An energy loop is a large-scale energy-efficiency solution that exchanges energy between different parts of the same building or between different buildings—or even across an entire neighbourhood—depending on needs and times of day.
Understanding how an energy loop works
In an energy loop, excess heat from one building, such as a shopping centre or data centre, can be used to heat nearby buildings or pool water. At the same time, cool water from the pool’s heat pumps can be used to cool the shopping centre or data centre, which then returns its excess heat to the network. This creates a virtuous cycle in which each participant benefits the others.
An energy loop generally has five main components:
- A mixed water loop used to transport energy between different buildings or building sections through piping
- An energy plant housing heating and cooling production equipment (electric or gas boilers, unit heaters); where applicable, this equipment may be supplied by renewable energy sources including geothermal energy, solar energy, and renewable natural gas.
- Heat pumps in each building to draw energy from or release energy into the energy loop as needed
- A thermal storage system
- A chiller and cooling towers to dissipate excess heat in summer
Exchanging energy: Everyone wins
Energy loops offer many benefits:
- Lower energy bills and GHG emissions
- Reduced operating costs and space savings through centralized energy generation
- Scalability, allowing gradual integration of new energy sources (including renewable energy)
- Greater resilience through a diversity of energy sources
- A circular economy that supports decarbonization
- Reduced heat islands Improved air quality for occupants
- Savings in drinking water
40%
In Quebec, about 40% of all energy consumed in industry, transportation, and buildings is lost.1 This wasted energy offers significant recovery potential.
Types of energy loops
There are three main types of energy loops: multi-building energy loops, district energy loops, and thermal recovery loops. All three operate on similar principles: the exchange and recovery of wasted energy.
1 - Multi-building energy loops
A multi-building energy loop enables energy exchanges between several buildings within the same built complex, generally located close to one another.
2 - District energy loops
A district energy loop serves a community or neighbourhood from an energy plant that manages energy distribution based on the needs and functions of the connected buildings.
3 - Waste heat recovery (WHR) loops
A waste heat recovery loop captures excess heat from a facility and redistributes it to nearby buildings with heating or cooling needs.
Criteria for successfully implementing an energy loop
- Density: dense urban area; buildings of four or more storeys; connected floor area of at least 93,000 m2 (1,000,000 sq ft)
- Mixed use: The greater the diversity of uses, the more efficient the energy loop will be. Ability to connect neighbouring customers.
- Presence of waste heat: Access to a source of waste heat significantly reduces the energy inputs required to supply heat to the energy loop.
Espace Montmorency
See how an energy loop saves large amounts of natural gas in this multi-purpose complex in Laval.
Humaniti
Learn how an energy loop enabled the Humaniti Montréal project, a next-generation mixed-use complex in the heart of Montréal, to reduce its energy consumption by 34%.
Legal notices
- Source : HEC Montréal, Chair in Energy Sector Management: State of Energy in Quebec 2025 Edition.
- Source : Certain conditions apply. Grants subject to change without notice. Check each grant’s webpage for eligibility criteria.
