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CT lawmakers consider incentives for thermal energy network projects

The state legislature is considering a bill that would create a thermal energy network grant and loan program, as utility company Eversource pursues construction of a thermal network project in Connecticut.

House Bill 6929, introduced by the Energy and Technology Committee, would require the commissioner of the state Department of Energy and Environmental Protection to issue a request for proposals to support the development of thermal energy network projects.

A thermal energy network is a system of underground pipes that connect multiple buildings, allowing them to share heat from geothermal energy – heat produced inside the earth.

States around the country are moving forward with thermal energy network projects because they are seen as an efficient and climate-friendly solution, according to testimony in favor of the legislation submitted by the Conservation Law Foundation.

In Massachusetts, Eversource has broken ground on the first utility-led networked geothermal system in the United States. The pilot project will use a network of wells and pipes to provide heating and cooling for 37 buildings in Framingham.

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According to a filing with the Public Utilities Regulatory Authority (PURA), Eversource is proposing a similar project in Connecticut. The goal of the “Geothermal Demonstration Project” is to test the ability of a thermal energy network as an alternative to natural gas, Eversource said.

The network would be owned and operated by Eversource, according to the filing. 

The Conservation Law Foundation said legislative direction would help move Eversource’s proposal forward.

Also, the foundation urged state lawmakers to amend the bill’s language to authorize bonding to fund the thermal energy network program, and direct PURA to initiate a docket establishing a regulatory framework for thermal energy network projects. 

The state’s other major electric utility, Avangrid, owner of United Illuminating, does not plan to propose a pilot unless the state develops a regulatory framework, according to a separate PURA filing.

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A public hearing on HB 6929 was set for today.

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