Abu Dhabi issues first district cooling licence to Saadiyat Cooling

The Abu Dhabi Department of Energy (DoE) issued its first district cooling (DC) licence to the Saadiyat Cooling LLC (SCL), which serves Saadiyat Island, including Saadiyat Beach, and Saadiyat Cultural District.

According to the DoE’s statement, reported by state news agency WAM on Thursday, a second license will be issued in the coming weeks to Saadiyat District Cooling LLC (SDCL), which serves New York University Abu Dhabi.

The licenses comes following the DoE’s issuance of the District Cooling Regulations and the District Cooling Applicability Regulations, approved by the Abu Dhabi Government in September 2019, reportedly making Abu Dhabi the first jurisdiction in the Middle East and North Africa region to set up a comprehensive regulatory framework for district cooling.

The DoE also announced the launch of the Technical Panel Review Process for the District Cooling Technical Code and District Cooling Metering Code on February 23, 2021, with membership open to any entity that will be affected by the codes. Panel members include DC providers, retailers, developers, Abu Dhabi Department of Municipalities and Transport (DMT), and Abu Dhabi Distribution Company (ADDC).

The objective of this collaborative effort is to ensure that views of all stakeholders are considered in the codes’ review. Published in March 2020, the Technical Codes are performance-based specifications with defined key performance indicators aimed at promoting energy efficiency, sound water management, reliability of service, and customer satisfaction.

“As the Government department tasked with leading the energy sector in the Emirate, the Abu Dhabi Department of Energy consistently supports the government’s efforts to ensure the wellbeing of the community, while also driving the growth and progress of various key sectors in the economy,” said DoE undersecretary Mohammad Juma bin Jarsh Al Falasi.

“Our efforts are beginning to bear fruit with these first two licensed projects now activating the new regulations.”

District cooling systems are usually used for cooling residential buildings, commercial buildings, mixed-use buildings, and densely populated areas. When it comes to air conditioning, district cooling reportedly cuts CO2 emission levels and reduces energy consumption up to 40 percent more than the conventional cooling system.

Implementing the DoE regulations in these two schemes promises to deliver substantial benefits to the emirate, such as reduction in consumption fees for over 100 residential units at the Saadiyat Beach Residences.

Existing environmental benefits from district cooling will be further enhanced with greater usage of recycled water, while also ensuring that customers benefit from having a world-leading district cooling provider operating with a best-in-class regulatory framework.

The DoE’s mandate includes regulating district cooling activities, including licence issuance and monitoring compliance with quality standards.

In December, Abu Dhabi’s Aldar Properties signed an agreement to divest two of its district cooling assets — Saadiyat District Cooling (SDCL) and SCL — on the capital’s Saadiyat Island to National Central Cooling Company (Tabreed). Aldar had purchased a 100 per cent stake in SDCL and an 85 per cent stake in SCL from the Tourism Development and Investment Company TDIC in 2018.

Read: Abu Dhabi’s Aldar to sell two district cooling assets for Dhs963m