Architectural Engineering and Construction, Durham School of
Durham School of Architectural Engineering and Construction: Faculty Publications
Document Type
Article
Date of this Version
2025
Citation
Joint CSCE Construction Specialty Conference / ASCE CRC, Montreal, Quebec, Canada, July 28-31, 2025
Abstract
Renewable Energy Community (REC) is an emerging concept that empowers local customers to generate decentralized renewable energy. Integrating RECs into the building industry presents a promising opportunity to support the transition toward net-zero cities. However, the viability of RECs depends on regional regulatory frameworks, permitted governance structures, and very importantly, business models. Compared to pioneering European countries, Canada lacks the regulatory support needed to fully enable REC. This paper proposes and evaluates various business models for potential REC implementations under Canada's existing regulatory constraints. The analyzed models focus on "behind-the-meter" electricity distribution, a multi-stakeholder type of REC, where generation occurs independently of the Distribution System Operator. The study also explores different ownership structures, including resident-led (community-based) ownership and non-occupant (investor-led) ownership, as well as financing strategies. Additionally, it examines various legal structures and income distribution models, which collectively shape business models. A case study was conducted based on a multi-unit residential building in Montreal. The results indicate that Canada's current regulatory framework, particularly Quebec, does not support diverse scales and models of REC. Regulatory changes, including rebates for generator purchase, low-interest loans, and tax incentives, are necessary to facilitate local renewable energy developments.
Included in
Architectural Engineering Commons, Construction Engineering Commons, Oil, Gas, and Energy Commons, Sustainability Commons
Comments
Copyright 2025, the authors. Used by permission