Optimizing district energy systems under uncertainty: Insights from a case study from Washington D.C., USA

Abstract

This study investigates solutions for delivering affordable heating and cooling to a brownfield site, focusing on a case study in Washington, DC. Moving towards more diverse and resilient energy systems, we identify the optimal portfolio for a district energy system with diverse energy sources to meet the area's energy demands. Our methodological approach integrates two detailed models: one calculating building-level energy demand and the other optimizing district energy technology choices based on their demand profiles, accounting for uncertainties in energy prices, policies, and other parameters. The results provide an economic comparison of district and individual supply options at the building level, emphasizing the flexibility district systems can offer to the electricity sector. District energy systems demonstrate cost-stabilization benefits amidst volatile energy prices and external uncertainties. For heating, district systems yield significant cost savings compared to individual solutions, driven by fuel flexibility and the use of local renewable energy sources. For cooling, district systems also show advantages, though individual systems may remain more cost-effective for smaller buildings. Additionally, district systems exhibit considerable flexibility on the heating side, as evidenced by variations in electricity consumption. We recommend future research to explore the relationship between the economics of district energy systems, particularly at the building level, and their flexibility potential for the electricity sector across diverse geographic contexts to reduce overall grid costs and promote grid reliability. This includes areas with distinct zoning laws, municipal priorities, utility structures, and funding mechanisms, such as the United States, and regions like Europe with pronounced electricity price volatility.