3. The systems ………….. be designed for the use by……… with no

СибАДИLESSON 5. THE DISTRICT COOLING POTENTIAL

Read the text and define the core points. Write the summary of it.

District cooling’s greatest benefit is not its high energy efficiency - it is the scale of economy and the higher utilization of equipment, which makes it cheaper than locally based cooling such as central air conditioning or single room air conditioning. Moreover, district cooling goes hand in hand with district heating.

In recent years, urbanization, globalization and rising cooling demands have led to an increased interest in the environmental and economic benefits of district cooling (DC). The term DC is used to describe chilled water that is distributed through an underground network in order to provide efficient and reliable cooling for the buildings in many ways the advantages of DC are similar to those of district heating. There is a considerable synergy effect of centralizing the productions of energy, which reduces the need for peak load installations DC also implies risk reduction for the individual consumer, and economies of scale for the energy supply company.

This article will describe some of the benefits and barriers of DC in order to outline what action is necessary to capitalize on the growing potential for DС and harvest the benefits 125.000 MW (36 million TR). This corresponds to investments in DC of more than 60 billion euros. The market potential for Europe could be enormous.

Large market potential

In 2006 the international association Euroheat & Power described the European cooling market and its potential growth in the two reports called

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Ecoheatcool Work Package 2 and 5. The European cooling market was estimated to be 660 TWh/уеаr. At the same time the current DС market share was only 1-2 % of the European cooling market. When DC reaches a market share of say 25 %, it will be supplying more than 160 TWh/year and the installed cooing capacity will be around125.000 MW (36 million TR). This corresponds to investments in DC of more than 60 billion euros. The market

potential for Europe could be enormous.

СибАДИWho benefits?

DC offers benefits to every link m the chain: the end-consumer, the utility company end the community in general. For the consumer the benefits include better economy, no noise from chiller, reduced risk of sudden repair costs, no hazardous refrigerants in the building, easier to certify the building with a green certificate (such as LEED. BREEAM etc.) and available space on rooftop and basement for other purposes. To the utility provider’s benefits include entering a profitable market, establishing a long-term relationship with customers, adding a new product and service to the portfolio (which can also help opening the district heating market), utilizing district heating operation expertise, strengthening environmental image and performance as well as obtaining synergies between power, heat and cooling production.

For the community in general the benefits from DC are significant. Euroheat & Power estimates that if DC accounted for 25 % of the European cooling production, C02 emissions would be reduced by 50 million tons. This is equivalent to the annual average emissions from 10 million cars. The electricity demand would be reduced by 50 TWh annually and investments in peak electricity generation capacity m the EU could be 30 billion euro less.

Competitions and barriers to entry

Even though DС has much in common with district heating. DC is still relatively unknown. One could say that DC today experiences many of the same barriers as district heating did 30 years ago in Denmark.

Few end-consumers consider DC because they are not aware of how much their current cooling costs are. One reason for this is that the cost of electricity for cooling production is hidden in the overall electricity bill and the cost of the building service staff also includes heating, ventilation and other building utilities. Furthermore, the investment costs for the chiller only occur every 10-15 years, which often means that no facility manager realty knows what the market price of a chiller plant is. For the utility companies, the largest challenge is to locate the potential cooling customers and find profitable DС areas. With district heating every building has a demand, but for DC the type and use of the building has a lot to say about its demand. These entry barriers can be handled by informing the building owner of the hidden costs related to traditional chiller plants, for instance by using scanning tools developed for identification of potential DС customers.

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Ex.3. Match word combinations from Ex.2.with its Russian equivalent.

Конечный потребитель, использование оборудования, возросший интерес, уменьшить потребность, с целью подчеркнуть, экономические преимущества, рыночная доля, подземная сеть, возможности охлаждения, каждое звено в цепи, идти рука об руку с.

Ex.4. Choose the correct answer.

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3.In recent years, demands have led to an…… interest in the environmental and …… benefits of DC.

LESSON 6. FROM VISION TO OPERATION Read the text and define the core points. Write the summary of it.

For utility companies thinking about going into DC, the process from idea to operation is described in the following and shown on the previous page. Firstly, the potential benefits of the prefect need to be estimated. As the location and size of the D distribution system has a large influence on the profitability of the system, the developers of a DC project have to map the potential customers in a certain area. In order to identify the most optimal location of a new DС plant within a certain area, it can be beneficial to use an automated mapping tool that uses the estimated coding demand and geographical location of each building in an area to calculate the economic difference between traditional cooling and a DC system. The result is a map like the one showed in the picture below. The green dots represent potential customers, and the blue/ purple circles illustrate the radius of piping that keeps each consumer profitable for the business case, if they change from traditional cooling to DC. Profitability of initiating a DC system does therefore occur where the purple circles are overlapping.

The mapper can also be used as a first draft for a customer database

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Secondly, a feasibility study should be carried out and different concept designs should be tested in order to optimize profitability. Factors considered include but are not limited to cash flow, life cycle costs, investment costs, operational costs and income. In order to ensure a profitable project, risk management and mitigation begin at this stage as well. In this stage, careful consideration of the local natural resources can really increase both profitability and energy efficiency.

СибАДИThirdly, the actual business development begins and the strategic and organizational setups are designed internally, a go-to-market plan, a marketing plan and legal matters are cleared. Externally, key customers are visited and interviewed regarding their interest in DC and willingness to join the project. The first contracts with key customers are made at this stage.

Finally, the D system must be designed, and - based on the concepts developed in the feasibility stage - the final concept is developed and designed for realization. The optimal control strategies for operating the DС plant are also developed here. Following installation, operation begins and this stage focusses on optimizing operational costs and increasing the customer base.

The future of DC

So far, DC is still a blue ocean market. As described earlier, the market seems to be in a transition from steady to exponential growth. The package of EU-directives (for buildings, renewable energy and energy efficiency) will hopefully stimulate the development and national or local authorities develop integrated heating and coding strategies. City authorities should plan for district heating and cooling infrastructure as an integrated part of the urban infrastructure whenever it is cost effective. Thus, the building owner will get the opportunity to meet nearly zero carbon criteria in a more cost effective way using renewable energy (free cooling) and efficient combined heat and power via the district heating and cooling grids.

For utility companies DC is expected go from a nice to have to a need to have service in order to grasp all the optimization synergies with respect to heat and cold production and integration into the smart grid.

Ex.1. True or false.

1. Location and size of DC does not have a large influence on the profitability.

2. Developers have to map all people in a certain area. 3. It is beneficial to use an automated mapping tool.

4. A feasibility study should be carried out to optimize the structure.

5. Dc system must be based on the concepts developed in the feasibility stage.

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6.The optimal control strategies for designing the DC plant are also developed here.

7.Operation stage focuses on declining the customer base.

8.Dc is still a blue ocean market.

9.The market seems to be in a transition from steady to exponential growth.

10.The package of EU directives will stimulate the development.

Ex.3. Match word combinations from Ex.2.with its Russian equivalent.

Оптимизировать прибыль, большое влияние, план вхождения на экономический рынок, клиентская база данных, разметка размещения клиентской базы, поток наличных, затраты в гарантийный период, основные клиенты, желание присоединиться, стратегическая организация,

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