The Thermal Energy Networks (TENs) Pilot Program supports the development of utility-owned and operated district energy systems that use shared underground thermal loops to provide heating and cooling. The Thermal Energy Networks (TENs) Pilot Program Grant is a non-competitive funding opportunity authorized under RCW 80.28.460 and Sections 3 and 4 of ESHB 2131.
What is a thermal energy network?
The thermal energy network (TEN) developed through this pilot program is an underground system of pipes that circulates water to provide heating and cooling for multiple buildings. Instead of burning fossil fuels, a TEN uses the earth and other clean energy sources — such as geothermal, solar thermal, or waste heat — to keep buildings comfortable year-round.
TENs can draw from diverse renewable and waste heat sources, and reduce reliance on fossil fuels:
- In winter, heat is drawn from the ground or other renewable sources and delivered into buildings.
- In summer, excess heat from buildings is carried away and dispersed underground or reused elsewhere.
Benefits of TENs
- Energy savings: Reduced heating and cooling costs for building owners and tenants.
- Cleaner air: Lower greenhouse gas emissions and air pollution.
- Resilience: Can be designed to keep critical services running during power outages.
- Equity: Opportunities to serve affordable housing, schools, and public buildings.
Community and stakeholder impact
TENs create value across a wide range of stakeholders. Communities and residents benefit from healthier, more affordable heating and cooling. Utilities gain a pathway to provide clean energy services while leveraging existing workforce and infrastructure. Workers see new job opportunities and skill development in design, construction and operations. The environment benefits through reduced greenhouse gas emissions and improved air quality. Together, these impacts support Washington state’s clean energy and climate goals while ensuring an equitable transition.
Program outcomes
The TENs Pilot Program is designed to deliver results that go beyond the initial grant funding. By supporting projects from early design through full installation and operation, the program will show how utility-owned thermal energy networks can function at utility scale. These pilots will provide a model that utilities can build on in the future, helping expand clean, reliable, and affordable heating and cooling options across Washington.
Who can apply?
This program is by invitation only. Eligible applicants include:
- Gas companies (as defined in RCW 80.04.010).
Expected timeline
- October 1, 2025: Proposal submission opens
- October 30, 2025: Proposals due
- October 2025-January 2026: Awards announced
- January 2026: Earliest date projects start
Funding details
Grants will be administered through a non-competitive solicitation. Commerce will evaluate projects for cost-effectiveness, geographic diversity, project readiness, and alignment with state climate and equity goals. Commerce intends to award one to three contracts through this program funding. Partial awards may be initially awarded.
- Total available funding: $4.85 million