The state is moving ahead with a series of pilot programs for thermal energy networks, marking a step forward for the renewable energy source in New York.
The pilot programs in Buffalo, run by National Fuel Gas, and the town of Haverstraw in Rockland County, run by Orange & Rockland Utilities, will use utility-owned thermal energy networks or UTENs to provide heating and cooling in neighborhoods and affordable housing developments.
“The number of years it took to get to this point is a testament to the challenge of creating something new … that meets many of the needs of the energy transition we all want to see,” said Rory Christian, chairman of the New York Public Service Commission.
A thermal energy network connects multiple buildings to shared, underground water-filled pipes that utilize the steady ground temperatures to heat or cool indoor spaces.
The PSC selected the two projects from a list of 11 being considered. Department of Public Service staffers looked at a range of criteria, including effects on customer rates and how the proposed UTENs would perform against other methods of heating and cooling.
“Through the extensive analysis conducted, these two pilots demonstrate the most viable projects with the lowest risk,” said Laurie Kokkinides, a policy analyst at the department. “Together they offer broad and distinct learning opportunities.”
Advocates are hoping the pilots are just the beginning. The programs will be evaluated for a couple of years as officials come up with a road map for the use of the technology.
“Then there's more opportunities for us to learn to make the projects more efficient,” said Julie Tighe, president of the New York League of Conservation Voters. “And to be delivering on what New Yorkers need, which is stable energy pricing for heating and cooling.”
Thermal energy enjoys wide bipartisan support, which is rare for renewable energy. The Upgrade NY coalition, made up of environmental groups, unions and other stakeholders, lobbied this year for additional funding for the thermal energy networks.
State lawmakers ended up allocating $150 million from the Sustainable Future Program for thermal energy networks, including ways to lower the potential impact on ratepayers. That includes $93 million for the two pilot projects.
“At a certain point we should be able to compare, you know, replacing gas pipes with moving people to this kind of a network, a thermal energy network, and then compare apples to apples on like, okay, what are we spending so that we can make better decisions,” Tighe said.
UpgradeNY is also touting thermal energy network projects on SUNY campuses, including at Purchase and Buffalo. There’s also support for the idea of harnessing excess heat generated by data centers for use as thermal energy.
Construction on the two pilot projects could begin as soon as next year.
