The principal argument for District Energy is reliability. District Energy Systems are typically rated at 99.999% reliability. They can also be designed to provide much greater levels of security than on-site HVAC systems.
District energy systems are cost-competitive. The service cost must be competitive to on-site HVAC. Service charges are billed monthly, and offer operating guarantees, which permits accurate budgeting, and cost containment.
District energy systems offer economies of scale. One large central plant serving multiple service customers has a lower allocated capital cost, and is typically much more efficient in terms of energy consumption, as well as O&M costs.
District energy systems are efficient. HVAC service contracts are long-term allowing for adequate investment in high-performance equipment to contain life-cycle costs. These are mission critical systems with built-in redundancies, as well as alternative fuel or power sources. Under the YORKsource™ program the operating efficiency is guaranteed for the full life of the contract by York International, a Fortune 500, New York Stock Exchange company.
District Energy Systems promote development. A developer may save between 10% to 15% of the development costs of a building by outsourcing HVAC. In the case of hospitals, research, or computer collocation centers, this figure is often much higher. If this avoided cost is reinvested in income producing assets, the financial benefit is significant.
District energy systems are truly financially independent. While the systems do rely on the financial integrity of their long-term customers, they are in no way financially dependent. XTnrgy is privately financed by reputable long term investors. It does not rely on, or compete for, public funding. As a result, our investment does not negatively effect bond ratings or debt ceilings.
District energy systems are privately-owned utilities which contribute significantly to the tax revenues of a community. Municipalities not only avoid capital and operating costs by placing their buildings on a district energy system, but convert non-taxable assets to tax rate-able. In many cities, where a predominance of buildings belong to tax exempt institutions, the tax revenues derived from a privately-owned district energy system represent supplemental tax revenues to the municipality.
District energy systems have a positive effect on the environment as well as work conditions. Replacing many less efficient HVAC systems with one efficient and reliable district energy system is known to reduce greenhouse gas emissions, and enhance the overall work environment. In many cases "carbon credits" could be available.
