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Optimizing district energy systems under uncertainty: Insights from a case study from Washington D.C., USA

This study investigates solutions for delivering affordable heating and cooling to a brownfield site, focusing on a case study in Washington, DC. Moving towards more diverse and resilient energy systems, we identify the optimal portfolio for a district energy system with diverse energy sources to meet the area’s energy demands. Our methodological approach integrates two detailed models: one calculating building-level energy demand and the other optimizing district energy technology choices based on their demand profiles, accounting for uncertainties in energy prices, policies, and other parameters. The results provide an economic comparison of district and individual supply options at the building level, emphasizing the flexibility district systems can offer to the electricity sector. District energy systems demonstrate cost-stabilization benefits amidst volatile energy prices and external uncertainties. For heating, district systems yield significant cost savings compared to individual solutions, driven by fuel flexibility and the use of local renewable energy sources. For cooling, district systems also show advantages, though individual systems may remain more cost-effective for smaller buildings. Additionally, district systems exhibit considerable flexibility on the heating side, as evidenced by variations in electricity consumption. We recommend future research to explore the relationship between the economics of district energy systems, particularly at the building level, and their flexibility potential for the electricity sector across diverse geographic contexts to reduce overall grid costs and promote grid reliability. This includes areas with distinct zoning laws, municipal priorities, utility structures, and funding mechanisms, such as the United States, and regions like Europe with pronounced electricity price volatility.

24 POWER TRANSMISSION AND DISTRIBUTION

National Modeling of Geothermal District Energy Systems with Ambient-Temperature Loops Using dGeo

Geothermal district energy systems (DES) with ambient-temperature loops, also known as thermal energy networks, are one option for decarbonizing space heating and cooling loads. Geothermal fifth-generation DES include an "ambient" temperature thermal loop that connects heat pumps at each building with thermal balancing sources such as geothermal borehole fields. Heating and cooling are provided via a water-source heat pump at each end-user. This project seeks to analyze the nationwide potential for ambient-temperature loop districts by creating a new module within the Distributed Geothermal Market Demand Model (dGeo). dGeo is an agent-based modeling tool for distributed geothermal resources; it can investigate potential on a nationwide or statewide scale using geospatial data for all 50 states and thermal demands for existing buildings. This process allows for high-level estimates of technical and economic potential for ambient-temperature loop districts across the United States. A lookup table was created using GHEDesigner to size borehole fields for different thermal loads and ground conditions experienced across the country. A cost and financing structure, along with incentives, were applied. Cost estimates include costs for the distribution network, borehole field installation and operation, and circulation pump operation, while savings are calculated based on energy bills for building owners (agents). This newly developed module can be used for assessing which areas of the country have the highest potential for agent benefits from ambient-temperature loop installation and assess the impact of future cost and price scenarios. Initial results for statewide analysis (for Vermont) and nationwide (for United States) are provided. Future work includes expanding the module to consider mixed residential and commercial districts as well as evaluating multiple cost scenarios.

ambient-temperature loop

Geothermal Direct-Use Applications for the District Energy System in Bucharest, Romania

The city of Bucharest, Romania, hosts the second-largest district energy system (DES) in the world. Geothermal resources can be considered as a supplementary heat source to support the demand for domestic hot water and space heating in the winter and shoulder seasons. The National Laboratory of the Rockies (NLR) has conducted a study that considers geothermal energy to serve a fraction of the existing district heating network operated by Electrocentrale Bucure?ti (ELCEN), the utility operating the DES. Lower Cretaceous and Jurassic limestones make up the main geothermal aquifer underlying Bucharest, which hosts temperatures suitable for district heating (up to 90 degrees C to the north of the city). Anomalous geothermal gradients have been observed to the north of the city, where a pumped well has produced 82 degrees C brine at the wellhead to feed the Therme Bucharest Spa. An anomalous gradient has also been reported to the southeast of the city (35 degrees C/km). NLR modeled the building heating loads of a small portion of the DES (a block of nine prototypical buildings) in its Urban Renewable Building and Neighborhood Optimization (URBANopt ) platform. To simulate meeting a baseload benchmark of 20 MWth deliverable to a small portion of the DES, the NLR team used GEOPHIRES to model production scenarios for (1) hydrothermal systems coupled with heat pumps targeting the main geothermal aquifer in the north, (2) enhanced geothermal systems targeting hot dry rock in the southeast, and (3) huff-and-puff systems targeting a gradient of 25 degrees C/km. Finally, NLR conducted a high-level sensitivity study around the techno-economics of these systems. The outcomes of this work indicate that hot dry rock geothermal resources that can deliver at least 90 degrees C hot water to the Geothermal District Energy System (GeoDES) offer a possible solution for supplemental geothermal heat delivered to the existing DES.

15 GEOTHERMAL ENERGY

Geothermal district energy systems coupled with seasonal underground thermal energy storage: a U.S. techno-economic screening by climate and geology

In the United States, cooling-dominated commercial building loads can cause geothermal heat pump-based district energy systems to accumulate a long-term subsurface thermal imbalance, motivating the incorporation of seasonal underground thermal energy storage. We developed a transferable workflow to evaluate geothermal district systems that pair ground heat exchangers with seasonal underground thermal energy storage. Using standardized hourly loads for seven commercial buildings and a uniform cost framework, we simulated ten U.S. cities with a physics-based ground heat exchanger model, subsurface storage simulations, and economic assessment to isolate the roles of climate and hydrogeology. In cooling-dominated cities, underground thermal energy storage supplied the majority of annual cooling, cutting electricity use and summer peaks substantially while achieving levelized costs comparable to or below conventional chiller-boiler plants. In cooler climates, the storage share shrunk, required borefield size and costs rose, and levelized cost of energy increased nearly linearly with declining underground thermal energy storage fraction, indicating storage fraction as the primary economic lever. Sensitivity analysis showed capital risk dominated by borefield drilling and surface heating, ventilation, and air-conditioning and piping, with underground thermal energy storage costs secondary. This workflow provides a transparent foundation for site-specific design and screening of next-generation geothermal district energy systems.

25 ENERGY STORAGE

National Modeling of Geothermal District Energy Systems with Ambient-Temperature Loops Using dGeo: Preprint

Geothermal district energy systems (DES) with ambient-temperature loops, also known as thermal energy networks, are one option for decarbonizing space heating and cooling loads. Geothermal fifth-generation DES include an "ambient" temperature thermal loop that connects heat pumps at each building with thermal balancing sources such as geothermal borehole fields. Heating and cooling are provided via a water-source heat pump at each end-user. This project seeks to analyze the nationwide potential for ambient-temperature loop districts by creating a new module within the Distributed Geothermal Market Demand Model (dGeo). dGeo is an agent-based modeling tool for distributed geothermal resources; it can investigate potential on a nationwide or statewide scale using geospatial data for all 50 states and thermal demands for existing buildings. This process allows for high-level estimates of technical and economic potential for ambient-temperature loop districts across the United States. Using GHEDesigner, a lookup table was created to size borehole fields for different thermal loads and ground conditions experienced across the country. A cost and financing structure, along with incentives, were applied. Cost estimates include costs for the distribution network, borehole field installation and operation, and circulation pump operation, while savings are calculated based on agent energy bills. This newly developed module can be used for assessing which areas of the country have the highest potential for agent benefits from ambient-temperature loop installation and assess the impact of different costing and pricing future scenarios. While the code is still under development and nationwide simulations are ongoing, initial results for two states are provided. Future work includes expanding the module to consider mixed residential and commercial districts and considering multiple costing scenarios.

ambient temperature loop

Development of a Sizing and Modeling Platform for District Energy Systems with Geothermal Heat Pumps

Existing tools for community or urban scale energy system modeling and simulation are often limited in their capabilities and require expert-level modeling proficiency to develop system models. To fill this gap, this paper proposes an integrated sizing and modeling platform for district energy systems with geothermal heat pumps. The proposed platform takes in geometric and non-geometric user inputs related to the buildings, borefield, and district energy loop. Then, the platform sizes the geothermal heat exchanger, generates a corresponding district energy system model, and runs an annual simulation automatically. We validated the simulation performance of the borefield in our tool against EnergyPlus. A case study is provided in this paper to demonstrate the workflow and simulation result plausibility of the proposed platform.

decarbonization

Optimizing district energy systems by integrating Borehole Thermal Energy Storage Using a Mixed-Integer Linear Programming g-function framework with a Multi-Timescale Rolling Horizon method

Shallow geothermal has gained increasing attention in recent years; however, a reliable framework for its accurate incorporation into large-scale energy system optimization remains lacking. This study proposes a Mixed-Integer Linear Programming (MILP) framework combined with the g-function approach to integrate Borehole Thermal Energy Storage (BTES) technology into energy system optimization. Validation against a Modelica-based reservoir network simulation demonstrates that the proposed framework effectively captures the ground thermal response under varying energy loads and accurately estimates the borefield energy supply. To enhance scalability, a Rolling Horizon with Multi-Timescale (RH-MTS) method is further introduced, reducing computational time by 73 % for the 1-year optimization model with only minor loss of optimality. The framework is demonstrated through the case study of the UC Berkeley campus. Results indicate that BTES is a cost-effective and low-carbon solution: two borefields comprising 382 boreholes can meet 8.0 % and 6.6 % of the total campus heating and cooling demand, respectively, at an average energy rate of 0.70–0.77 USD/kWh and carbon intensity of 0.54 kg-CO2/kWh. Short-term analysis reveals a 35%–65% decline in BTES energy flow after 3–6 months of continuous heating/cooling operation, while long-term simulation shows that annual energy production of BTES can vary by up to 12.0 % after four years before stabilizing. Overall, this study develops a novel optimization framework that couples physics-based g-function method with MILP optimization framework, thereby advancing methodological development for shallow-geothermal integration and providing actionable guidance for BTES deployment in district-energy systems.

Yang, Jiahui

Optimal Co-Design of Integrated Thermal-Electrical Networks and Control Systems for Grid-interactive Efficient District (GED) Energy Systems

This project advances a unified, open-source framework for the optimal co-design of thermal, electrical, and control systems in grid-interactive efficient districts (GEDs). As communities integrate growing levels of distributed energy resources, traditional approaches that model thermal and electrical networks independently lead to reduced efficiency, limited flexibility, and missed opportunities for coordinated operation. To address these challenges, the research team developed a comprehensive suite of physics-based models, control algorithms, and software tools that enable holistic simulation, optimization, and demonstration of district-scale energy systems.

14 SOLAR ENERGY

Electrical and Thermal Load Impacts of Three District Heating and Cooling Designs for an Existing Community in Washington, DC

District energy systems that provide building heating and cooling are a promising option to provide low-cost, energy efficient heating and cooling solutions for communities. As some buildings move to electrified heating designs, there may be significant increases in electric grid demand, particularly in the winter. District energy systems may be able to help reduce these high electrical demands on the electric grid, while also providing decreased overall energy consumption with an increased flexibility in electrical energy usage. To evaluate and compare district options for district-based heating and cooling, an existing neighborhood of Washington, DC consisting of 35 existing buildings was selected as a case study. This study models and compares a fourth generation (4G) district heating and cooling systems that provide hot and chilled water from a central plant directly to each prosumer and a fifth generation (5G) district heating and cooling systems that provide near-ambient water via geothermal boreholes to interface with an energy transfer station with a heat pump at each prosumer. These district systems are compared against a baseline of the non-connected buildings with their self-contained and current HVAC systems. The neighborhood was selected as a good candidate for a district system for its diversity of loads (mix of different commercial and property types) and the availability of building characteristics. URBANopt District Energy Systems (DES) was used to model the buildings and create initial Modelica models for the district systems. Finally, the DES models were tuned and simulated in Dymola, and the outputs were post-processed for verification and to calculate the electrical and thermal grid impact metrics. This is the first documentation of this workflow and its complete analysis. The three designed systems are compared via their grid metrics including: total energy consumption, electrical demand peak loads, daily peak-to-valley ratios, and system ramping. A detailed discussion is provided about how each system impacts and interacts with the electric grid.

15 GEOTHERMAL ENERGY

Advances on CHP District Energy and Microgrids Deployment: Simplified Tool for Rapidly Deploying Feasibility Analytics for the Non-Technical User (Final Technical Report)

Community energy systems have proven to have the potential to improve cost efficiency, resilience, and decarbonize. However, investing in community energy systems such as community microgrids or district energy systems is a complex decision due to the high initial investment and the uncertainties associated with the long development time and lifecycle of the project. Tools that make feasibility assessments accessible to non-technical users like investors, policymakers, and other stakeholders will result in more feasibility analyses completed, more candidate projects identified, and more community energy systems deployed. The pilot tool developed under this award is named Energy Fellow. Energy Fellow allows technical and non-technical users to complete feasibility analyses for district energy systems and community microgrids. This is the first software tool of its kind designed for non-technical users and available at no cost. Its scope was adjusted to a 25x25-mile region within the Houston area in Texas to make its development compatible with the funding available. However, the findings and models developed make this pilot tool easily scalable to the US. The lessons learned during the design, implementation, and testing stages have helped find trade-off solutions to software and hardware challenges related to implementing 3D models in online tools. Green software strategies has been successfully applied to the design and operations of the tool, and the team has researched the aspects of the (non-technical) user experience that will make commercial developments of this tool even more impactful.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Best practices: Organizational execution

This article, the fourth and final installment in the DOE–IDEA series, focuses on organizational execution and how strong management practices, teamwork, and preparedness contribute to successful district energy systems. It highlights case studies from Ashley Energy and Cornell University to illustrate effective operational strategies. Ashley Energy demonstrates the importance of emergency preparedness and rapid response. After a major flood disrupted its plant, the organization restored service in under 72 hours by relying on pre-established plans, vendor relationships, and trained staff. The case emphasizes proactive contingency planning, understanding insurance processes, and empowering skilled personnel to improvise during crises. Cornell University’s example highlights the role of collaboration and transparency in long-term success. Its district energy system benefits from strong data sharing, real-time energy monitoring, and active involvement of faculty and students in system planning and innovation. This culture of teamwork and data-driven decision-making supports sustainability goals and continuous system improvement. Overall, the article shows that effective organizational execution—through preparedness, collaboration, and data transparency—is essential for maintaining reliable, efficient, and sustainable district energy systems.

96 KNOWLEDGE MANAGEMENT AND PRESERVATION

Leadership and Community Engagement in Chile: Deploying Net-Zero Technologies and Solutions

The report presents the 2023 Net Zero World Chile program results from activities of the the four program workstreams: 1) energy-system wide modeling LEAP modeling and analysis results including accelerated Net Zero scenarios with aggressive energy efficiency improvements, fuel switching, and electrification across demand sector; 2) district energy chapter provides thermal district energy systems modeling results of the Recoleta-Independencia pilot project and comparative analysis of district energy systems' potential versus competing technologies in Chile; 3) just transition action steps for the creation of a sister city relationship between Tocopilla and a US counterpart city; and 4) power decarbonization capacity building activities focused on the selection and adoption of grid-enhancing technologies.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Verification and Validation of Performance with Dissemination of Best Practices in District Energy and CHP for Enhanced Resiliency, Energy Efficiency, and Cybersecurity

This report contains the results of the International District Energy Association’s work to analyze, validate, and verify performance data of existing district energy systems and identify industy best practices for the purpose of improving system reliability, resiliency, and efficiency, and to accellerate decarbonization. In addition to a technical evaluation of the surveyed systems and identification of a series of technical performance metrics, the report illustrates the accompanying operations and financial best practices employed by surveyed systems to fully serve their customer base. Additionally, the third chapter of the report describes the current landscape of cybersecurity threats and counteracting measures, and recommends a series of steps for effectively guarding highly networked district energy systems against cybersecurity attacks.

96 KNOWLEDGE MANAGEMENT AND PRESERVATION

Sand-Based Thermal Storage for Building Heating Applications: A District Energy Case Study

Buildings account for 40% of global energy consumption and contribute to 30% of global carbon emissions. As energy from renewable sources increases in availability and building designers push for increased electrification, thermal energy storage (TES) systems will play a crucial role in extending the usable time horizon of renewable energy. While water, molten salt, and phase change materials are typically used for building TES heating applications, silica-sand has emerged as an alternative medium for concentrated solar power applications due to its low cost, wide availability, and comparable system efficiency. This paper proposes a new silica-sand particle-based TES system for building heating applications. In this work, a novel steam plant for district heating applications is first designed to utilize silica-sand TES, which can be used for different district energy systems. To demonstrate the silica-sand TES plant performance, the design is modelled in Modelica based on a case study on the University of Colorado Boulder’s campus. The simulation results show that the sand TES plant is more costly to operate than a gas-boiler based plant due to the low cost of natural gas, while the site EUI and carbon intensity can be improved. This novel system shows initial promise as a low-carbon alternative to conventional natural gas steam boilers but will require further modelling and follow-up research to improve its energy efficiency. An eventual rise in natural gas prices, and reduction of electricity prices, could improve the economic viability of this system.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Comparative Analysis of HEATNETS for Geothermal Network Performance: Preprint

Thermal energy networks (TENs), also known as 5th generation district energy systems, or more specifically geothermal networks when exchanging heat with geothermal boreholes, are an important technology for decarbonization. In these networks an ambient loop connects buildings and thermal sources, such as a borehole field, to exchange energy and maintain a desired loop temperature. Water-source heat pumps are used at the buildings to connect to the ambient or thermal loop to meet to the building heating and cooling loads and maintain comfort. A semi-transient, reduced-order technical model and techno-economic model, called HEATNETS, has been developed at NREL that captures the flow of energy around a TEN. In this work, a comparison of the HEATNETS technical model and a well-known coding platform used for modeling geothermal networks, TRNSYS, has been completed for a proposed geothermal network as a verification process. Hourly data provided from the TRNSYS simulation included building loads, pumping power, heat pump power, temperature entering and leaving the borehole field, and mass flow rates. The hourly borehole temperatures were used to create a linear regression model utilized in HEATNETS to estimate the borehole field heat exchange. The building loads and mass flow rates were direct inputs to HEATNETS while the pumping power, heat pump power, borehole temperatures, and coefficients of performance were all simulated and calculated by HEATNETS, allowing for direct comparison of the thermal energy transfer, rather than also comparing control systems responses. HEATNETS considers the full process from design inputs to economic outputs and can provide modeling options for high-level initial system design and operational optimization. This study shows that HEATNETS, while not intended to replace other modeling tools, can be a unique modeling tool for the performance of a full geothermal network system.

15 GEOTHERMAL ENERGY

Comparative Analysis of HEATNETS for Geothermal Network Performance

Thermal energy networks (TENs), also known as 5th generation district energy systems, or more specifically geothermal networks when exchanging heat with geothermal boreholes, are an important technology for decarbonization. In these networks an ambient loop connects buildings and thermal sources, such as a borehole field, to exchange energy and maintain a desired loop temperature. Water-source heat pumps are used at the buildings to connect to the ambient or thermal loop to meet to the building heating and cooling loads and maintain comfort. A semi-transient, reduced-order technical model and techno-economic model, called HEATNETS, has been developed at NREL that captures the flow of energy around a TEN. In this work, a comparison of the HEATNETS technical model and a well-known coding platform used for modeling geothermal networks, TRNSYS, has been completed for a proposed geothermal network as a verification and validation process. Hourly data provided from the TRNSYS simulation included building loads, pumping power, heat pump power, temperature entering and leaving the borehole field, and mass flow rates. The hourly borehole temperatures were used to create a linear regression model utilized in HEATNETS to estimate the borehole field heat exchange. The building loads and mass flow rates were direct inputs to HEATNETS while the pumping power, heat pump power, borehole temperatures, and coefficients of performance were all simulated and calculated by HEATNETS, allowing for direct comparison of the thermal energy transfer HEATNETS considers the full process from design inputs to economic outputs and can provide modeling options for high-level initial system design and operational optimization. This study focuses on a validation of HEATNETS using results from TRNSYS. HEATNETS is not intended to replace other modeling tools, but this work demonstrates, via a comparison with an industry standard code, that HEATNETS can be a unique, high-level and rapid modeling tool for estimating the performance of a full geothermal network system.

15 GEOTHERMAL ENERGY

BioSiting Tool (BioSiting) v2

The BioSiting Tool provides a geospatial interface for analyzing bioeconomy resources and infrastructure across the continental U.S. The tool integrates empirical and modeled data from a broad range of sources. Bioeconomy resources mapped in the tool include agricultural residues, forest residues, municipal solid waste streams, food waste, manure, fats, oils and greases and potential yields of energy crops. Infrastructure mapped in the tool includes biorefineries, material recovery facilities, anaerobic digesters, wastewater treatment plants, combustion plants, district energy systems, crude oil pipelines, petroleum pipelines, natural gas pipelines, railways and freight terminals. Additional data layers include environmental justice indicators at the census tract level and carbon dioxide geologic storage potential. Users can select a location on the map, define a buffer radius in kilometers and generate an inventory of all bioecomony resources within the buffer zone. Data from the tool can be downloaded from individual buffer zones, or at the state or national level.

Huntington, Tyler