A century of excellence

MEP Middle East speaks to Rita Chahoud from Tabreed, executive director of the Middle East chapter of the International District Energy Association (IDEA), about the association’s recent centennial in the US and upcoming conference in Dubai.

Can you give us some background on the US event and its importance to IDEA and the district energy industry as a whole?

Since its founding in 1909 as the National District Heating Association, IDEA (as it is currently known) has held an annual conference and trade show every year except 1918 during World War One. The inaugural conference was held in Toledo, Ohio, which was attended by six district steam companies.

Over the years, the annual conference has attracted end users, equipment providers, consultants, campus energy operations personnel and, increasingly, specialist companies that provide financial, legal and consulting services to the industry. It is a highly efficient means to come together and visit with a wide range of technical solutions under one roof, and even more efficient and cost-effective for the exhibitors to be able to meet with and maintain personal contact with so many customers at one time.

One exhibitor, a large multinational, said they had cancelled all other trade show attendance and exhibition this year due to the recession, except for the IDEA conference. They said it is the most valuable venue for their exhibit investment because of the quality and high calibre of the conference attendees.

It is not a huge trade show with 10 000 attendees, but the ratio of qualified buyers with an interest in their product makes IDEA the best trade show investment on their annual schedule. Other exhibitors echoed the statement that “IDEA provides the highest return on investment” of any of the exhibits they attend regularly.

This year IDEA had 93 exhibitors, our highest number ever, and we still turned away five or six prospective exhibitor companies. Over the past five years we have grown the number of exhibits by about 10% each year, and have sold out all available space each year. However, we want to retain the quality and close-knit community feel, and do not envision growing much bigger too quickly.

As far as the industry goes, the IDEA conference is an annual event for industry participants to come together, compare notes, discuss strategy for legislation and policy priorities and, frankly, to reconnect as friends. For many members, attending IDEA each June is like a family reunion, and many long-time friendships have been formed and renewed each year. This year, the welcome dinner was an evening boat cruise down the Potomac River with entertainment, dancing and plenty of refreshments.

Each year the District Energy Space Awards are a friendly competition to recognise business growth and achievement. As well, the Annual Business Meeting allows the association to report on activities and achievements and to nominate and elect new members to the Board of Directors. Finally, contributions to advancing the industry are recognised through the Chairman’s Awards at the Annual Chairman’s Banquet.

This year, in recognition of the 100-year anniversary, the Centennial Gala was a black-tie dinner at the elegant National Building Museum, where past presidents, former award winners and current industry contributors were heartily recognised and acknowledged.

IDEA was especially pleased to welcome the new US Secretary of Commerce, Gary Locke, to the conference, who presented an award to Evapco. Secretary Locke, as a member of President Obama’s Cabinet, is focused on energising the economy through investment in clean energy technologies such as district energy and combined heat and power (CHP).

To what do you attribute the increased interest in the event?

IDEA has been actively promoting this conference for the past year, and was fortunate that so many people from all over the world were interested and able to attend. Certainly, the chosen location of the US’s capital was of interest to most attendees, many of whom brought spouses and family members along. Holding the conference in the capital made it easier for many DC-based energy specialists, organisations and federal agency staff to attend.

Moreover, IDEA has been very active over recent years in advocating for policies and legislation that is more favourable to the district energy industry, and our efforts to inform, connect and advance the interests of the industry have borne fruit in membership growth and greater conference attendance. The district energy industry is ‘gathering steam’ in the US and across the world, and the attendance at this conference is testament to the momentum and excitement building in the industry sector.

Do you think the American Clean Energy & Security (ACES) Act plays a vital role in promoting the benefits of district energy?

As it is currently written, there are some helpful provisions in the ACES Bill that will benefit district energy and stimulate investment in CHP. However, from IDEA’s point of view, there is potential to modify the Bill and strengthen provisions that would be more favorable for both district energy and CHP.

Accelerated depreciation, energy-efficiency portfolio standards and SEED funding are all very favorable for our sector. But the new challenge is with revisions set to occur in the Senate version that might provide more allocation allowances to cleaner district energy/CHP for carbon emissions. More clarity in the rules will also help to unleash investment that is currently waiting for more definable market risks and rules.

Yes, of course. The size and scale of the district cooling industry in the Middle East has been an important factor for the global growth of the industry, and has helped to crystallise the importance of investing in infrastructure to strengthen the electricity grid, reduce emissions and conserve water more effectively through the scale provided by district cooling.

There is great opportunity to share experiences in sub-metering, or use of TSE or seawater for condenser cooling, for instance, in the Middle East. IDEA members are always eager to openly share and assist each other with new technologies and enhanced business models. The size and scale of investment in district energy assets in the region will ensure that the industry continues to capture great attention and focus from IDEA members globally.

Now that a lot of the focus is on IRENA and renewables, do you think there is danger of the spotlight moving away from district cooling?

No, since air-conditioning is an essential service, with life safety implications, and the scalable district cooling assets have become critical infrastructure for the region, even greater attention must be paid to enhancing efficiency, maintaining reliability, and ensuring safety and security of supply. District cooling is a substantial business in the region, and the scale of the assets will require ongoing attention and stewardship.

What would you sum up as the main message of the US event for the Middle East region?

The theme of the conference was ‘District Energy/CHP: Local Energy, Global Solution’, and that would be the main message, that the district energy industry is a proven, reliable, and scalable energy technology that can contribute immediately to greater energy efficiency and mitigate carbon emissions on a highly effective scale. The industry in the US has stood the test of time, with businesses operating efficiently for over 100 years. Likewise, district energy has been the cornerstone of the efficiency focus of Denmark, and has allowed the country to evolve into the only net energy producing nation in the EU.

What are the latest developments in terms of the October conference?

The focus will be on workshops and technical/operational exchange on enhancing plant efficiencies, training operational staff, monitoring distribution networks and end-user efficiency. Rather than focus on policy and business development, the fourth International District Cooling Conference will sharpen attention on improving operations to increase profitability and reduce costs.

What is IDEA’s strategy for the region going forward?

Since its inception in late 2006, the Middle East Chapter grew from 56 members to more than 360 members in 2009. IDEA has been working closely with its members in the Middle East, assisting them with case studies, providing them with a unique best practice guide, and holding specific and tailored conferences and workshops for the district energy industry, as well as connecting them with industry suppliers, consultants, providers, legislators and more.

IDEA has also been actively supporting its members by holding discussions with government bodies like DEWA and ADWEA on electricity rates, water supplies and TSE and power-supply issues. Over the last few years, many of the Middle East member companies have been attending the annual conferences in the US each June, as well as the annual campus energy conference in the first quarter of every year.

IDEA will be holding its fourth international district cooling conference and trade show at the InterContinental Hotel at Dubai Festival City from 11-13 October. Visit www.districtenergy.org for more info.

Major Exhibitors in October 2009
• COWI/AS
• EVAPCO Europe
• Flow Control Industries, Inc.
• Flowserve FCD
• Hamon CTC
• High Performance Tube
• ONICON Incorporated
• Perma Pipe Middle East
• SPX Cooling Technologies
• Thermo Systems
• Warren Controls