring many industrial facilities together under the guidance of a qualified energy practitioner. Regardless of the delivery model, this activity embeds energy and GHG emissions management in organizations through a combination of education, coaching, peer-to-peer knowledge sharing, and technical support.

This activity supports industrial facilities to implement energy efficiency solutions and energy management systems, with a focus on behaviour and organizational change as well as other low-cost improvements.

Capital investments

Energy efficiency-focused retrofit capital investments support modifications or upgrading of a facility’s energy-consuming systems and equipment (stationary and mobile), processes or, infrastructure. They include (but are not limited to) boiler plant systems, compressed air systems, domestic and process hot water systems, fan and pump systems, process furnaces, dryers and kilns, refrigeration systems, and steam and condensate systems and waste heat recovery, as well as metering equipment, automation, and control systems (instrumentation and software).

This activity must be implemented along with a recognized energy management system as part of the project or must demonstrate that an energy management system was already in place.

In addition, energy efficiency-focused retrofit capital investments must be non-emitting (e.g., use energy sources such as electricity, renewable energy / biomass, hydrogen, etc. resulting in zero emissions at end use).

This activity encourages organizations to approach energy efficiency-focussed retrofit capital investments holistically, considering facility-wide measures that combine short and long-term payback periods. This activity supports improvement of energy efficiency, resulting in cost savings and reduced GHG emissions.

Eligible costs

In addition to the activities described above, eligible costs can also include:

• salaries and benefits of employees of the eligible recipient
• professional services
• license fees, data purchases, certification costs, regulatory compliance and inspection costs, construction insurance, and permits
• capital expenditures toward retrofitting or upgrading existing facilities, buildings or infrastructure that improve energy efficiency
• overhead expenditures (for the further distribution of funds) may be included in the total costs up to 15% of eligible expenditures

Ineligible costs

• costs incurred before the Project Approval notification date
• costs incurred after the Project Completion date or March 31, 2027, whichever is earlier
• projects that primarily involve construction of a new industrial or manufacturing facility
• investments pertaining to fleet vehicles not used directly for an industrial process, lighting, warehouse, and building envelopes

Evaluation process

NRCan will conduct a preliminary assessment to confirm eligibility of the proposal and alignment with program goals, objectives, and guiding principles, including Canada’s climate targets.

Applications will then be evaluated using a set of merit-based criteria, including the extent to which the proposal addresses requirements such as:

• energy management and measurement
• verification
• reporting requirements
• outcomes and benefits
• risks and mitigation

Contact us

For more information about the GIFMP, please contact NRCan via Email us.