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District cooling (DC) is the cooling equivalent of district heating. This process involves supplying chilled water (usually between 4 and 8 degrees Celsius) from a central plant to multiple buildings via insulated underground pipes. The cooled water is then used to chill the indoor air in buildings before being sent back to the central plant to be recycled and recooled.Energy efficiency and energy use diversification are gaining popularity in the DC market, but creating efficient DC systems requires technology that can optimize DC plant functioning. The emergence of the Internet of Things, cloud computing, and data analytics makes it possible to determine the suitable amount of cooled water and appropriate energy sources needed for various cooling demands, but it is energy solution providers who must drive the transition to smarter and more sustainable DC systems.Key growth opportunities in the market include smart DC systems to optimize energy consumption, which requires employing a cooling-as-a-service business model to support higher DC penetration and forging partnerships to facilitate market entry and expansion. In Singapore, for instance, new refrigeration tonnage (RT) additions for existing plants will occur in 2024 and 2025 at pace with commercial and industrial expansion. These developments are anticipated in response to the COVID-19-related project delays of 2020 and 2021. This study includes data on DC generation (in RT) from the supply of DC systems. No further breakdown is provided regarding end users and equipment. The study excludes analysis of DC distribution systems and the revenue generated from sales, installations, and operation and maintenance services. Analysis is provided for the leading Southeast Asian countries of Malaysia, Singapore, and Thailand, including market drivers, restraints, and forecasts in RT. Indonesia, the Philippines, and Vietnam have low DC penetration rates in their building industries, so only a broad-level analysis is included for them. An overview of the top trends impacting this market is provided.Author: Melvin Leong
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