District energy, including district cooling, is an important component of the U.S. energy mix, particularly as cities, universities, and health care complexes look to ensure energy reliability and increase efficiency. A recent International Energy Agency publication that the DOE partnered to produce highlights that currently, there are over 600 district energy systems in the United States.  Approximately half of these systems also have combined heat and power (CHP) which provides both thermal and electricity in one efficient step.

District energy and CHP are important technologies and areas of focus for DOE. The Department has been investing in these technologies for over a decade and has increased support in the deployment of such systems since 2001.  DOE is focusing its efforts to meet the goal of 40 gigawatts of new CHP, including at district energy systems, by 2020 as directed by President Obama in 2012.  This goal represents nearly a 50 percent increase in CHP over 2012 levels.

The United States currently has an installed CHP capacity of nearly 83 GW of electric capacity at over 4,200 facilities, which represents 8 percent of current U.S. electricity generating capacity.  This CHP capacity avoids 241 million metric tons of CO2 compared to separate production of power and thermal. The year 2012 had the most new installed capacity since 2005.

CHP installed as part of district energy systems has grown in recent years – there is currently 6.6 GW of CHP generating capacity at district energy systems, spread across 55 downtown systems and 153 university campus district energy systems. This growth is expected to continue as cities, universities, and other end-users realize the economic and environmental benefits of CHP and district energy.

We are even working with partners around the globe to learn how we can provide more reliable and efficient energy here at home. For example, today Johnson Controls International and Empower agreed to demonstrate a new district cooling technology in Dubai that has the potential to significantly reduce water use in district cooling. Since the climate in the United Arab Emirates is very similar to the climate in Houston, Texas, the results from this demonstration will be applicable to both countries, as well as the broader Middle East region. This partnership is an excellent example of how the United States and UAE – governments and the private sector – can work together on the energy/water nexus and toward a future that meets its energy and water needs more efficiently without compromising the services provided to consumers.

This agreement supports the objectives of the U.S.-UAE Strategic Energy Dialogue, launched earlier this year in Abu Dhabi. Both governments are committed to strengthening the public and private sector partnerships to enhance our cooperation to address our shared energy and climate challenges.