Thermal Energy Networks
Thermal energy networks (TENs) are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. For these projects to thrive, state policymakers must create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas.
There is a spectrum of actions that states can take to promote TENs. At the more modest end of the spectrum, states can mandate the study of thermal energy networks in some capacity. More ambitious approaches may include permitting pilot projects; financing or mandating pilots; allowing utilities to own and operate TENs generally, or meet their “obligation to serve” using the technology; and finally mandating TENs as a priority in replacing gas infrastructure at the end of its useful life, or planning the transition away from natural gas overall.
As states look to meet transition away from natural gas, TENs can be an attractive way to leverage the existing expertise and planning capacities of existing utilities to replace gas infrastructure on a logical timeline. Mandating that utilities utilize TENs on a case-by-case basis to avoid investing in new gas infrastructure may help avoid stranded costs as the natural gas system ages. At the most ambitious level of policy, states can mandate that utilities use TENs in longer-term planning processes in order to phase out natural gas entirely.
Key Resources
Thermal Energy Networks in the Unites States: Emerging Opportunities, Challenges, and Needs
Thermal Energy Networks: Considerations from Environmental Justice and Energy Democracy Perspectives
Thermal Energy Networks (TENs) State Legislation
Non-Pipeline Alternatives: Emerging Opportunities in Planning for U.S. Gas System Decarbonization
Model Rules
TENs Legislative Guidebook
Model States
Massachusetts
Gas utilities are allowed to pilot networked geothermal projects, and can sell and distribute non-emitting thermal energy. TENs pilots can be paid for with funds from the state’s pipe replacement program, known as the Gas System Enhancement Plan
Gas utilities are able to provide non-combusting thermal energy to customers instead of natural gas.
Washington
A TENs pilot program for gas utilities requires proposal submissions within 12 months of June 2024 and construction within 30 months. The Department of Commerce can distribute $25M in grants to gas utilities to cover the costs of building and operating the pilots.
Electric, gas, and public utilities can own and operate thermal energy networks, and gas utilities are permitted to fulfill their “obligation to serve” through thermal energy networks, subject to commission approval. Electric utilities will be able to provide discounted rates to companies operating thermal energy networks under certain conditions and with authorization from the Utilities and Transportation Commission.
Thermal Energy Networks By State
Status | State Sort descending | Region | Components | Year Enacted | |
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Not Enacted |
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Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
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Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
West | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Enacted |
Empty column
Gas utilities can pilot up to 30 cost-effective neighborhood-scale decarbonization projects in lieu of replacing gas pipelines. These zero-emission pilots may take the form of “neighborhood electrification” or thermal energy networks. Establishing Policies
Empty column
|
West | 2024 | ||
Enacted |
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Thermal energy qualifies as an eligible clean heat resource under the state's clean heat standard, and gas utilities serving more than 500,000 customers were required to propose at least one thermal energy pilot by September 2024. Local governments in Xcel Energy gas service territory can partner with the utilitiy to explore neighborhood-scale clean heat projects, including thermal energy networks. A Geothermal Energy Grant Program provides funding support for eligible public and private entities developing geothermal energy projects, including thermal energy networks. Establishing Policies
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|
West | 2024 | ||
In-Progress |
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The DEEP Commissioner is required to establish a thermal energy network grant and loan program to support the development of thermal energy network projects on the customer’s side of an electric meter. Establishing Policies
Empty column
|
Northeast | 2025 | ||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
West | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
West | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
In-Progress |
Empty column
The Governor's Energy Office must issue an RFI regarding the creation of a thermal energy networks program in the state, focusing on sources such as geothermal or waste heat. The Energy Office must prepare a report on TENs by January 15, 2026, which can include recommendations for the development of a TENs program. Establishing Policies
Empty column
|
Northeast | 2025 | ||
Enacted |
Empty column
Gas, water, and electric utilities are allowed to own thermal energy networks, and can recover costs associated with TENs, if approved by the PUC. Gas utilities serving >75,000 customers must develop 1-2 proposals for network geothermal pilot projects by July 1, 2025. The proposals must ensure that at least 80 percent of the pilot projects’ customers are from low- or moderate-income households. Gas utilities serving <75,000 customers are able propose one pilot. Establishing Policies
Empty column
|
Southeast | 2024 | ||
Enacted |
Empty column
Gas utilities are allowed to pilot networked geothermal projects, and can sell and distribute non-emitting thermal energy. TENs pilots can be paid for with funds from the state’s pipe replacement program, known as the Gas System Enhancement Plan Gas utilities are able to provide non-combusting thermal energy to customers instead of natural gas. Establishing Policies
Empty column
|
Northeast | 2024 | ||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Enacted |
Empty column
The Department of Commerce must develop a study exploring sites suitable for thermal energy networks statewide by January 15, 2026. Gas utilities with more than 800,000 customers must include a district energy pilot in their 5-year "innovation plans," and must invest at least 15% of their innovation plan's budget in TENs. Other utilities are encouraged to consider alternatives to gas in their innovation plans, including district thermal. Establishing Policies
Empty column
|
Midwest | 2024 | ||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
West | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
West | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Northeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Northeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southwest | |||
Enacted |
Empty column
Gas and electric utilities are enabled to build, own, operate, and sell thermal energy. The Public Service Commission adopted initial Utility Thermal Energy Networks (UTENs) rules in 2024. The 2025-2026 budget allocated $200 million for TENs projects across the state. Establishing Policies
Empty column
|
Northeast | 2025 | ||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
West | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Northeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Northeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
West | |||
Enacted |
Empty column
Municipalities in Vermont are authorized to build and operate thermal energy networks without the need for approval or regulation from the Public Utility Commission (PUC). Existing utilities, businesses, developers, co-ops, and non-profits are able operate their own TENs, subject to PUC authorization. The PUC must publish a report on how to support the development and permitting of TENs by December 1, 2025. Establishing Policies
Empty column
|
Northeast | 2024 | ||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Enacted |
Empty column
A TENs pilot program for gas utilities requires proposal submissions within 12 months of June 2024 and construction within 30 months. The Department of Commerce can distribute $25M in grants to gas utilities to cover the costs of building and operating the pilots. Electric, gas, and public utilities can own and operate thermal energy networks, and gas utilities are permitted to fulfill their “obligation to serve” through thermal energy networks, subject to commission approval. Electric utilities will be able to provide discounted rates to companies operating thermal energy networks under certain conditions and with authorization from the Utilities and Transportation Commission. Establishing Policies
Empty column
|
West | 2024 | ||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Southeast | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
Midwest | |||
Not Enacted |
Empty column
Thermal energy networks are neighborhood-scale energy projects that allow multiple buildings to be connected through a shared network of underground pipes to distribute heating and cooling, often using renewable energy sources like geothermal or waste heat. State policymakers can create an enabling regulatory structure, and may also commission pilots, allow cost recovery, or create mandates to help transition from natural gas. Empty column
|
West |