INGENIEUR
FEATURE
District Cooling Systems
Industry: Is Regulatory
Framework the Answer?
By Ir. Arul Hisham bin Abdul Rahim, AHAR Consultants
Since the mid-1990s, district cooling (DC)
systems have gained popularity in many
commercial developments as well as in
public institutions. Whilst the primary
attraction of DC is to reduce energy costs,
these developments also develop an
energy services industry.
Various DC system owners/operators
have different engineering and operational
standards which create much confusion
among users. Some detractors claim
that these requirements are impractical
and impose unilateral conditions for
customers. These conditions of service
have resulted in additional financial
burdens for customers. In addition, these
operators have varying tariffs which
further complicate the market. These
factors have created misunderstanding
(or so-called “disconnect”) between DC
system operators and users which creates
ill-feelings and mistrust.
Whilst there are many “bona-fide”
established operators who strive to
provide a valuable cooling service to the
customers, there are also many newbies
who enter the industry without having a full
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VOL 55 JUNE 2013
understanding of the intricacies of the DC
market. In addition, some pseudo district
cooling consultants take advantage of the
varying complexity of DC market further
adding to the confusion.
There are many DC systems that are
successful and profitable; however, there
are also some which fall far short of
expectation. This article deals with some
of issues commonly encountered in the
development of a DC business. Also, the
article looks into key potential elements
for a regulatory framework for the DC
industry.