Energy Efficiency

Energy Efficiency Retrofit and O&M Digitalization for a District Cooling Plant in DIP

Our technical expertise led to the annual saving of around 3 Million AED & resulted in around 10% energy consumption reduction

Background Story

The client is recognized as one of the leading district cooling providers in the United Arab Emirates (UAE). With an extensive portfolio of District Cooling Plants (DCPs), they aim to capitalize on expansion opportunities in the Gulf region’s dynamic property development market. Seeking to enhance plant efficiency and reduce energy consumption costs, the client engaged Ark Energy. The project focused on one of their DCPs as a starting point.

Problems

The plant in question consumed significantly more energy than benchmarked peers. Due to limited instrumentation and sensors for critical equipment, the plant operated manually, lacking digital energy monitoring or automated fault detection systems. Additionally, several major equipment components were non-operational due to issues such as tube leakages and corrosion, hindering the plant’s ability to meet peak demand as designed. High harmonic distortion further compromised equipment and instrumentation. These inefficiencies led to steadily rising operational expenses.

Main Objective

To address these challenges, the client tasked Ark Energy with developing and executing a portfolio-wide energy optimization and operational modernization program across 11 plants. The primary goals were to:

1.Reduce overall energy consumption and operational costs.
2.Digitalize processes and optimize chilled water production.

The program began with an initial DCP, whose specifications are outlined below:

Table 1 The features of the initial District Cooling Plant that was tackled by Ark Energy

 
DCPTotal Installed CapacityEfficiency
(Pre-Retrofit)
Cost of CHW (Current)Installed Solar Capacity
Values30,000 TR0.884 kW/TR0.477 AED/RTh300 kWp

Source: Ark Energy Analysis

This specific DCP, it has a total installed capacity of 30,000 Ton of Refrigeration and is a major revenue contributor to overall production. However, it is a heavy energy consumer based on the analysis conducted. During the baseline period, between November 2019 and October 2020, the plant has delivered around 89,614,550 Ton-hours of cooling and consumed around 79,247 MWh, including solar production. Overall, the specific plant had a total utility cost of 41.5 mAED, whose distribution is shown below:
This DCP, with a total installed capacity of 30,000 Tons of Refrigeration (TR), is a major contributor to the client’s revenue. However, energy consumption analysis revealed significant inefficiencies. Between November 2019 and October 2020 (baseline period), the plant delivered 89,614,550 ton-hours of cooling while consuming 79,247 MWh of energy (including solar production). Total utility costs for the plant amounted to 41.5 million AED, with the breakdown illustrated below:


Figure 1 Energy Consumption & Energy Cost of the corresponding District Cooling Plant


Figure 1 The distribution of the overall utility cost for the District Cooling Plant in question


Approach

The Ark Energy team, acting as the client's consultant, commissioned an Energy Service Company (ESCO) within the region that can provide a range of energy performance services. These services include an ASHRAE level energy audit targeting O&M issues, providing comprehensive Energy Conservation Measures (ECMs), detailed engineering and design, installation and commissioning, and Measurement & Verification services. The Ark Energy Team was responsible for supervising and reviewing the work done by the selected service company. Some of the key energy conservation measures that were utilized include the following:
 
  • Chilled water optimization system to improve overall plant efficiency, including condenser piping upgrade and other modifications
  • Installation of a local DCP SCADA and instrumentation
  • O&M Digitalization protocols and technology to enable a fully automated unmanned machinery space (UMS)


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