Chairman’s
Message
Our theme for this year, “Think
Globally, Invest Locally: Recycle
Energy,” couldn’t be more timely.
Fluctuating, and in some cases dramatically
increasing, fuel prices have become a part
of our daily life. This year the energy spot
market experienced price increases of 20
percent to 40 percent for natural gas and
increases of 50 percent to 100 percent for
oil and Eastern coal compared to last year.
Fuel-price volatility will continue into the
future, and the trend is clearly geared
toward higher energy prices.
The underlying factor is that the
worldwide appetite for fuels such as oil,
coal and natural gas is increasing at a high-
Higher fuel prices also
open the door for new
local investments in fuel
flexibility capabilities,
energy recycling, energy
conservation and
renewable fuels.
such as deep-sea and lake-water cooling,
offer our members a platform for success.
For IDEA members not interested in
international district cooling expansion, tap-
ping into the extensive knowledge among
our members is an invaluable way to
improve your own operation. To make this
wealth of knowledge even more accessible,
IDEA now has nearly 15 years of confer-
ence proceedings available free to mem-
bers on-line at www.districtenergy.org – a
valuable member benefit. (The papers are
available for a fee to non-members.)
Another way to quickly learn more about
district cooling is to attend IDEA’s campus
and annual conferences, which will be held
in March and June, respectively.
Regarding recycling of energy, it is in
everyone’s best interest to continually strive
for a more efficient way to use our energy
resources. This can be done in a big way,
such as expanding our usage of combined
heat and power, or in a much smaller way,
such as data trending for troubleshooting
purposes or optimizing building HVAC
systems. This important topic is covered in
“When Did It Become Too Trendy To Trend?”
found on p. 43. Large or small, they are all
important steps to improve efficiency, the
environment and economics.
Everyone involved in the energy busi-
ness is living in a fast-changing environ-
ment that is creating threats and oppor-
tunities for our members and the IDEA
organization. IDEA’s board of directors
and president are in middle of a strategic
planning process, reviewing IDEA’s role as
an organization and setting goals as part
of a five-year plan. We welcome ideas from
all of our members. I encourage you to
contact me, Rob Thornton or any board
member about the role you would like the
association to play in the future of the
district energy and combined heat and
power industry.
er rate than development of new produc-
tion, which will deplete the existing fuel
inventory fairly fast. To balance supply and
demand and slow down usage, energy
prices will go up. It is now more important
than ever to include a global perspective in
your business planning.
Volatility and higher fuel prices will
create short-term challenges for many dis-
trict energy systems. But it will also create
an opportunity to utilize the many advan-
tages a centralized energy system provides:
fuel flexibility, combined heat and power,
long-term fuel contracts and recovery of
waste heat, to name a few.
Higher fuel prices also open the door
for new local investments in fuel flexibility
capabilities, energy recycling, energy conser-
vation and renewable fuels. This is the time
● for the district energy industry to demon-
strate its key role in a sustainable future;
● to show the world how to make better
use of its energy resources and thereby
protect the environment; and
● to communicate to local and national pol-
icymakers and the general public how the
district energy industry can simultaneously
conserve energy, reduce emissions, increase
the use of renewable fuels and significantly
increase national security by using
domestic fuels.
The ever-increasing demand for air
conditioning around the globe is creating
a strain on many countries’ power infra-
structure. District cooling systems are
instrumental in power demand manage-
ment. Increased cooling demand creates
excellent new business opportunities for
many of our IDEA members.
District cooling was developed and
has been broadly used in North America
for more than 40 years. The increasing
demand for air conditioning in Europe,
the Middle East, China, India and other
parts of East Asia creates a market for dis-
trict cooling equipment and expertise. The
increasing demand here at home for bet-
ter indoor air quality and noise reduction
to achieve higher overall indoor comfort is
also an opportunity for our members to
expand their businesses. Years of experi-
ence and the innovative use of thermal
storage (see the article “Cool Trends on
Campus…” on p. 25) and ’free energy,’
Anders Rydaker
Chair 2004-2005
District Energy St. Paul Inc.
anders.rydaker@districtenergy.COM
Column also available at
www.districtenergy.org/de_magazine.htm