NYC Government Publication
Geothermal Systems and their Application in New York City
This report serves as a tool to help determine if geothermal energy systems are a viable solution for meeting a building's energy requirements. The successful implementation of geothermal technology is dependent on a number of factors, many of which are site specific.The land area available for geothermal wells, the specific load profile of a building or group of buildings for heating and cooling energy demand, and the underlying geology all play a key role in determining if a geothermal system is technically, and economically, feasible. In addition to these factors, for building retrofits, the existing heating and cooling equipment, as well as the current efficiency of the building envelope, are factors that must be evaluated. Each project site will have its unique requirements, constraints, and opportunities. This Report describes how Geothermal Systems work, and examines the fundamental factors that must be assessed by a developer contemplating the implementation of such systems, the potential impact such factors have on a project's feasibility and economics, and the opportunities that are available for integrating geothermal into a building's energy management portfolio. The Report also describes the types of Geothermal Systems already in place in New York City and provides a thorough analysis of New York City geology to indicate where geothermal applications are most likely to succeed, as well as the type of systems that best fit within each geological area. The Report sets forth the challenges to installing Geothermal Systems in the City, including the significant up-front investment. Also reviewed are the countervailing benefits that such systems can provide, including energy cost savings, reduced greenhouse gas emissions (GHG) emissions, increased reliability and reduced exposure to market energy price fluctuations. The Report demonstrates that the installation of a Geothermal System in New York City requires a site-specific analysis. As an aid, included are hypothetical feasibility studies of a geothermal system for two different types of buildings: (1) an approximately 100,000 square foot multifamily residential building; and (2) an approximately 100,000 square foot commercial building. The Report illustrates that geothermal systems for these two buildings can achieve significant overall energy savings (in the range of 25 to 30%) when compared to business as usual or conventional options (i.e., natural gas fueled boilers and furnaces. The model results also show the Geothermal Systems consume only 30% of the energy consumed by natural gas fueled boilers and furnaces, and approximately 80% of the energy consumed by air and water cooled air conditioning systems. However, these savings must be measured against the incremental up-front capital costs associated with the systems. Finally, the Report includes a life cycle cost analysis that compares energy savings with capital costs and operations and maintenance costs over the span of the project's life for both business case scenarios. The life cycle cost analysis results show that over the lifetime of the project, for the two cases studied, the energy cost savings alone are not substantial enough to completely balance the initial capital costs associated with purchase and installation of the geothermal wells. However, there are a myriad of tangible benefits realized from the application of geothermal heat pump technology that are not accounted for in the business case analysis, including peak load reduction to the grid (avoided costs of utility infrastructure investment through reduced electricity consumption), GHG emission reductions and the offset of fuel cost volatility. These benefits are not accounted for in the business case analysis, but may provide strategic long term incentives when considering geothermal technologies. In addition, the Report describes opportunities to reduce the initial project costs of geothermal systems, and thereby make these systems more economical without valuation of the above described benefits. These options include developing hybrid and district scale solutions, as well as procuring renewable federal, state, and local incentives that may be available. Creative solutions that strive to reduce a portion of a building's load profile (i.e., base load) also can significantly reduce capital costs. Moreover, economies of scale and the diversification offered in district scale energy management may make the integration of renewables, such as geothermal, more feasible. This Report is meant to serve as a tool to those interested in implementing geothermal technology throughout New York City and to assist in identifying and analyzing the relevant factors to determine if geothermal energy systems are a viable solution. This Report should be considered in conjunction with the New York City Department of Design and Construction's Geothermal Heat Pump Systems Manual for a comprehensive overview of the necessary processes for installing geothermal systems throughout the City. This Report is meant to serve as a tool to those interested in implementing geothermal technology throughout New York City and to assist in identifying and analyzing the relevant factors to determine if geothermal energy systems are a viable solution. This Report should be considered in conjunction with the New York City Department of Design and Construction's Geothermal Heat Pump Systems Manual for a comprehensive overview of the necessary processes for installing geothermal systems throughout the City. This Report is meant to serve as a tool to those interested in implementing geothermal technology throughout New York City and to assist in identifying and analyzing the relevant factors to determine if geothermal energy systems are a viable solution. This Report should be considered in conjunction with the New York City Department of Design and Construction's Geothermal Heat Pump Systems Manual for a comprehensive overview of the necessary processes for installing geothermal systems throughout the City.
- Agency
- Subject
- Report type
- Report
- Date published
- 2015-02-01