Blog Archives | Vicinity Energy

What’s in store for the price of natural gas? Market updates Winter 2025-2026

Posted on October 8, 2025 by Rohan Sinha

It’s already that time of the year: we are preparing for the 2025-2026 winter season! Vicinity Energy is evaluating weather patterns and trends in the natural gas market to inform our customers of potential price volatility.

Vicinity carefully considers and implements risk mitigation strategies to ensure both reliability of supply and the lowest possible commodity deployment to limit exposure to volatile energy markets.

As fuel prices fluctuate, district energy customers rely on Vicinity’s multiple fuel sources to ensure reliable energy delivery and redundancy. Last winter, natural gas spot prices spiked as extreme cold weather drove heating demand sharply higher, compounded by low storage levels and other supply constraints. Vicinity was able to leverage backup distillate fuel supplies to maintain reliability during gas curtailment and price increase.

Natural gas prices forecast by the numbers

Looking ahead to this winter, market expectations for natural gas prices will be shaped by several key factors: LNG exports, domestic production, gas inventory levels, and La Niña weather patterns.

Henry Hub natural gas price forecast

According to the U.S. Energy Information Administration (EIA), the Henry Hub natural gas spot price is projected to average $3.40/MMBtu in 2025, rising to $3.90 MMBtu in 2026. This increase is largely driven by growing liquefied natural gas (LNG) export demand, as several new export terminals in the US Gulf Coast are expected to come online. U.S. LNG export capacity is forecast to expand from the current 17 Bcf/d to nearly 20 Bcf/d in 2026, and close to 22 Bcf/d in 2027.

As of October 3^rd, 2025, the November NYMEX Henry Hub natural gas futures contract settled at $3.32/MMBtu, and current forward markets indicate that the Henry Hub price will average about $3.71/MMBtu in November 2025 through December of 2026.

Natural gas price forecast: winter 2025-2026

The prompt winter November 25 – March 2026 strip is currently hovering about $3.95/MMBTU.

Natural gas storage levels are a critical indicator of natural gas prices, and last year’s trends highlight the market’s sensitivity to supply constraints and demand increase.

A resilient production run rate of 107 Bcf/d, together with an early tapering of summer demand and prolonged seasonal LNG maintenance, enabled storage levels to recover to historical norms. As a result, U.S. natural gas inventories are expected to enter this winter at 3.9 Tcf, about 6% above the five-year average, signaling a healthy supply outlook.

The National Weather Service’s Climate Prediction Center is projecting a La Niña pattern heading into Winter 2025–26. Historically, La Niña winters have produced colder conditions across the North and West, and warmer, wetter conditions across much of the East. This setup increases the potential for mid-winter nor’easters and price volatility, echoing past La Niña events such as the 2014 Polar Vortex, Winter Storm Uri (Feb 2021), and the February 2025 cold blast that impacted much of the Northeast.

How can Vicinity help?

Vicinity’s team of experts is continuously taking action to mitigate potential price spikes for our customers, especially during periods of high usage.

In addition to continuously monitoring the markets and leveraging our considerable backup distillate fuel supplies, Vicinity has proactively procured a portion of our fuel supply ahead of the winter season to help ensure efficiency and reliability. Our market experts believe this approach will serve our customers’ best interests and achieve more bill stability and budget visibility.

What can customers do to keep costs down during the winter?

Take steps to minimize energy use
Lower thermostat settings to at least 65 degrees when buildings are occupied
Lower thermostat settings an additional 5 to 10 degrees when buildings are vacant
Lower temperature settings on water heaters and limit the use of hot water when possible
Open blinds and shades to take advantage of the sun’s natural heat during the day and close shades at night to reduce heat loss through windows
Shut down any non-essential equipment
Temporarily close buildings and encourage employees to work from home so you can keep building temperatures lower throughout the day

Utilize winter preparedness resources: View our winter preparedness checklist to ensure optimal system performance during extreme weather.

Inspections and trap maintenance/insulation: request inspections by Vicinity team to ensure your equipment is optimized for efficient energy use.

Electrification progress

Throughout 2025, Vicinity has remained committed to transitioning our district energy systems away from fossil fuels and has made significant progress electrifying our operations.

In June, Vicinity officially kicked off its Grand Rapids electrification plans by commencing the installation of our newest electric boiler. When the electric boiler enters service in 2026, over 120 of Vicinity’s customers in Grand Rapids will have access to eSteam^TM, carbon-free thermal energy, instantly.

In the coming years, we will continue to transform our facilities across the country by electrifying our operations with innovative technologies such as industrial-scale electric boilers, heat pumps, and thermal storage systems.

For questions on how Vicinity can support your businesses’ sustainability goals, reach out to our team.

The information in this blog post is for informational purposes only and is based on sources believed to be reliable. However, Vicinity does not represent or warrant as to its accuracy or completeness. This content does not constitute financial, investment, or trading advice. Any decisions based on this information are made at your own risk. Vicinity is not responsible for any errors, omissions, or reliance on this material.

Heating equipment preventive maintenance: How to get ready for winter

Posted on September 18, 2025September 18, 2025 by Tricia Keegan

As the days grow shorter and temperatures drop, heating systems are finally turned on after a long period of disuse. This time of year signals the important task of evaluating a building’s energy system to ensure it’s equipped to deliver heat efficiently and safely. As the days grow shorter and temperatures drop, heating systems are finally turned on after a long period of disuse. This time of year signals the important task of evaluating a building’s energy system to ensure it’s equipped to deliver heat efficiently and safely.

Building owners must establish a preventive equipment maintenance program with their energy provider to maintain efficient energy delivery, avoid equipment failures, reduce energy costs, and ensure the long-term sustainability of a commercial property.

What is preventive maintenance of equipment?

Preventive maintenance, or PM, refers to proactive processes that prevent equipment malfunctions and failures. These procedures ensure commercial heating systems operate effectively and efficiently and maintain their quality over time.

Any proactive measure is considered preventive maintenance. Typically, it’s time-based or scheduled. For example, you may test your pressure regulating valves to prepare for the winter season.

Or, it could be condition-based, where equipment or tools are cleaned once they reach a certain state. You might also service equipment after it’s used a specific number of times. These actions ensure your building’s system works as expected and avoids malfunctions over time.

Why is preventive maintenance for equipment important?

The winter season is a key time to evaluate the equipment used in buildings connected to district energy systems. Taking preventive measures with a building’s heating equipment before the winter season and low temperatures begin in earnest can help to:

Improve equipment reliability and function: Routine maintenance ensures equipment and tools operate as expected and corrects any performance issues.
Reduce energy consumption, greenhouse gas emissions, and operational costs: Preventive maintenance helps you spot opportunities to improve your heating system’s performance.
Prevent unplanned costs, maintenance, and even system downtime: You can reduce downtime by proactively identifying potential problems.
Enhance safety for employees and building occupants: When equipment is operating properly, it creates a safer building environment.

How Vicinity performs preventive maintenance of heating tools and equipment

Preventive maintenance activities can be conducted at any time, but are typically performed in preparation for winter and summer to prepare for peak loads due to temperature changes. Partnering with our customers, Vicinity’s team tailors our preventive maintenance approach to the unique needs of each building.

Depending on the building’s system, our team can isolate a maintenance issue or conduct a small shutdown event to repair equipment. Ahead of low temperatures, buildings can also test their heating system during off-hours or weekends to identify problems with climate control or local area flow control.

However, several elements of district energy systems require annual or more frequent inspection. Let’s dive into the most critical components buildings should focus on when preparing for the heating season.

Conduct steam trap inspections

Steam traps collect condensate to prevent corrosion caused by built-up moisture and ensure that high-quality, dry steam flows through the steam system. Steam traps also block the escape of live steam, minimizing energy waste. Typically done between November and March, steam trap surveys help ensure the efficient delivery of district energy.

A Vicinity technician conducts the steam trap inspection using an ultrasonic digital detector. The process involves locating, identifying, tagging, and periodically testing the performance of the steam trap. If it is the first survey, the technician tags and catalogs each trap for future surveys.

Failed traps can allow large amounts of steam to pass through the equipment before giving up its thermal energy content. Failed traps can lead to water hammers, which damage the building’s system and produce undesirable noise.

Check Pressure Regulating Valves (PRVs)

Pressure regulating valves (PRVs) are designed to reduce incoming steam pressure to ensure safe steam distribution. While typically done in the summer, testing pressure-regulating valves can be done at any time to prepare for the winter season.

Vicinity’s team will typically identify the PRV’s make, model, size, and serial number. They will then test the valve for leaks, clean orifices, test the gauging, and set it to the desired system pressure.

Testing PRVs is important because failed PRVs may cause system over-pressurization and relief valves to release steam into the atmosphere. The PRV can also improperly cycle open and closed, both oversupplying and then starving the downstream equipment of steam. The inspection will include inspecting the PRV operating mechanism (pneumatic, hydraulic, or motor operated).

Evaluate heat exchanger and water samples

A heat exchanger is a system that transfers heat between a source and a working fluid. District energy systems transfer heat from the hot water in the district heating system to the cold water in an individual building’s heating system.

To ensure that heat exchangers function properly, Vicinity’s team takes water samples from the heat exchanger and tests the water for conductivity. This ensures that tube bundles are not leaking and that city water is not entering the system through such leaks.

Vicinity’s team also drains cooling tower heaters during cold weather. When temperatures are expected to be below 20°F for an extended period, the cooling tower basin heaters are drained below the building roof level, the basin heater is turned off, and space heaters are turned on as applicable. Our team also works to adjust glycol or other antifreeze concentrations throughout the cooling system, as required.

Inspect steam piping

Before the winter season, it’s standard to visually inspect steam piping. Vicinity’s team typically checks for leaking joints, watermarks, insulation, and corrosion on the pipes.

This ensures safe, reliable steam delivery into the building and reduces the opportunity for steam to leak into the connected building.

Review the mechanical room hot water loop

In the mechanical room, Vicinity’s team inspects all piping, inlet/outlet temperatures, and pressures on heat exchangers and mechanical pumps.

This inspection confirms the adequate operation of key energy transfer equipment, such as heat exchangers, which supply building heat, hot water, and other process loads. The general condition and function testing of space heaters and heat tracing is important to note as well.

Inspect the condensate return line

A visual inspection of the building’s condensate return line is done ahead of the winter season to check for leaks and corrosion. A condensate return system collects condensate from different points in the system and returns it to the boiler to save energy. This inspection involves checking the condensate pump seals for leaks and vent pipes for vapor emissions. Proper insulation and plugging penetrations is key to preventing freeze-ups.

This inspection is done to avoid condensate water spills and ensure proper evacuation of condensate from system lines, allowing steam-operated equipment to function correctly. The test can also help identify any leaking steam traps in the system.

Equipment preventative maintenance: Winter preparedness checklist

Vicinity’s facilities take extensive measures to prepare for winter weather before November to ensure our teams are prepared for extreme weather and cold-related emergencies.

Here are three steps that every building should take to ensure winter preparedness:

Designate a ‘weather watcher’ to monitor weather conditions.
Train your team on how to properly remove snow from roofs, roads, and equipment, staff according to needs.
Gather emergency supplies, including steam hoses for thawing frozen lines, portable heaters, antifreeze supplies for cooling systems, shovels, warm clothing and hand protection.

For more preventive maintenance tips, check out our winter preparedness checklist here.

Equipment preventative maintenance schedule for winter

Below is a schedule you can follow to prepare for winter preventive maintenance each year. It summarizes what you should do and when relative to the winter season.

Item / Component	What to Inspect / Do	When (Relative to Winter)
Steam traps	Survey with ultrasonic detector; tag each trap; test performance; repair or replace failed traps.	Late autumn; periodically through winter
Pressure Regulating Valves (PRVs)	Identify make/model; test for leaks; clean orifices; check gauges; adjust to system pressure; inspect mechanisms.	Late autumn; retest before winter
Heat exchanger & water quality	Take water samples; test conductivity; check for leaks; adjust glycol/antifreeze; drain cooling tower basin heaters if needed.	Prior to winter; before sustained sub-20°F
Steam piping	Inspect joints, insulation, corrosion; repair as needed.	Pre-winter and mid-winter
Condensate return lines	Inspect for leaks, corrosion, pump seals, vent pipes; ensure insulation and freeze protection.	Before winter; monitor during winter
Mechanical room/Hot water loop	Inspect piping, measure temps & pressures; test pumps, space heaters, heat tracing.	Pre-winter; checkpoints during winter
Winter readiness/Emergency preparedness	Assign weather watcher; train staff; gather supplies; check heaters & fuel; seal building envelope.	Late autumn; refreshed before major storm

Vicinity’s experts are here to help

Taking proactive steps to maintain your building’s energy systems can lead to significant benefits. From lower energy bills to a reduced carbon footprint, the effort invested in preparing your facility for winter pays off. Vicinity’s energy experts are here to help with all your energy needs. Give our energy experts a call to:

Work on repairs
Submit quotes before the coming heating season
Get help preparing your budgets for next year
Schedule a site visit to get preventive maintenance assessments from our team

These green colleges are putting sustainability principles into practice

Posted on August 8, 2025August 14, 2025 by Bella Pace

In recent years, colleges and universities around the world have been placing sustainability at center stage. More recently, however, green initiatives have become more than just a box to check on a performative action checklist. Talking about sustainability is no longer enough, as students begin to consider the quantifiable efforts of colleges and universities when making their four-year decision.

The United States alone is responsible for 15% of global CO2 emissions. Furthermore, U.S. higher education institutions collectively emit 52,434 metric tons of carbon each year. Carbon dioxide has reportedly reached record-high levels and is the most dangerous and prevalent greenhouse gas in our atmosphere. Excessive carbon dioxide traps heat, resulting in global warming and climate change. Many risks are associated with climate change, including intense rainfall and flooding, rising sea levels, severe heat waves, and air pollution.

Green colleges that are making a positive impact

The current generation of college students is exceptionally carbon conscious and understands that significant changes must be made to combat the climate emergency. In fact, nine in ten Generation Zs prioritize taking small actions daily to protect the environment, such as buying used clothing and sourcing locally grown food. These efforts can be attributed partly to how climate change has impacted their lives: 68% of this generation has been personally affected by extreme weather events, which underlines the urgency of addressing this crisis.

Young adults have begun to realize their voice and are using it to advance causes of particular importance to them. 75% of Gen Zs agree that the world has reached its tipping point regarding climate change. They have taken a broader approach to addressing climate change by considering the sustainable impacts of their more significant purchases and career paths. Students hold colleges to a higher standard by evaluating prospective schools’ sustainable business practices, carbon footprint, and community-based efforts while deciding which universities to attend.

Luckily, as environmental awareness grows among incoming college freshmen, so does sustainability action at their respective universities. Here is a rundown of four American colleges committed to shaping a greener environment:

1. Emerson College

Emerson College, located in Boston, Massachusetts, has prioritized sustainability across all aspects of its organization. In 2007, the College joined 700 other higher education institutions in signing the Carbon Agreement, through which they pledged to work towards carbon neutrality by 2030.

This reduction was made possible in part by the organization’s dedication to meeting the internationally recognized Leadership in Energy and Environmental Design standards (LEED). Four of Emerson’s five residential halls and numerous academic buildings have earned LEED certification.

Since 2018, Emerson has purchased 100% wind electricity, leading the school to be named the largest green power user in the New England Women’s and Men’s Athletic Conference for 2018-2019. This title sits alongside many sustainability awards and recognition the campus has received.

In 2024, Emerson became the first university to decarbonize campus heating with eSteam™, Vicinity’s carbon-free thermal energy product. This marked a significant stride in the college’s goal to achieve a carbon-neutral and resilient campus by 2030. While campus buildings have decreased their carbon emissions by 80% since 2007, this step is an important pillar of the College’s continued carbon reduction strategies, making Emerson’s thermal operations carbon-neutral.

2. University of Pennsylvania

The University of Pennsylvania is an Ivy League research institution in Philadelphia, Pennsylvania. UPenn has demonstrated its commitment to cutting carbon emissions across its organization steadily to reach its goal of 100% carbon neutrality by 2042.

UPenn’s Climate and Sustainability Action Plan outlines its mission to mitigate the impacts of climate change and explore innovative ways of expanding its use of renewable energy to reduce carbon emissions. The University uses district energy to optimize energy efficiency at its advanced MOD 7 chilled water plant.

Additionally, their new power purchase agreement has allowed them to construct solar facilities which will fuel 75% of their academic campus and health system’s electricity demand. These solar farms will support a cleaner and more efficient energy grid. They’ve also expanded recommissioning energy efforts in their labs, classrooms, and offices to stay on par with these sustainability objectives.

3. Arizona State University

Arizona State University, located in downtown Tempe, Arizona, aims to lead the world by example through its sustainability vision. With 65 LEED-certified buildings and 90 solar systems on campus, ASU has gone above and beyond in honoring this vision.

ASU has implemented a circular resource system to minimize waste and accomplish a sky-high reuse value. ASU tracks waste across its organization through a Zero Waste Annual Review and strives to improve its system’s aversion rates and re-circulation characteristics each year.

The University has remained on track with its positive climate initiatives by enhancing energy efficiency. ASU guides its conservation efforts with building-level energy monitors to identify energy waste. In 2019, 51% of the energy consumed by the University came from low-carbon sources. The organization has twice been recognized by the Association for the Advancement of Sustainability in Higher Education for its sustainable purchasing practices, demonstrating its commitment to carbon neutrality.

4. Colorado State University

Colorado State University, located in Fort Collins, Colorado, has dedicated its Student Sustainability Center to provide resources for student-led sustainability work. This center has supported many green innovation projects, such as the Patchwork Initiative, a student-run project to minimize clothing consumption and build a culture around slow fashion and upcycling. This program periodically collects lightly used seasonal clothes from students, faculty, staff, and other community members to create anonymous opportunities for students needing professional clothing or seasonal necessities.

Moreover, the University’s Coalition for Sustainable Student Organizations (CSSO) partners with registered student organizations campus-wide to encourage collective efforts that can better accomplish impactful climate action.

CSU was among the world’s first institutions to calculate its nitrogen footprint. The school’s Nitrogen Footprint Project was created entirely by students at the Sustainability Center. They gathered data from across campus to calculate the nitrogen footprint, checked and double-checked the numbers, and wrote their results in an award-winning research paper.

Leading the charge toward a carbon-free future

Progressive environmental change does not strictly happen at the industry or governmental level. These green colleges demonstrate the reach of community-based sustainability with the support of intelligent, forward-thinking administration and eco-conscious students who push for more visibility into sustainability practices.

PJM capacity auction results: Why energy bills are rising for Mid-Atlantic customers

Posted on July 30, 2025July 30, 2025 by Rohan Sinha

Energy bills for Pennsylvania-New Jersey-Maryland Interconnection (PJM) customers are expected to increase by about 30% this year. This is due to a significant rise in capacity pricing passed from PJM to electric suppliers, and ultimately, PJM customers.

Capacity prices increased because of record-high bids secured during the PJM capacity auction last year. Prices continued to rise at this year’s auction, increasing by another 22% that will go into effect starting June 2026 – May 2027. As the demand for energy grows in this region, there’s a greater need for capacity to supply peak-demand days.

In this post, we’ll review what this means for PJM customers and what you can do to reduce costs on your energy bill over the next few years.

What is the PJM capacity auction?

The PJM Base Residual Auction (BRA) is an annual capacity auction where energy suppliers bid on future capacity commitments within the Mid-Atlantic region. PJM holds this auction each year to ensure sufficient load capacity to handle demand increases on the grid in future planning years.

Through the auction, PJM secures forward commitments from generators, demand response providers, and other capacity resources to be available during future periods of peak demand. These resources are compensated with a fixed capacity payment in exchange for their obligation to perform when needed. This ensures that, even in extreme conditions, PJM has sufficient reliable resources committed ahead of time — reducing the risk of shortages or system stress.

How does the PJM capacity auction work?

The PJM BRA auction takes place annually, with results affecting capacity prices 1-3 years into the future. PJM studies the amount of capacity needed and evaluates multiple variables that influence demand on the grid.

The PJM capacity auction sets a fixed price for capacity for a future delivery year. Load-serving entities (such as utilities or retail suppliers) pay this charge to PJM in exchange for access to sufficient generation capacity during peak demand periods. While the capacity rate is fixed for the year, a customer’s monthly capacity charge may vary depending on their contribution to the system’s peak (known as their Peak Load Contribution or PLC). These costs are typically passed through to end users as part of the supply or transmission component of their electric bill.

PJM auction results (2025)

In 2024, the PJM capacity auction cleared record highs, increasing from about $28 to over $250 for some customers. These increases affected the following companies in their respective states:

Additionally, it’s important to note that price increases vary by region. For example, PJM customers in Baltimore experienced a higher increase due to multiple grid factors in that area.

PJM auction results (2026)

In July 2025, PJM announced the results of the 2026/2027 auction. Like the 2024 auction event, PJM anticipated greater demand for energy, and procured 134,311MW of generation resources The greater demand for energy led to higher capacity prices, and in this auction, prices hit the FERC approved cap, increasing by another 22% to an RTO wide clearing price of $329.17/MW-Day.

What does this mean for PJM customers?

Electric customers within the PJM service territory should prepare for a 30% increase in their energy bills starting in June 2025. The next PJM capacity auction for the 2027/2028 delivery year is scheduled for December 2025 and is expected to clear at levels similar to the most recent results.

It’s important to note that electric suppliers are not dictating this charge. It’s passed along as a fixed rate from PJM and attached to the energy bill.

Why are my energy bills increasing?

Capacity prices are increasing due to greater demand on the energy grid and fewer generators in service to meet those needs. As artificial intelligence adds more stress on data centers around the country, more capacity is needed to meet energy demands on high-use days. Maryland, for example, is home to dozens of data centers, which puts more demand on their energy grid. That will naturally increase the price of capacity because PJM needs to supply more energy on peak-demand days. AI’s effect on the energy grid is a common trend that will likely impact suppliers throughout the rest of the country.

Additionally, there are fewer electric generators available to supply energy during this capacity auction. Older generators in this region are being retired due to inefficiencies and decarbonization efforts, leaving fewer providers available to supply energy to these regions. While renewable energy resources are growing, their intermittency—even when paired with battery storage—limits their ability to fully replace the consistent output of retiring thermal generators.

Since there’s greater demand on the grid and fewer generators to meet that demand, those converging factors led to a record-high increase in capacity pricing.

What can PJM customers do to keep costs down?

If you’re a PJM customer, here’s what you can do to keep your energy bills down.

1. Review these seasonal preparation resources.

We’ve put together a few seasonal checklists designed to help building and facility managers prepare for seasonal procedures. They ensure proactive building readiness for summer temperatures, maximize equipment lifespan, and improve overall energy efficiency.

Check out our summer seasonal checklist to prepare for the upcoming season, and here’s our winter checklist as well, so you can save it for later.

2. Measure usage patterns in your facility or building(s).

The better you understand your energy usage, the easier it is to limit usage and minimize your energy bill. Consider using resources like metering and sub-metering tools to get a feel for how much energy you’re using per department, equipment, or floor. If you’re noticing one area of your property is using more energy than expected, consider using some of the best practices in the next section to reduce your overall usage.

3. Minimize energy usage by following efficiency best practices.

Here are four ways you can minimize energy use in your building:

Set thermostat settings based on building occupancy.
Close blinds and shades during the day to keep offices cool.
Shut down any non-essential equipment.
Temporarily close buildings and encourage employees to work from home so you can keep building temperatures lower throughout the day.

4. Monitor the PJM capacity auction.

Some PJM customers may be surprised by this increase and wonder what they can do to prepare themselves for future changes in the energy market. PJM’s website provides consistent updates on its capacity auction, including key submission dates and milestones to monitor throughout the year. It also provides tools and helpful resources for PJM customers who are looking to learn more about the energy market in their area.

Next steps for PJM customers

PJM customers should prepare for this increase to affect their energy bills starting in June 2025. While capacity prices forecast high until 2028, you can monitor market trends on PJM’s website and follow the steps above to limit energy usage in your facilities. While we’re unsure how prices will change during the next capacity auction, it’s important to keep an eye on this market and understand how these factors can increase demand on your energy grid.

Reach out to your Vicinity Energy account manager with any questions or concerns.

Chilled water equipment optimization: Best practices for peak performance

Posted on July 16, 2025July 16, 2025 by Tricia Keegan

In the fall, looming cold temperatures and potential storms signal the need for preventative maintenance activities at Vicinity’s central facilities and customers’ buildings. However, the summer’s warmer temperatures continue, it’s just as important to be thinking about required maintenance for cooling systems. Whether you’re looking to brush up on best practices for this summer, or learn more about preparing your chilled water systems for next year, Vicinity’s experts are here to help.

During the winter months, certain equipment often lies dormant, making it imperative to assess components of chilled water systems and other cooling equipment well in advance of heightened cooling demands. While some property owners diligently prepare their equipment for the impending heat, it is a timely reminder to consult with your energy provider regarding recommended preventive maintenance for the summer season, whether you rely on district chilled water or steam for cooling or manage your onsite chillers and cooling towers.

Why summer preventive maintenance is critical

Each spring presents an opportunity to inspect cooling equipment that lay dormant throughout the heating season. Implementing preventive measures before the onset of summer and escalating temperatures can yield numerous benefits:

Improve equipment reliability, function, and overall lifespan
Reduce energy consumption, greenhouse gas emissions, and operational costs
Prevent unplanned costs and even system downtime
Enhance safety and comfort for employees and building occupants
Maintain efficient energy delivery
Ensure the long-term sustainability of a property

How to ensure cooling equipment is ready for warm weather

Partnering with our customers, Vicinity’s team tailors our preventive maintenance approach to the unique needs of each building. Preventive maintenance activities can be done at any time but are typically conducted in preparation for the winter and the summer to prepare for peak loads due to temperature changes.

Whether customers need support with recommissioning an onsite cooling system or performing seasonal shutdowns to prepare steam systems for the summer, Vicinity’s operations and maintenance experts can help ensure the equipment will operate effectively for the coming summer and the next heating season. Depending on the building’s system, our team can isolate a maintenance issue or conduct a small shutdown event to repair equipment. Ahead of summer temperatures, Vicinity’s team can test a building’s chilled water or steam system during off hours or weekends to identify any problems.

Several elements of cooling systems require inspection every year or more. Let’s dive into the most critical components buildings should focus on when preparing for the cooling season.

Heat exchanger and water samples

A heat exchanger is a system that transfers heat between a source and a working fluid. In the winter, district energy systems transfer heat from the hot water in the district heating system to the cold water in an individual building’s heating system. In the summer, district chilled water customers rely on this equipment to leverage Vicinity’s chilled water to circulate cool air throughout their buildings.

To ensure that heat exchangers function properly, Vicinity’s team takes water samples from the heat exchanger and tests the water for conductivity. This test helps ensure that tube bundles are not leaking and that city water is not entering the system through such leaks. It’s also important to make sure these systems are clean and are not experiencing any leaks.

Pressure Regulating Valves (PRVs)

Pressure regulating valves (PRVs) are designed to reduce incoming steam pressure to ensure safe steam distribution. Vicinity’s team identifies the PRV’s make, model, size, and serial number. They will then test the valve for leaks, clean orifices, check diaphragm plates, test the gauging, and set it to the desired system pressure.

Testing PRVs is important because failed PRVs may cause system over-pressurization and relief values to release steam into the atmosphere. If a PRV fails, it can also improperly cycle open and closed, oversupplying and then starving the downstream equipment of steam. Testing includes inspecting the PRV operating mechanism (pneumatic, hydraulic, or motor-operated). Whether a building turns off steam for summer or leverages steam for cooling purposes, PRV testing is critical for overall system efficiency and reducing any potential energy losses.

Mechanical room hot water loop

In a building’s mechanical room, Vicinity’s team inspects all piping, inlet/outlet temperatures, and pressures on heat exchangers and mechanical pumps.

This inspection confirms the adequate operation of key energy transfer equipment, such as heat exchangers, which supply building heat, hot water, and other process loads. It is also important to note the general condition and function testing of space heaters and heat tracing.

Cooling towers and chillers

Chillers and cooling towers are important components of some buildings’ cooling systems. While chillers cool down water using a refrigerant, which is then circulated through the building to absorb heat from the air, cooling towers then reject heat from the chillers’ condenser water and return it to the condenser at a lower temperature as part of the system’s refrigeration cycle.

Vicinity can partner with customers who do not leverage district chilled water and own onsite cooling towers and chillers, providing additional operation and maintenance support to ensure a seamless transition to summer.

Cooling tower maintenance activities for customers who own and operate onsite equipment include disinfecting equipment ahead of seasonal startup to prevent the growth of harmful bacteria; replacing oil in gearboxes to prevent friction and corrosion; performing vibration analysis to mitigate risks related to increased noise, safety concerns, and system inefficiencies; inspecting and repairing distribution spray pipes and nozzles; cleaning basins; and upgrading fan blades and drive shafts as needed.

Chiller maintenance includes removing any dirt or debris collected throughout the year to optimize airflow; checking levels of refrigerant and assessing if additional refrigerant should be added; inspecting all chiller and condenser pumps; cleaning and servicing all variable frequency drives (VFDs) and glycol heat exchangers, the equipment used to cool VFDs; taking oil samples and adjusting levels; and cleaning condenser tubes to maximize equipment lifespan and improve overall energy efficiency.

Summer preparedness checklist

Vicinity’s facilities, especially those with chilled water systems, take extensive measures to prepare for summer temperatures before the beginning of April. This ensures that our facilities and teams are prepared for any weather or heat-related emergency. Mid-season, Vicinity performs additional maintenance to ensure smooth operation of the central facilities before scorching weather conditions, hurricanes, tornadoes, tropical cyclones, floods, or other extreme summer weather events. Each day, Vicinity monitors atmospheric pressure, humidity, and temperature to anticipate and meet customer buildings’ energy demands, and confirms redundancies are in place to minimize any disruptions to steam or chilled water service.

However, every building should take several steps to ensure summer readiness and prepare for upcoming heat waves and extreme weather conditions threatening the cooling system’s efficiency, structural integrity, and the safety and comfort of building occupants when utilizing summer cooling services. Check out our complete checklist to prepare staff and equipment for the coming warm temperatures.

Vicinity’s experts are here to help

Taking proactive steps to maintain your building’s energy systems and prepare for the summer can lead to significant benefits. From lower energy use and carbon emissions to increased safety awareness, the effort invested in preparing your building for hot weather pays off.

Vicinity’s experts are here to help with all your energy needs year-round, providing reliable steam and chilled water system maintenance service. Give our energy experts a call to:

Work on repairs
Submit quotes before the coming cooling season
Get help preparing your budgets for next year
Schedule a site visit to get preventive maintenance assessments from our team
Explore leveraging chilled water or steam for cooling
Get support for operating and maintaining your cooling equipment, like onsite chillers and cooling towers

Learn more about Vicinity’s comprehensive maintenance services offered year-round to optimize building systems’ efficiency, reliability, and cost savings.

How thermal storage technology is transforming the transition to clean energy

Posted on July 1, 2025July 1, 2025 by Patrick Gillooly

Today, the transition to clean energy is driven by advancing and implementing renewable sources like wind, hydro, and solar power. However, with heating and cooling still comprising about 50% of global total energy consumption, dynamic solutions are needed to make a clean energy future a reality.

Energy providers are turning to thermal storage technologies to fully harness the power of renewable energy and ensure that resources are not wasted.

Thermal energy storage (TES) is a critical enabler for the large-scale deployment of renewable energy and the transition to decarbonized building stock and energy systems by 2050. This is because thermal storage allows for the preservation of energy when it is not needed so that it can be used more efficiently later.

Let’s dive into what TES systems are and how they work.

What is thermal storage, and how does it work?

Put simply, thermal energy storage is a technology that reserves thermal energy by heating or cooling a storage medium and then using the stored energy later to deliver heating, cooling, or electricity. Thermal storage helps use energy more efficiently, especially when harnessing renewable energy sources.

In the case of solar energy, thermal storage solves the issue of supply and demand imbalance. Because solar energy output is limited to the daytime and peaks at around noon each day, there is an imbalance of supply and demand in the evenings. Thermal storage systems can solve this issue by storing the excess solar output during the day and then rapidly deploying it at night to accommodate lower output levels. Excess thermal energy can be stored in the form of molten salt or other materials such as high-temperature substrate.

When it comes to cooling, a facility can use ‘off-peak’ renewable electricity rates, which are lower at night, to produce ice. Ice can be incorporated into a cooling system to lower energy demand during the day.

Source: Hyme Energy

A thermal storage system consists of three components: a material or fluid that absorbs and retains heat, an energy source, and a way to discharge the heat.

The first element, a material or fluid that absorbs and retains heat, can take one of three forms: sensible, latent, or thermochemical.

Sensible heat storage – A material or fluid stores thermal energy and increases in temperature.
Latent heat storage – When a material or fluid stores thermal energy but does not increase in temperature because the material is going through a phase change (e.g., solid to liquid or liquid to gas), it is latent.
Thermochemical storage – Thermochemical energy storage (TCES) utilizes a reversible chemical reaction and takes advantage of strong chemical bonds to store energy as chemical potential.

Secondly, the system must have an energy source to “charge” the material. This can come from concentrated solar power, nuclear heat, electricity converted to heat, heat offtake from industrial processes, and more.

Thirdly, the system must have a way to discharge the heat. This last element of TES systems typically occurs through convection, passing a heat exchange medium through the thermal battery to carry heat.

To safely transport the heat, thermal batteries often need to be co-located with the end user of the heat or converted electricity. This is one reason district energy systems are well positioned to take advantage of thermal storage technologies—district energy facilities, like Vicinity’s, are often connected to high-voltage substations and have access to transmission-level electricity rates.

Thermal batteries can also be used for cooling, but the heat coming in must first be converted to electrical energy, which is then used to cool the storage medium.

Benefits of thermal storage technology

According to the United States Department of Energy, advances in thermal energy storage would lead to increased energy savings, higher performing and more affordable heat pumps, flexibility for shedding and shifting building energy loads, and improved comfort of building occupants. When integrated with district energy systems, the benefits of thermal storage technology are amplified.

Drive energy efficiency

Thermal energy storage systems provide increased energy efficiency. For example, district heating systems promote energy efficiency by conserving and utilizing heat when required. As a result, less fossil fuel is needed, and plant emissions are decreased, resulting in lower product costs.

Reduce carbon footprint

TES systems offer a promising electrification strategy for large-scale energy operations. Because they can utilize low-cost renewable electricity to produce and store heat for later use, TES systems can provide utility-scale grid storage and help manage intermittency issues with renewable resources.

In addition, further carbon footprint reductions can be achieved depending upon the storage medium utilized. Lava rocks, for example, have a reduced environmental impact compared to other storage materials such as lithium batteries.

Improve generation capacity

Whether in a commercial office space or a busy hospital, the need for heating and cooling is rarely consistent. For most building operations, demand for heating and cooling can fluctuate depending on the season, time of day, month of the year, and region in which they operate.

To use energy more efficiently, TES systems store surplus capacity that is available during low-demand periods and preserve it for use during high-demand periods, thus reducing wasted energy.

Space savings

In facilities looking to integrate TES systems into existing systems, space constraints can present a challenge. However, different thermal storage mediums require less space per cubic feet than others. For a thermal storage system of 300 MWh capacity, for example, an electric battery storage unit would require 800,000 cubic feet of space, whereas molten salt storage would require 151,000 cubic feet of space, and thermal brick storage would require 90,000 cubic feet of space.

Less maintenance

TES systems typically require less maintenance because they use smaller chillers, cooling towers, and pumps than conventional systems. When integrated into district systems, end-users benefit from even less required maintenance because district energy systems aggregate energy production, freeing customers from asset ownership and maintenance of onsite equipment.

Integrating thermal storage with district energy systems

Around the world, innovative district energy companies are deploying thermal energy storage technology to demonstrate how the technologies can cost-efficiently replace fossil fuels, ensuring a reliable supply as a backup to intermittent renewables.

In Rønne, Denmark, Hyme Energy will deploy a 20-hour hydroxide molten salt-based thermal energy storage system. The company partnered with utility Bornholms Energi & Forsyning (BEOF) to deploy the unit at a combined heat and power plant in Bornholm, described as an ‘energy island.’

The 1MW/20MWh system will be the first in the world to deploy molten hydroxide salts. It will provide heat, power, and ancillary services for the grid in Rønne. The project demonstrates the success of deploying storage technologies to retrofit a traditional cogeneration facility.

How Vicinity Energy is utilizing thermal storage

Vicinity Energy is dedicated to transitioning to clean energy generation through innovative technologies like industrial-scale electric boilers, river-source heat pumps, and large-scale thermal storage systems. These technologies allow us to offer the nation’s first carbon-free eSteam^TMproduct to district energy customers in Boston and Cambridge and our other systems across the country in the coming years.

Along with installing industrial-scale heat pumps and electric boilers, Vicinity Energy’s electrification strategy also embraces extensive thermal storage facilities. Unlike traditional lithium battery storage systems, thermal storage leverages the favorable thermodynamics of molten salt or high-temperature substrate to efficiently store vast amounts of thermal energy.

Sample visual of what Vicinity’s thermal energy storage system could look like

While Vicinity already employs the use of ice and chilled water storage systems at our Baltimore and Trenton central district energy facilities for chilled water production, we also have plans to install large-scale thermal storage technologies at our facilities. Vicinity will install thermal storage facilities that will use electricity to heat thermal material such as thermal bricks, or lava rocks, and then use the heat to produce steam during periods of peak demand.

Vicinity will procure off-peak renewable electricity to generate heat with thermal storage systems to create eSteam™ and distribute it to our customers when heating demand is high.

Vicinity’s district energy systems are connected to high-voltage substations and can access transmission-level electricity rates. This advantage reduces local utility distribution constraints and ensures a reliable and cost-effective supply of renewable thermal energy to customers.

As Vicinity progresses with our electrification strategy, marked by installing the first electric boiler at our Cambridge facility in 2024 and plans to install an industrial-scale heat pump complex in 2028, Vicinity stands as a beacon of innovation in North America’s energy transition.

Connect with a member of our team to learn how you can decarbonize your building with district energy today.

Earth Day 2025: Vicinity Energy’s climate progress

Posted on May 7, 2025August 26, 2025 by Bella Pace

Every year on April 22nd—and throughout the entire month of April—millions of people around the world come together to support their communities and raise awareness about environmental issues and the ongoing fight against climate change. In celebration of Earth Day, our teams demonstrated their dedication to sustainability by taking part in clean-up efforts and community events across the regions we serve. Our efforts go beyond just one day or week: we take pride in the fact that our teams are committed to making a positive impact in our communities all year long.

Our progress to net zero carbon emissions

This year, our team has made significant progress in our commitment to sustainability and decarbonization. To achieve net zero carbon emissions across our operations, we are making critical changes at our central facilities in Boston and Cambridge, with our other systems in cities across the country to follow.

These sustainable upgrades will enable us to serve our customers with eSteam™, our renewable thermal energy product. eSteam™ is designed to rapidly decarbonize the highest source of emissions in major cities: commercial buildings.

To offer eSteam™, we are installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities. This year, these plans have become a reality with critical electrification upgrades.

Key electrification updates

In 2024, Vicinity installed the electric boiler at its Kendall facility, and the boiler entered service in November 2024. Today, it is generating and delivering eSteam^TM to customers like Boston-based college Emerson College. To power the boiler, Vicinity is procuring electricity from renewable, carbon-free energy sources like wind and solar.

Our teams are also actively engineering the river-source industrial-scale heat pump complex that will be used to create eSteam^TM at our Kendall facility.

We will install the 35MW industrial-scale heat pump complex at our Kendall facility by 2028. Rather than utilize natural gas, the system will allow us to extract heat from the Charles River and use it to preheat water for our new electric boiler, improving the system’s overall efficiency. From there, the water will be returned to the Charles River at a lower temperature, ensuring no change or damage to the river’s ecosystems.

Over the next few years, our other district energy systems will employ similar technologies to achieve net zero carbon emissions and offer eSteam™ to our customers. These locations are procuring electric boilers to be installed in the next year or two.

Vicinity Energy teams commemorate Earth Day

This year, Vicinity’s teams around the country took action to improve the environment and spread awareness of the environmental movement throughout Earth Month, leading up to Earth Day on April 22.

From cleaning up our local parks and rivers to supporting community efforts, our employees took action this year to better the communities we serve for all.

Philadelphia

People in green Vicinity Energy t-shirts stand outside for an Earth Day cleanup — The Vicinity Philadelphia team had the opportunity to participate in an annual clean up with our neighbors at our Grays Ferry facility. We worked with a team from PECO and with direction from the Schuylkill River Development Corporation to clean up a section of the trail called the Grays Ferry Crescent.

Boston and Cambridge

People in a kayak paddle on the Charles River for an event commemorating Earth Day

Oklahoma City

Baltimore

Four people stand outside for a campus clean up event as part of Earth Day 2025. — The Baltimore team kicked off Earth Month with a campus clean up at the University of Maryland, Baltimore (UMB)! The group came together with the Office of Sustainability and Environmental Services, and volunteers to pick up trash around campus.

Four people stand outside for a campus clean up event in support of Earth Day 2025. — Our Baltimore team attended the Baltimore Tree Trust Arbor Day event that was held at Patterson High School in Baltimore. Vicinity was proud to sponsor the event and participate in planting trees the day of.

Market update: Natural gas outlook 2024-2025

Posted on February 13, 2025August 27, 2025 by Rohan Sinha

As we continue into the winter season, Vicinity is evaluating weather patterns and trends in the natural gas market to inform our customers of price volatility and future predictions.

After a stretch of colder-than-average temperatures in December 2024 and January 2025, natural gas prices climbed steadily, driven by extreme cold, surging demand, and reduced storage levels. According to the National Oceanic and Atmospheric Administration (NOAA), January 2025 was the coldest month of January in the U.S. in 37 years, with temperatures averaging 0.89°F below the 20th-century norm.

Vicinity carefully considers and implements risk mitigation strategies to ensure both reliability of supply and the lowest possible commodity deployment to limit exposure to volatile energy markets. During the recent polar vortex, Vicinity was able to leverage backup distillate fuel supplies. As fuel prices fluctuate, district energy customers can rely on Vicinity’s multiple fuel sources to ensure reliable energy delivery and redundancy.

By the numbers: what we know and what we can expect

During the cold snap from January 18-21, natural gas prices in the Lower 48 soared, with the benchmark Henry Hub spot price more than doubling to $10.07/MMBtu. Grid operator PJM set a record winter peak load of 145 GW on Jan 22, 2025, breaking the previous winter seasonal peak record set in February 2015. The extreme cold drove a sharp increase in demand, while production well freeze-offs further tightened supply, pushing spot gas prices well above seasonal norms across much of the country. In January 2025, the Henry Hub spot price of natural gas averaged $4.62/MMBtu, marking an increase of $0.59/MMBtu compared to January 2024.

While the primary reason for increased gas prices is cold weather, there are several additional factors that also contribute to the recent price increases.

Natural gas storage levels are a critical indicator of natural gas prices, and this year’s trends highlight the market’s sensitivity to supply constraints and demand increase. Because last year’s winter was mild, storage levels were high. However, with this year’s weather events, increased demand for natural gas has been seen in power generation, residential consumption and LNG export sectors, contributing to larger natural gas withdrawals from storage than in previous years.

In January 2025, natural gas storage inventories shifted from a surplus to a deficit relative to both last year and the five-year average, highlighting the significant withdrawals driven by strong winter demand.

Additionally, the completion of two major LNG export terminals at the end of last year has further driven up natural gas demand. Venture Global’s Plaquemines and Cheniere’s Corpus Christi Expansion became operational in December 2024, adding over 2 Bcf of LNG feed gas demand to the market. Looking ahead, U.S. LNG exports are expected to rise even further, with ExxonMobil and Qatar Energy’s 2.05 Bcf/day Golden Pass LNG terminal slated to begin operations by late 2025 or early 2026.

Year-to-date U.S. natural gas production is averaging around 103 Bcf/day, marking a slight increase from last year. This growth is largely driven by expanded pipeline infrastructure that has improved producers’ access to markets. Notable projects include the Matterhorn Express in the Permian Basin and the Mountain Valley Pipeline (MVP).

Looking to the future

If colder-than-average temperatures persist, February and March 2025 could see upward price pressure. Sustained freezing temperatures can lead to production well freeze-offs and constrained interstate pipeline capacity, limiting supply on high-demand days and driving increased natural gas demand.

Based on the U.S. Energy Information Administration’s EIA’s February 11, 2025 Short-Term Energy Outlook, the EIA expects natural gas prices to average $3.80/MMBTU for 2025 and $4.20/MMBTU in 2026 up from historically low average of around $2.20/MMBTU in 2024.

The EIA projects steady growth in natural gas production, with output expected to reach 104.5 Bcf/day in 2025 and increase nearly 3% to 107.2 Bcf/day in 2026. This growth is largely driven by rising associated gas production in the Permian Basin and stronger price expectations in the Haynesville Shale, fueled by robust LNG export demand from both new and expanding projects along the U.S. Gulf Coast.

Electrification progress

Throughout 2024, Vicinity has remained committed to transitioning our district energy systems away from fossil fuels and has made significant progress electrifying our operations.

In November 2024, Vicinity officially began providing eSteam™, the first carbon-free thermal energy solution in the U.S., to our Boston and Cambridge system. This milestone followed a swift two-year journey from concept to execution, with the successful inauguration of Vicinity’s 42MW industrial-scale electric boiler, which is now operational at our Cambridge, MA, facility.

Maximizing data center efficiency with district cooling technology

Posted on January 6, 2025August 27, 2025 by Nate Paist

To meet the ever-increasing need for fast, reliable data to power online activity, data centers are being built and expanded across the United States. According to the U.S. Department of Energy, data centers are some of the most energy-intensive buildings in the country, consuming 10 to 50 times the energy per floor space of a typical office building.

Data centers house computer systems and their associated components, such as telecommunications and storage systems. Data centers typically consist of several components, such as servers, routers, and firewalls, designed to store, manage, and disseminate data efficiently and securely. These require a large, continuous energy supply and a large space.

The centers require large amounts of power for high-intensity computing and cooling systems, with a new large data center requiring the same amount of electricity needed to power 750,000 homes.

Today, data centers account for approximately 2% of total U.S. electricity use, a percentage projected to increase as information technology and artificial intelligence use grow. Data centers can reduce their greenhouse gas emissions by improving energy efficiency and leading the transition to renewable energy sources.

This is why new and existing data centers across the country are turning to district energy systems for a sustainable, reliable, and cost-effective solution to power their operations.

Challenges data centers face in today’s landscape

Data centers are crucial to our digitally driven society. They power cloud computing, data analytics, and various online services, from websites and artificial intelligence platforms to enterprise applications.

Data centers require large amounts of electricity, space cooling, and humidification to keep equipment running efficiently. In addition to their high energy demands, data centers also face the following energy challenges:

Energy efficiency and green IT

Creating sustainable performance by reducing energy consumption and other resources, greenhouse gas emissions, and Power Usage Effectiveness (PUE).

Cost-effectiveness

Finding partners who can build a competitive advantage by optimizing energy consumption and lowering the total cost of ownership.

Capacity to evolve

Maintaining the agility and skills needed to react to dynamic customer energy demand and efficiently deliver operational performance metrics and Service Level Agreements (SLAs).

Reliability and availability

Providing continuity of service of energy systems to guarantee 24/7 uptime and availability of data.

Temperature and humidity controls

To maintain optimal temperature and humidity levels, data centers rely heavily on their HVAC (heating, ventilation, and air conditioning) systems to keep equipment cool and working effectively.

District cooling is a powerful solution for data centers

District energy is the production and distribution of energy in the form of steam, hot water, and chilled water. The energy is produced at a central facility and distributed to connected buildings through a network of underground pipes, allowing building owners to forego the installation and management of onsite generation equipment.

Data centers can benefit from district cooling systems, where chilled water is produced at a central facility and delivered through an underground network of pipes to connected buildings. District chilled water provides primary cooling for space and equipment within the data center.

District steam can also be used to humidify these operations. Humidity levels play a key role in cooling and energy efficiency within data centers and in prolonging the life of materials used.

The nature of district cooling allows a single off-site chiller to replace multiple chillers across different buildings, improving efficiency and driving space savings for both production and customers. In addition, district energy systems can manage load fluctuations and handle extreme weather events effectively.

In Baltimore, Vicinity Energy provides district chilled water to the commercial building at 750 East Pratt Street, which houses an energy-intensive data center. The data center has specific cooling requirements to keep its servers operating smoothly, because the servers and electrical equipment continuously emit heat, requiring cooling even in the winter months. While onsite chillers can expose mission-critical facilities to vulnerabilities if equipment inefficiency or failures occur, Vicinity’s interconnected central energy facilities have redundancies in place to ensure 750 East Pratt Street operates seamlessly.

District chilled water offers several key advantages, making it an ideal cooling solution for these centers, especially those focused on sustainability and operational efficiency.

Increased reliability: Eliminating the burden of onsite chillers, district energy is a safer and more sustainable alternative. Vicinity has a 99.99% reliability guarantee and a team of over 450 energy experts, allowing data centers to deliver data efficiently while we ensure 24/7 energy delivery.
Meet sustainability goals: Data centers connected to a district energy system will immediately benefit from any technology, efficiency, or carbon reduction strategy implemented at the system’s central facilities. Today, district energy systems like Vicinity’s are taking critical steps to eliminate carbon emissions in buildings, offering data centers a path forward to meeting their sustainability goals.
Energy efficiency and cost savings: District energy systems use centralized cooling, which can be more efficient than individual systems. This can reduce energy consumption and lower energy costs.
Space savings: Buildings connected to a district energy system no longer need space for onsite boilers, chillers, water heaters, and cooling towers. This space-saving benefit is critical for buildings that require large open spaces for operating equipment or much-needed tenant space.

Connect with a member of our team to get started with district chilled water in your data center today and access reliable, uninterrupted service.

Sustainable commercial real estate with district energy

Posted on December 10, 2024December 10, 2024 by Bella Pace

Today, landlords must compete for tenants among various alternative options, from co-working to work-from-home models and other hybrid options. Attracting tenants can be difficult in major metropolitan cities with high real estate values and limited space. That’s why appealing to tenants entails various techniques—and clean energy is a significant driver.

A building’s heating and cooling solution can influence tenant lease decisions and future commitments since energy drastically impacts cost, space availability, and sustainability. With district energy, building owners can free up additional amenity space, reduce energy expenses, and demonstrate sustainability benefits to potential tenants and the community.

Did you know that a 10% decrease in energy use could lead to a 1.5% increase in net operating income?

Large-scale projects call for impactful solutions

Commercial buildings and facilities have unique energy requirements. From ventilation, chilled and hot water, space temperature, and humidity requirements, commercial owners need high-quality, reliable thermal energy to support the tenants working in their spaces daily.

Disruptions in energy supply can result in financial setbacks and tenant dissatisfaction, which may affect tenant retention and jeopardize future development projects.

Commercial buildings have a significant opportunity to decarbonize their operations: they generate about 50% of U.S. carbon dioxide emissions, and 30% of the energy consumed in commercial and industrial buildings is wasted.

Across the U.S., leading cities are enacting building performance standards that require buildings to reduce their carbon emissions, making low-carbon sustainable energy a non-negotiable requirement for commercial offices. Many commercial owners are partnering with district energy systems to meet looming carbon requirements and continue to appeal to eco-conscious tenants.

How Vicinity can help

Vicinity Energy currently provides steam, chilled water, and hot water to over 300 commercial office, retail, and mixed-use buildings nationwide, totaling nearly 115 million square feet of building space. Commercial property owners can access reliable and clean energy by connecting to Vicinity’s district energy systems. Still, a team of experts also supports them to ensure their property is always running smoothly and efficiently. Our specialists include experienced licensed engineers, operators, and financial professionals.

District energy systems are fuel agnostic, making them a powerful tool for building decarbonization. Vicinity is deploying new carbon reduction technologies and integrating renewable energy sources such as wind, solar, and hydro into our systems to decarbonize the buildings we serve by 2050 or sooner. With Vicinity, commercial landlords like Coretrust Capital Partners in Philadelphia, Metropolitan Partnership in Baltimore, and Clarendon Group in Boston know their energy systems are sustainable and reliable and contribute to a greener future.

“Our partnership with Vicinity Energy and access to its district energy system is a great option for us as it streamlines a number of facility and maintenance responsibilities, which allows us to spend more time focusing on the needs of our tenants. As an added bonus, the fact that Vicinity Energy’s services increase our overall efficiency creates great alignment with our goals to ensure that our properties are as environmentally sustainable as possible,” said Michael S. Beatty, President of H&S Properties Development Corp.

District energy for critical commercial real estate operations

Our energy solutions for the commercial real estate industry are reliable and green. They help advance the innovations that propel your properties and our communities forward and protect our world.

Increased reliability and sustainability – Without the burden of onsite combustion or maintaining chillers or boilers, district energy is a safer and more sustainable alternative. We have a 99.99% reliability guarantee, allowing you to focus on your business while we ensure 24/7 energy delivery.
Uninterrupted energy supply – Proper operations and maintenance (O&M) of energy infrastructure are essential to ensuring that commercial facilities can rely on a reliable and uninterrupted thermal energy supply.
Remote monitoring – If your building needs energy O&M support by a qualified engineer but does not require someone full-time onsite, we can provide remote monitoring of your energy infrastructure at our innovative control centers.
Energy efficiency and optimization – From efficiency assessments and investments to project implementation, our experts will create and provide a custom energy strategy to optimize your campus energy assets and deliver solutions that drive energy efficiency.

Get started with district energy today to decarbonize your buildings and access reliable, uninterrupted service.

Natural gas prices forecast by the numbers

Henry Hub natural gas price forecast

Natural gas price forecast: winter 2025-2026

How can Vicinity help?

Electrification progress

What is preventive maintenance of equipment?

Why is preventive maintenance for equipment important?

How Vicinity performs preventive maintenance of heating tools and equipment

Conduct steam trap inspections

Check Pressure Regulating Valves (PRVs)

Evaluate heat exchanger and water samples

Inspect steam piping

Review the mechanical room hot water loop

Inspect the condensate return line

Equipment preventative maintenance: Winter preparedness checklist

Equipment preventative maintenance schedule for winter

Vicinity’s experts are here to help

Green colleges that are making a positive impact

1. Emerson College

2. University of Pennsylvania

3. Arizona State University

4. Colorado State University

Leading the charge toward a carbon-free future

What is the PJM capacity auction?

How does the PJM capacity auction work?

PJM auction results (2025)

PJM auction results (2026)

What does this mean for PJM customers?

Why are my energy bills increasing?

What can PJM customers do to keep costs down?

1. Review these seasonal preparation resources.

2. Measure usage patterns in your facility or building(s).

3. Minimize energy usage by following efficiency best practices.

4. Monitor the PJM capacity auction.

Next steps for PJM customers

Why summer preventive maintenance is critical

How to ensure cooling equipment is ready for warm weather

Heat exchanger and water samples

Pressure Regulating Valves (PRVs)

Mechanical room hot water loop

Cooling towers and chillers

Summer preparedness checklist

Vicinity’s experts are here to help

What is thermal storage, and how does it work?

Benefits of thermal storage technology

Integrating thermal storage with district energy systems

How Vicinity Energy is utilizing thermal storage

Our progress to net zero carbon emissions

Key electrification updates

Vicinity Energy teams commemorate Earth Day

Philadelphia

Boston and Cambridge

Oklahoma City

Baltimore

By the numbers: what we know and what we can expect

Looking to the future

Electrification progress

Challenges data centers face in today’s landscape

Energy efficiency and green IT

Cost-effectiveness

Capacity to evolve

Reliability and availability

Temperature and humidity controls

District cooling is a powerful solution for data centers

Large-scale projects call for impactful solutions

How Vicinity can help

District energy for critical commercial real estate operations

Technologies

Products

Services