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The Economics of Cooling

District Cooling and Efficient Technologies

How central cooling plants that serve many buildings can be more efficient than individual ACs, with examples like GIFT City, and other efficient cooling technologies.

Instead of each building having its own ACs, district cooling produces chilled water in a central plant and pipes it to many buildings.

How it works

  1. A central plant chills water using large, efficient chillers.
  2. Chilled water flows through insulated pipes to buildings.
  3. Buildings use it for cooling, then return warmer water to the plant.

Advantages

  • Efficiency: large central chillers are more efficient than many small ACs.
  • Thermal storage: plants can chill water or make ice at night, when electricity is cheaper, for use during the day.
  • Lower peak demand.
  • Less space needed in individual buildings.

Examples

  • GIFT City in Gujarat has a district cooling system, among the first in India.
  • District cooling is common in hot, dense cities in the Middle East, such as Dubai.

Challenges

  • High upfront costs for plants and pipes.
  • Works best in dense developments planned from the start.
  • Contracts between providers and building owners.

Other efficient technologies

  • Inverter ACs.
  • Evaporative cooling in dry climates.
  • Radiant cooling using chilled surfaces.
  • Smart controls that adjust cooling to occupancy.
  • Superefficient ACs, some developed through global innovation prizes.
The planned district

A new business district is designed with a central cooling plant from the start. Office towers connect to chilled water pipes, saving space and electricity compared with individual AC systems.

Thinking individual ACs are always the most efficient option

Central district cooling can be much more efficient in dense areas.

Key takeaways
  • District cooling pipes chilled water from central plants to many buildings.
  • It is more efficient and can use thermal storage.
  • GIFT City has one of India's first district cooling systems.
  • High upfront costs mean it suits dense, planned developments.
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