The growing focus on finding a district cooling company in the UAE emerges as the Emirates seek to navigate the region’s complex energy demand landscape for both the present and the future.
The need to map out a comprehensive plan for energy efficiency in the UAE has emerged as an urgent measure, as the country must navigate a complex scenario of extreme temperatures and water conservation needs with rising electricity demand, particularly for cooling purposes.
In this context, a number of initiatives have been addressing the issue of energy efficiency in cooling at an unprecedented scale. On the one hand, the UAE Energy Strategy represents a bold step towards promoting efficiency and sustainable cooling solutions in the UAE. Through measures like the National Water and Energy Demand Management Programme, it has set ambitious goals to reduce energy consumption by 2050, including the reduction of energy demand by 40%, of water demand by 50% and the expansion of water re-use by 95% in key sectors. At the same time, the state-owned Empower, currently the world’s largest District Cooling Services provider by capacity, has committed to carbon-neutral plant operation by 2050, including the use of recycled water and renewable sources.
Aligned with global movements towards sustainable cooling, these ambitious goals are igniting a series of important investments in urban energy efficiency projects, as well as efforts to find the right technologies to achieve this. In this context, district cooling infrastructure emerges as a strategic solution by offering sustainable, efficient and resilient cooling. Let’s take a look.
Cooling demand in the Middle East and the challenges ahead
While the UAE’s hot climate and water scarcity have shaped this region’s unique landscape and culture, it poses its own challenges. The need for reliable cooling represents one of the most pressing among them, especially in a context of rising global temperatures.
Middle East data can shed light on the UAE’s situation: between 2000 and 2024, electricity demand in the region tripled, making it the “third-largest contributor to global electricity demand growth after China and India”, according to IEA figures. More specifically, cooling demand in the Middle East makes up almost half of peak electricity demand, and is set to become the “largest driver of electricity demand growth in the region” by 2035, with the report also highlighting further challenges: temperatures in the region have increased 2.3% more compared to global figures, while energy demand has increased 2.5% compared to global demand.
Thus, the challenge ahead for leading district cooling companies in UAE is clear: to meet this increased demand with solutions that ensure efficiency and sustainability.
This is where the vision put forward by the UAE Energy Strategy 2050 emerges as a key force. The initiative has been set to “triple the contribution of renewable energy” via investments worth between “AED 150 to AED 200 billion by 2030” with a focus on “emerging low-emission energy technologies”, achieving net zero emissions from the water and energy sectors.
In this context, the benefits of renewable-based, zero-water district cooling infrastructure play a crucial role in achieving such goals.
The potential of district cooling is recognized by the National Water and Energy Demand Management Programme, which has set the goal of implementing policies “regulating district cooling companies and benefiting from chilled water storage operations, and encouraging the use of treated water in this process”. A cite that points directly to district cooling systems paired with thermal storage solutions, as explored below in this article.
In the meantime, market figures by Grand View Research are already pointing to key investment movements in this regard: while the Middle East & Africa district cooling market is currently leading the industry (41.0% of the revenue share), the UAE stands in a dominating position in the region, with 35.2% of the revenue share.
Why district cooling is essential in the UAE
The need for reliable, efficient cooling
The environmental challenges related to growing cooling demand in the Middle East outlined above must also be confronted with two key technical issues related to the need for reliable cooling solutions.
Current cooling solutions must ensure optimized management for peak demand, as this issue presents important cascading effects on any infrastructure’s costs and reliability.
On the one hand, peak demand dictates the required generation capacity and thus, the capital investment needed. As a result, a cooling system that effectively deals with peak demand can have important economic benefits for operators. On the other hand, the capacities to deal with peak demand can also have a significant influence on grid stability, a key aspect of reliable cooling infrastructure.
At the same time, these issues coexist with the added challenge of incorporating renewable energies to environmentally friendly cooling technologies while also guaranteeing grid stability for urban energy efficiency projects.
In this context, district cooling is positioned as a crucial solution at the crossroads faced by energy efficiency in the UAE today.
Benefits of district cooling vs. conventional HVAC
The basic premise of district cooling is to deliver chilled water, produced at a central plant, to serve multiple buildings.
The unique cooling process model for district cooling offers the following benefits that are key for solving the UAE’s conundrum presented above:
- By having a single cooling plant targeting several buildings, district cooling manages to increase energy efficiency: as large plants employ equipment more efficiently than individual units, they need less electricity per unit of cooling delivered. This often translates into a reduction of electric consumption by 50% and improvements of efficiency between 40-60% compared with conventional HVAC solutions.
- Paired with thermal storage technologies, district cooling can produce and store chilled water during off-peak hours (when electricity is cheaper and demand is low). This helps manage peak loads and contributes to improve grid stability, reducing the need for electricity when the grid is under the most stress.
- District cooling also allows for lower costs, as the existence of a single, efficiently-built central plant lowers operation and maintenance expenditures.
- Thanks to the possibility of introducing clean, renewable energy sources, district cooling is also a pathway for reducing CO2 emissions related to cooling.
- The model can be designed to minimize the use of water resources and incorporate water recycling programs.
A series of benefits recognized by the IEA, which highlights further benefits of district cooling for society: from “enhanced aesthetics and an improved local environment by reducing the noise” related to cooling, to “higher local reliability of the electricity supply” and “higher energy utilisation and reduced energy demand.” For operators, the IEA cites benefits such as it being a “more economical solution for cooling” with “less price risks compared to alternatives” and it being “more social responsibility oriented”, among other advantages.
District cooling and energy efficiency in UAE urban projects
Integration with green building standards
The National Water and Energy Demand Management Programme has recognized built environments in the UAE as a key area for energy efficiency interventions. Meanwhile, the UAE Energy Strategy 2050 cites retrofitting existing buildings and implementing green building codes as key movements to achieve its goals.
A movement for which district cooling is proving an invaluable ally by transforming cities’ energy landscape at scale. Paired with the already significant development of smart cities in the Emirates, and the focus on smart energy systems in the UAE, these solutions are painting a promising picture for the immediate future.
An example: as the UAE commits to scale up their efforts to introduce green building cooling solutions, Dubai has set out to achieve a 30% penetration of district cooling and retrofit 47,000 buildings by 2030, according to a document by the UAE’s Ministry of Climate Change and Environment.
Role of TES (Thermal Energy Storage)
Thermal Energy Storage solutions are highlighted as key technologies for accessing top district cooling efficiencies. As such, they are included in the IEA Guidelines for sustainable district cooling mentioned above.
The revolutionary possibilities of TES solutions emerge from their capacities to capture cooling produced during off-peak hours to release it later: while cooling is produced when ambient temperature is low and chillers have better performance, it can be delivered later during the day, when it’s most needed.
As such, they offer the following benefits:
- They efficiently manage peak demand, so that district cooling infrastructure is able to adapt to supply and demand variations.
- Allow for the introduction of variable renewable energy sources.
- Offers cost reductions by reducing the required capacity of the chilling
plant and its operational costs.
The Abdali project and the Al Rayyan Stadium in Qatar represent two key examples the potential of Thermal Storage Systems as part of projects in the Middle East.
ARANER: a trusted district cooling company in UAE
ARANER, a global leading company in refrigeration, has established itself as a key ally for operators looking for a reliable district cooling company in the UAE.
Through advanced thermal engineering teams and cutting-edge cooling technologies, we stand out by providing ad hoc solutions that adapt to each project’s needs and are outstandingly reliable and efficient for the UAE’s unique requirements.
Engineering expertise for mission-critical cooling
At ARANER, we offer project design and execution services, involving our innovative and multi-disciplinary human expert teams and state-of-the-art technology.
A combination which has allowed us to deliver top-of-the-game cooling infrastructure with zero water consumption and remarkable yearly efficiencies in the UAE and the Middle East at large.
Our projects incorporate advanced engineering as well as dedicated environmental impact studies, geological reports, water quality studies, among other key considerations.
All while our commitment to meeting deadlines is backed by capacities to coordinate teams in complex projects, both in new and retrofitting projects.
Proven experience through real projects
Our downtown Dubai area case study marks a clear example of how ARANER’s know-how and top technologies combine for success.
In order to meet this residential and commercial development’s ambitious requirements, we designed and implemented a state-of-the-art cooling plant paired with thermal energy storage. A success story that managed to increase the maximum cooling capacity by 40% with a lower CAPEX, improving the system’s efficiency while reducing its operating cost.
Additionally, our district cooling project in the Abdali area represents another reference for operators looking for a district cooling company in the UAE.
With a state-of-the-art district cooling and heating plant, the project was designed for zero water consumption thanks to ARANER’s air-cooled chiller design. The end result offers outstanding energy efficiencies, achieving almost the same yearly average COP as systems based on cooling waters but without water consumption. An efficiency aided by long-term thermal storage solutions, which work at night for more than 70% of annual hours.
The future of energy-efficient cooling in UAE
Moving forward, sustainable cooling solutions in the UAE are set to catalyze increasingly sophisticated technologies to achieve breakthrough efficiencies.
From further integration of renewable energy sources to fully digital operation and smart grids, district cooling will continue offering new opportunities to take efficiency to new levels while also decarbonizing the cooling sector.
In this quest, ARANER emerges as a strategic partner capable of adjusting our advanced district cooling solutions to the UAE’s unique requirements.
Ready to boost cooling efficiency and align with sustainability goals? Get in touch with our team and learn more about how we can help you.
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