How does district energy work?

Local eco-systems for more efficient, sustainable communities

What are district energy systems?

District energy systems are local energy networks that provide heating and cooling to buildings in their district. They do this by supplying hot water or steam for heating systems, and chilled water for air conditioning.

They are an efficient and cost-effective way to reduce the carbon footprint of built-up areas like city centres and industrial parks.

ENGIE has completed over 380 district heating and cooling networks around the world. We have several exciting projects underway in Australia.

How does district energy work?

District Heating

One of the most efficient way to decarbonise cities.

A district heating network is a system that produces heat from a central location using gas, renewable energy or waste heat. Underground pipes then deliver hot water or steam to the heating and hot water systems in buildings in a closed loop. The water is returned to the plant to be heated and returned again and again.

District heating networks can be fed by a diverse range of often renewable, or waste heat, sources including:

Waste heat from power stations or industrial processes
Energy from waste (EfW) facilities
Biomass and biogas fueled boilers and CHP plants
Gas-fired CHP units
Fuel cells or solar thermal
Heat pumps
Geothermal sources when available
Electric boilers (usually from wind or PV renewable electricity)

District Cooling

The solution for sustainable cities or industrial parks.

A district cooling system produces chilled water in a central location then distributes it to buildings through pipes for their air conditioning. The system comprises:

Central chiller plant: generating chilled water for cooling purposes
Distribution network: distributing chilled water to buildings
Energy transfer station: interface with the buildings’ own air‑conditioning circuits

Pros

District Heating

Efficient generation and use of heat for a wide variety of customers
Lowering costs of energy generation
Fuel flexibility and access to otherwise lost waste heat sources
Many energy sources and generation redundancy increases reliability and efficiency
Reduced maintenance compares to individual systems
Price stability
Reduced carbon footprint
Freeing up space and reducing the building energy demand (no need for boilers, gas or electricity supply)
Less CO₂ emissions
Renewable energy integration
Reduction of noise and space saving on roofs
Preservation of the architectural heritage
Improvement in energy efficiency
No upfront capital cost for the customer
Risk transfer to an expert

Pros

District Cooling

Less CO₂ emissions
Reduction of primary energy consumption
Controlled and optimized use of chemicals
Less chemicals
Improvement in energy efficiency
Renewable energy integration
Reduction of noise and space saving on roofs
Preservation of the architectural heritage
Control of the collective health risk
Reduction of the heat island effect
Improved reliability
Reduction of building electricity demand
No upfront capital cost for the customer
Risk transfer to an expert

Often, district energy systems are connected to combined heat and power (CHP) plants

CHP plants are also known as cogeneration plants

CHP plants generate electric power in addition to heating

They can achieve energy efficiencies above 80%

District energy systems operate 24/7/365 and have the ability to withstand major events such as earthquakes and severe weather without interruption

How does district energy work?

Local eco-systems for more efficient, sustainable communities

What are district energy systems?

How does district energy work?

Pros

District Heating

Pros

District Cooling

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