New ranges of more sustainable cooling technologies and a fast-growing construction market is likely to fuel the growth of Saudi Arabia’s district cooling market, according to a new report.
A Whitepaper on District cooling by research company Frost & Sullivan states that the district cooling market across the GCC is likely to be worth $1.7bn by the end of this year and is becoming more sophisticated through the use of smart meters, advanced plant controls and sea water usage for cooling.
Moreover, it adds that the market is moving towards decentralisation as a result of a greater demand for smaller-scale cooling plants for community developments of 5,000-25,000 refrigeration tons (RT). Chillers capable of producing around 6,000 RT are being sold by manufacturers to target smaller residential, commercial and industrial projects.
District cooling is seen as a more effective way of cooling buildings as it can provide central cooling for multiple buildings, thereby saving around 25% of electrical costs on conventional air-conditionuing systems.
“The KSA has become one of the most attractive district cooling business hubs with 26% market share compared to 74% of all the other GCC countries put together,” said Frost & Sullivan’s Industry manager for Environment & Building Technologies for the Middle East and North Africa region, Kumar Ramesh.
“The district cooling market in the KSA is expected to overtake the UAE district cooling market by 2014 due to an impressive project pipeline and increasing awareness about district cooling solutions,” he added.
The report states that the Saudi market is currently dominated by commercial offices, but the retail property is expected to catch up and be responsible for 30% of demand by 2016. Other important end-users are airports operators, religious sites, the oil & gas industry and the education sector.
Specific provinces like Makkah are also projected to become a hub for the industry. Plants are also set to become more efficient through the use of sea water and treated effluent as well as smart meters to reduce power requirements.
“This is expected to make the KSA a positive market for district cooling and achieve a higher penetration over conventional air conditioning systems,” Ramesh added.
