As utilities across the United States work to meet decarbonization goals while maintaining system reliability and affordability, many are re-examining how heating and cooling are delivered at scale. One approach gaining increased attention is networked geothermal, also known as thermal energy networks — systems that connect multiple buildings to shared underground infrastructure for efficient heating and cooling.
Unlike traditional, building-by-building solutions, networked geothermal allows heat to be exchanged between connected buildings through a shared loop. This approach can significantly reduce peak energy demand, lower emissions, and improve long-term system resilience. For utilities, it also represents a potential new class of infrastructure that complements existing electric and gas assets.
A Shift in How Heating and Cooling Are Viewed
Heating and cooling account for a substantial share of energy use and emissions in many regions. Historically, these loads have been addressed at the individual building level, often with fossil-fuel-based systems. Networked geothermal reframes heating and cooling as shared, community-scale services, opening the door to utility involvement in planning, ownership, and operation.
Organizations such as U.S. Department of Energy and National Renewable Energy Laboratory have highlighted thermal energy networks as a promising pathway for reducing emissions while maintaining comfort and reliability. By using the stable temperature of the ground, these systems can operate efficiently year-round, regardless of weather extremes.
Why Utilities Are Paying Attention
For utilities, networked geothermal aligns with several emerging priorities:
Load management and grid flexibility: Thermal networks can shift and balance heating and cooling demand, reducing strain on the electric grid during peak periods.
Long-lived infrastructure investment: Underground loop fields can last for decades, providing stable, utility-scale assets.
Customer affordability: Shared systems can lower lifecycle costs compared to individual system replacements.
Resilience and reliability: Networked systems can continue operating during extreme weather events, supporting community resilience.
Utilities in multiple states are beginning to explore pilot projects, feasibility studies, and regulatory pathways to better understand how thermal networks could fit within existing frameworks.
Policy and Regulatory Momentum
Policy interest in networked geothermal is also growing. Several states are evaluating how thermal energy networks might be regulated, owned, and funded, including questions around cost recovery and customer participation. Advocacy and research organizations like HEET have played a role in advancing discussions around utility-led thermal networks and sharing lessons from early projects.
As regulators and utilities collaborate on pilot programs, shared learning platforms have become increasingly important. This is where collaboratives like UNGC play a key role — helping utilities compare approaches, share lessons learned, and reduce duplication of effort.
Looking Ahead
Networked geothermal is not a one-size-fits-all solution, but it offers a compelling option for utilities seeking scalable, low-carbon heating and cooling strategies. As more pilots move forward and data becomes available, utilities will be better positioned to evaluate where and how these systems make sense.
By fostering collaboration and knowledge-sharing, the Utility Networked Geothermal Collaboration supports utilities as they explore this emerging infrastructure opportunity.