The ninth edition of the District Cooling Dialogue (DC Dialogue) Conference, on June 11, in Yas Island, Abu Dhabi, was an opportunity to discuss eclectic topics that explored the impact of District Cooling on climate change mitigation, the technologies available to optimise performance of District Cooling schemes and how they were being applied to existing District Cooling plants, amongst others. The conference also discussed regulation and existential issues.

Chair’s Remarks
George Berbari, CEO, DC PRO Engineering, and Chairman of the conference, in his opening remarks, reflected on the industry’s growth and outlined ambitious plans. He discussed a 10-year plan for making Abu Dhabi carbon-neutral at zero cost to the government. This, he said, would involve transitioning power plants to zero-emission nuclear power and solar power. He also detailed the necessity of retrofitting buildings and redesigning thermal storage systems to adapt to renewable energy, with the aim of transforming Abu Dhabi’s energy infrastructure by 2035. He also proposed innovative solutions for infrastructure challenges, such as Whilst decarbonisation, smart pump technology and energy retrofits came up for discussion, so did the need for a neutral regulatory body and the topic of evolving business models, post-COVID District Cooling holds up a mirror to the industry POST-EVENT REPORT DC Dialogue (9th Edition) Report by Hamna Sheikh, Features Writer, Climate Control Middle East elevated walkways integrated with solar panels.

Addressing the need for setting up more thermal storage facilities, Berbari highlighted their cost-effectiveness compared to batteries. He described thermal storage as essential for integrating District Cooling with renewable energy. He also stressed the importance of advancing hydrogen infrastructure and electric vehicle charging stations to support the future energy landscape. His vision called for a citywide study and collaboration with District Cooling companies to ensure Abu Dhabi’s sustainable energy future.

Plenary Address
James Grinnell, Acting Executive Director, Regulatory and Supervisory Bureau for Electricity and Water (RSB Dubai), speaking after Berbari, highlighted the significant strides Dubai’s District Cooling sector had taken, emphasising energy efficiency, regulatory frameworks and customer service enhancements. Grinnell noted that the sector had seen remarkable progress in energy efficiency, reducing electrical consumption from a baseline of 0.99 kWh/TRh in 2010 to 0.84 kWh/TRh in 2023. Grinnell said, “The efficiency alone contributes 617 GWh of electrical savings to the Dubai’s Demand Side Management Programme.”

Water efficiency had also been a critical focus, with Grinnell pointing out that despite the challenges posed by Dubai’s heat island effect and rising temperatures, the sector had maintained stable water efficiency levels. He emphasised the increased use of recycled water, which had grown from two million cubic metres per year to over eight million cubic metres. He said, “So if you look at recycled water, instead of using potable water for District Cooling applications, a simple estimate gives you somewhere around 116 GWh of savings per year, based on 2023 data.”

Addressing customer service, Grinnell stressed that cooling load density significantly influenced customer costs, more so than the tariff structure itself. He pointed to the variability in cooling load density for residential towers and the impact of tariff structures on customers’ ability to manage their cooling bills. Grinnell noted: “We saw 15-20% savings in demand when metering was introduced in a particular area. I’ve seen these numbers replicated in UK water companies, as well. So having meters installed at the sub-meter level has an impact on customer behaviour.”

Grinnell also detailed the regulatory developments overseen by RSB Dubai, including directives covering customer service, metering billing charges and energy performance. He mentioned that the regulatory regime was continuously evolving to improve sector performance and stakeholder information dissemination. He announced plans to include baseline KPIs, to ensure that cooling providers prioritised excellent customer service. “This is really the key focus that we are trying to look at from the RSB perspective to pivot the attention towards the customer experience and make sure that cooling providers and cooling agents focus on trying to improve the service for their customers in Dubai,” he said.

A call for comprehensive District Cooling integration
Speaking after Grinnell, Dominic McPolin, Former Advisor, Office of the Minister, Bahrain Ministry of Works, drew a vivid picture of the rapid development in Dubai. “What an amazing story we have had here in Dubai!” he said, emphasising the city’s achievements. McPolin recalled how 25 years ago, he was approached by Tabreed, aiming to establish a District Cooling network in urban areas in Bahrain, a venture that had since seen significant innovation and growth. However, he posed two question: “Have we done enough to maximise the benefits of District Cooling? What are the next 25 years going to look like for the industry?”

McPolin urged the audience to consider the future. He pointed to the discrepancy between academic approaches and practical implementation, urging for mechanisms to turn theory into practice. He proposed breaking down integration into three levels: Technical, family and political.

On the technical front, McPolin commended the progress in integrating plants, thermal storage, and TSE (treated sewage effluent. However, he raised concerns about inadequate interconnection of District Cooling systems, questioning the security and redundancy in the current setup. “Is there security of service and interconnection of District Cooling systems?” he asked, highlighting the psychological insecurity customers felt when dependent on a single company. McPolin shared an example from Bahrain, where two District Cooling companies were compelled to interconnect, showcasing the potential benefits of technical integration.

Moving to family integration, McPolin argued that District Cooling should be treated as essential infrastructure, akin to electricity and water systems. He noted the challenges of integrating District Cooling into urban planning and building permits, calling for clear regulations and roadmaps. “District cooling should be treated as if it’s a sewage system,” he said, advocating for the inclusion of District Cooling in major road planning.

The political integration of District Cooling was another critical point in McPolin’s presentation. He underscored the importance of aligning District Cooling initiatives with government policies and regulatory frameworks. He criticised the industry’s fragmented nature, describing it as a collection of corporate voices rather than a unified industry. He called for a shift towards collective action, urging the industry to present a unified front to governments and regulators. “The integration of a private enterprise into government policy needs that regulation,” he emphasised.

McPolin also highlighted the financial benefits of District Cooling, pointing to the savings for governments and developers. However, he stressed the need for regulatory frameworks that ensured these savings were shared with customers, reducing their financial burden. “Share the savings,” he urged, pointing to the current situation, where costs were disproportionately loaded onto customers. McPolin shared his unique interpretation of the ‘DC’ acronym for District Cooling as ‘Decorporatise, Collectivise’, underscoring the necessity to decentralise and collaboratively drive change within the industry.

McPolin reiterated the urgency needed in developing the District Cooling industry to meet challenges. He emphasised the need for independent green credentials and clear implementation roadmaps to integrate District Cooling into urban infrastructure effectively. “Life happens when we are busy making plans,” he said, quoting musical legend, John Lennon of The Beatles fame, underscoring the importance of moving from planning to action. McPolin’s call to action was clear: Integrate technically, embrace District Cooling as a fundamental infrastructure, and align politically to ensure a sustainable and efficient cooling solution.

A need for stronger regulation, innovation
McPolin then sat with Grinnell for a plenary discussion that Berbari moderated. The conversation highlighted the need for a neutral body to oversee District Cooling regulations.

Without such a body in place, McPolin said, the industry could face stagnation. Berbari supported this view by noting the slow pace of new projects in Dubai, which threatened the growth the industry enjoyed in its early years.

Grinnell discussed the evolution of regulatory models since 2014, mentioning the shift towards a “light touch” regulatory approach to maximise investment returns. He noted a significant change in ownership structures, where District Cooling companies no longer maintained perpetual ownership of assets.

McPolin praised the reliability of District Cooling but critiqued the business model, arguing that savings from District Cooling were not sufficiently passed on to customers. He stressed the importance of reflecting these savings in the business model to benefit the government and the public. McPolin also addressed the psychological discomfort customers felt when reliant on private companies for essential services, calling for measures to increase customer confidence.

Berbari raised the issue of customer complaints, which he said, had dropped in numbers, which he added indicated an improvement in acceptance of District Cooling in Dubai. Grinnell said he was pleasantly surprised to hear this. He said that regulatory awareness had grown, which in fact had resulted in more complaints. Efforts were underway to enhance customer service, he said. He emphasised the need for transparent reporting on customer satisfaction to highlight improvements in the system.

The discussion concluded with a consensus on the importance of regulation and innovation for the future of District Cooling. McPolin introduced a formula for change, emphasising that innovation must be paired with application and enforcement to drive meaningful progress. Berbari echoed this sentiment, stressing that data sharing and transparency were crucial for advancing the industry.

The panellists agreed that while the current regulatory framework in the region marked significant progress, there was still much to be done. Continued efforts in regulation, customer engagement and technological innovation, they said, were essential to ensure the sustainable growth of District Cooling.

The Role of HFOs in decarbonising District Cooling
Dr Mohammed Youbi Idrissi, Technical Leader EMEA, Honeywell Refrigerants, then making a techno-commercial presentation on decarbonising District Cooling through the use of HFOs (hydrofluoroolefins) said that they offered a low- and ultra-low Global Warming Potential (GWP) alternative. He highlighted the potential of HFO chillers and pipe insulation in various applications, including supermarkets, buildings, industrial facilities, data centres and residential structures.

Dr Idrissi emphasised that HFO refrigerants, which had a significantly lower GWP compared to traditional HFCs (hydrofluorocarbons), could play a crucial role in reducing carbon emissions in District Cooling systems. He presented data showing that HFOs could achieve up to a 99% reduction in GWP and substantial energy efficiency improvements of 20-40%.

Comparing HFO, especially ZD, he said: “If you take ZD as baseline, we can have similar efficiency compared to R-134a. It can be similar, even better sometimes, depending on the design of the tube itself. For the ZD, we have definitely higher efficiency than 123, and we have reduced for sure the GWP by 94%.”

Further, Dr Idrissi pointed to the environmental benefits of transitioning from water-cooled to air-cooled systems, highlighting significant water savings and reduced CO2 emissions. This shift, he said, was facilitated by advancements in oil-free centrifugal compressors and low-pressure refrigerants, which had the potential for improving energy efficiency and sustainability.

Smart pumping solutions
Speaking after him, Raj Govindarajan, Manager of Building Systems and Solutions (Middle East and Africa), Armstrong Fluid Technology, made a presentation on smart, connected fluid flow solutions for District Cooling.

Govindarajan began by highlighting the persistent challenges in District Cooling systems, particularly the inefficiencies that were being reported owing to the use of outdated technology. He noted that many District Cooling plants still operated with 30-year-old pumps, which lacked the advancements seen in other industries. In his presentation, he stressed the need for innovation and the adoption of new technologies to improve performance and reduce energy consumption.

Govindarajan elaborated on Armstrong’s journey in iteratively developing smart pump technology for over 90 years, now in its fifth generation. The technology, he said, combined mechanical and electronic expertise, heat transfer, fluid flow and demand-based control, enhanced by digitalisation. He said that the smart pump’s ability to monitor performance and provide realtime data was a central theme.

Govindarajan shared real-life examples demonstrating how intelligent pumps adjusted to the demands of the building, providing vital information on flow and efficiency. The smart pumps, he said, used internal sensors to measure flow and head, enabling operators to make informed decisions and optimise system performance.

Govindarajan presented various case studies, showcasing the practical applications of the smart pumps. He mentioned that in one instance, a District Cooling plant was able to improve efficiency from 60% to 90% by operating two pumps at their best efficiency points, leading to substantial energy savings. His presentation included examples from the Middle East and South Africa, where intelligent pumps were being used in condenser and chilled water systems to achieve better performance with less energy.

His presentation also touched on the maintenance and reliability benefits of smart pumps. Govindarajan compared traditional pumps’ extensive maintenance requirements with the quick, efficient maintenance possible with smart pumps. He highlighted the design innovations, such as rigid slit couplings and the elimination of onsite alignment, which reduced downtime and improved reliability.

Govindarajan concluded by emphasising the critical role of embracing new technologies in achieving high performance and sustainability in District Cooling systems. He called on industry stakeholders to lead the change and adopt intelligent pump solutions to realise their full potential.

Retrofitting District Cooling Plants
Omnia Halawani, Co-Founder & CoCEO, GRFN Global, then made a presentation in which she showcased profiles of successful District Cooling energy-retrofit projects.

Halawani began her presentation by engaging the audience in a brief survey on District Cooling’s role in citywide energy conservation, setting the stage for a detailed exploration of the retrofit advantages in District Cooling Plants (DCPs). She explained that DCPs had substantial potential for successful energy retrofits due to performance monitoring and industrial control systems. Unlike regular buildings, she said, DCPs maintained detailed hourly log sheets and trend setups within SCADA systems, which provided data for performance analysis. She said that the operators of these plants were typically more knowledgeable and informed, further facilitating effective energy retrofits. Halawani said: “So, with retrofit of existing plants or operational plants, the opportunities are many. You get to reduce your water consumption, electricity consumption and, of course, utility bills. To optimise your costs, you can have the savings saved, and you can increase the plant profitability, as well as increase the value of the property via replacements and increasing the effective lifetime.”

Halawani emphasised that the efficiency of DCPs was measured using the Annual Chilled Water Plant Efficiency formula, which considered all components, such as chillers, cooling towers and pumps. She explained that inefficiencies in DCPs often stemmed from factors like the Low Delta T Syndrome, performance risks for chilled water pumps, and system-level inefficiencies, including off-peak system performance and lack of continuous optimisation.

Speaking on the vital role of ESCOs, Halawani said: “You can have shared savings and guaranteed savings; those are the two most known. In shared savings, you can have the escrow contractor finance the whole project for you, and they get paid out of the savings, so they share this. And then, you have the guaranteed savings, where the owner of the plant or the building finances the project. And then in return, the escrow contractor will give them a guarantee on the promised savings. And then you have a core investment, which is a mixed escrow. You guarantee part of whatever the client has financed, and you share the savings on the other end.”

Moving on to the retrofit process, Halawani explained the stages involved, starting with a preliminary assessment and walkthrough audits, followed by investment-grade audits that involved detailed measurements and, sometimes, energy modelling. She said that these audits helped identify energy-conservation measures (ECMs) that could significantly enhance plant efficiency. She noted that the process in DCPs was often smoother compared to regular buildings due to the availability of established benchmarks and the comprehensive data already collected by these plants.

Halawani also addressed the common challenges perceived in retrofitting DCPs, such as concerns relating to operational disruptions, structured processes, financing, and potential conflicts between clients and contractors. She explained that the ESCO model, including shared savings and guaranteed savings contracts, was a well-established approach to overcoming these challenges. She detailed how ESCOs could finance projects and share savings with clients or guarantee savings in return for client-financed projects, ensuring that performance targets were met.

Halawani underscored the crucial role of measurement and verification for managing project risks, providing feedback on implemented measures and facilitating financing. Halawani explained the principles of measurement and verification, emphasising accuracy, completeness, conservatism and consistency. She outlined the International Performance Measurement and Verification Protocol (IPMVP), which she said provided standardised methods for calculating energy savings, ensuring that the retrofit projects delivered the promised outcomes.

Energy consultants, Halawani highlighted, played a pivotal role in the success of retrofit projects. It was important for consultants to be unbiased advisors, ensuring that the projects were designed and implemented effectively, maximising savings and minimising risks, she said. Consultants helped in managing tenders, offering insights on technical and commercial aspects and in verifying the actual savings achieved, thus benefiting project owners and ESCOs, she said.

To illustrate the practical benefits of retrofitting DCPs, Halawani cited successful projects in Abu Dhabi and Dubai. These projects, she said, involved various ECMs, including equipment replacements, refurbishments and operational optimisation measures, resulting in significant energy savings and improved plant efficiency. For instance, she said, a project in Abu Dhabi achieved over 22% energy savings and reduced the plant’s energy consumption from 1.1 to 0.75 kW/TR, demonstrating the substantial impact of well-executed retrofits.

In conclusion, Halawani highlighted the immense potential and advantages of retrofitting DCPs. She emphasised that with the right processes, tools and expertise, the plants would be able to achieve significant energy efficiency improvements, cost savings and enhanced operational performance, contributing to broader sustainability goals and market competitiveness.

DCP inside a basement
Guillermo Martinez, Commercial Director at Araner, then presented on the benefits and challenges of integrating a DCP inside the basement of a large mall. Martinez delved into the intricacies of the Avenues Riyadh project, a massive undertaking by Araner. The project, he said, encompassed an area of approximately 390,000 square metres, with a total building area of 1.8 million square metres. He said that the development, which would be the largest mall in Saudi Arabia, would feature five luxury towers designated for hotels, residential apartments, medical clinics and offices. The highlight of the development, he said, was its DCP, designed to provide efficient cooling solutions to all consumers within the complex.

Martinez said the DCP would have a total cooling capacity of 40,000 Tons of Refrigeration (TR), with chillers providing 28,000 TR and a TES tank contributing an additional 12,000 TR. The plant, he said, would feature centrifugal chillers paired with cooling towers, all integrated into the mall’s basement. He said the design choice not only maximised land use but also reduced visual impact, a crucial consideration for modern urban developments.

Martinez emphasised the innovative aspects of the project, particularly the use of a concrete TES tank with an irregular shape to fit within the confined basement space. The tank, he said, would have a peak discharge capacity of 12,000 TR and would be able to store 66,000 TR-hours of energy, utilising 26,280 cubic metres of water. He said that the integration of such a significant energy storage solution within the mall’s basement presented unique engineering challenges but also offered substantial benefits in terms of land and cost savings.

One of the primary challenges of the project, Martinez said, was the need for full coordination among all stakeholders involved in it. This, he said, included designers, contractors, and operators of the mall as well as the DCP. He said that accessing the site with large equipment, managing height limitations and adapting to ongoing design changes during construction were significant hurdles that the team successfully navigated. The project’s success, he said, depended heavily on the collaboration and commitment of all parties to overcome the challenges.

Martinez said the DCP was expected to achieve a total energy consumption of 0.7 kW per TR, making it one of the most efficient plants, globally. The use of vertical in-line pumps and carefully designed cooling towers, placed on the mall’s roof, further exemplified the project’s attention to detail and commitment to efficiency, he said.

Martinez concluded his presentation by highlighting the potential advantages of integrating DCPs within existing facilities, despite the inherent challenges. The Avenues Riyadh project, he said, served as a testament to what could be achieved through innovative engineering and meticulous planning.

Existential issues
After Martinez’s presentation, Berbari gathered a set of stakeholders to discuss existential issues relating to District Cooling. Halawani and Martinez were two of the panellists. The others were V Sekhar Reddy, Managing Director, Lexzander; Prakasha Rudrappa, Vice President Engineering, AG Engineering; and Suresh Kumar, Head – International Operations Business Group, Voltas Limited.

Berbari opened the session by highlighting the vital role of District Cooling in achieving netzero emissions and posed critical questions to the panellists. He began by addressing Suresh Kumar about the industry’s efforts towards netzero and the integration of District Cooling. Suresh Kumar elaborated on the challenges faced whilst working on a particular project for Emaar, emphasising the logistical complexities that were only exacerbated by the COVID-19 pandemic. “Integrating multiple electromechanical components from different locations into a single unit required extensive coordination,” he said.

Turning to Rudrappa, Berbari inquired about the Zabeel project, which had earned renown for its impressive efficiency rating of 0.7kW/ TR. Rudrappa attributed the success to the engineering autonomy granted by Empower. “We were given the freedom to make the right engineering decisions, which helped us in completing the project on time,” he said.

The discussion then shifted to the broader challenges facing the District Cooling industry. Berbari questioned Omnia Halawani about the industry’s perceived stagnation and the barriers to achieving its full potential. Halawani pointed out that reliance on conventional energy sources and insufficient regulatory measures were significant hurdles. “While the UAE market is ambitious in its targets, the regulatory landscape needs to evolve to support more widespread adoption of District Cooling,” she said. “But what we see here are ambitious targets but not sufficient budgets that fall into place.”

Martinez, echoing Halawani, highlighted financial pressures within the industry, stressing that cost often trumps quality in clients’ decisionmaking processes. He said, “The owners are not ready to pay more for quality, for engineering.

Reddy, weighing in, spoke of the significant financial risks involved in District Cooling projects. He noted that while the projects likely represented a substantial portion of a company’s turnover, the associated risks could be daunting. “District cooling projects can account for up to 20% of our turnover, but the technical and financial risks involved are substantial, often exceeding 30%,” Reddy said. “If you convert into profit-making, there’s a problem. That’s what we have to look at. They need to show profits. But at the same time, they should look at their social responsibility towards the country and to the residents.”

Berbari highlighted the necessity for regulations that mandated District Cooling options for developers and the role of government subsidies in making sustainable District Cooling more viable. The panellists agreed on the importance of integrating District Cooling into urban planning using top-down as well as bottomup approaches. This would include ensuring that designers and contractors met stringent qualifications to maintain project quality and efficiency. Berbari summed up the discussion by emphasising the role of specialised District Cooling contractors in achieving successful outcomes, citing various case studies as evidence of their effectiveness.