New York Commission Begins Process to Implement Utility Thermal Energy Network Projects

The New York State Public Service Commission has launched a proceeding to commence the implementation of the Utility Thermal Energy Network and Jobs Act, according to a Sept. 15 press release. The law, enacted in July, is part of initiatives to reduce greenhouse gas emissions through decarbonizing buildings and homes throughout the state.

The law allows for the creation of utility-scale thermal energy plants that would connect several buildings in a shared network. Such networks offer clean energy alternatives to natural gas, allowing utilities to offer customers a renewable energy source to take care of their energy needs for heating, and cooling needs. The new law is a bold step towards reducing the state’s emissions and meeting its ambitious climate change targets. By powering buildings with thermal energy, the state would significantly reduce its carbon emissions given the fact that buildings alone are responsible for 32 percent of New York’s total emissions. Beyond providing a clean energy source, the thermal energy projects would also create highly skilled well-paying jobs for the state’s residents.

As part of the implementation process, the commission will mandate each of the seven largest investor-owned utilities in the state to propose between one and five thermal network pilots for review. At least one of these pilot projects to be proposed must be sited in an under-served community in each of the utilities area of operations.

To achieve these objectives, the commission will set up a working group on thermal energy to support the utilities in the design of the pilot projects and to develop regulatory instruments.