District Energy in Cities: A Global Initiative to Unlock The Potential of Energy Efficiency and Renewable Energy

District Energy in Cities: A Global Initiative to Unlock The Potential of Energy Efficiency and Renewable Energy

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Description: Increase knowledge of multiple benefits to promote district energy. Demonstrate the viability of district energy & develop city-wide policy-investment plans. Scale up district energy in cities by replicating best practice.

Create an environment that favors investment in district energy. “In launching this report we want to draw the attention of the world’s decision makers, mayors and leaders at the community level to the importance of district energy systems.

 
Author: Djaheezah Subratty  | Visits: 273 | Page Views: 404
Domain:  Green Tech Category: Environmental 
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Contents:
DISTRICT ENERGY IN CITIES
A GLOBAL INITIATIVE TO UNLOCK THE POTENTIAL OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

Integration of district cooling from a planning and urban development perspective
Djaheezah Subratty, Head of Policy Unit,
Energy, Climate, and Technology Branch, UNEP
IEA, Paris, May 17th-18th 2016

DISTRICT ENERGY IN CITIES INITIATIVE
LAUNCH AT CLIMATE SUMMIT

Double Global Rate of Improvement of Energy Efficiency by 2030

A GLOBAL PARTNERSHIP TO SCALE-UP

MODERN DES

KEY OBJECTIVES

MARKET TRANSFORMATION

Increase knowledge of multiple benefits to
promote district energy

Demonstrate the viability of district energy &
develop city-wide policy-investment plans
Scale up district energy in cities by replicating
best practice

Create an environment that favours
investment in district energy
Double the rate of energy efficiency improvements for heating and cooling in
buildings by 2030 through district energy

DISTRICT COOLING APPLICABLE
GLOBALLY
Cooling degree days of select cities with successful district cooling

*Average of 2014 and 2015 cooling degree days for locations in selected cities using 18 degrees Celsius as reference temperature.

SIGNIFICANT BARRIERS TO DISTRICT
ENERGY DEVELOPMENT
Lack of awareness
and misperceptions

Local and
institutional capacity
for coordinating DES
development.

Lack of holistic
planning policies that
integrate energy and
DES

Incentives and
accounting methods
that are not
harmonized

Commercial viability
of DES unproven in
some markets.

Lack of data on
cooling consumption

LAUNCH OF A TECHNICAL GUIDE

Methodology and Key Steps
“In launching this report we want to draw the attention of the world’s decision makers, mayors
and leaders at the community level to the importance of district energy systems.”
- Achim Steiner, UN Environment Programme Executive Director. Launch of the District Energy in Cities Report - Paris, 25 February 2015

THE ROLE OF LOCAL GOVERNMENT

Facilitator
of Finance


Coordinator
and
advocate

Local
Government
roles

Provider
and
Consumer

Planner and
regulator



OBJECTIVES, STRATEGY AND
TARGETS
INTEGRATED ENERGY
PLANNING:
 HOLISTIC URBAN
PLANNING
 CATALYSING NETWORK
DEVELOPMENT
 CONNECTION POLICIES

OBJECTIVES, STRATEGY AND
TARGETS
 Cities need to assess and demonstrate the benefits of district cooling
in the context of local objectives and its potential.
 Long-term development of district cooling requires its incorporation into
local energy strategy and targets.
Shares of the 45 champion cities that have targets for
district energy and broader energy targets

1.
2.
3.
4.
5.

ADVANTAGES
Stakeholder buy-in
Reassure investors
Justify resource
expenditure
Justify local policy changes
Advocate for national
policy changes

HOLISTIC URBAN PLANNING AND
DISTRICT COOLING
To ensure cost-effective district cooling, cities need to analyse the
interaction between energy, land use and infrastructure – including power,
waste, water, buildings and transport.
 Energy planning integrated into
infrastructure development
 Exert planning authority to create optimal
conditions for district cooling: mixed use
zoning and compact land use
 Designate zones to apply tailored
policies or financial incentives for
district energy

MIXED USE ZONING, COMPACT LAND
USE & ANCHOR LOADS
CITY ACTION
 Ensure that opportunity areas are zoned as mixed-use.
 Ensure that opportunity areas have a high allowable building
density
 Establish anchor loads in or adjacent to opportunity areas
(hospitals, malls, leisure centres, government buildings…)
350

300

Mixed Use Daily Cooling Profile

250
200
150

100
50
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hotel

Leisure

Retail

Residential

Office

BENEFITS
 Smoother load profile improves
business case for district cooling
 Higher cooling demand density,
lowering network costs
 Reduce load risk and secure the initia
build-up of a district cooling system

HONG KONG:
KAI TAK DEVELOPMENT
CHALLENGES
 32% of Hong Kong’s electricity is for AC.
 Lack of experience in district cooling
Q1

Q2

Q3

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

OBJECTIVES
 Cut down coal consumption for electricity.
 Demonstrate district cooling in Hong Kong to
kick-off other projects
 By 2020 improve refrigeration performance
by 50% for all commercial buildings

PROJECT IDENTIFICATION
Phase II
23.6 wks
 Identified redevelopment of old airport as
Phase III
potential district cooling demonstration.
 Project’s proximity to seawater for cooling
 Hong Kong had authority over design and
development of zone
Image from airport2park.org

HONG KONG:
KAI TAK DEVELOPMENT
DENSE AND MIXED-USE ZONE
 Public consultation process developed Kai Tak
Outline Zoning Plan defining a high density, mixed
use development.
Q1
Q2
Q4
Q3
Q3
 Zoning Plan sets out ratios for different buildingQ1 Q2
types and maximum densities within sub-zones

Q3

Q4

Q1

Q2

Q3

Q4

ANCHOR LOADS
 Large share of institutional buildings and publicly
owned residential
 Numerous anchor loads
BENEFITS
 Demand will fall to only 30% to 50% of peak during
cool season
 Full system electricity savings: 85 GWh per year
(equivalent to $1.7 million)
 New district cooling projects identified in Hong Kong

Phase II area
Total

Built-up area
Proportion of built-up area:
Phase III
Residential
Commercial
Residential & Commercial
Institutional
Transport terminals

3.23 km2
1.53 km2
23%
9%
6%
25%
38%

Image edited from ktd.gov.hk
Data: http://www.info.gov.hk/gia/general/201209/14/P201209140279.htm

CATALYSING NETWORK
DEVELOPMENT
 Local government assesses district cooling
in a government controlled development
and:
• directly finances development (Hong Kong,
Singapore, Dubai) or
• proposes concession (London Olympic Park,
Paris, Cyberjaya)

 Established local district heating utility
develops district cooling (Copenhagen,
Helsinki, Gothenburg, Stockholm, St. Paul,
Toronto)
 City-wide policies require large
developments to develop district cooling if
they cannot connect to existing networks
(Tokyo)

CONNECTION POLICIES:
MANDATORY CONNECTION
 Zonal or city-wide mandatory connection.
 Exceptions may depend on feasibility of connection or building type.
 Typically combined with regulated tariffs.
POLICY MECHANISMS
 City-wide planning policy
 Target for government buildings
 Service-area bylaw
 Land lease model

SINGAPORE: MARINA BAY
BUSINESS DISTRICT
CHALLENGES
 70% of electricity usage in commercial buildings
is cooling
 Imports all energy needs
 Lack of experience in district cooling
 No existing policy framework for DC that
reduced demand risk or regulated tariffs to
protect consumers
PROJECT IDENTIFICATION
 Identified new business district as potential
district cooling demonstration.
 City undertook feasibility study
 Singapore had authority over design and
development of zone
 Singapore invested directly in Joint Venture

Source: Veolia

BEST PRACTICE MULTI-UTILITY
BUSINESS MODEL
CONNECTION POLICY
 Singapore District Cooling Act mandated
connection of commercial buildings in zone
TARIFF REGULATION
 Regulates tariffs to be cheaper than
alternative technology
 Operator allowed to earn baseline return on
invested assets
 Once start-up costs paid off, profits are
shared with consumers

BEST PRACTICE IN TOKYO:
LOCAL PLANNING REQUIREMENTS
District Energy Planning System for Effective Energy Utilization
 District cooling incorporated into Tokyo’s city-wide
planning system
 New developments above 50,000m2 must provide an
“Energy Plan for Effective Utilization”
 This includes assessing connection to nearby
district cooling or assessing new network
development
 City will seek to overcome economic barriers to
connection
 District cooling suppliers have exclusive service areas
 District cooling suppliers required to meet efficiency
standards through this policy

CONNECTION POLICIES: INCENTIVES
AND BUILDING DESIGN

 Incentives: targeted incentives to
encourage connection to district
cooling
 Density bonuses
 Subsidies for connection
 Credit towards green building
certification

 Building compatibility requirements
 Centralized cooling systems

INITIATIVE ACTIVITIES
INDIA

LIGHT TOUCH
CAPACITY BUILDING





FACILITATING FINANCE

REPLICATION
CREATING A PIPELINE

BOSNIA &
HERZEGOVINA

RAPID ASSESSMENTS
NATIONAL WORKSHOPS
NEW ACTIONS, PROJECTS
OR POLICIES

CHILE

COLOMBIA

DEEP DIVE

CHINA







DEEP ASSESSMENT
TRAINING
PROJECT TENDERS
DES CITY-WIDE PLANS
MRV SYSTEM







NEW CITIES
RAPID ASSESSMENTS
VIRTUAL PLATFORM
MENTOR CITIES
MATCHMAKING

SERBIA

MOROCCO

THANK YOU!

For more information on the Global District Energy in Cities Initiative
and to become a partner, please visit the website or contact:
 Mrs. Djaheezah Subratty, Head of Policy Unit,
Energy, Climate, and Technology Branch, UNEP
Djaheezah.Subratty@unep.org
 Ms. Lily Riahi, Advisor on Sustainable Energy in Cities,
Energy, Climate, and Technology Branch, UNEP
lily.riahi@unep.org
http://www.districtenergyinitiative.org/