PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS...

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Transcript of PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS...

Page 1: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC

Page 2: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC

Mr. Rajeev Ralhan

Executive Director, Clean Energy, PwC India

THIS PRESENTATION WAS SHARED BY

FOR THE SESSION:

State-of-the-art Cooling Systems, including District Cooling System

DURING ANGAN 2019

Page 3: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

District Cooling Systems – Opportunities in India

Strictly Private and Confidential

10 September 2019

ANGAN 2019

Page 4: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Projected growth in building sector

• India will add 0.7 billion m2 of New Commercial Buildings and 4.9 billion m2 of New Residential Buildings by 2030.

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Page 5: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Cooling eco-system in India: India cooling action plan

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Commercial Air-conditioning Demand

Residential: According to the ICAP, approximately 8% of the current households have room air conditioners. This is anticipated to rise to 21% and 40% in 2027-28 and 2037-38 respectively. Commercial: The current (2017-18) commercial cooling demand is around 30 million TR. This is expected to grow around 4.3 times by 2037-38

Commercial Air Conditioning

• Chillers (Air cooled/water cooled), VRF/VRV, Package Dx

Residential Air Conditioning

• Room air conditioning (VRF/VRV, split, cassette, window, concealed etc.)

Low energy comfort systems

• Radiant cooling, evaporative cooling, solar air conditioning, ground source heat pump, adiabatic cooling system etc.

Page 6: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

District Cooling System

District Cooling System (DCS) distributes the thermal energy in the form of chilled water/ hot water or other media from a centralized location to multiple buildings through a network of underground pipes for cooling/heating applications.

Page 7: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Re-defining District Cooling System

Stand Alone

Type

• Developers • End Users • Townships • Government Building Complex

Merchant Type

• Smart City • Food Parks • SEZ • High Density Commercial

Developments

1. Delhi Airport – Approx. 20,000 TR capacity

2. Mumbai Airport – Approx. 20,000 TR capacity

3. Chennai Airport – Approx. 12,000 TR capacity

4. Kolkata Airport – Approx. 12,000 TR capacity

5. Dhirubhai Ambani Knowledge City, Navi Mumbai- Approx. 12,000 TR

capacity

6. Infosys (various campuses) – Approx. 50,000 TR (approx.)

7. Pragati Maidan, Delhi - Approx. 12,000 TR capacity (In Construction)

8. India International Convention Centre, Delhi – Approx. 10,000 TR

capacity (In Construction)

A key point to note is that these DCS are ‘Standalone’ and not

‘merchant district cooling’.

Stand alone and Merchant District Cooling need to be viewed

separately.

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Page 8: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Growth drivers for District Cooling System in India & recent developments in the field

• Rapid urbanization has led to requirement of air conditioners in commercial and residential sector

Rapid Urbanization

• In cities, cooling already contributes 40% -60% of peak electricity demand

• Tapping air cooled chiller market with water cooled district cooling

Growth in cooling demand

• Proportion of electricity demand in the cities for cooling: 25%-40 %

Electricity demand

• Commitment to NDC

Policy mandate on CC

• Rapid assessment of 6 cities Amaravati, Bhopal, Coimbatore, Pune, Rajkot and Thane.

• Thane was opted as “India’s first district energy pilot city.

• Rajkot become the first Indian city to incorporate the district cooling in the smart city plan, after the rapid assessment initiative by UNEP.

Page 9: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Overall benefits of DCS

Infrastructure Benefits

• Peak power demand reduction

• Reduction in cost to DISCOM

• Capital cost reduction (diversity factor, TES, load reduction)

End user Benefits

• Comfort, Convenience, flexibility, Reliability

• Lower Energy Bills

Environmental Benefits

• Energy Efficiency

• Climate Change

• Water savings by using STP/ETP water in cooling towers

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Page 10: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Barriers for DCS in India

Design barriers

• Design of system, Urban development, Tariff structures, Gas availability, space restrictions etc.

Risks

• Load estimations, urban development density, capital investment, distribution system construction, operational risk, revenue generation risk, risk of metering in residential sector etc.

Policy and Regulation

Barriers

• Involvement of municipal corporations, involvement of DISCOMs, Guidelines for design, installation, operation and monitoring

District Energy System

Mix Use Development

At least 5000 TR of Air

conditioning load

Load density preferably more than

10000 TR/sqkm

Green field development

Preferable if waste energy

available

Land availability

Pre Requisites for DCS

Page 11: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Learnings from International best practices

India

Dubai • Policy framework supporting DCS

adoption • Municipal level involvement in

water supply • Capturing market of air

cooled chiller as potential consumer for DCS

Shenzhen - Hong Kong • Prioritise DCS for commercial

sector • Use of sea water for heat rejection • Potential consumers in high

density area • Not feasible for only residential

sector

Singapore • Policy development for supporting

DCS in country (DC Act) • Formation of regulatory body to push

DCS adoption in India • Awareness and training programs • Not feasible for only residential sector

Egypt • Spread out development (low

density areas) leads to extra cost for piping

• Not considering residential as potential consumer

• Not feasible for only residential sector

Page 12: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

KPIs of Indian cities for DCS implementation

GDP Growth Rate Real Estate Growth Rate Availability of cleaner fuel gas/bio gas for decentralized electricity

generation

Smart Spaces Smart Environment E Governance Smart grid & metering, Smart street lighting,

Distribution system with SCADA, Solar energy

initiatives

Automation in buildings Urban heating & Cooling

network Advanced HVAC & lighting

Green buildings Pollution control centre Forest fire detection etc.

Availability of government data in

electronic mode

GDP

Smart Metering

Page 13: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Rapid assessment of Bhubaneshwar – Key highlights

• Understanding the city- City Geographical location, Administrative setup, Land use and Land ownership etc.

Step 1

• Review of future development planning of the city Step 2

• Analysis of city development plans Step 3

• Identification of potential zones for upcoming developments Step 4

• Review of the smart city proposal of the city. Step 5

• Understanding the overall smart city approach of the city. Step 6

• Review of Area Based Development (ABD) approach adopted by the city. Step 7

• Review of analysis for potential areas for ABD Step 8

• Review of potential developments planned under ABD Step 9

• Potential areas from city development plan (CDP) and Smart city Area based development (ABD)

Step 10

• Setting the Evaluation criteria for selection of potential sites for DES feasibility Step 11

• Site selection Step 12

Page 14: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

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Identification of areas for Area Based Development(ABD) The potential areas for the Area Based Development (ABD), based on potential areas where strategic investments made under Mission will enhance city’s image, address major problems faced by city and provide thrust to economic opportunities.

Smart City Potential Districts Zones under BDPA

Heritage District Old Bhubaneswar (Zn 18)

Laxmisagar District Bhubaneswar New Town (Zn 17)

Bhubaneswar Town Centre District Bhubaneswar New Town (Zn 17)

Lake Zone District Bhubaneswar New Town (Zn 17)

Khandagiri District Overlaps in two zones i.e. Bhubaneswar New Town (Zn 17) & Aigania (Zn 20)

South City District Tamando (Zn 21)

Infocity District Chandrasekharpur (Zn 13)

Overlapping of Smart Districts with BDPA Development Zones

The approach for the identification of areas included CDP reviews, GIS mapping, City Profiling and Stakeholder discussions.

The areas identified for ABD were termed as districts for easy identification and for creating a sense of boundary.

1) Infocity District

2) Lake Zone District

7) Heritage District

3) Town Centre District

4) Laxmisagar District

5) South City District

6) Khandagiri District

Page 15: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

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Upcoming developments in BTCD under Smart City Mission

Redevelopment of existing railway station area of 12 acres as a mixed use project including railway station terminal building redevelopment.

Redevelopment of 40 acres of underutilized public land into a commercial, business and educational hub.

Redevelopment project to provide 3800 houses in 30 acres of government land. The average carpet area is

1000 sqft.

4 slum redevelopment project – Bapuji nagar,

Kharavela, Shanti nagar, Saheed nagar Abaas yojana with 6000 EWS units and

1200 nos. of HIG/MIG units

Janpath Govt. Housing Redevelopment Project

Satyanagar Institutional Core

Railway Station Multimodal Hub

Mission ABBAS

Page 16: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

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About- Bhubaneswar Town Centre District (BTCD)

Demography (2015) : 46,000

Area : 985 Acres / 3.9 Sq.km.

Households : 11,167

2.4% BMC 0.3% BDA

Road Network: 70.5 Km

Page 17: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

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Selection of potential sites for DES (district energy systems) feasibility

Potential areas Zone Development time period

Mixed use development

Willingness of client

Single Agency involved

TR requirement

Satyanagar Institutional Core

Bhubaneswar New Town

2~3 years Yes Yes Yes >3000 TR

Railway station Multimodal Hub

Bhubaneswar New Town

2~3 years

Yes Yes Yes >3000 TR

Knowledge City Chandrasekharpur >5 years Not known No No Not known

Infocity Chandrasekharpur >5 years Not known No No Not known

South City Tamando >5 years No No No Not known

Page 18: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Potential of DCS in India – Approach and estimations (WIP)

Approach 1: Total electricity consumption in space cooling

Approach 2: Total commercial air conditioned area and air conditioning requirements

Approach 3: Stock of refrigerant based equipments

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It can be projected that by adopting any of the lenient, moderate or ambitious approach, number of district cooling plants (considering 20000 TR each plant), may

vary from 10 to 20 by 2027-28 and 22 to 45 by 2037-38.

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Page 19: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Way Forward to drive DCS in India

Support to the Policy Ecosystem

Policy support to stand alone and

merchant type, in different areas

efficiency, water use and electricity prices

Integration of DCS policies in local

development plan of the cities

Integration of DCS in ECBC and various

green building rating systems

Formulation of Institutional framework

Forming a institutional

ecosystem to expedite the proliferation of

DCS

Involvement of NBCC, CPWD,

municipal corporations and

DISCOMS

Développement of financial mechanism

to promote

Deep Dive Assessment

Technical assistance for feasibility

assessment and investment roadmap

on DCS in India

City wide plans and detail tender development

Pilots and full scale development at

city/site level for DCS

Training and capacity building

Organize and coordinate training

and capacity building activities for technical

staff

Conduct webinars showcasing the technologies for efficient cooling

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Page 20: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

PwC 10 September 2019

Business models 1. Public Private Partnership(PPP)

• Ownership is split b/w public & private sector • Public sector is responsible for risks related to regulatory barriers like land acquisition, ensuring reliable water

& power supply • Private sector is responsible for planning, construction & operational aspects of the project • Model works well with user types like government buildings, food parks, SEZs & end user

2. Wholly Public Business Model

• Most prevalent business model in the world • Government authorities have full ownership over the system • Ability to manage finance through grants and MLF (multi lateral funding)

3. Private Business Model

• Considered in projects with high rate of return • Financing is provided wholly by the private sector • Applicable to user types like IT Parks, educational campuses, private townships like BHEL Township

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Page 21: PwC - Angan-BEE Ral… · PwC Mr. Rajeev Ralhan Executive Director, Clean Energy, PwC India THIS PRESENTATION WAS SHARED BY FOR THE SESSION: State-of-the-art Cooling Systems, including

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© 2019 PricewaterhouseCoopers All rights reserved. PwC refers to the India member firm, and may

sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see

http://www.pwc.com/structure for further details.

Thank you Building Relationships…

Rajeev Ralhan Executive Director Advisory-GRID T: 0124 – 330 6259 M: +919910063775 [email protected]