District Energy

1st Quarter 1998 | Volume 83 Number 3

Electric-industry restructuring is seen as a way to potentially improve service delivery, reduce electricity prices and mitigate global warming in numerous countries around the world. Yet the prospect of electric restructuring in the United States is spurring spirited debate about how the process should occur. Every state has either passed legislation to make it a reality or will consider it at some level in the future. Indeed there are many players in the electric-restructuring debate whose constituencies have either a direct or indirect interest in what is happening. To help readers understand the different viewpoints about how, when and where the electric-power industry should or should not be restructured, District Energy interviewed spokespeople from some of these key organizations, including a U.S. Senator sponsoring a key restructuring bill.

In December 1993 the first meeting was held of what was to become the Canadian District Energy Association. A board of directors was elected with an action plan to incorporate the association, publish newsletters, organize conferences and lobby government. The organization has since expanded its mission and membership, garnering more than 150 participants in its most recent annual conference and entering into a spirited national debate with Revenue Canada to obtain fair tax treatment for district energy and combined heat and power systems.

With historically low electricity prices, Sweden ranks fourth among the world’s nations in per capita electricity consumption. In fact, electric heating currently accounts for 26 percent of the heating market. Yet as the country phases out its nuclear power stations, interest in district heating and cogeneration has increased dramatically. District heating, already the number one heating source in Sweden with 38 percent of the market, has the potential to expand even further by penetrating the electric heating market.

In the past four years, Thermal Ventures Inc. has used the satellite method to initiate or significantly expand the availability of district cooling in three of the company’s markets. In all three cases, unmanned absorption chillers have introduced new users to district cooling and its advantages and rapidly built a revenue stream – all without major disruption or risk to the company, its customers or the community.

If the energy industry wants to work effectively with healthcare energy consumers, it must have broad insights into health care’s economic environment and the buying perspective of healthcare decision makers. Understanding that the healthcare and energy industries share similar perspectives will help energy providers – such as district energy utilities –make the changes needed to market and deliver energy solutions and services to the healthcare industry.

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