The program provides grant funding for municipalities to conduct early-stage assessments of low-carbon energy systems viable for specific sites. These business cases help communities adopt a streamlined approach to assess and deploy various low-carbon energy systems, reducing local greenhouse gas emissions in line with net-zero goals.

Business cases are designed to identify preferred community energy options at a neighborhood scale and prepare municipalities for feasibility studies. Projects can assess renewable energy generation, district energy systems, energy recovery opportunities and integrated community energy solutions.

Key Program Requirements:

Preferred Energy System Identification: Must determine the practicality and viability of preferred energy systems and assess potential environmental, social and economic impacts and benefits.

Financial Analysis: Required quantification of expected costs, potential revenue streams, return on investment, and funding options.

Partnership Assessment: Must identify partnership opportunities and define proposed business models, including recommendations for project ownership, operations and financing.

Risk Analysis: Required identification of risks and mitigation options for successful implementation.

Mandatory Equity Assessment: Must answer specific questions about which equity-deserving groups might benefit or be burdened by the project, strategies to address barriers and data sources to illuminate local equity issues.

Future Requirements Consideration: Business cases must account for future requirements including minimum two buildings for district energy projects and 40% GHG reduction targets for thermal energy projects.

Biomass Restrictions: For grid-connected communities, biomass must be integrated into broader low-carbon systems; harvested wood not eligible as fuel source; combined heat and power systems with biomass cannot be submitted under this program.

Combined Approach Option: Business cases and feasibility studies may be undertaken together as one project, eligible for grants up to $200,000 total.