Industry News

From District Energy Magazine, Fourth Quarter, 2014

A major wave of opportunity is forming for the district energy industry. Presidents, prime ministers, governors and mayors are all calling for urgent actions to increase energy efficiency, reduce emissions and deploy more resilient energy systems for cities and communities. The newly announced United Nations Environment Programme's (UNEP's) District Energy for Cities Initiative, the global Compact of Mayors, IDEA's ongoing EcoDistricts activities and plans for collaboration with the C40 Cities North America are examples of a rising tide among urban leaders and sustainability directors seeking guidance on planning, financing and deploying district energy systems in cities large and small around the world. District energy has emerged as an important strategy and proven approach for cities seeking actionable solutions to decarbonize the grid, address climate change and strengthen the local economy.

On Sept. 23, I was privileged to attend the United Nations Climate Summit at the UN General Assembly in New York, along with IDEA Chair Ken Smith of District Energy St. Paul and IDEA Board Member Ahmad Bin Shafar of Empower, at the invitation of Secretary-General Ban Ki-Moon. Leaders from 162 nations including 126 heads of state gathered for the largest climate summit since Copenhagen 2009. We witnessed presidents and prime ministers from 30 countries speaking of their respective challenges posed by climate change, from diminishing resources and shifting agriculture to imperiled coastlines and acidifying oceans. They ranged from the prime minister of Tuvalu - whose island nation is being devastated by rising sea levels - to British Prime Minister David Cameron, who championed Britain's recent success in cutting emissions through policies like increased combined heat and power. There was a palpable sense of urgency among the speakers. While many voices called for action - including celebrities like Leonardo DiCaprio, traditional activists like former Vice President Al Gore and government leaders like President Barack Obama - for me, the issue was deeply personalized by a 26-year-old poet, Kathy Jetnil-Kijiner of the Marshall Islands, whose powerful poem to her daughter entitled "Dear Matafele Peinem" brought the attendees to their feet and many to tears. I urge you to watch the video at http://tinyurl.com/lelx5tw.

Another important voice emerging from the summit was the collective voice of local government. Recognized with standing at the UN for the first time, 200 mayors collectively representing over 400 million citizens signed a Compact of Mayors pledging to reduce annual emissions through investments in energy efficiency programs, climate resilience projects and resilient financing mechanisms. This new initiative aims to reduce greenhouse gas emissions by 454 megatons within the decade. With over 60 percent of the world's population projected to live in cities by 2030, cities must be a focus of any effective emissions reductions strategy. In his speech at the C40 Cities Climate Awards, former New York City Mayor Michael Bloomberg stressed the importance of local and national action, stating, "Mayors are on the front lines of climate mitigation and adaptation, so now is the time for nations to partner with cities to tackle ambitious climate targets, both to help the world avoid the worst impacts of climate change and to benefit millions of people."

This is where district energy fits in. For the past few months, IDEA has been collaborating with UNEP and contributing to development of the new District Energy in Cities Initiative, the implementing mechanism for the "District Energy Accelerator" - part of a new Global Energy Efficiency Accelerator Platform initiative under the UN Sustainable Energy for All (SE4All) program. This District Energy Accelerator calls for education on best practices among cities, industry, governments and academia to actively exchange insights on technologies, policies and innovations to deploy lower-carbon district energy systems. UNEP has recognized that district energy can deliver broad energy efficiency gains and reduce carbon emissions through economies of scale. Further, as urban populations densify and heating and cooling demands escalate, thermal energy networks become critical to alleviating stress on traditional electricity and natural gas infrastructure. Other advantages of district energy are diversity of supply and adaptability to indigenous resources that foster local economic multipliers and decrease primary energy consumption. Within this local action agenda is the opportunity for IDEA members to advise cities on implementing district energy and establish public-private partnerships toward that end.

The UNEP District Energy Accelerator will be a catalyst for expansion and modernization of existing district heating and cooling systems as well as deployment of new systems to help decarbonizes the grid. IDEA, District Energy St. Paul and Empower were on hand as supporters at the UN launch of the new Global Energy Efficiency Accelerator Platform/District Energy in Cities, which was co-chaired by the UNEP and Danfoss, the Danish technology company with particular expertise in district heating and cooling. Lars Tveen, CEO of Danfoss District Energy Group, commented that district energy is a proven technology capable of dramatically reducing emissions and strengthening cities' energy efficiency. District Energy St. Paul has agreed to mentor other cities seeking experience with biomass, urban wood waste, CHP, solar thermal and thermal storage. Veolia Energy and Johnson Controls have also signed on as supporters of the District Energy Accelerator. UNEP recognizes that population growth in warmer climates will necessitate deployment of district cooling, and Empower has agreed to share industry best practices to accelerate district cooling across the Middle East and around the globe. Empower will host the IDEA International District Cooling Conference Dec. 14-16, 2014, in Dubai, where they will announce initiatives related to the District Energy Accelerator and some exciting new technologies with widespread application.

Earlier this month, IDEA made a presentation to the Energy Group at the World Bank/International Finance Corp. (IFC) headquarters in Washington, D.C. World Bank/IFC traditionally invests in modernization of district heating systems in Eastern Europe and has indicated an interest in supporting greater deployment of district cooling in emerging economies of the Middle East and North Africa. World Bank/IFC seeks to support climate mitigation and has identified district energy deployment as a viable strategy for growing cities and communities. We are hopeful that World Bank/IFC will also participate in the International District Cooling Conference in Dubai as an effective means to reach industry participants across the Gulf Region and beyond.

This new wave of attention is also taking root in U.S. cities. On Sept. 22 the mayors of Philadelphia, Houston and Los Angeles announced a new initiative to cut local greenhouse gas emissions. The Mayors' National Climate Action Agenda calls for city-scale actions such as new reporting standards on pollution, enhanced urban forestry, landfill gas capture and other investments that reach beyond individual buildings and involve collective actions. During our time in New York, Ken Smith and I attended the C40 Cities Climate Awards Dinner, which was remarkably similar although significantly more elaborate than our own Global District Energy Climate Awards in New York in 2013. IDEA has begun dialogue with the C40 Cities initiative in North America with a plan to collaborate on policy and best practice training for local city sustainability directors. Recognizing the scale of energy solutions required to reduce urban emissions, the leadership at C40 Cities has indicated that adoption of district energy is a top priority. With the support of insightful leadership from the city of Boston, IDEA hopes to work together with C40 Cities to structure a workshop or charrette in conjunction with the IDEA 106th Annual Conference and Trade Show in Boston in June 2015. This conference will provide the additional benefit of engagement with our assembled business partner exhibitors and access to thought leaders and presenters from across the global industry.

On Sept. 24, IDEA hosted a session on planning, development and deployment of district energy at the EcoDistricts Summit in Washington, D.C., featuring guidance from Richard Dooley, community energy coordinator for Arlington County and Zach Dobelbower, EcoDistricts director for the District of Columbia Dept. of General Services Energy & Sustainability. Our well-attended session indicated strong interest among conference participants and signaled growing demand for best practice guidance among community sustainability professionals. There are multiple district energy projects under review in the capital region and a growing need for more industry engagement to support advancement.

It will be important for IDEA members to respond to this surge in interest and help our public-sector colleagues in cities to evaluate and adopt district energy solutions. As Tom Casten often says, "A rising tide lifts all boats." This emerging focus on district energy comes at a critical moment in the global energy and environmental dialogue and sets the stage for significant progress. Our ability to support and drive a robust district energy agenda for cities and communities in North America and beyond will determine whether we sink or swim in this upcoming wave of opportunity.

Before closing, I want to commend Lily Riahi of the UN Environment Programme in Paris for her efforts and commitment to prepare and release the District Energy in Cities Summary Report in time for the recent UN Climate Summit. IDEA looks forward to working with the UN Sustainable Energy for All program to expand opportunities for district energy around the globe.