Good Neighbors: Identifying Pathways for District-Scale Commercial Electrification

This session introduces multiple solutions for district-scale electrification developed through an Urban Land Institute (ULI) research project, combining case studies, energy modeling, and expert insight to illuminate both technical potential (heat sharing, demand shifting, grid impacts) and business models (ownership, financing, operations) that make such systems viable. To enable a fully decarbonized grid, cities like New York, Boston, and Washington DC, and states like Massachusetts and California are requiring or encouraging building electrification. Most guidance and incentives assume a building-by-building approach geared towards new construction, while the transition of existing structures still poses significant technical and financial challenges. Simultaneously, a growing number of pilot district thermal energy networks are suggesting that urban electrification may be more carbon-efficient, grid-friendly, and cost-effective when multiple buildings share heat resources and infrastructure, with new structures facilitating the eventual retrofit of existing ones.

Drawing on a rigorous technical and financial framework for mapping electrification opportunities in urban areas developed by Carbon Signal, the ULI Randall Lewis Center for Sustainability in Real Estate, and KPF, the session will evaluate the feasibility of district-scale systems across several case studies in NYC. The session will explore key policy enablers—including coordination, utility authority, capital incentives, tariff modernization, and integration with carbon-performance standards—that determine whether districts can scale beyond isolated pilots and provide actionable guidelines for developing similar urban solutions. Following a presentation on the framework and case studies, panelists will provide diverse perspectives on the potential impacts and commercial viability of district electrification. An architect will present how individual buildings can be designed to enable and/or participate in district electrification schemes. A commercial real estate leader will share real-world insight about the challenges and opportunities of implementing electrification across a multi-building portfolio, and a representative of a state energy authority will discuss grid-related impacts and incentives.