Key Issues and Common Goals
The Planning Process
District Energy is a relatively small and complex part of North America's
total energy infrastructure. It includes systems owned and operated
by dedicated private companies, investor-owned and public utilities,
universities and hospitals, and federal and local governments.
Represented by multiple interest groups and trade associations,
its proponents include facility managers, associations for environmental
quality and energy efficiency, and officials within federal and
state government.
To seek common goals for this diverse community, the Utility Systems
Division of the U.S. Department of Energy, and the Oak Ridge National
Laboratory, formed a representative Planning Committee in Spring
1991. Asked if there was a desire to accelerate the growth of
American District Energy, Committee members responded with a resounding
"yes". They emphasized the need for a realistic Action
Plan to strengthen the domestic use of District Energy during the 1989s.
A Fall 1991 workshop was suggested as the initial event to outline
opportunities and barriers, and to develop the framework for this
Action Plan.
Applying a strategic planning process, the Committee forced a
critical examination of the industry's strengths, weaknesses and
resources. They expected this examination to provide the basis
for consensus on major goals for the plan and the actions needed
to reach them. The Committee views strategic planning as a continuing
process, that includes steps for implementation, monitoring, evaluation,
and periodic (annual) revision of the Action Plan.
The Initial Focus
By summer, the Planning Committee had defined a preliminary list
of District Energy's strengths and weaknesses. They suggested four key issues
as a focus for the Fall workshop:
- policy
- value
- modernization
- marketing
A two-day event for about 60 invited participants was recommended.
The Committee developed a list of participants and emphasized
the need for a visionary and influential keynote speaker. Mr.
Eugene R. McGrath, Chairman, President and CEO of the Consolidated
Edison Company, operator of one of the world's largest district heating
system agreed to provide the keynote address. Dr. Fred Strnisa,
Senior Project Manager for the New York State Energy Research
and Development Authority, agreed to chair the meeting, and Planning
Committee members would lead its working groups.
During the fall workshop, participants confirmed problems associated
with the workshop's four initial issues and defined ways to address
them. They initially generated more than 100 possible goals, which
were narrowed to 19. Steps and schedules to reach each goal were
developed. Cost estimates and potential funding sources were outlined.
Both personal and institutional commitments to implement actions
defined at the workshop were made.
At the workshop's end, Richard L. Mayer from the Pacific Gas
& Electric Company, and the First Vice President of the International
District Energy Association (IDEA), committed his
support for IDEA to act as the umbrella organization for the
Plan's implementation. There was momentum and enthusiasm to continue.
Consensus and the Next Challenge
The goals from the workshop have been formed into this Action
Plan. Reflecting the common interests of America's diverse District Energy
community, the Plan's major goals are to improve the basic foundation,
competitive position, national presence, and policy and regulatory
climate for District Energy. This framework is an important beginning step.
The next step is to translate it into results-oriented actions
with assigned responsibilities for specific tasks that will assure
an effective, dynamic and continuing program.
The immediate challenge is to confirm the personal and organizational
commitments that have already been made. To succeed, those commitments
must be managed well, and result in solid initial accomplishments.
In 1991, the objective was to develop the Plan; the objective
for 1992 is to start its successful implementation. To make this
transition, it is essential to achieve:
- Wide Endorsement - by assuring broad awareness and
support for the Action Plan within the District Energy community. To date,
the Action Plan has been presented to IDEA's Board, the American
Society of Heating, Refrigeration and Air-Conditioning Engineers
(ASHRAE), and the National Association of State Energy Officials
(NASEO).
- A Realistic Work Program - by confirming tasks, deliverables,
responsibilities, costs, funds and schedules for our initial (1992-93)
work. Early commitments for specific tasks have been made, they
must be formally organized, documented and coordinated.
- Conduct and Measurement - by implementing our tasks
as a strong organization. The Planning Committee will provide
initial leadership, and DOE will provide some funds for Fiscal
Year 1992. Matching commitments from the District Energy community are being
solicited.
- Evaluation and Update - by revising and improving the
Action Plan based on our progress during 1992-93. DOE will support
this task in FY 1992 by providing funds and resources for a year-end
event similar to the October 1991 workshop.