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Thermal Energy Networks: A Scalable Path to Smarter Energy 

Blog

05.28.2025

By HARC’s Christian Jones, Clean Energy Policy Research Assistant

Thermal Energy Networks (TENs) — also called 5th Generation District Heating and Cooling — generate and distribute low-temperature (60–80°F) thermal energy between buildings. Heat pumps at each building or site extract or deposit energy in the thermal distribution system, reducing waste energy and, consequently, the need for thermal energy generation. TENs also offer the opportunity to harvest waste energy from potential thermal energy sinks such as data centers, wastewater, or excess energy from solar thermal systems.

Thermal Energy Networks (TENs) diagram

TENs offer several key benefits that make them an attractive solution. Their ability to simultaneously provide heating and cooling significantly improves overall system efficiency through heat recovery. The cost-effective infrastructure, which involves shared low-cost piping, reduces capital expenses, while its adaptability allows it to integrate well with existing systems. Additionally, TENs can support grid stability by lowering peak demand and can be scaled over time. 

TENs offer a new path for large energy users to cut costs, reduce emissions, and improve system resilience. At Colorado Mesa University, a campus-scale TEN reduced water use by 70%, decreased electricity load, and saved over $2 million annually in utility costs. In Vail, Colorado, planners are designing a TEN that will draw from snowmelt systems, treated wastewater, and data center heat, offering a clean alternative to natural gas heating in cold-weather areas. 

On April 30th, the DOE’s Southcentral Onsite Energy Technical Assistance Partnership (TAP) hosted a webinar in collaboration with Matt Garlick, CEO of The GreyEdge Group. Garlick presented how these systems work and why they’re gaining traction across the U.S. We invite you to watch the recording here.

With the support of DOE’s Onsite Energy TAP program, cities, campuses, large energy consumers, and industrial facilities can take meaningful steps toward smarter energy. The DOE Onsite Energy Technical Assistance Partnerships (TAPs) provides no-cost technical assistance on 12 energy technologies, including district energy solutions and TENs, supporting the entire development process from planning to commissioning.  

To learn more or get started, contact the Southcentral Onsite Energy TAP or click here.