District Energy for Sustainable Cities: Top Takeaways from IDEA2024

Cities take up only 3% of the world’s land but account for 60% to 80% of energy consumption. Cities also produce close to 70% of the world’s carbon and this problem will intensify as urban populations expand. By 2030, 6 in 10 people will live in urban areas, according to the UN, making the creation of more sustainable cities a climate imperative.  

This summer the International District Energy Association (IDEA) held its 115^th annual conference in Orlando, Florida. This year’s theme “District Energy for Sustainable Cities” was a timely topic steeped in history.  District energy was one of the first environmental strategies for cleaner air in cities and it plays a key role in the energy transition today.

Amid the push for decarbonization, district energy systems are an important part of the strategy to help cities meet net-zero goals by providing secure, sustainable solutions at scale. From public policy and Inflation Reduction Act (IRA) eligibility to decarbonizing cities by accelerating investment in clean energy infrastructure, the Greenough team had a front-row seat to the latest innovations in district energy.  

Read on for the key takeaways from the event.

Thermal Energy Networks are Having a Moment

As communities and governments across the globe look to reduce emissions, thermal energy networks (TENS), also referred to as networked geothermal or geo-districts, are emerging as a pivotal decarbonization strategy. These energy systems can tap into constant underground temperatures or use cold water from nearby rivers and lakes or surplus heat from sewers or data centers to heat and cool communities in an efficient and cost-effective manner.  

IDEA members from FVB Energy Inc., Enwave Energy Corporation, Vicinity Energy, CenTrio and the University of Washington have been leveraging thermal energy networks (TENS) for years and using them to successfully decarbonize at scale. In the conference’s opening workshop, they discussed why TENS are an important sustainability strategy and how states wishing to transition away from natural gas should ensure that the development of TENS is encouraged in a way that draws on decades of experience.

However, as we continue to push toward net zero, there are still flies in the ointment. Installation rates of renewables will need to nearly double in order to meet the goal of 100% carbon-free electricity by 2035 and the demand for more electricity continues to accelerate at a rapid pace. To unite all stakeholders around climate goals, panelists emphasized that the business case for TENS is there. It can be very expensive to decarbonize buildings individually and we must leverage solutions at scale.

Clean Energy Investment is Booming in the U.S.

A highlight of the conference occurred when Former Director of the White House National Economic Council and architect of the IRA, Brian Deese, delivered the keynote address to a full house.

Deese shared his insights on the growing opportunities for district energy and how the policy landscape has changed dramatically since his last appearance at IDEA’s annual conference. Three key legislative efforts, the Bipartisan Infrastructure Bill, IRA, and the CHIPS Act were all designed to operate together and encourage long-term energy investment and innovation.

“If we do this right, we will generate $120B in global energy savings and 2-4x global emissions reductions,” said Deese.

Clearly, we’re heading in the right direction! Public incentives have led to increases in private investment, sustainability has gotten cheaper and the push for more innovation has driven scale across the industry.  

Shared learning is the key to Success

Greenough has had the pleasure of attending three IDEA conferences and each time we’re struck by the sense of camaraderie among attendees and the genuine desire to help each other succeed. At each event, IDEA members from locations around the world - from Mongolia to Manhattan, Paris to St. Paul, and Dubai to Denver, come together to discuss how to best leverage district energy systems to cut carbon emissions, while also maintaining a reliable, resilient and efficient supply of heating, cooling and power.

During the opening plenary panels, district energy leaders presented a faster, easier and more flexible path toward building Sustainable Cities. These executives, who are leading district energy systems in over 60 cities and campuses across North America, shared their vast experience in, and knowledge of, investment and technology strategies, emerging policy drivers and how they are innovating to meet increasing customer demand. 

Tabreed joined a global panel to discuss their chilled water system in Abu Dhabi which is proving to be a formidable solution for cooling one of the hottest countries in the world. Additionally, Empower in Dubai spoke about how their district energy system reduced electricity consumption by 50%. But there is no silver bullet. The industry needs to have one voice to raise awareness about what’s happening to our environment and needs to work together to educate the world about how district energy can support a more sustainable future, not just in the face of climate change but also in an economically and socially sustainable way.

At the end of a packed three days, it was clear that District Energy continues to evolve and leverage the latest technological and renewable energy innovations. IDEA’s members have a tremendous respect for their industry’s rich history and they acknowledge the hard work ahead to combat climate change. It is a pleasure to support this organization through increased brand awareness and education and the Greenough Team is excited to see IDEA’s members be a catalyst for change in the year to come.  

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“In order to make cities more sustainable, as an industry we need to think about energy holistically, taking both thermal and electrical energy into account” said Coutinho. “District energy is a vehicle that enables cities to build out energy solutions in the most sustainable and responsible way, while also employing bigger and better solutions at a community scale.”

There is much more to explore, and more opportunities to learn and connect through IDEA. Go to the IDEA2024 page on the IDEA site for all the details, including information on the conference speakers, presentations and workshops.

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