Adani Energy Solutions (AESL), the power transmission arm of Adani group, is scaling up it’s district cooling services (DCS) business.
AESL has been incubating DCS for the last few years. The company is setting up several large-scale DCS facilities across industrial, commercial, residential, and mixed-use projects, sources familiar to the matter said.
District cooling services is a centralised system that distributes chilled water or another medium from a central source to multiple buildings through a network of pipes, offering energy efficiency and cost savings compared to individual building cooling systems.
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The business is going to be a new revenue line for the company, sources said. It is operated by AESL’s subsidiary Adani Cooling Solutions (ASCL). Transmission, distribution and smart metering are its other businesses operated by ACSL.
AESL has entered the space under cooling-as-a-service (CaaS) model, where it undertakes the project under DBFOO (design, build, finance, own and operate) model, where the entire capex is borne by it, with the user only paying as per use. This model frees up significant portion of a real estate developer’s HVAC (heating, cooling, ventilation, and air conditioning) investments. The capex cost is broad and depends on scope of work. It ranges from Rs1-1.5 lakh per ton of refrigeration (TR), sources said.
ASCL and Maharashtra government-owned Mahatma Phule Renewable Energy and Infrastructure Technology, (MAHAPREIT) recently signed a memorandum of understanding (MoU) to set up district cooling system (DCS) in Maharashtra.
The partnership aims to set up DCS infrastructure and provide CaaS in Mumbai Metropolitan region and other locations under MAHAPREIT’s jurisdiction, a company spokesperson said.
“Through policy level intervention, the partners will work towards integration of DCS into the master plan for new and upcoming developments in and around Mumbai and Navi Mumbai,” the spokesperson said,
The partners will work on developing large DCS units on land identified for public utility infrastructure in areas like Mira Bhayandar, Thane (Kisan Nagar, Hiranandani Estate), Mulund, India Jewellery Park, Mahape, and Bharat Diamond Bourse, BKC, the spokesperson said.
One of key benefits of DCS is energy efficiency, as cooling demand is collated centrally and this centralised nature allows for economies of scale, resulting in reduced operational and maintenance costs. Owing to scale and use of latest technology,
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