heat. Environmental considerations and the problem of delivery prevent the direct combustion of coal in individual buildings and the remaining options are not likely to be located within the inner city. The options are limited for individual building measures, but the high density urban area is uniquely suited for the application of district heating. DISTRICT HEATING AND ITS POTENTIAL BENEFITS District heating is a thermal distribution system. It consists of a network of underground pipes, carrying hot water or steam, whereby energy is collected from one or more central sources and delivered throughout a community to provide space conditioning, water heating, and process heat requirements. It is a proven, well developed technology. District heating has been used in the United States since the early 1900s, but urban applications were primarily steam systems with limited transmission distance, and the concept never developed to its full potential. In contrast, modern district heating systems that primarily use hot water are in extensive use in Europe and Russia, and large-scale expansions are being planned. With district heating, conservation of energy and scarce fuels results from the use of innovative and more efficient heat sources. Virtually any energy technology available to the nation and local communities can be incorporated into the district heating and cooling system. These thermal energy sources can include abundant domestic fuels (coal, nuclear, and urban waste), natural sources (solar, geothermal, and groundwater), or manufactured sources (industrial waste heat and synfuels). In fact, for the urban areas, the only feasible way to make extensive use coal, solid waste, and other renewable heat sources is with a district heating network. Cogeneration, the simultaneous production of electricity and useful thermal energy, can be a valuable heat source for district heating. As shown in Fig. 1, an electric-only generating plant has an efficiency of about 33%; the other 67% of input fuel energy is lost to the atmosphere or to bodies of water. With cogeneration, electric output is reduced to 25% but one gains 55% of the input fuel energy as hot water suitable for