District Thermal Energy Networks Workshop

District Thermal Energy Networks - Business Best Practices
Thursday, February 6, 2025 8:00 am - 4:00 pm

The workshop aims to share business best practices in planning, constructing, operating and managing a financially sustainable district thermal energy network (TEN) business.  This workshop will support new industry entrants with open exchange and grounding in essential strategies such as heat mapping, engaging with potential customers and education, securing anchor customers, developing rate structures and other “step by step” approaches to transitioning from the conceptual stage of pilot projects to profitable, sustainable businesses.
The workshop will feature experienced industry professionals sharing practical insights while encouraging open discussion and learning.  This is an ideal workshop for the following participants and audiences:
  • Electric or natural gas utilities, especially those with a state or local policy imperative to develop a UTENs pilot or implement a low-carbon thermal energy network business as a “non-pipes alternative” or “non-wires alternative”
  • Municipalities or local governments with interest in TENs, through development, ownership, partnering, or policy support.
  • Government agencies including public service or public utility commissions, regulators, state or local energy offices, sustainability offices, or environmental and permitting agencies.
  • Non-government organizations seeking insight on district thermal energy networks
    Architectural or engineering firms, real estate developers, institutions

Download detailed program

Segment 1: Identifying, Evaluating and Planning for Thermal Energy Network Opportunities

Thermal energy takes many forms including surplus or waste heat, geothermal or geo-exchange, industrial and commercial  resources, energy-sharing, and nearby bodies of water.  Best practices entail mapping and quantifying local thermal energy resources in conjunction with customer discovery, including considerations like density; neighborhood scale solutions, and best-fit technology considerations.  Best practices include: 
  • Holistic energy planning/resource mapping to identify/qualify potential sources of thermal energy along parameters such as temperature, pressure, volume, carbon intensity; seasonality, and other factors
  • Technology options - geothermal (networked, earth-coupled, deep); energy recovery from sewer; wastewater; surface water; data centers; industry – evaluating scale, quality and market potential; risk assessment/mitigation
  • Customer and market assessment, usage profiles, density considerations, and new-build/existing options assessments 
  • Sector-coupling; grid constraints and other last-mile considerations
  • Franchise arrangements, considerations and assessing distribution system service radius and coverage

Participants: Nicholas Fry, Jacobs; Bryan Kleist, Cordia Energy; Gerard MacDonald, Reshape Strategies; Jared Rodriguez, Emergent Urban Concepts; 

Segment 2: Business Development

Achieving market penetration and capturing sufficient revenue is critical to the financial viability and long term health of a thermal energy business. We’ll discuss:
  • Aggregating potential customers, estimating and evaluating thermal energy load conditions, densities, building use characteristics; occupancy and revenue modeling
  • Cost-effectiveness as a key planning parameter underpinning the development model 
  • Securing anchor customers and gaining key commitments - how to use MOU’s, LOI’s, term sheets, risk models and hurdle rate analyses; due diligence and sequential development approaches
  • Assessing feasibility of a “non-pipes” or “non-wires” alternative in regulated settings; comparative economics
  • Business models & franchises – private, public, hybrid; partnering structures for risk/value
  • Communications/market strategies – identifying local value drivers/champions; legislative & policy considerations
 

Participants: Wayne Barnett, Cordia Energy; Mitch DeWein, CHA; Jim Lodge, CenTrio; Rob Neimeier, Ramboll

Segment 3: Designing the Thermal Business for Financial Success

TENs must perform and excel technically in delivering cost-effective thermal energy services while generating sufficient revenue to be a viable, long-term business. This session will summarize key elements in a successful business plan, including: 
  • Projecting long-term operating costs including electricity, fuels, water, supplies, maintenance, equipment replacement, labor, management and marketing 
  • Terms of service – design and operating parameters; off-take agreements; customer service agreements; key contractual provisions 
  • Real-world cases in residential, commercial and urban settings – technology variations and best-fit thinking
  • Rate designs to ensure business viability while managing risk and providing customer value; 2-part vs 1-part rates and market considerations   
  • Practical considerations for metering and billing individual units in a multi-family residential building (MURB)
  • Financing strategies (equity investment, conventional debt, municipal bonds, green financing) and federal, provincial and state support – Infrastructure banks, green funds, climate bonds.  
  • Ownership boundaries for considerations in the Inflation Reduction Act (IRA)

Participants: Michael Ahern, Ever-Green Energy; Carson Gemmill, Enwave; Jim Lodge, CenTrio; Mark Spurr, FVB Energy 

Segment 4: Launch, Lessons Learned, and Early-Stage Growth

In early stages, it is important to move the project forward decisively to mitigate the “lead/lag” on capital investment and leverage market momentum while securing strategic customers and monitoring project performance.
  • Learning from pilots/projects; utility thermal energy networks (UTENs) and regulatory findings/frameworks   
  • Lessons from unexpected outcomes; scaling up; key success factors in a “post-pilot” environment 
  • Customer feedback and perceptions of risk; legislative or policy considerations (barriers or enablers) driving the market 
  • Capturing and supporting key early stage/anchor customers – temporary “plant-in-a-box” solutions; just in time strategy
  • New-build versus building connection/conversions – lessons learned integrating existing buildings/thermal resources; “district energy-ready” buildings and performance standards; mandatory connection or competitive market?  
  • Navigating the development life cycle from conception to maturity; importance of load duration curves 
  • Assessing the offering and communicating economic multipliers, value propositions and environmental impacts

Participants: Eric Bosworth, Eversource; Paul Holt, Corix Utilities; Greg Koumoullos, Con Edison; Gerard MacDonald, Reshape Strategies; Mark Spurr, FVB Energy

Hosted By

Supporting Organizations

Participating Organizations

Preliminary, as of 12.20.24