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Dubai: The Middle East district cooling market is set to grow up to $30 billion (Dh110.1 billion) in ten years, according to research conducted by Middle East Business Intelligence (MEED).
Experts who participated in a conference on district cooling yesterday felt that as governments strive to become more sustainable and deal with increasing energy prices, district cooling has become essential for all new projects.
"With more than $2 trillion worth of projects underway in the region, there has never been a greater need for efficient air cooling systems," said Edmund Sullivan, chairman of MEED.
The green initiative of the UAE Government is set to propel efficient and eco-friendly solutions such as district cooling.
District cooling services significantly reduce both energy costs and the environment impact by reducing the amount of power required and increasing efficiency.
Adib Moubadder, acting general manager of Emicool, said the importance of district cooling correlates with the construction boom.
Energy requirements
Studies show that district cooling systems consume 40-50 per cent less energy than traditional air conditioning technologies. As a result, the technology is prominent in reducing power supply needs for the region, especially in the construction sector.
Luke Nickerman, energy analyst at International Energy Agency, said: "We are facing an urgent set of energy challenges including rampant energy growth and environmental challenge to reduce emissions."
On encouraging buildings to adopt district cooling, Ahmad Bin Sharaf, chief executive of Emirates Central Cooling Systems Corporation (Empower), said master planners should consider the long-term costs of utilities and how much they could save by using district cooling. "There is a 30-40 per cent saving on electricity bills with district cooling."
Shafiq M. Khoori, managing director of Palm District Cooling, said though more companies are adopting district cooling now owing to its many benefits, there are challenges that need to be addressed.
Karl E. Marietta, deputy chief executive of Tabreed, said the adoption of energy-saving methods in the region has picked up. However, the number of buildings with district cooling is small and there are still a lot of inefficient buildings in Dubai.
The participants also discussed the challenges being faced by the district cooling industry. They cited the issues of infrastructure support needed for all utilities and financial support.
Marietta said the slab tariff placed by Dubai Electricity and Water Authority (Dewa) is encouraging for the industry.
Procedure: Centralised production
District cooling is the centralised production and distribution of cooling energy. Special units in office, residential and industrial buildings use chilled water, which has been distributed through underground water ducts, to lower the temperature of air passing through the building's conditioning system.
Electricity demand across the Gulf region is projected to grow between 5-12 per cent annually.
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