The UAE district cooling companies, which include top names such as Emirates District Cooling (Emicool), Empower and Tabreed among others, are expected to play pivotal roles in the growth of the industry across Middle East and Africa (MEA) region and projected to grow by over 18 per cent in the next five years, said experts.
Moreover, the MEA district cooling companies are expected to dominate over 40 per cent of the overall demand globally by 2019, which is expected to reach $29 billion in value terms in the next four years, they said citing a research.
With the ongoing construction boom in the UAE and across the region, it is not only good news for companies in the sector, but also for the district cooling industry with each vying for more market share, if the performance and expansion plans both capacity and geographical footprint of the leading players in the segment are an indication, they stated.
According to them, the UAE district cooling sector, which pioneered the concept of hassle-free, eco-friendly, maintenance-free and energy-efficient solutions with its electric-powered and solar interface cooling services, is set to take its pride of place on a regional and global scale amidst rapid construction and surging demand for power and cooling.
New projects are witnessing a steady shift from traditional air-conditioning to comprehensive district cooling that help save energy, and cut down on maintenance and environmental damages.
The expert said district cooling comes with manifold advantages and is highly sustainable as it uses 40 to 50 per cent less energy than traditional air-conditioning systems, which can account for 70 per cent of a building’s electricity bill.
Producing one tonne of refrigeration using conventional air conditioning takes 1.8 kW of electrical power, while district cooling can consume as little as 0.85 kW per tonne.
According to experts, one of the leading players, Emicool - a joint venture between Dubai Investments and Union Properties - is set to boost its market share from the current 12 to 20 per cent amidst this surging demand.
In line with the projected growth, Emicool is targeting expansion of its plant capacity in Dubai Investments Park (DIP), an integrated residential, commercial and industrial community in the Middle East and wholly-owned by Dubai Investments, to 250,000 tonnes of refrigeration (TR) in the coming years from the existing 115,000 TR.
This is part of the Emicool’s overall growth plans which will see it increase its capacity to 500,000 TR by 2020 as DIP plans to build over 1,150 residential units in the near future.