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District energy is produced in one central plant where electricity, steam for heating, and chilled water for air conditioning are all generated and then distributed to the district. Since electricity is produced at the same location as steam, steam can be produced much more efficiently with the thermal waste from electricity production (known as cogeneration). As a result, using district energy steam can help a facility reduce its carbon footprint. Standard power plants convert approximately 40-50% of the fuel input to energy while district energy/combined heat and power are about twice as efficient, converting approximately 80% of the fuel input to energy.
Individual buildings using district energy systems can reduce their capital costs because they do not need their own boilers or furnaces, chillers, or air conditioners. Some other benefits of using district energy steam include:
Potential regulatory touchpoints in Boston and Massachusetts include: