Thesis (M.S., Mechanical Engineering) -- University of Idaho, 2017 | A comprehensive review of the advantages and disadvantages of energy sources, global policies and current research in district energy systems was conducted. Then thermodynamic analysis was applied to the University of Idaho’s chilled water system, with a focus on the absorption chiller and the thermal energy storage tank. By calculating and modeling the system, exergy destruction rates and efficiencies were quantified. Suggestions for improvement to these systems were presented based upon the models created and validated during these studies. Improvements to the absorption chiller were available by optimizing the solution concentration levels. Minor adjustments can yield a decrease in the overall exergy destruction rates within the chiller. The thermal energy storage study showed a decrease in exergy efficiency throughout the charging process. This indicated that fully charging the storage tank resulted in lower overall efficiency of the system. Small changes in the operation of chilled water equipment can improve their sustainable aspects.