Saudi-European Parliamentary Friendship Committee discusses cooperation during Strasbourg visit    Diriyah to host third IMFC Deputies meeting under Saudi chairmanship    15,135 decisions taken to penalize Saudis and expats for violations    Saudi stock market loses half a trillion riyals, with Aramco's losses amounting to SR340 billion Tariff turmoil rattles Gulf markets    KAU to host Digital Communication Conference in Jeddah from April 29 to May 1    TGA: Riyadh tops with 45% of 290 million orders delivered in 2024    Aja and Salma mountains draw nature lovers to Hail's rugged landscapes    US revokes all visas for South Sudanese nationals over deportation dispute    Death toll from Myanmar earthquake rises to 3,471    Macron to hold Gaza summit with Egypt and Jordan in Cairo    Benzema rescues Al Ittihad with stoppage-time equalizer in thrilling Jeddah Derby    Al Qadsiah and Al Ettifaq share spoils in tense Eastern Derby stalemate    Moussa Diaby praises Al Ittihad's resilience after Jeddah Derby draw "When you can't win, you take a point"    Saudi assistant referee Iman Al Madani joins AFC elite list for 2025    Riyadh Art Week launches with over 50 galleries showcasing global artistic dialogue    Turki Al-Sheikh announces five new Saudi film projects to be produced in Riyadh    Saudi Ministry of Education to showcase innovations at 2025 Geneva International Exhibition    Ed Sheeran weaves Persian music into new song, Azizam    Al-Jadaan: Crown Prince's directives confirm government's ability to bring back balance to real estate market    Veteran Bollywood actor Manoj Kumar dies at 87    Screen time in bed linked to insomnia, study finds    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



High costs of power propel ME district cooling market
By Saudi Gazette Staff
Published in The Saudi Gazette on 02 - 07 - 2009

In a region where the temperature frequently exceeds 45 degree Celsius and air-conditioning requirements consume 70 percent of the power during peak electricity demand, district cooling is emerging as the most viable cooling solution in the Middle East.
As power shortage is rampant in this region, the governments are turning to district cooling to cool buildings, as it is a less expensive and greener alternative to air conditioning. This solution can not only mitigate the power crisis in the Gulf Cooperation Council (GCC) region, but also help reduce carbon footprints through increased energy efficiency and lower CO2 emissions.
With greater involvement of the government, the market is expected to become more organized, populated, and competitive. Multinational companies will be attracted to this market due to the prospects presented by the investor-friendly laws, improved standards of living, and high disposable income, which has set off a retail boom in the region.
With the GCC becoming home to the biggest shopping malls in the world, there is a distinct need for district cooling in not only the residential sector, but also the commercial sector. The United Arab Emirates alone is expecting to have 80 million sq. ft of office space by 2010, widening the scope for district cooling companies.
“The market is also expected to benefit from the environment-consciousness of governments, high oil prices, abundance of energy, a construction boom, and harsh climatic conditions,” the Frost & Sullivan research service titled “Analysis of the District Cooling Market in the Middle East Region” said.
Among all Middle Eastern countries, Saudi Arabia is perceived to have the most untapped potential, with more than $100 billion worth construction projects underway. Its rapidly expanding industrial base and population have increased the demand for power, which averages an annual growth rate of nearly 5 percent.
The rising air conditioning needs account for almost 70 percent of this growth in power demand. By 2013, the district cooling market is expected to have an additional capacity of 4.5 million tonnage of refrigeration (TR), mainly contributed by Saudi Arabia and Qatar. “Although there is a continuous rise in the demand for power in almost all GCC member countries, power is still provided at subsidized rates for the residential sector,” notes the analyst. “This puts a huge drain on the region's utilities, as power costs account for around 50 percent to 60 percent of the district cooling production cost.”
District cooling production also requires copious water, which, like electricity, is limited and therefore, expensive in the GCC.
Currently, district cooling plants use potable water, but the search is on for a technology that will allow them to use non-desalinated seawater. Even though a few plants are already using seawater, the corrosion-resistant equipment needed will increase their equipment cost. The current credit crunch will make it even more challenging for companies to acquire the systems required to deal with this issue. As district cooling is a highly capital-intensive market, huge investments are required to meet the additional capacity required.
“Market participants can blunt the effect of the reduced capital by concentrating more on small projects that require less time in commissioning and that can guarantee quick returns,” remarks the analyst. “When big projects are split into smaller units, the limited capital will be sufficient to start the project.” __


Clic here to read the story from its source.