According to the Ministry of Natural Resources, Canada is among the highest per capita energy users among developed nations and relies on a variety of conventional sources of heating and cooling to meet its demands. The rising cost of these energy sources, combined with increased environmental concerns over the use of these sources, has led many communities to seek alternative forms of energy. One such alternative is district energy.

District Energy began in Canada in the 1880s and, to date, has more than 80 district energy systems servicing communities, industrial and commercial clients. The province of Ontario has the largest number of district energy systems, representing 38% of this industry segment. District energy continues to grow in Canada. For example, to facilitate the 2010 Winter Olympics in Vancouver, more than 170 buildings are included in the expansion of district energy in the area. The Canadian District Energy Association believes that growth in district energy systems across Canada will depend on the success of the industry development of a full service district energy team; a team that can provide integrated expertise ranging from urban planning, through energy engineering, to project finance.