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District Cooling and carbon neutrality

The 7th Edition of DC Dialogue provides an opportunity to bolster the case for District Cooling as complementing efforts at achieving carbon neutrality, facilitates the comparing of notes on regulation, and gives a platform for the sharing of developer, technological solution provider and contractor perspectives. Indu Revikumar, Features Writer, Climate Control Middle East, has the story…

  • By Content Team |
  • Published: June 26, 2023
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George Berbari, CEO, DC PRO Engineering, yet again called for linking District Cooling to efforts aimed at decarbonising our cities. Giving the opening remarks as Conference Chair during the 7th Edition of DC Dialogue, on June 6, in Dubai, Berbari emphasised the crucial role efficient and resilient cooling and heating technologies can play in helping cities achieve carbon neutrality. And the most effective technologies, he said, in this regard are those that are linked to renewable energy sources, such as solar and wind.

Broadly speaking, Berbari highlighted the importance of renewable energy, storage technologies and building retrofitting in attaining carbon neutrality. He spoke of how battery thermal storage systems could enhance operational efficiency, reduce water consumption and help avoid design modifications in renewable energy systems.

Berbari underlined Abu Dhabi’s endeavours in achieving carbon neutrality as a noteworthy example. He spoke of the energy production and demand imbalance in Abu Dhabi, highlighting the importance of retrofitting buildings to improve insulation and glazing. “In Abu Dhabi during the months of May and June,” he said, “the solar energy production is inadequate to meet the cooling demands, which poses a challenge for the government. However, in January, there is an excess of solar energy that could be potentially exported.”

He proposed establishing a public company to tackle the challenges in energy distribution and production. He said that the issue of surplus capacity could be effectively addressed by creating a comprehensive network, capable of efficiently distributing energy throughout the city. “This public company would require significant capital and could potentially form partnerships with other entities to generate revenue through efficient distribution,” he said. Berbari emphasised the importance of obtaining high-level authority approval and support from government officials to ensure the success of sustainability and energy-efficiency initiatives. He also expressed optimism about the future potential of Abu Dhabi in leading the energy transition.

James Grinnell, Acting Executive Director, Regulatory & Supervisory Bureau for Water & Electricity (RSB Dubai), speaking after Berbari, gave a Dubai perspective on District Cooling. In his Keynote Address on Dubai’s District Cooling-specific regulations, Grinnell echoed Berbari’s perspective on integrating solar capacity with District Cooling.

Grinnell highlighted the achievements of Dubai’s Independent Water and Power Producer (IWPP) programme, which he said has attracted over 14 billion euros of investment and made remarkable advancements in solar power generation. Grinnell also discussed Dubai’s progress in the District Cooling sector over the past five years, emphasising that District Cooling accounted for 24% of the market share in 2022. He said the RSB’s District Cooling regulations aim to enhance the efficiency of District Cooling systems, reduce energy consumption and encourage the utilisation of sustainable power sources, such as solar energy. “The goal is to achieve sustainable and environmentally responsible cooling in Dubai, with a service-centered sector that provides value for money to customers and attractive investment opportunities,” he added.

Grinnell also discussed the various regulatory documents issued in recent times, which cover different aspects of the cooling sector. He noted that these regulations have provided clarity for customers and improved investor confidence. However, he acknowledged that there have been challenges, such as complaints regarding late payment charges.

While the regulations have demonstrated positive outcomes, including significant improvements in the energy performance of the sector, Grinnell highlighted that they have also identified areas that require further improvement and potential modifications to the regulations. He added that excess capacity in Dubai’s cooling infrastructure would be addressed, and penalties and fines would be implemented to ensure market integrity. “The goal is to maintain a growing and efficient cooling market that offers environmentally responsible cooling options for customers,” he said.

For his part, Dominic McPolin, Advisor, Office of The Minister, Bahrain Ministry of Works, provided an overview of the District Cooling sector in Bahrain, highlighting the recent changes and developments in the sustainability and energy sector. He mentioned that the government of Bahrain has taken several initiatives in this regard. McPolin said: “The government has established the Ministry of Sustainability, which oversees and promotes sustainable practices across all industries. The Sustainable Energy Authority has been disbanded and integrated into the Electricity and Water Authority, specifically within the Minister’s office. Furthermore, a new Directorate of District Cooling has been created, and there has been a rebranding of the oil & gas industry, focusing on renewable energy and other related areas.”

Expanding on the changes and developments in Bahrain, McPolin highlighted the efforts of the Ministry of Oil and Environment to reconcile the realities of the oil-based economy with the need to address environmental concerns and to transition towards a post-oil economy. He said, “The government recognises the significance of District Cooling and its integration into the national energy strategy.”

McPolin further explained the different approaches to implementing District Cooling in Bahrain. “One is a top-down approach involving government regulations and financial interventions to promote and support District Cooling projects,” he said. “A bottom-up approach focuses on engaging businesses and consumers to encourage their participation and adoption of District Cooling systems.”

McPolin also provided insights into the challenges faced by the District Cooling industry in Bahrain, particularly in finding a balance between protecting the interests of providers and ensuring that cost savings are passed on to customers. He emphasised the need for governments, developers and investors to contribute financially to drive change and ensure that the savings achieved are reflected in reduced tariffs for consumers. Furthermore, McPolin discussed various measures Bahrain has taken to create a more sustainable and customer-centric District Cooling industry. These measures, he said, include sharing electrical savings with developers, reducing electricity tariffs for District Cooling companies, eliminating government land lease costs, and promoting flexibility in capacity charges. He also noted that the government is actively engaged in discussions with District Cooling companies and stakeholders to address these challenges and work towards a more sustainable and efficient District Cooling system.

Whilst McPolin shared an overview of the initiatives in one of the countries in the GCC region, Larbi Behloul, Head of Facilities Management, Dubai Developments, presented a developer’s perspective of District Cooling, with an emphasis on several fiscal issues and challenges associated with District Cooling. Behloul emphasised that the decision to build a plant room or utilise an existing District Cooling provider depends on space availability and design considerations. He also highlighted that energy efficiency is a significant concern, and proper facility management and maintenance are crucial for ensuring operational efficiency. Behloul, further said contracts should include Key Performance Indicators and Service Level Agreements, to hold District Cooling providers accountable for their performance. He stressed the importance of establishing effective communication channels between developers and providers. Additionally, he said, implementing smart metering could provide real-time consumption data, which is valuable for monitoring and optimising energy usage in District Cooling systems.

Elaborating on the fiscal issues and challenges, Behloul highlighted that Low Delta T Syndrome and improper heat-loss calculations are challenges that require specialised consultants and proper equipment sizing. He added that various MEP innovations have been incorporated to address these issues. “Talent development, including hiring of qualified mechanical engineers to enhance internal expertise, and the integration of technology, such as building management systems and custom systems, has resulted in significant cost savings for the projects I have been involved in,” he said.

Behloul emphasised the need to focus on comfort, proper design, operation, maintenance, accurate studies, and compliance with government regulations. “By prioritising these factors, the overall success and sustainability of District Cooling initiatives can be ensured,” he said.

Rami Mahamdeh, Technical Manager, GRFN Global, contributed to the discussion by delivering a presentation on energy simulation in District Cooling plants. He highlighted how energy simulation can be used to optimise energy performance and work towards achieving an efficiency of 0.842 kW/TR by 2030.

Mahamdeh’s presentation covered several important topics, including building geometry and plant-only modelling. He emphasised the significance of considering cooling-load profiles and the role of energy modelling in optimising the performance of existing cooling plants, retrofitting equipment, and designing new District Cooling plants. He said, “We can enhance performance, feasibility, and cost-effectiveness by utilising simulation and modelling techniques for existing plants, retrofitting equipment and designing new cooling systems.

Further, Mahamdeh discussed the implementation of a digital twin in District Cooling plants. He said: “A digital twin is a realistic digital representation of assets, processes or systems in the built or natural environment. Moreover, it could be used to describe how data from physical assets can be compared with simulated data to identify performance gaps and optimise operations.” He added that predictive maintenance and energy-saving opportunities were mentioned as potential benefits of live simulation and modelling. In a nutshell, his presentation explored the use of energy simulation and optimisation techniques in District Cooling plants, emphasising the importance of accurate 3D modelling, data analysis, and performance improvement across various stages of implementation and operation in District Cooling plants.

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