Business

Abu Dhabi issues first district cooling license under new rules, promises lower consumption fees

Abu Dhabi issues first district cooling license under new rules, promises lower consumption fees

Dubai: Abu Dhabi has issued the first licenses for district cooling services in the emirate. The Saadiyat Cooling llc – part of UAE’s leading district cooling provider Tabreed - thus became the first licensed operator under the new licensing regime.

A second license will be issued in the coming weeks to Saadiyat District Cooling llc, which serves New York University Abu Dhabi. The Abu Dhabi Department of Energy issued the District Cooling Regulations and the District Cooling Applicability Regulations, which made Abu Dhabi the first in the region to set up such a regulatory framework for these services.

Implementing the DoE regulations in these two schemes could see a possible reduction in consumption fees for more than 100 residential units at Saadiyat Beach Residence area.

“The district cooling industry is a key area of our mandate, and with that in mind, we issued the DC regulations to streamline operations in the sector, shift the focus squarely to the consumer, boost Abu Dhabi’s economic growth, and champion sustainable practices and energy efficiency,” said Mohammad Juma bin Jarsh Al Falasi, Under-secretary at Department of Energy.

“Our efforts are beginning to bear fruit with these first two licensed projects now activating the new regulations. We will always be here to collaborate with our partners to implement the regulations and encourage innovative sustainable solutions for district cooling as well as every other sector.”

What';s district cooling about
It is a centralised cooling production and distribution system that uses an insulated underground pipe network to serve multiple buildings in the same area.

The system is usually used for cooling buildings in densely populated areas. When feasible, it is the most environmental-friendly options for air-conditioning, reducing energy consumption up to 40 per cent more than conventional cooling systems and cutting CO2 emission levels.