Ep. 6 Government Policies and Scaling Decentralised Energy
Jan De Wolde, Atlantica Canada - Episode 6
Written by: Amanda Rogers | · DEC · | March 26, 2025
A Shifting Energy Landscape
The energy industry is undergoing rapid transformation, driven by shifting market structures, technological advancements, and the increasing demand for decentralised energy (DE). Jan de Wolde, General Manager at Atlantica Canada, is at the forefront of this evolution, overseeing district energy projects and renewable energy developments that redefine how power is generated and consumed.
“Decentralised energy is about bringing power generation closer to demand,” says de Wolde. “It enables targeted energy deployment, reduces transmission inefficiencies, and allows for a diverse mix of technologies to power our communities.”
The Role of Decentralised Energy in Canada
Unlike provinces such as British Columbia, Ontario, and Quebec, where hydroelectricity dominates, regions like Alberta and Saskatchewan rely heavily on natural gas. This disparity presents unique challenges in transitioning to carbon-free energy sources.
“The federal government’s 2035 carbon-free mandate presents a far greater challenge for Alberta than for provinces with abundant hydro resources,” de Wolde explains. “We need realistic solutions that acknowledge regional constraints.”
While there is no single solution for energy generation, de Wolde envisions a future where district energy, micro-nuclear, and distributed renewables play a key role in reducing reliance on centralised infrastructure.
Transmission and Distribution: A Growing Bottleneck
The increasing adoption of renewable energy and electrification is placing enormous pressure on Canada’s ageing transmission and distribution (T&D) infrastructure.
“In Southern Alberta, we’re almost completely tapped out of available capacity for renewables,” de Wolde notes. “As demand for clean energy rises, grid constraints will become an even bigger challenge.”
This capacity shortage is already affecting industries looking to electrify operations. De Wolde provides an example:
“We work with downtown buildings in Calgary that want to transition to electric heating, but the cost of upgrading electrical infrastructure runs into the tens of millions of dollars. These bottlenecks are a major hurdle in the clean energy transition.”
Overcoming Public Skepticism and Policy Misalignment
A major challenge in advancing DE is the public knowledge gap surrounding energy production and distribution.
“There’s a massive disconnect between energy consumers and the realities of energy generation,” de Wolde says. “We see a lot of misinformation about renewables and decentralised energy, which slows adoption.”
Beyond public perception, policy misalignment between municipal, provincial, and federal governments remains a significant barrier.
“Cities like Vancouver and Toronto actively incentivise DE adoption, while Alberta lags behind,” de Wolde explains. “We need consistent government policies to drive investment and development across all regions.”
Investment and the Future of Decentralised Energy
Atlantica operates across multiple countries, giving it a global perspective on energy investment. De Wolde emphasises that capital is highly mobile, meaning policy stability is crucial in attracting investment.
“If Canada’s regulatory environment makes DE unattractive, investment dollars will flow elsewhere,” he warns. “We’ve already seen this happen in markets that fail to create clear, long-term incentives.”
Atlantica has been successful in securing $6.5 million in funding from Emissions Reduction Alberta for electric boiler innovation, highlighting the importance of public-private collaboration.
Key Challenges in Integrating DE into Urban Centres
Integrating decentralised energy into urban environments presents unique infrastructure challenges:
Grid capacity limitations – Many urban electrical systems lack the high-voltage capacity needed for widespread electrification.
Expensive retrofits – Upgrading legacy buildings for electrification can cost millions, making the transition financially difficult.
Lack of local manufacturing – Many essential DE components, such as district energy piping and solar panels, are imported from Europe or Asia due to a lack of domestic production.
Innovations in Clean Energy and Future Technologies
Atlantica is already deploying solar, wind, and battery storage solutions while exploring innovative thermal energy recovery systems.
“We are investing in waste heat recovery, where we extract thermal energy from wastewater systems to heat buildings,” de Wolde explains. “These technologies help reduce reliance on fossil fuels in urban centres.”
Atlantica is also piloting hydrogen integration into district energy systems, proving that its infrastructure can operate with blended hydrogen and natural gas.
“The biggest challenge with hydrogen is securing a reliable supply,” de Wolde states. “Infrastructure investment is needed to enable consistent hydrogen delivery.”
Canada’s Place in the Global DE Market
De Wolde’s international experience gives him a unique perspective on how Canada compares to other markets.
“In regions like the U.S. Midwest, battery storage investment is accelerating due to supportive policies,” he notes. “Meanwhile, in Alberta, we face more resistance to change.”
He also highlights the disparity in district energy adoption between Canadian cities:
Vancouver has 25 district energy systems, heavily supported by municipal incentives.
Calgary has only one private district energy utility (operated by Atlantica) and a handful of institutional systems.
“The difference is policy,” de Wolde explains. “Incentives matter.”
The Path Forward: Aligning Policy, Investment, and Infrastructure
To accelerate DE adoption in Canada, de Wolde stresses three key areas:
Government Alignment – Municipal, provincial, and federal policies must support DE adoption consistently.
Infrastructure Investment – Upgrading Canada’s T&D networks is critical to supporting electrification.
Public Education – Bridging the knowledge gap will be essential in overcoming resistance to new energy solutions.
A Future Built on Collaboration
The future of decentralised energy depends on policy alignment, investment stability, and technological innovation. Atlantica is leading the way, but success will require a coordinated effort between government, industry, and communities.
“We’re already on the path,” de Wolde concludes. “The question is, how fast can we accelerate the transition?”
