Economic and greenhouse gas analysis of regional bioenergy-powered district energy systems in California

•New bioenergy-powered district energy systems have higher revenue from energy sales and higher incurred costs than incumbent fossil fuel powered building thermal systems.•Switching from natural gas to RNG in existing district energy systems may result in cost savings.•The costs and benefits of district energy systems need to be more clearly communicated to accelerate adoption and integration.•Bioenergy-powered district energy systems can offer a cost of carbon abatement on par with distributed solar-powered building systems.