District cooling can help mitigate challenges facing GCC countries in meeting escalating air conditioning demand. It reduces electricity consumption by 40% and creates a flatter demand curve. Thermal storage reduces required capacity and costs while district cooling is more environmentally friendly by increasing efficiency and lowering emissions. The industry has a long history worldwide and major projects exist across the Middle East, Asia, Europe, and North America. Governments can promote district cooling through various policies and outsourcing projects provides benefits like reduced costs and capacity needs.

1. Challenges Facing District Cooling Industry
in the Arabian Gulf Countries
presented to:
Kuwait District Cooling Summit
25&26 January 2011
Abdulhamid Almansour
Saudi Tabreed
di b d

2. CONTENTS
I. Current Challenges Facing GCC Countries In Meeting A/C
Demand
II.
II How Can District Cooling Mitigates The Challenges
How Can District Cooling Mitigates The Challenges
III. Introduction To District Cooling
IV. Outsourcing Governmental A/C Projects
V. DC Provider responsibilities

3. 3 Dr. Tawfik A. Khoja

4. I. Current Challenges Facing GCC countries in
meeting A/C demand
meeting A/C demand
 Meeting escalated Electricity Peak demand
 70% of power generated consumed in A/C
 Summer/winter power fluctuation
 Low electricity tariff
Low electricity tariff
 Cooling Water shortage
 Environmental concerns
 Lack of A/C legislations
L k f A/C l i l ti
 Poor management of existing systems
 New civic structures expansions
 Increasing local fuel demand

5. Electricity Generation Comparison for
The Six GCC Countries (Twh)
The Six GCC Countries (Twh)

6. II. How Can District Cooling Mitigate The Challenges
District Cooling Optimization Benefits
 40% less power demand
0% ess po e de a d
 Creates a flatter demand curve
 Diversity Factor.
 Higher load factor
 Smaller Distribution Network Infrastructure
 Provides the opportunity to co‐ordinate and phase
start‐up
 Help reduce long term capital costs and hence the cost
Help reduce long term capital costs and hence the cost
of generation.

7. II. How Can District Cooling Mitigate The Challenges
District Cooling Power optimization
2.2
1. 8
1. 7
0.95
9
D i st r i c t C ool i ng A i r c ool e d S pl i t Wi ndow
Comparison of Energy consumptions (KWH/TR)
p gy p ( / )

8. II. How Can District Cooling Mitigate The Challenges
Comparison Of Energy Consumptions
C i Of E C ti
DESCRIPTION STAND ALONE DISTRICT COOLING
Voltage
l LV MV
Use 2 KW/TR 1 KW/TR
Utilization 50% 120%
Connected Load 2 KW/ TR 0.95 KW/TR
Power Factor 0.8‐0.85 0.95
Peak Load Unshaved Shaved
Customers for Power Multiple Single
p y
Company
Equipment Used Commercial Industrial

9. II. How Can District Cooling Mitigate The Challenges

10. II. How Can District Cooling Mitigate The Challenges
Thermal Storage
Certified 40 - 49 Points

11. II. How Can District Cooling Mitigate The Challenges
Thermal Storage Reduces Required Capacity And Electricity Costs But
Higher Capex
Energy
Consumption
Actual production of chilled water with
thermal storage = electricity usage
Stored energy
released
Chilled water or ice
created and stored
during off peak hours
Midnight 6am Noon 6pm Midnight

12. II. How Can District Cooling Mitigate The Challenges
Environment

13. II. How Can District Cooling Mitigate The Challenges

14. II. How Can District Cooling Mitigate The Challenges
CO2 Total Emissions From Consumption Of Fossil Fuel For GCC Countries

15. III. Why is District Cooling Environmentally friendly?
 District Cooling helps the environment by increasing energy
efficiency and reducing environmental emissions including air
pollution, the greenhouse gas (GHG) carbon dioxide (CO2) and
ozone‐destroying refrigerants.
 Most Middle Eastern governments are parties to the United
Nations Framework Convention on Climate Change. With most
countries in the region having extremely high GHG emissions per
capita, this issue will become increasingly important for
government policy.
 District Cooling can reduce annual CO2 emissions by about 1 ton
for every ton of district cooling refrigeration demand served.

16. III. Why is District Cooling Environmentally friendly?
Refrigerants
 Varity of options available to replace CFC’s and HCFC’s
 Most widely accepted replacement is a family of refrigerants
known as HFC’s (Hydro fluorocarbons),HFC‐134a
 Regulated under the Kyoto Protocol which specifies reduction
targets for emission

17. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
Industry History
 There are over 6,000 commercial district energy systems (heating
and/or cooling) operating in North America, including all
American military bases and some 2,000 universities and colleges
 The district energy industry has grown in the USA, Europe and
Asia into a widely recognized, cost effective and environmentally
friendly method of providing heating or cooling
 Japan has seen a four fold growth over the last decade Denmark
four‐fold decade,
fills nearly half of its heating requirements through district energy
systems, and the UK has highlighted district energy as part of its
strategy to reduce CFC emissions
 Famous landmarks, with district‐cooling systems include the
Petronas Towers (Kuala Lumpur), the Pentagon (Washington) and
La Defence (P i )
L D f (Paris)

18. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
How District Cooling works
 District Cooling is a utility which provides chilled water to
customers buildings boundary via a metered and
controlled process
 The customer still has to do the internal building A/c work
which constitutes of internal distribution piping, air side
system & controls

19. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)

20. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)

21. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In The World

22. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In The World
District Cooling In The World
Khalidiya Mall
Grand Mosque

23. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In UAE

24. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling in Qatar (67000 TR)
District Cooling in Qatar (67000 TR)

25. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In The World
Di t i t C li I Th W ld
(PETRONAS Malaysia)

26. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In The World
District Cooling In The World
(Singapore)

27. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In The World
(Tokyo, Japan)

28. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In The World
(Commercial District Cooling In USA)
(C i l Di t i t C li I USA)
1960s 1970s 1980s 1990s 2000s *
Hartford Minneapolis Trenton Indianapolis New Orleans
Pittsburgh
g Commerce City Dade County
y y Cleveland Montreal
Century City Nashville New Haven Trigen‐Chicago
i Chi Orlando
l d
San Antonio Brookline Nassau County Baltimore Detroit
Omaha Oklahoma City Windsor Las Vegas
Wauwatosa San Diego Houston Tampa
Los Angeles Tulsa
Los Angeles Tulsa Harrisburgg Sudbury y
Cincinnati Akron
Kansas City Phoenix
Toronto Portland
 Miami Honolulu

Youngstown Markham
    St. Paul Des Moines
      UTT ‐ Chicago Austin
    Atlantic City Wilmington
  Denver
 Boston * Includes systems
    in development

 
  



29. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In The World
g
(USA, Harvard and MIT Universities)

30. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
District Cooling In The World
g
(USA, Harvard and MIT Universities)

31. IV. INTRODUCTION TO DISTRICT COOLING (D.C.)
Valuable Space Saving
p g
Without DC With DC
A Dubai Hotel Parking roof top Shangri-la Parking Roof Top
The view from the Suites & Rooms The view from Shangri-la’s Suites & Rooms

32. V. OUTSOURCING GOVERNMENTAL A/C PROJECTS
Governments Benefits
 25% Reduction in Capacity Requirements
 Reduced Capital Investment
 15‐20% Savings in Annual Operating expenses
 Reduced Depreciation & Replacement Cost
Reduced Depreciation & Replacement Cost
 Higher reliability
 Long Term Trouble Free Service
 Less administrative tasks
 New job opportunities for the nationals

33. V. OUTSOURCING GOVERNMENTAL A/C PROJECTS
How can Governments promote DC
 developing Governments Tenders based on EPCO,PPP,BOO
developing Governments Tenders based on EPCO PPP BOO
 Facilitation of Permits of piping network ,right of ways
 Priorities in energy supply &rates (electricity ,fuel)
 Developing A/C codes to stipulate efficiencies parameters
 Project finance( lending )by Government financial institutions
 Adopting electricity variable rates (day/night, ummer/winter)
 Leasing Government lands whenever possible
 Access to cooling water i.e. STP effluent ,Sea water and drainage
Access to cooling water i e STP effluent Sea water and drainage
 Incentives to D.C. subscribers

34. V. DC PROVIDER RESPONSIBILITIES
 Investment in Capital to build Plant and Infra‐structure
 Manages the D i and C
M h Design d Construction of F ili i to meet
i f Facilities
customers requirements
 Specialized Operators and Technicians to Monitor and
Maintain Equipment Ensuring 24 Hour Service
 Back‐up System that Allows uninterrupted Routine Upkeep
and Repair
 Assumes all risk
 Illustrate a proven Track Record (20+ Operating Plants)
p ( p g )

35. V. DC PROVIDER RESPONSIBILITIES
Partnership approaches
A. Clients Invitation through: RFP/IFP
A Clients Invitation through: RFP/IFP
B. Form of agreements: BOO/BOOT/EPCO/Service agreement
C. Compensations: Connection fees/Capacity fees/Usage fees
D. Agreements Term: 20‐25 years in average
g y g

36. FIELD PIPE LAYING PROCESS

37. Thank You