Previously published in the Winnipeg Free Press September 10, 2024

MANITOBA’S buildings have a massive opportunity beneath them — unused renewable energy. Incredibly, the technology exists to extract it via geothermal heating and cooling.

Through geothermal systems, building owners and tenants save money by recycling underground energy for cooling in summer, and heating in the winter.

Given that existing (often inefficient) buildings in Manitoba have high heating and cooling costs, and that the majority of our buildings rely on fossil gas imported from outside of the province for heating, an increased adoption of geothermal seems like a no-brainer.

It gets even more enticing when we think about the cooling that geothermal provides, given that so many of Manitoba’s buildings don’t have air conditioning to protect vulnerable people, including seniors, during extreme heat events.

The business case for geothermal is strong with its cost savings, stable financial forecasting, and environmental benefits. This proven technology is already used in several thousand homes and many signature buildings in Manitoba, including Manitoba Hydro’s headquarters, the new Alt Hotel downtown, Winnipeg’s IKEA, Seasons of Tuxedo shopping district, and the Forks. So why aren’t more buildings using this technology?

It’s no surprise that geothermal is more commonly installed in large commercial buildings. Most homeowners and smaller-scale building owners simply do not have the upfront capital to install geothermal systems and why should they, given that Manitobans aren’t expected to pay the upfront costs of bringing fossil gas or electricity into their buildings.

Right now, if someone wants to hook up a building to fossil gas, the upfront infrastructure costs required to bring that energy from another province to their doorstep are covered by Manitoba Hydro (Manitoba’s government owned energy utility).

The utility then amortizes those costs over many decades, so customers are only left paying a small portion on their monthly bill at a time.

None of those costs are assigned to individuals or business owners either, they are assigned to properties.

When someone moves out, the new owner continues paying a small infrastructure fee on their monthly bill. Plus, the building owner is able to rely on support from Manitoba Hydro if there is a problem with hookup or the infrastructure as it ages.

In contrast, if someone wants to use the renewable geothermal energy beneath their building rather than fossil gas, they aren’t afforded the same financing options.

Instead, the entire infrastructure cost must be paid up front by the building owner. As well, the maintenance and repairs responsibilities lie exclusively with the building owner or operator. These factors make geothermal heating and cooling out of reach for the average Manitoba.

We can learn from our electrical and natural gas management approach and create a geothermal utility to manage the costs, maintenance, and planning for this renewable energy infrastructure — something that energy and climate advocates from across the province are hoping to see when our provincial government releases its new energy strategy in the coming weeks.

This approach would help facilitate shared district geothermal systems, allowing multiple homes, hockey arenas, hospitals, schools, etc. to benefit from the same infrastructure — much like we see now with the same gas, water and sewer pipes servicing multiple buildings.

Not only would this reduce the installation costs and save building occupants and owners money, it would also reduce Manitoba’s fossil gas emissions and lead to energy bills that were no longer prone to the volatile energy price fluctuations that are so common when relying on fossil fuel based energy.

Polling from Probe Research in 2023 indicates that 75 per cent of Manitobans believe that climate should be considered in all decisions, and the reality is that our older housing stock and extreme temperature ranges would be well served by geothermal heating over fossil gas.

Additionally, research completed by Manitoba’s Climate Action Team (CAT) found that the average homeowner would save over $700 per year if they convert to a ground source heat pump, with savings increasing as fossil gas rates go up. The savings are higher for those currently using baseboard electric heat, and increase further for all homes if rooftop solar panels are added.

Individuals cannot be expected to extract the energy below their homes on their own, they need institutional support — like we currently see with Manitoba Hydro.

Will our government think the same thing in their upcoming energy report?

Laura Tyler is the executive director of Sustainable Building Manitoba, and Bethany Daman is a communications manager with Manitoba’s Climate Action Team.