District Energy – Lulu Island Energy Company

What is District Energy?

District energy is a smart, sustainable alternative to traditional methods of heating and cooling buildings. Instead of relying on individual systems in each building, district energy centralizes the production of space heating, cooling, and domestic hot water, delivering these services efficiently to entire neighbourhoods.

Lulu Island Energy Company provides reliable, ready-to-use district energy services at affordable rates. Customers benefit from a worry-free experience, without the need for on-site boilers, chillers, or cooling towers.

Energy is generated at a central facility and distributed through a network of underground pipes, supplying buildings of all types with consistent and efficient thermal energy. This approach reduces greenhouse gas emissions, lowers maintenance costs, and supports long-term community sustainability.

Watch and Learn About District Energy

City of Richmond’s Sustainability in Action video on District Energy.

District Energy Benefits

Distribution infrastructure inside the Alexandra District Energy Utility.

Eco-Friendly

District energy utilities are more eco-friendly than traditional systems because they centralize energy production for greater efficiency and use sustainable, low-carbon sources. For instance, the ADEU’s geo-exchange system supplies nearly 100% low-carbon energy for heating, cooling, and hot water.

Affordable

The Richmond City Council has mandated that district energy systems in Richmond must provide energy to customers at costs equal to or lower than those of traditional energy sources. All funds collected from customers are reinvested into repaying the capital costs of existing systems, as well as improving and expanding infrastructure.

All Lulu Island Energy Company district energy systems are entirely funded through customer rates and receive no subsidies from Richmond property taxes.

Flexible

District energy utilities can integrate with a wide range of sustainable energy sources, including ground-source heat, sewer heat recovery, solar energy, and air-source heat pumps. In many cases, these systems are connected to multiple energy sources simultaneously, based on the types that are available. This flexibility allows them to adapt to different environments and energy supply conditions.

Future-Ready

District energy utilities are designed to seamlessly integrate new energy production technologies as they emerge, making them a smart and sustainable long-term investment.

Reliable

District energy systems are well-established and dependable, operating with a reliability rate of up to 99%. They are designed with built-in backup systems and are continuously monitored to ensure consistent performance.

Easy to Use

Buildings connected to district energy utilities require significantly less mechanical equipment compared to standalone systems, resulting in lower maintenance needs. These systems are often automated and require minimal day-to-day supervision, making them simple and efficient for building operators.