NYS moves ahead with thermal energy network pilot programs

Edwin J. Viera, New York News Connection ALBANY — New York State authorized utilities to develop thermal energy network pilot programs to further its decarbonization goals. Thermal energy networks use non-emitting energy sources like geothermal boreholes or waste-heat, to heat and cool buildings. Eleven pilot projects stem from commitments made in the 2022 Utility Thermal…

Edwin J. Viera, New York News Connection

ALBANY — New York State authorized utilities to develop thermal energy network pilot programs to further its decarbonization goals. Thermal energy networks use non-emitting energy sources like geothermal boreholes or waste-heat, to heat and cool buildings. Eleven pilot projects stem from commitments made in the 2022 Utility Thermal Energy Network and Jobs Act.

Allison Considine, senior campaigns and communications manager for New York, Building Decarbonization Coalition, said college campuses with these systems are seeing a striking number of benefits.

“Using a thermal energy network, especially with geothermal is about six times more efficient than using a traditional gas furnace or oil furnace,” she explained.

She added that buildings must go electric if New York will reach its decarbonization goals. Though the state’s Building Code Council included the All-Electric Buildings Act in its 2025 draft code update, neighborhoods still face challenges in implementing thermal energy networks. Considine said barriers in state law prevent utilities from connecting multiple independently owned buildings to a thermal energy network.

The pilot programs could reach active construction by 2026 or 2027. They’ll be online for five years so the respective utility agencies can gather data about their efficacy. But, to ensure the transition to cleaner fuels, Considine said certain laws have to be changed to move New York away from fossil fuel energy systems.

“And there’s a provision on the books, we kind of call it New York’s pro-gas mandate, which requires utilities to continue delivering gas service if a customer demands it, even if there is a less polluting, more affordable alternative for that customer,” she added.

The New York HEAT Act would end this rule and allow the state to move toward a more energy-efficient future. The bill gives the state’s Public Service Commission authority to align utility companies with the state’s climate laws. It also phases out gas line extension allowances, which reduced the use of gas in the state.