0125262011 fadhel kazemi, tekneen

GCC Countries or State by State Draft District Cooling Utility Acts & Regulations

Setting Fair Business Relations Among The State, Customers, Developers & Utility Providers

Special Presentation forSpecial Presentation for

Kuwait District Cooling Summit 2011Organized by ProMedia

Held in Kuwait City 25- 26 Jan 2011

Byegr. Fadhel alKazemi

29 Dec ’10. Rev0

Tekneen District Cooling & Utilities KSCC

Kuwait

Tab l e o f Con ten t

Description Slide Number

� National Destiny & Purpose 3

� Create National Will 5

� District Cooling Network 6

� State’s Investment Options 7

� Decision Matrix To Choose Suitable Investment Alternative 8

� Economic Development Matrix 9

� Recommended Common Driver 10

2

� Recommended Common Driver 10

� District Cooling benefits & saving, if applied in Kuwait 2008-15 11

� Kuwait Electricity Consumption Sector Wise – 2006 12

� Proposed Fees & Tariffs Guidelines for District Cooling 13

� Maximizing Competency Using Fossil Energy &

Alternative Renewable Energy 14

� Action Plan to develop GCC Acts & Regulations 15

� Salient feature of developing regulated policies & legislations 16

Note : In the slides where indicated will be shown in the presentation.

National Destiny & Purpose set by Their Majesties & Royal Highness , the leaders of GCC Countries

• To reduce Electrical Power Demand, CO2 Emission & Domestic Fossil Fuel Consumption.

• To increase use of Alternative Renewable Energy in both demand side & supply side.

• All GCC countries ratified KYOTO Protocol & signed Montreal & Copenhagen Protocols.

• Transfer GCC to be one of the world’s financial center.

1

2

3

5

• Effect Mass transit through train & undergrounds to reduce usage of private cars.4

3

• Encourage research & development local & global by universities &research institutions.

• Contribute world prosperities of developing countries by setting special funds.

• Transfer GCC countries as world hub for passenger airlines, freight airlines & marine logistic.

• Transfer GCC cities to be home for global companies for offices, conferences & exhibitions.

• Transfer GCC cities to be touristic area for culture, medical, shopping, recreation & sports.

• Increase pilgrimage to Mecca & Madina as well as Umraa year around.

• Transfer many areas in GCC countries to be economic cities & industrial areas.

6

12

13

11

10

8

9

• GCC countries to provide global industrial & commercial Free Zone Areas.7

National Destiny & Purpose set by Their Majesties & Royal Highness , the leaders of GCC Countries

• To reduce Electrical Power Demand, CO2 Emission & Domestic Fossil Fuel Consumption.

• To increase use of Alternative Renewable Energy in both demand side & supply side.

• All GCC countries ratified KYOTO Protocol & signed Montreal & Copenhagen Protocols.

• Transfer GCC to be one of the world’s financial center.

1

2

3

5

• Effect Mass transit through train & undergrounds to reduce usage of private cars.4

4

• Encourage research & development local & global by universities &research institutions.

• Contribute world prosperities of developing countries by setting special funds.

• Transfer GCC countries as world hub for passenger airlines, freight airlines & marine logistic.

• Transfer GCC cities to be home for global companies for offices, conferences & exhibitions.

• Transfer GCC cities to be touristic area for culture, medical, shopping, recreation & sports.

• Increase pilgrimage to Mecca & Madina as well as Umraa year around.

• Transfer many areas in GCC countries to be economic cities & industrial areas.

6

12

13

11

10

8

9

• GCC countries to provide global industrial & commercial Free Zone Areas.7

Above conclusions been observed by speaker reviewing books, articles, interviews & Summits Communiqués

National Destiny & Purpose

Create National Willto achieve

National Purpose set by

Their Majesties & Royal Highness ,

5

Their Majesties & Royal Highness , leaders of GCC Countries

Source: Presentation 2nd Middle East District Cooling 2010, Doha 28 Nov 2010

District cooling is linked to area cooling of buildings mix & usage sectors

Villa

Residential

Commercial

Governmental

Referred to as 3rd Party Investors, Utility Provider regulated by legislations

6

Educational

Health Care

Entertainment & Cultural

Industrial

Agricultural

Source: Study of Methods of Energy Saving By Using the District Cooling in The State of Kuwait 2007-08

State’s Investment Options for Executing the District Cooling projects

State’s Direct Investment

Acquisition byAcquisition by

7

Private Public PartnershipPPP

Public

Sector

Private

Sector

Acquisition byDirect Investment

DBO System5 – 10 Years

Acquisition by 3rd Party investment

Contracting BOOT Method 20 – 25 Years

Brain Storming Decision or Decision Making Matrix


1 The effect of economic multiplier

# Factor

Acquisition through thirdparty investment BOOT

M.E.W. The State

20 10

15 10

10 5

10 5

Decision Matrix To Choose the Suitable Investment Alternative

5

10

5

5

20

20

15

15

Relative

weight

in

points

State’s direct

investment

2 Lesser financial risks on the State

3 Lesser paid capital and higher finance

4 Performance incentives and the employees profits participation

85 45Total

10 5

10 5

10 5

The Suitable Investment alternative based on the decision matrix

Working under the umbrella of Private Public PartnershipAcquisition by 3rd Party Investment BOOT Method

8

0

2

0

10

10

10

27 100

employees profits participation

5 Investment in researches & development

6 Purchasing franchises or patents

7 Work outside the State of Kuwait


Economic Centered Developments

Attractive Investment opportunities for local and foreign funds

Entities &

Develop Competency & Global Competition capabilities

National Purpose

Domestic competition Effect government planning role and

monitoring the plans

Entities & companies capable

of planning & execution

Modern, supportive and attractive infrastructure

Provide information

& economical

indicators

9

ECONOMIC DEVELOPMENT MATRIX

Domestic competition and reducing

speculation and monopoly

Develop Acts&

Regulation

Effects Laws with sovereign court

system

Empower national workforce to be competitive, performance & economically. Competency based in Education & Training and encourage national human

resources availability


Recommended common driver to be agreed on by ministries within each GCC state to circulate the application of District Cooling in their respective states

1

32

Economic Driver

Environmental Driver

Reduce State’s initial capital project investments

Reduce substantially electricitysubsidies by respective states

Lower domestic oil consumption as fuel substantially

10

4

5

6

Social Driver

Reduce CO2 emission & gases affecting the Ozone

Enhance work opportunities for the nationals and reduce substantially demand on expatriate workers for building maintenance

Possibilities of using Thermal Storage Tanks for state of emergency & backup for fire fighting services


District Cooling benefits & saving, if applied in Kuwait 2008-15

Reduce peak electrical loads at peak hour by 20% Of the new reduced DC peak electric load as per Point 3 & Point 5

Reduce total electricity consumption by 32% 13 million megawatts/hour for the period

Reduce initial investments to generate, transmit & distribute electricity USD 7,565 million for the period

1

2

3

Reduce state electricity subsidy by USD 1,196million for the period

4

70% Of peak electrical load produced in Kuwait is used for comfort cooling

11

Reduce peak electrical load for comfort cooling by 46% i.e. 3542 megawatts for the period

Reduce electrical consumption for comfort cooling by 44% i.e. 7,028,013 megawatts/hour for the period

5

6

7Reduce oil consumption as fuel by 35 million barrels

For the period i.e. saving USD 5,304 million for the period *

by USD 1,196million for the period

Note - * The barrel price was calculated at USD 60

Reduce CO2 Emission 12.34 Million Tons

for same period8

Preserve about 3.4 million KG of cooling gases affecting Ozone Layer by 2016

9


Kuwait as sample for Electricity Consumption Sector Wise – 2006

Source: Dr. Najy Al Motairi – KISR, Kuwait

12

Note :-Villa & Residential sector constitute 60%of electricity consumptions and must beincorporated in District Cooling area ofcoverage & also should satisfy demandof KYOTO Protocol.

Proposed Fees & Tariffs Guidelines for District Cooling sector wise in GCC Countries

Least financial burden on nationals entitled for housing welfare

Financial incentives based on performance will be paid to investor year by year

Financial incentive will be given to customers not receiving any subsidy

2

43

Annual subsidy will be effected for residential sector only

1

Tariffs & fees based on Residential Commercial Govt. Agri. Industrial Tariffs & fees based on

Globally practiced 3-Tier

Connection tariff

KD/Ton (Paid Once)

Annual consumption tariff KD/Ton/Hour

Annual service charge KD/Ton

With 15% internal rate of return

Residential Sector

Govt. Subsidy 70%

Commercial Sector

Owner 50%

Govt. Sector

No Support

Agri. Sector

No Support

Industrial Sector

No Support

13Source: Study of Methods of Energy Saving By Using the District Cooling in The State of Kuwait 2007-08

Note: The State will do the pipe distribution for villa/housing area & charge Utility Provider 1.5%

• Maximize competency in generation & utilization of energy. Minimize fossil fuel &

maximize alternative renewable energy in both demand side & supply side of

energy.

Maximizing competency in using fossil energy &

alternative renewable energy

• Implementation of integration of infrastructure to include productions of

electricity in new cities, allowing exchange of power between the city energy

production & the national power grid to be utilized incase of emergency on both

side.

14

• Where possible to provide oil or natural gas fuel, recommend in industrial

complexes, oil facilities or commercial projects will produce their own

electricity integrated with own infrastructure services, where possible give

incentives to use renewable energy & provide exchange with national grids through

buy & sell protocol or for emergency requirement.


International District Energy AssociationIDEA

Goals

• Facilitate networking and exchange of information among members.

• Enhance educational opportunities for district energy professionals.

• Assist members in marketing the benefits of district energy services.

• Secure favorable policies, legislation and regulations for district energy.

Propose action plan to develop GCC Acts & RegulationsFor District Cooling & District Energy

15

For District Cooling & District Energy

GCC District Cooling companies, members of IDEA to agree on a meeting tobe held in one of the GCC cities, form a committee to select a capablereputable consultant well experienced in District Cooling to draft proposal :

The proposed draft will be sent to IDEA for review as well as will be sent tostate by state to government departments likely to be of interests toregulate District Cooling application in the state & would be potentiallyactive in the regulation committee in local state level or national GCC level.

GCC Acts & RegulationsFor District Cooling & District Energy

Salient feature of developing regulated policies & legislations

1. Any regulating policies & legislations such as Acts, Regulations & Statutories or

any contracts shall be based on fair contract fundamental between the parties

and at no circumstances to be developed on partial or one sided.

2. The policies & legislations to encourage use of thermal storage system &alternative renewable energy and to allow integration of infrastructures and

power generation on district or city basis.

3. Regulations to include reference to reputable codes such as ASHRAE , latesttechnology & up to-date best technical & business practices relating to District

Cooling or District Energy systems.

16

Cooling or District Energy systems.

4. Encourage research & developments. Encourage District Cooling or District

Energy Utility Provider to invest in new technologies & systems which will

lower kw/Ton.

5. Possibly the States will issue legislation from time to time to set up tariff &fees per sectors by which it will be a criteria for bidders or concessionseekers to invest in District Cooling systems.

6. In the study made for Kuwait, the consortium highly recommended to usethermal storage tanks to support fire fighting efforts & in case of nationalemergency or god forbidden natural disasters.

Acknowledgement

Sponsored and Financed By: Kharafi National Company KSCC and Kazema Engineering Projects WLL

Study consortium: SSH, Kuwait University, KISR, Wataniya Environmental Services Company

Energy Saving Study by using District Cooling Methodology

in The State of Kuwait

Tekneen District Cooling & Utilities KSCCP.O. Box 26528 Safat, 13126 Kuwait

Tel: 24721155 Ext: 2304 Fax: 24721199E-mail: [email protected]

Participants & OrganizerKuwait District Cooling Summit 2011

FADHEL ALKAZEMICEO, Tekneen District Cooling & Utilities KSCC

Thank You

17

Q & AQ & A

18

0125262011 fadhel kazemi, tekneen

Documents

transfer gcc countries

transfer gcc cities

leaders of gcc countries1

leaders of gcc countriessource

district cooling benefits

kuwait district cooling

gcc acts regulations

middle east district