District heating and cooling (DHC) systems produce hot water, steam, hot/cold air and chilled water at a central plant. It is then transported through underground tubes and pipes to individual buildings within a specific district. This process is very energy efficient and reliable. District heating and cooling is also considered as a flexible technology as it can make use of various kinds of fuel sources. Various fuel sources used for district heating and cooling includes industrial waste heat and renewable energy sources such as biomass, geothermal and natural sources. District heating and cooling systems uses combined heat and power (CHP)/cogeneration technologies to produce steam and hot/chilled water.
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Combined heat and power (CHP) is the simultaneous production of electricity and heat from a single fuel source. CHP technology is interdependent and interlinked. It produces heating and cooling services through inter system linkage. The cooling service is provided to certain houses which in return emits out waste heat. This waste heat is utilized and processed to provide heating services to homes. This interlinked system and process reduces cost and prevents use of extra energy resources. All these factors assist to limit environmental pollution and greenhouse gases effects. District heating and cooling system provides heating and cooling services to all the homes in an area or district through a centralized system. This system requires less capital investment, risk and operational costs than systems where each building must maintain its own boiler or air conditioner to provide heating/cooling.
The district heating and cooling market today has grown manifolds since its inception and has gained immense importance since last few years. The district heating and cooling markets are very mature and are expected to register steady growth over the forecast period. Use of district heating and cooling systems provides stability of supply, cost efficiency and affordability, pollution control, optimal use of fuel resources. This positive attributes are likely to help the market to grow in the near future. However, lack of government support, subsidies along with poor maintenance of system may growth in the global district heating and cooling market. The market for district heating and cooling is likely to grow largely on account of gaining importance for energy sustainability, environment conservation and pollution control. Increase in consumer awareness and technology development is anticipated to fuel additional growth in the global DHC market. The global market for district heating and cooling can be segmented on the basis of application and geography. The market based on application segment is categorized into residential, commercial and industrial.
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Western Europe, Baltic States and Eastern Europe, East Asia Pacific and North America are some of the largest markets for the district heating and cooling systems. The highest numbers of DHC system installations are observed in European and CIS countries such as Finland, Denmark, Sweden, Austria and Russia. In Russia alone, there are more than 60,000 district heating systems. Russia and other European countries are also the largest exporter of the district heating and cooling systems. China is one of the major market for district heating and cooling systems in Asia Pacific.
Some of the key players in the global district heating and cooling market include COWI A/S, FVB Energy Inc., Helen Ltd., NRG Energy Inc., VEKS - Vestegnens Kraftvarmeselskab I/S, Vital Energi Ltd., Xylem Inc. and Korea District Heating Corporation (KDHC).
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