District Energy - 2006 First Quarter

www.districtenergy.org/weblink.htm

Editor’s Note: WebLink is a relatively new feature for District Energy magazine. In each issue’s WebLink we present an abstract of an article that appears in full on IDEA’s Web site. After reading the abstract here in the publication, just visit www.districtenergy.org/ weblink.htm for the full transcript.

Question Qu^ofa^thr^eter

Middle East, East Asia:

Opportunity and example

Join your colleagues in
on-line discussion.

Robert P. Thornton, President, International District Energy Association

For the Middle East, South Korea and China, the energy future is now. China is growing dramatically in residential, manufacturing and educational sectors. Likewise, South Korea is experiencing significant development in mixed use and residential sector, while the Middle East, particularly the United Arab Emirates, is booming with major new real estate development. Some estimates call for 4 million tons of new cooling capacity to be constructed in the Middle East over the next six years.

Skyrocketing energy prices and inadequate power supplies favor district energy development in these regions due to its increased reliability, energy efficiency and environmental benefits. It is a perfect time to position U.S. district energy technology and services to gain certification and acceptance.

In fact, IDEA conservatively estimates the export potential in the Middle East and East Asia alone to be $6.64 billion over 10 years, creating more than 130,000 job-years. IDEA is hoping to help its members tap this incredible market potential.

In October 2005, IDEA was officially awarded a Market Development Cooperator Program Grant (MDCP) from the International Trade Administration of the U.S. Department of Commerce. IDEA’s three-year project, titled “The Emerging District Energy Market Access & Best Practice Initiative,” will help IDEA members better compete for business opportunities in

district energy development, principally district cooling, in the Middle East and East Asia. The project has seven distinct initiatives and is specifically intended to help small- to medium-size U.S. businesses promote the export of equipment, technology, standards and services to these emerging markets. The MDCP program involves matching and in-kind contributions from IDEA and participating business partners and provides $399,600 in federal program funds.

One of our East Asia members, the Korean District Heating Corp. (KDHC), recently invited me to speak at the “International Seminar on CHP/DHC Policy for United Nations Framework Convention on Climate Change Strategy” as part of KDHC’s 20th anniversary celebration in Seoul, South Korea. KDHC is one of the fastest-growing district energy companies in the world and has invested tremendous resources in educating and promoting district energy’s benefits. Its Web site is complete with animation of the district energy process.

To find out more about the opportunities in the Middle East and East Asia and the shining example Korea sets for us to better communicate with our customers and prospects, read the full article at www.districtenergy.org/weblink.htm.

Each quarter, District Energy magazine will feature a “question of the quarter” related to one of its forum interest areas. You are then encouraged to visit IDEA’s forum bulletin board to weigh in on the topic and voice your opinions or share your experiences.

This quarter, we’re calling on all IDEA-member distribution personnel to hop on-line to discussion this question:

What is your system doing to address the problem of keeping insulation intact in manholes that take on water? The boiling action of that water can destroy the integrity of the insulation used in normal manhole situations. How have you addressed this issue related to safety and efficiency concerns? What success are you having in dealing with this particular situation?

To read the full article, go to
www.districtenergy.org/weblink.htm

Please visit the Distribution Forum Message Board to discuss this topic with your colleagues. The message board is located in the IDEA Forums section of the ‘Members Only’ drop-down menu at