The value of integrating a geothermal district heating system into a microgrid

• Comprehensive building energy modeling, techno-economic analysis, and grid modeling. • Electricity reduction up to 6.97 GWh/year compared to non-geothermal base case. • Annual energy savings up to $803 k with geothermal district heating. • Avoided grid costs up to $147 k/year, including $4,863/hour during dispatch events. • Flexible control reduced wholesale energy costs by 53–56% As electrical grids increasingly rely on variable renewable energy, maintaining reliability and cost efficiency becomes more complex. To address these challenges, this study analyzed the integration of geothermal district heating as a grid-responsive thermal resource within a microgrid in Tuttle, Oklahoma. Building energy modeling using EnergyPlus estimated annual district heating demand at 2.9 GWh, with a peak load of 2.8 MW th . Techno-economic analyses were conducted to meet the heating demand under three geothermal scenarios, varying by production depth, flow rate, and thermal output, each supplemented by natural gas peaking boilers. In parallel, equivalent electrical load profiles were developed using typical coefficients of performance (COPs) for air-source heat pumps and electric boilers to establish an electrified baseline scenario. A complete end-use electrical load profile was also developed for the microgrid using Cambium dataset. The modeling results demonstrated reliable and economic operation of the geothermal systems over 30 years, with COPs ranging from 2.6 to 8.9 and the lowest levelized heating cost at $54.6/MWh. Geothermal integration reduced electricity consumption by up to 94.7 % compared to the non-geothermal base case, yielding annual energy savings of up to $803 k. Avoided grid costs ranged from $65 k–$147 k per year, with individual events avoiding up to $4,863 per hour. Grid-responsive operation further reduced wholesale energy costs by 53–56 %. These findings demonstrate geothermal heating, traditionally treated as a non-grid-responsive thermal resource, can be reconfigured to support dynamic grid services, offering a scalable pathway to enhance reliability and reduce costs in renewable-rich microgrids and district heating networks.