District Energy - 2006 Third Quarter

President’s
Message

More than 420 IDEA members and guests recently attended the 97th Annual IDEA Conference & Trade Show in Nashville, Tenn., another excellent turnout and successful industry meeting. The conference drew nearly 70 attendees from 14 different foreign countries, including over 30 from the Middle East, where district cooling development is growing dramatically. Based on feedback we received, attendees were very pleased with the quality of the technical program, the depth of discussion and, as usual, the networking and business opportunities the gathering afforded.

The conference theme – “District Energy/CHP 2006: Today’s Solution, Tomorrow’s Advantage” – illustrates how cities and campuses across the world are investing in district energy systems today to solve a myriad of energy challenges. During the opening plenary panel, industry leaders from around the globe provided insightful overviews of the renewal, expansion and development of district energy systems in the world’s largest cities like New York and the fastest-growing like Dubai, United Arab Emirates.

The discussion of U.S. systems centered on acquisition and renewal of district energy systems through private investment, private/ public partnerships and comprehensive infrastructure renewal projects to optimize fuel efficiency and support urban load centers. In Korea, industry leaders are emphasizing sustainable technologies that will support continued growth and environmental stewardship through fuel flexible options – firmly embracing the premise that district energy is today’s solution for tomorrow’s advantage.

Finally, leaders from three of the world’s fastest-growing district cooling businesses

spoke of their respective visions for the industry and the acceleration of infrastructure development underpinning massive real estate expansion in Dubai, Abu Dhabi and across the Gulf Region. IDEA members were urged to visit the Middle East to explore opportunities for collaboration, and more than one panelist spoke of the important role that IDEA can play in promoting excellence in operations, design and construction.

A common objective was the need to educate users at all levels on the value proposition of district energy while reinforcing operational excellence, adherence to sound business models and the importance of maintenance for reliability and system integrity. In consideration, IDEA has launched a Middle East Chapter and is planning the inaugural Middle East Cooling Conference for Jan. 14-17, 2007, at the Emirates Palace Hotel in Abu Dhabi, United Arab Emirates. (For information on becoming a charter member of the new chapter, download www.districtenergy.org/pdfs/MidEastFlyer.pdf.)

IDEA is planning the

inaugural Middle East

Cooling Conference for

Jan. 14-17, 2007.

Many of these themes also will be on the agendas of the 19th Annual Marketing Workshop and 18th Annual Distribution Workshop to be co-located in New York City and hosted by Con Edison Steam Business Unit Sept. 6-8, 2006. Discussing common challenges and sharing collective experiences are the principal features of these combined workshops.

You’ll note that these workshops and the Middle East conference are all just within the next six months alone! In addition, IDEA has set the 20th Annual Campus Energy Conference for Houston, Texas, Feb. 27- March 2, 2007. To be co-hosted by Thermal Energy Company and Rice University, the conference theme is “Critical Needs, Critical

Energy” and will feature a special pre-conference workshop devoted to emergency preparedness and disaster recovery. (See p. 38.)

IDEA has witnessed continuous expansion of our conferences and, in particular, has sold out all available exhibit space at every meeting in the past few years. I urge our business partners to contact IDEA early to secure exhibit or sponsorship opportunities. Before we know it, the 98th Annual Conference & Trade Show – “District Energy/CHP 2007: Leading the Way, Setting the Pace” – will be under way at the Hyatt Gainey Ranch Resort in Scottsdale, Ariz. On tap for June 2007, the conference will be hosted by Northwind Phoenix. (And Jim Lodge of Northwind Phoenix has assured us that Scottsdale has a dry heat, so we won’t even notice it.) In any case, I urge readers to make plans to attend, to present and to participate in IDEA conferences, as we all prosper through collaboration.

One example of productive collaboration is IDEA’s publication District Energy Space. Since 1990, IDEA members have reported more than 348 million sq ft of customer building space being connected or committed to district energy systems in North America. Since last year, IDEA also has recorded District Energy Space growth outside of North America where the pace of expansion is dramatically increasing with 52 million sq ft listed in 2004 and more than 62 million sq ft in 2005. (For more on District Energy Space, visit www. districtenergy.org/de_space.htm.)

Clearly, cities and campuses are investing in district energy to solve critical energy needs for today, with the promise of enhanced dividends in the future. Reliable and environmentally responsible energy systems will grow in value and importance as limits on fossil fuel supplies drive prices ever higher as supplies continue to tighten. If the discussions at IDEA’s 97th Annual Conference are an indicator, the district energy industry will continue to play a larger role in the energy portfolio mix around the world in the years and decades ahead.