By Staff writer
No current rules in place to stipulate who should pay for capital costs of district cooling
Dubai is planning to issue a regulatory framework for the district cooling sector by early 2017, according to a news report.
“There is a regulation which we are expecting to be issued in the beginning of the year . It basically addresses the need to regulate the market,” Faisal Ali Rashid, director of the Demand Side Management, Dubai Supreme Council of Energy, told Gulf News.
Currently, there are no rules to stipulate who should pay for the capital costs associated with district cooling, with developers primarily passing on the costs to end-users on top of their consumption bills. That make district cooling appear artificially expensive, according to a recent Strategy& report.
Ahmad Bin Shafar, chief executive officer of local district cooling major Empower, told the newspaper that the introduction of chiller meters for individual apartments has reduced consumption by 20 percent.
“Before the meters were introduced, some of the customers misused their AC. When they travel to their home countries, or when they’re abroad, they keep the AC on day and night and leave a window open for some fresh air. But when we converted it to end-user billing, we saw a 20 percent reduction in consumption,” he said.
In the UAE, cooling systems account for 60 to 70 percent of energy consumption in buildings and the need for efficient and sustainable district cooling has increased after Paris Agreement on Climate Change has come into effect.