0125262011 abdulhamid al mansour

Challenges Facing District Cooling Industry in the Arabian Gulf Countries

presented to:

Kuwait District Cooling Summit25&26 January 2011

Abdulhamid AlmansourAbdulhamid Almansourdi b ddi b dSaudi TabreedSaudi Tabreed

CONTENTS

I. Current Challenges Facing GCC Countries In Meeting A/C 

CONTENTS

Demand

II How Can District Cooling Mitigates The ChallengesII. How Can District Cooling Mitigates The Challenges

III. Introduction To District Cooling

IV. Outsourcing Governmental A/C Projects

V. DC Provider responsibilities

Dr. Tawfik A. Khoja3

I. Current Challenges Facing GCC countries in meeting A/C demand

Meeting escalated Electricity Peak demand

meeting A/C demand

70% of power generated consumed in A/C

Summer/winter power fluctuation

Low electricity tariff Low electricity tariff

Cooling Water shortage

Environmental concerns

L k f A/C l i l ti Lack of A/C legislations

Poor management of existing systems 

New civic structures expansions

Increasing local fuel demand

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

II. How Can District Cooling Mitigate The Challenges

District Cooling Optimization Benefits

40% less power demand0% 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. 

II. How Can District Cooling Mitigate The Challenges

2 . 2

District Cooling Power optimization

1. 71. 8

2 . 2

0 . 9 59

D i st r i c t C o o l i n g A i r c o o l e d S p l i t Wi n d o w

Comparison of Energy consumptions (KWH/TR)p gy p ( / )

C i Of E C ti

II. How Can District Cooling Mitigate The Challenges

DESCRIPTION STAND ALONE DISTRICT COOLING

l

Comparison Of Energy Consumptions

Voltage 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 Company

Multiple Singlep y

Equipment Used Commercial Industrial

II. How Can District Cooling Mitigate The Challenges

II. How Can District Cooling Mitigate The Challenges

Thermal Storage

Certified 40 - 49 Points

II. How Can District Cooling Mitigate The Challenges

Thermal Storage Reduces Required Capacity And Electricity Costs But Higher Capex

Energy Consumption

Stored energy released

Actual production of chilled water with thermal storage = electricity usage

Chilled water or iceChilled water or ice created and stored

during off peak hours

Midnight 6am Noon 6pm Midnight

II. How Can District Cooling Mitigate The Challenges

Environment

II. How Can District Cooling Mitigate The Challenges

II. How Can District Cooling Mitigate The Challenges

CO2 Total Emissions From Consumption Of Fossil Fuel For GCC Countries

III. Why is District Cooling Environmentally friendly?

District Cooling helps the environment by increasing energy District Cooling helps the environment by increasing energyefficiency and reducing environmental emissions including airpollution, the greenhouse gas (GHG) carbon dioxide (CO2) andozone‐destroying refrigerants.

Most Middle Eastern governments are parties to the UnitedNations Framework Convention on Climate Change. With mostcountries in the region having extremely high GHG emissions percountries in the region having extremely high GHG emissions percapita, this issue will become increasingly important forgovernment policy.

District Cooling can reduce annual CO2 emissions by about 1 ton District Cooling can reduce annual CO2 emissions by about 1 tonfor every ton of district cooling refrigeration demand served.

III. Why is District Cooling Environmentally friendly?

RefrigerantsRefrigerants

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

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

Industry History

There are over 6,000 commercial district energy systems (heatingand/or cooling) operating in North America, including allAmerican military bases and some 2,000 universities and colleges

The district energy industry has grown in the USA, Europe and The district energy industry has grown in the USA, Europe andAsia into a widely recognized, cost effective and environmentallyfriendly method of providing heating or cooling

Japan has seen a four fold growth over the last decade Denmark Japan has seen a four‐fold growth over the last decade, Denmarkfills nearly half of its heating requirements through district energysystems, and the UK has highlighted district energy as part of itsstrategy to reduce CFC emissionsstrategy to reduce CFC emissions

Famous landmarks, with district‐cooling systems include thePetronas Towers (Kuala Lumpur), the Pentagon (Washington) andL D f (P i )La Defence (Paris)

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 processcontrolled process

The customer still has to do the internal building A/c work

which constitutes of internal distribution piping, air side

system & controls

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

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

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

District Cooling In The World

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

Khalidiya Mall

Grand Mosque

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

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

District Cooling in Qatar (67000 TR)District Cooling in Qatar (67000 TR)

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

Di t i t C li I Th W ld

(PETRONAS Malaysia)

District Cooling In The World

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

(Singapore)

District Cooling In The World

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

(Tokyo, Japan)

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

(C i l Di t i t C li I USA)

1960s 1970s 1980sHartford Minneapolis           TrentonPittsburgh Commerce City     Dade County

1990sIndianapolisClevelandi Chi

2000s *New OrleansMontreal

l d

(Commercial District Cooling    In USA)

g y yCentury City           Nashville New HavenSan Antonio           Brookline Nassau CountyOmaha Oklahoma CityWauwatosa San DiegoLos Angeles Tulsa

Trigen‐ChicagoBaltimoreWindsorHoustonHarrisburg

OrlandoDetroitLas VegasTampaSudbury

Los Angeles           Tulsa gCincinnatiKansas CityTorontoMiamiYoungstown

yAkronPhoenixPortlandHonoluluMarkham

YoungstownSt. PaulUTT ‐ ChicagoAtlantic CityDenver

MarkhamDes MoinesAustinWilmington

Boston * Includes  systems         in development 

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

District Cooling In The Worldg

(USA, Harvard and MIT Universities)

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

District Cooling In The Worldg

(USA, Harvard and MIT Universities)

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

Valuable Space Savingp g

Without DC With DC

A Dubai Hotel Parking roof top

The view from the Suites & Rooms

Shangri-la Parking Roof Top

The view from Shangri-la’s Suites & Rooms

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

V. OUTSOURCING GOVERNMENTAL A/C PROJECTS

How can Governments promote DC

developing Governments Tenders based on EPCO PPPBOOdeveloping 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 

V. DC PROVIDER RESPONSIBILITIES

Investment in Capital to build Plant and Infra‐structure

M h D i d C i f F ili i Manages the Design and Construction of Facilities to meetcustomers requirements

Specialized Operators and Technicians to Monitor andMaintain Equipment Ensuring 24 Hour Service

Back‐up System that Allows uninterrupted Routine Upkeepand Repairand Repair

Assumes all risk

Illustrate a proven Track Record (20+ Operating Plants)p ( p g )

V. DC PROVIDER RESPONSIBILITIES

Partnership approaches

A Clients Invitation through: RFP/IFPA. 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 averageg y g

FIELD PIPE LAYING PROCESS 

Thank You