A Framework for Municipality-Driven Thermal Energy Networks: The Future of Sustainable Heating and Cooling

By Tamika Thomas, Legal Intern, Pace Energy and Climate Center

Going Green with a Charrette

The Pace Energy and Climate Center (PECC), in partnership with the New York State Energy Research and Development Authority (NYSERDA), recently conducted the New York State Thermal Energy Network (TEN) Charrette. The Charette included thirteen (13) workshops with municipalities that addressed topics ranging from the introduction of TEN system technologies to potential business models for TENs that New York State municipalities should consider.

These workshops began in April 2023 and focused on fostering dialogues aimed at developing a shared set of ideas regarding regulatory planning, business model development, and workforce participation. The series of workshops continued until October 2024, engaging participants that included municipal council members, mayors and supervisors, engineers, sustainability directors, and project managers with expert presentations and discussions on what is necessary to facilitate geothermal energy projects at scale. The cooperative approach of this initiative was rooted in the municipalities’ interest in pursuing low-carbon heating and cooling solutions that would offer equitable energy solutions and take advantage of the place-based nature of the technology.

NYSERDA and PECC will produce a Municipal Reference Manual on Thermal Energy Networks to carry forward the lessons learned from the process and sessions to help local governments promote district thermal systems.

Thermal Energy Networks

TENs are large-scale thermal energy systems that use heat pumps to exchange thermal energy between one or more buildings and thermal resources like the ground, surface water, wastewater, and waste heat to provide heating, cooling, and hot water.. They serve as a renewable energy source with the potential to function effectively as a connected heating and cooling system, providing numerous significant benefits. Commonly implemented internationally and by many college, hospital, and institutional campuses across the U.S., these systems can significantly reduce fossil fuel consumption, decrease financial burdens on consumers, and boost community resilience.

The Municipal Reference Manual on Thermal Energy Networks that PECC is drafting in cooperation with NYSERDA will help advance TENs across New York State.

Further Thermal Energy Roll Out

TENs are currently governed by various existing regulatory frameworks, as discussed in the forthcoming Municipal Reference Manual. Municipalities hold the authority to regulate land use, including zoning and permits for geothermal systems. This allows them to incorporate environmental standards and identify potential barriers to implementing TENs. Furthermore, municipalities can define TENs within their zoning codes to promote public land use for TENs development.

The Municipal Reference Manual, being developed by PECC in collaboration with NYSERDA, will also present potential business models for TENs. These models were shaped through rigorous stakeholder engagement and start to highlight differences in financial benefits and outline operational responsibilities. Each business model presents distinct advantages and challenges while being designed to foster economic growth opportunities and enhance community workforce engagement. The business models have the potential to offer municipalities varying ownership structures, from control over system planning to governance, while supporting equitable consumer costs and alleviating energy-burdened communities of inequities.

Collaboration with non-profit organizations is another option, providing benefits such as tax-exempt status, transparency in competitive bidding, and a cost-effective procurement process that benefits buyers and sellers. Engaging private entities, local development corporations, and municipalities is another model that reduces a municipality’s financial burden while increasing access to federal and state incentives. By aligning operational capacity – resources, infrastructure, expertise, and processes – with local clean energy goals, municipalities can effectively integrate TENs into their long-term sustainability framework and planning. Thermal Energy Networks have potential to support a clean, resilient, and energy-efficient future by factoring regulatory approaches into an operational model that aligns with community needs.

Through initiatives like the Charrette, PECC supports municipalities in navigating regulatory landscapes and adopting innovative thermal energy solutions. The Charrette process prioritized listening to the voices of municipal stakeholders to help address their needs and enable their support of thermal energy solutions in their community. The nearly two-year process helped identify barriers, such as funding limitations and policy constraints, while considering the expectations of the municipalities. The roles of PECC and NYSERDA in implementing sustainable thermal energy will foster a cleaner, more equitable, and energy-efficient community rooted in collaboratively driven solutions.