Ingenieur Vol 62 April-June 2015 Ingenieur Vol 62 April-June 2015 | Page 64

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 6 62 VOL 62 APRIL – JUNE 2015 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.