This document discusses district cooling services in the GCC region. It provides background on district cooling, including its history in North America and Europe. It then discusses the growth of district cooling in the GCC, forecasting a need for 2 million refrigerant tons of cooling capacity for new construction projects over the next 8-10 years. The document analyzes the benefits of district cooling systems over individual building cooling systems, such as improved reliability and reduced energy usage. It also provides several case studies comparing the capital and operating costs of district cooling versus other cooling solutions. The analysis shows that district cooling can be economically viable for large developments if capital costs are optimized and utilities such as treated seawater are consistently available.

1. DISTRICT COOLING SERVICE
A Myth OR Reality?
Why, What, How & When…
Jaygopal Kottilil
Senior Manager (MEP Engineering)
Doha
25th February 2015

2. District Cooling ‐ History
• District Cooling Service (DCS) came into GCC beginning of 2000.
• DCS has been in existence in North America and Europe much earlier.

3. District Cooling in GCC – Giant awakening!

4. Cooling Forecast
• $400b for building
construction in GCC in
coming 8‐10 years!!!
• What does it mean for
cooling?
• 2,000,000 Refrigerant
Tons has to be
produced…

5. Electricity Usage n Qatar

6. Electricity Usage in Buildings

7. District Cooling ‐ Why?
• High service reliability (around 99.94%)
• Greatly reduces M&E spaces inside buildings
• Considerably lowers total installed TR as a result of multiple
diversity factors
• Significantly lesser total connected, consumed and peak power
demand
• Smaller power distribution network infrastructure
• Provides opportunity for phased development
• Reduced power generation cost
• Conserves hydrocarbon reserves
• Supports national economy growth

8. District Cooling in Qatar
• West Bay (118,000 TR)
• The Pearl (130,000 TR)
• Education City (150,000 TR)
• Barwa City & Commercial Avenue ( 38,000 TR)
• Qatar Petroleum District (20,000 TR)
• Musheireb (30,000 TR)
• LUSAIL City ( 350,000 TR)
• Qatar Rail???

9. What is District Cooling?

10. What is in a DCP?

11. Outside DCP – CHW Reticulation

12. Factors influencing DCS decision
 Investment’s CAPEX & OPEX
 Investment’s Life Cycle Cost
 Phased Expansion Capability
 End User TARIFF ‐ Is it lucrative?

13. RULE OF THUMB

14. CAPITAL CONSIDERATIONS
• Plant & Equipment Cost
• Chilled Water Reticulation Piping Network
• Electrical Infrastructure Cost
• Civil Work Cost

15. OPERATING CONSIDERATIONS
• Maintenance cost
• Electricity cost
• Water cost (TSE and/or Sea Water)
• TSE ‐ Availability, Further treatment
• Sea Water ‐ Further treatment, Intake/Discharge
• Sea Water ‐ MOE Permission critical

16. PHASED EXPANSION
• Incremental Expansion Capability
• Reliability of Power
• Reliability of TSE
• Zoning of sea water intake/discharge zone

17. CASE STUDY
• LAND OF GROSS AREA 200,000 m2
• BUILT‐UP AREA OF 100,000 m2 (FAR=0.50)
• RESIDENTIAL & COMMERCIAL DEVELOPMENT
• DO WE INVEST IN DCP or NOT…

18. COMPARISON ‐ TECHNICAL
AIR COOLED SPLIT AC 200,000 100,000 15 6,667 33,333 1.80 12,000 12
AIR COOLED VRF AC 200,000 100,000 20 5,000 25,000 1.50 7,500 15
AIR COOLED CHILLERS 200,000 100,000 25 4,000 20,000 1.70 6,800 20
WATER COOLED CHILLERS 200,000 100,000 25 4,000 20,000 1.20 4,800 25
DISTRICT COOLING 200,000 100,000 30 3,333 16,667 1.00 3,333 30
(KW)
Type
(TR/km2) (KW)
Gross
Leasable
BUA
(NLA)
Installed
Cooling
Cap.
Plant
Life
Cooling
Density
(m2) (TR) (Years)
Gross
Land Area
(m2)
Cooling
Rate
(m2/TR)
Elect.
Power
per TR
Elect.
Load

19. COMPARISON ‐ CAPACITY

20. COMPARISON ‐ CAPEX
AIR COOLED SPLIT AC 6,667 12,000 23,333,333 24,000,000 47,333,333
AIR COOLED VRF AC 5,000 7,500 37,500,000 15,000,000 52,500,000
AIR COOLED CHILLERS 4,000 6,800 40,000,000 13,600,000 53,600,000
WATER COOLED CHILLERS 4,000 4,800 50,000,000 9,600,000 59,600,000
DISTRICT COOLING 3,333 3,333 50,000,000 6,666,667 56,666,667
(KW)
Type
First CAPEX
Elect.
(QAR)
First CAPEX
(AC + Elect.)
(QAR)(QAR)
Installed
Cooling
Cap.
(TR)
Elect.
Load
First CAPEX
AC

21. COMPARISON – CAPEX (AC)

22. COMPARISON – CAPEX (ELECT POWER)

23. COMPARISON – CAPEX (ELECT POWER)

24. COMPARISON ‐ OPEX
AIR COOLED SPLIT AC 6,667 8% 1,866,667 1.80 NA 0.14 NA 0.25 - 0.25 3,500 5,880,000 7,746,667
AIR COOLED VRF AC 5,000 5% 1,875,000 1.50 NA 0.14 NA 0.21 - 0.21 3,500 3,675,000 5,550,000
AIR COOLED CHILLERS 4,000 3% 1,200,000 1.70 NA 0.14 NA 0.24 - 0.24 3,500 3,332,000 4,532,000
WATER COOLED CHILLERS 4,000 4% 2,000,000 1.20 0.0121 0.14 1.000 0.17 0.01 0.18 3,500 2,521,400 4,521,400
DISTRICT COOLING 3,333 2% 1,000,000 1.00 0.0121 0.14 1.000 0.14 0.01 0.15 3,500 1,774,500 2,774,500
Type
Maintenance
Cost PA
(% of CAPEX)
Maint. Cost PA
(QAR) (QAR)(hours) (QAR)
(QAR /
TR.HR)
(QAR/KWH) (QAR/CUM)
(QAR /
TR.HR)
(QAR /
TR.HR)
(KW) (CUM)
Installed
Cooling
Cap.
(TR)
OPEX PA
Elect.
Consum.
per TR
Water
Consum.
per TR
Utility Tariffs Cooling Energy Tariff Cooling
Energy Cost
PAElect. Water Elect. Water Total
Full Load
Hours PA

25. COMPARISON ‐ OPEX

26. CASE STUDY ‐ NPV
• Interest Rate = 4.00%
• Inflation = 0.50%
AIR COOLED SPLIT AC 200,000 100,000 6,667 33,333 12,000 12 47,333,333 7,746,667 172,214,026.48
AIR COOLED VRF AC 200,000 100,000 5,000 25,000 7,500 15 52,500,000 5,550,000 174,311,517.67
AIR COOLED CHILLERS 200,000 100,000 4,000 20,000 6,800 20 53,600,000 4,532,000 136,719,297.95
WATER COOLED CHILLERS 200,000 100,000 4,000 20,000 4,800 25 59,600,000 4,521,400 157,553,606.33
DISTRICT COOLING 200,000 100,000 3,333 16,667 3,333 30 56,666,667 2,774,500 107,552,476.94
Type
First CAPEX
(AC + Elect.)
(QAR)(TR/km2)
Gross
Leasable
BUA
(NLA)
Installed
Cooling
Cap.
Plant
Life
Cooling
Density
(m2) (TR)
30-year NPV
(QAR)(QAR)(Years)
Gross
Land Area
(m2)
Installed
Elect.
Load
(KW)
OPEX PA

27. CASE STUDY ‐ NPV

28. COMPARISON ‐ MONTHLY COOLING ENERGY BILL
AIR COOLED SPLIT AC 6,667 7,746,667 6.46 3.93 10.38
AIR COOLED VRF AC 5,000 5,550,000 4.63 3.96 8.58
AIR COOLED CHILLERS 4,000 4,532,000 3.78 3.72 7.50
WATER COOLED CHILLERS 4,000 4,521,400 3.77 4.47 8.24
DISTRICT COOLING 3,333 2,774,500 2.31 3.15 5.46
Type
Capacity charge
(CAPEX recovery
over 30 years)
(QAR/m2. PM)(QAR/m2)
Total
(QAR/m2)
Monthly cooling
energy charge
(QAR)
Installed
Cooling
Cap.
(TR)
OPEX PA

29. COMPARISON ‐ COOLING ENERGY CONSUMPTION CHARGE

30. COMPARISON ‐ COOLING CAPACITY CHARGE

31. COMPARISON ‐ COOLING CAPACITY CHARGE

32. INFERENCES
• DCS is economically viable for a large development, but…
• CAPEX MUST be optimized; limit CAPEX below QAR 20K per TR,
preferably QAR 15K per TR
• TSE should be available consistently
• If Sea Water, MOE permission to be secured in advance
• If DCS provider is contracted, fix END‐USER charges in advance
• If investment is directly by the owner, monitor and control DC
operator services

33. Advanced Thoughts ‐ Cogeneration
• Countries geographically
situated in northern
hemisphere employs co‐
generation to meet
urban utility needs.
• Combined Heat & Power
(CHP) Plant

35. GOLDEN RULES…

36. MISSION ‐ MAKE DCS CONSUMER FRIENDLY…

37. VISION ‐ CONTRIBUTE TOWARDS SAVING & SUSTAINING
OUR PLANET…