Surrey City Centre Growth Fuels Demand for More Energy Capacity

Surrey’s rapid transformation shows no signs of slowing down. As new housing developments continue to reshape City Centre, the city is now preparing for a major expansion of its energy infrastructure to support future growth.

New Housing Project Moves Forward

Surrey council has given preliminary approval to another high-density residential project in City Centre. The development will add 366 new homes and help meet growing housing demand in one of the city’s fastest-changing neighbourhoods.

The project will rise on consolidated properties along the 13800 block of 108 Avenue and the 13800 block of Cowan Road. Plans include two six-storey apartment buildings above two levels of underground parking.

Today, the site contains three detached homes and three duplexes. However, redevelopment activity continues to increase throughout the area as Surrey City Centre evolves into a more urban community.

Located between Whalley Road and 140 Street, the property sits within an area already seeing significant redevelopment. Several nearby projects are also moving through the approval process.

City planners support the proposal because it aligns with Surrey’s Official Community Plan and the City Centre Plan. In addition, staff say the development will add much-needed housing while creating a more walkable neighbourhood.

City Centre Growth Creates New Energy Challenges

As more residents move into Surrey City Centre, demand for reliable and sustainable energy continues to climb.

To prepare for that growth, Surrey has launched a search for expert consultants to update the District Energy Strategy for Surrey City Energy (SCE), the city’s municipally owned utility.

SCE operates Surrey’s District Energy System, a centralized network that supplies heating to multiple buildings through connected infrastructure. Instead of each building producing its own heat, energy flows through a shared system designed to improve efficiency and reduce emissions.

District Energy Network Continues to Expand

Since launching in 2013, Surrey’s District Energy System has expanded steadily across City Centre.

Today, the network serves 50 buildings covering more than 1.13 million square metres of floor space. By 2030, that number is expected to grow to 70 buildings and nearly 1.8 million square metres.

The system plays a key role in Surrey’s environmental goals by delivering low-carbon heating solutions to homes, businesses, and future developments.

At the same time, Surrey is updating its City Centre Plan. The revised plan includes expanded boundaries, higher residential densities, and an emerging Entertainment District. New provincial housing requirements have also encouraged additional growth opportunities.

Because of these changes, energy demand is expected to rise faster than earlier forecasts predicted.

SkyTrain Hubs Drive Future Development

Much of Surrey’s future growth centres around transit-oriented communities near SkyTrain stations.

The District Energy System now focuses on areas surrounding Gateway, Surrey Central, and King George stations. These locations continue to attract new residential and mixed-use developments due to their strong transit connections.

As density increases around these transportation hubs, demand for heating services will grow alongside it.

Energy Infrastructure Receives Major Upgrades

Surrey has already invested heavily in expanding its energy network.

In the early years, temporary energy centres and satellite boiler plants helped meet demand across the large 550-hectare City Centre area.

A major milestone arrived in 2018 with the completion of the West Village Energy Centre. The facility delivers 15 megawatts of capacity through three five-megawatt boilers and serves the rapidly growing Surrey Central district.

Further improvements followed in 2021 when new distribution piping connected the Surrey Central and King George service areas.

Additional boiler upgrades completed in 2024 boosted capacity even further. Another expansion planned for 2026 will raise peak capacity to 45 megawatts.

Demand Could Exceed 200 Megawatts by 2050

Looking ahead, Surrey expects energy needs to increase dramatically.

Based on growth forecasts, Surrey City Energy could be required to provide more than 200 megawatts of heating capacity by 2050. That projection reflects the city’s ambitious development plans and the continuing expansion of City Centre.

As thousands of new residents move into the area over the coming decades, energy infrastructure will become just as important as housing construction.

For Surrey, building more homes and expanding clean energy systems now appear to be moving forward together.