A $100M Venture to Power Canada's Overstrained Energy Grid

TORONTO, ON – December 01, 2025 – A new strategic partnership is channelling $100 million CAD into Canada's energy infrastructure, aiming to solve a critical problem for the nation's largest businesses: an impending power crunch driven by unprecedented demand. The joint venture, formed by developer AltCrest Energy, project incubator DevEngine, and private equity firm Spring Lane Capital, will focus on deploying decentralized energy systems directly at commercial and industrial sites, offering a powerful alternative to an increasingly strained national grid.

This initiative arrives at a pivotal moment. The venture will develop, fund, and operate a range of Distributed Energy Resources (DERs)—including rooftop solar panels, geothermal systems, microgrids, and battery storage—for institutional real estate owners and large corporations. By leveraging an innovative Energy-as-a-Service (EaaS) model, the partnership eliminates the prohibitive upfront capital costs that have historically slowed the adoption of green technology, positioning on-site generation not as a luxury, but as a critical operational strategy.

A Market at a Tipping Point

Canada's electricity grid, once a bastion of stability, is facing a perfect storm of demand. The rapid proliferation of AI-driven data centers, a strategic push to onshore manufacturing, and the accelerating adoption of electric vehicles are collectively creating a surge in power consumption that threatens to outpace supply. According to Ontario's Independent Electricity System Operator (IESO), provincial electricity demand is projected to climb by 75% by 2050, with a significant portion of that growth attributed to new industrial projects like EV battery plants and the voracious energy needs of data centers.

The numbers are stark. Projections indicate that if all currently reviewed projects proceed, data centers alone could consume 14% of Canada's total power by 2030. This surge is not a distant forecast; it's an immediate challenge that is already causing scarcity and price volatility. “As electricity demand continues to grow, driven by the increase in AI data centres, onshoring of manufacturing, and adoption of electric vehicles, there is a significant increase in demand for power, causing scarcity of energy and increasing electricity prices,” noted Ben Gilbank, Founder & CEO of AltCrest Energy, in the announcement.

This is the critical gap the new venture aims to fill. By generating power on-site, companies can secure a reliable energy supply independent of grid constraints and insulate themselves from fluctuating utility rates. The focus on DERs represents a fundamental shift from the centralized utility model to a more resilient, distributed network.

De-Risking Decarbonization with EaaS

The core innovation of the partnership's strategy is its reliance on the Energy-as-a-Service (EaaS) model. Instead of selling equipment, the venture sells a result: reliable, cost-effective, and sustainable energy. Under this framework, the joint venture funds 100 percent of the development, construction, and ongoing maintenance of the on-site energy systems. The client, in turn, signs a long-term contract to purchase the power generated, typically at a rate lower and more predictable than the local utility.

This model effectively transforms a major capital expenditure into a manageable operating expense. For a Chief Financial Officer, this is a game-changer. It removes the multi-million dollar investment and complex project management required to build a solar array or geothermal field, providing immediate utility savings and a powerful hedge against energy price inflation. This financial de-risking is crucial for accelerating the adoption of sustainable technologies across the commercial real estate sector, where capital is often allocated to core business activities, not utility infrastructure.

Beyond the balance sheet, the EaaS model allows corporations to make significant strides toward their environmental, social, and governance (ESG) targets. On-site renewable generation directly reduces a company's carbon footprint and can contribute to prestigious green building certifications like LEED, enhancing brand reputation and asset value.

The Strategic Power Trio

This venture is more than just a capital injection; it is a carefully constructed alliance of complementary expertise. The partnership brings together three distinct specialists to create a seamless, end-to-end platform for project execution, a structure designed to overcome the fragmentation that often plagues the renewable energy sector.

• AltCrest Energy brings the ground-level development expertise, with a deep focus on the unique energy needs of the commercial real estate industry. Its role is to originate projects, design solutions, and manage the client relationship.
• Development Engine Partners (DevEngine) acts as a project incubator. Launched earlier in 2024 with anchor funding from Spring Lane Capital, its mission is to provide early-stage capital and technical support to shepherd promising but complex projects from concept to financial close, making them bankable for larger investors.
• Spring Lane Capital provides the heavyweight financial backing. As a private equity firm specializing in hybrid project capital for sustainability, it has the experience and financial instruments to fund the construction and long-term ownership of these assets at scale.

“The team of DevEngine, AltCrest, and Spring Lane brings a compelling mix of capital and deep expertise from the energy and real estate sectors to execute on this program,” said Tim Callahan, CEO of DevEngine. This synergy—combining developer, incubator, and financier—creates a powerful engine capable of deploying capital efficiently and navigating the complexities of energy project development from start to finish.

Navigating Canada's Complex Energy Landscape

While the market drivers are strong, Canada's energy landscape is not without its challenges. A patchwork of provincial regulations and market structures requires deep regional knowledge to navigate successfully. However, the tailwinds are undeniable. The Canadian government's 2030 Emissions Reduction Plan and various provincial incentives are creating a supportive policy environment for renewable energy.

The Canadian DER market is forecast to grow at a compound annual rate of over 11% through 2035, reflecting a broad consensus on the need for grid modernization. This partnership is poised to capture a significant share of that growth by targeting the underserved commercial and industrial sector with a turnkey solution.

As Jason Scott, a Partner at Spring Lane Capital, stated, “The Canadian energy infrastructure market benefits from strong fundamentals.” He emphasized that supportive government policy and the inherent benefits of distributed resources in meeting grid requirements make Canada an attractive market. This venture is not just a response to market demand but a calculated investment in the future of Canada's energy transition, demonstrating a clear pathway for private capital to accelerate the development of sustainable infrastructure.