the characteristics of supply and demand of district ......dc market in korea has been rapidly...

The Characteristics of Supply and Demand of

District Cooling Using Wasted Heat

2016. 6. 8

TZU-LUNG, TAN

KDHC District Cooling Team

- 2 -

Contents

`

1. The concept of district cooling(DC)

2. Korean market and policies for DC

3. The effect of reducing greenhouse gas

of the DC

4. The role of the DC as reduce

greenhouse gas

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Because of global warming and rising incomes, the demand of cooling is

expected to consistently increase

Change of Global trend

A change of average global temperature

(from 1901 to 2012)

Demand of cooling increases!

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District cooling(DC) is massive centralized production of cooling energy then

delivers to consumers through the pipeline network

DC Conceptual Diagram

Heat Generation Facilities

Waste incinerators, Waste Heat from CHP, Renewables, Aquifers, Rivers

Heat generation plant

(or Chilled water generation plant) → The method to supply chilled water directly

hot water → The method to supply hot water

Supply (95℃~98℃)

Absorption Chiller

Return (maximum 13℃)

Supply (3.5℃)

chilled water

Cooling Heat

Exchanger Customers

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In Korea, DC has contributed to peak load reduction, and can also save primary

energy as well as CO2 emission.

Benefits of DC in Korea (based on KDHC business model)

Improve energy efficiency (using wasted heat)

☞ Reduce greenhouse gas emission

Incinerator

Combined Heat and

Power plant

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DC Plant

Consumers

(Residential)

Consumers

(Commercial)

Generation Transmission

Consumption

District Cooling

Supply

One DC plant supplies whole consumers with cooling load,

that makes consumers don’t need individual air-conditioners.

Benefits of DC for consumers

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DC market in Korea has been rapidly expanding recent 10 years. DC consumers

have increased 127% and DC capacity has tripled in size from 2005.

(As of 2014) 615,075 usRT to 925 buildings

Status

(2005 ~ 2014) average annual growth rate of 13.5%

Tendency

407 432 458 492 521

555

630 697

810

925

198,889 218,731

250,349 289,974

313,613 333,722

413,602

461,369

540,773

615,075

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

0

100

200

300

400

500

600

700

800

900

1000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Buildings Chillers Capacity

Number of

Buildings

usRT

KDHC Occupies 57% of

DC Market

531

355,903 usRT

usRT : U.S Ton of Refrigeration 1usRT = 3,024kcal/h

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KDHC Sangam DC plant has been supplying district cooling to 35 consumers

with capacity of 150Gcal/h since 2006.

Sangam Digital Media City(DMC) (Chilled water direct supply)

Facilities Capacity(Gcal/h) Status

Absorption Chiller 48.6 Supplying chilled water directly to 35 Buildings Turbo-Refrigerator 63.5

Ice Storage System 38.1

Total 150.1

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Saved more than 25,000 tCO2e through using wasted heat 46,990Gcal from

incinerator over the last 5 years in Sangam DMC

Used Wasted heat and saved CO2

Performance of CO2 saving

(unit : Gcal, tCO2e)

2011 2012 2013 2014 2015 Total

Wasted heat 9,022 6,820 7,666 12,377 11,105 46,990

Saved CO2 4,826 3,648 4,100 6,620 5,940 25,134

0

2000

4000

6000

8000

2011 2012 2013 2014 2015

(tCO2e)

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Obstructive factor of DC : Lack of understanding, Tough estimation of equipment facilities due to

difficult demand forecasting, Initial investment cost, Underground construction of pipeline network

Supply status of Sangam DMC

Underground construction Of pipeline network

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Korea government supports DC market in various fields : Designation of district

energy area by the law, Subsidies to DC consumers.

Budget (Million USD)

Subsidies per usRT(USD)

Government Supporting system for DC

In designated area, if gross floor area is over 3,000㎡ or Capacity of refrigerator is over 300Mcal/h, consumers should use DC. Government subsidies for DC has increased rapidly since 2013, And also Subsidies per usRT has doubled in size from 2011.

1.6 1.6

2.5

3.3 3.3

46 46 48

73 70

0

10

20

30

40

50

60

70

80

0

0.5

1

1.5

2

2.5

3

3.5

2011 2012 2013 2014 2015

Budget Subsidies per usRT

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Korea 13.6℃ Indonesia 26.5℃

Malaysia 26.5℃ Thailand 28.1℃

Vietnam 27.0℃ Philippine 27.7℃

Most Asian countries have good conditions to introduce DC, because of high temperatures,

And many opportunities of new town construction due to the increase in urbanization rate.

The Urbanization rate of Asia countries KDHC’s plan in Philippine

KDHC is under investigation of DC business model using a waste-to-energy in Clark, Philippine.

Equipment capacity

20MW + 45Gcal/h

Investment cost

300Million USD

(Cost of refrigerator)

42Million USD

Area Texas Instrument,

PSPC (semiconductor factory)

<Annual average temperature>

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In conclusion, Cooling is not just luxury, but utility to survive the heat wave. District

Cooling is an effective way to reduce Greenhouse gases and improve the quality of life.

Korea uses DC for energy conservation and reduction of GH gases. And also Korea government implements the Mandatory use policy and Subsidies. Introducing DC to your Countries may helpful for your national prestige and global environment.

Performance of CO2 saving

0

2000

4000

6000

8000

2011 2012 2013 2014 2015

(tCO2e)

- 14 -

Thank You

TZU-LUNG, TAN

KDHC District Cooling Team

tanz@kdhc.co.kr