Rest of GCC
Qatar
15.0%; 4%
37.9%; 10%
Saudi Arabia
107.0%; 27%
229.3%; 59%
UAE
1.00; 26%
0.65; 17%
Other DC
Operator
s
0.96; 25%
0.34; 9%
265,050
142,000
25,000 36,000
2015
2016
2017
Market Drivers
1-2years
Cost and energy efficiency
advantage over
conventional cooling
3-5
years
6-10
years
High
Medium
Impact on
Thermal based
cooling
The regions infrastructure developments are fuelling the demand for cooling
solutions. The market is poised to accept new and efficient technologies to reduce
energy consumption across any consumption source, and government led initiatives
would facilitate this over the long term. We are of the opinion that the Dubai
Integrated Energy Strategy and KSAs 10th Development Plan (2015 2019) could be
drivers.
However, DC operators are currently depending on other alternative methods of
energy savings for peak-shaving, such as Thermal Energy Storage (TES). This is seen
as an alternative that could reduce the potential demand for thermal based solutions
which would compliment an existing centrifugal chiller system.
DC systems provide higher energy and cost efficiency than conventional systems. This
savings benefit is what has led to the success in adoption of DC in the region. We see
this as a key factor that could further contribute towards thermal based solutions if a
Market Restraints
1-2years
Inability to capitalize on
retrofit opportunities
3-5
years
6-10
years
High
Medium
Impact on
Thermal based
cooling
Dependence on cooling
density
Low electricity tariffs in
the GCC
Risk of early investment and
slowing down of
government spending
DC market in the region is at cross roads between scaling-up and increasing energy
efficiencies. We have seen instances in the GCC where the DC operators have not been
able to efficiently connect buildings to their networks mainly because of non-aggregated
developmental plans. This has hampered the growth and expansion of district cooling in
the region. We see thermal assisted cooling as an opportunity/ driver for DC plants to
look at marginally reducing their dependence on cooling density to operate efficiently.
Low electricity tariffs have been one of the other big hurdles to the DC market. These
have continued to support the case for conventional cooling , presenting low capital
investment and no dependence on cooling density. With tariffs now witnessing a removal
of subsidies, we see a potential upswing in the market
A potential slowdown in government spending could also present a threat
Source: to
Frostdistrict
& Sullivan analysis
cooling, given its high upfront capital cost. However, this needs to be observed longer for 6
District
Cooling
projects for
large single
segments
such as
airports,
universities
Constructi
on and
O&M
services
Consultants
Design &
technical
specifications,
Project
management
Universities,
Airports
DC Operators
Cooling services
agreement
DC
Consultants
Atkins
DC PRO Engineering
Crown Engineering
Consultancy
Allied Consultants
Mott MacDonald
AECOM
Ramboll
Stanley Consultants
Pal Technologies
Parsons Corporation
Hyder Consulting
ADPI Designers &
Planners
CV Tec Consulting
Engineers
Fittons Engineering
Consultancy L.L.C.
Suhaimi
DesignProtecooling
DC
Contractors
Drake & Scull
International
Samsung Engineering
Kharafi
Shinryo Corporation
ETA Ascon
Saudi Binladin Group
ADC Energy Systems
Arabian Bemco
Contracting
Stellar
TAS
SNC Lavalin
Hyundai E&C