Advantages of district heating and cooling

Benefits to the client In addition to the social benefits of district heating and cooling from the environmental viewpoint, there are various other benefits to clients (users of heating and cooling, and building owners) that arise from sharing an external, centrally managed heating and cooling source. These include economic efficiency, reliability, and power and space savings.

Economic efficiency

　Since individual boiler and chiller equipment is unnecessary, contract demand falls and the cost of electric power is significantly reduced. The amount of gas and water needed is also reduced, so energy costs in terms of utility rates can be trimmed down.
　Furthermore, capital investment in boiler and chiller equipment is no longer required for building owners, slashing their initial costs. When the price per unit of heat is calculated based on a 30-year life cycle, district heating and cooling is about 10% cheaper than stand-alone heating and cooling systems. Once the building starts operating, it is a simple matter to adjust the contract for variations in the air conditioning load.

Reliability

　Like gas and electric utilities, district heating and cooling is offered through public utilities that are required to provide a stable supply. The boiler and chiller plants are operated under the supervision of dedicated engineers, so clients can be assured of being supplied with clean heat on a 24/365 basis.
　District heating and cooling is also a major sales point for attracting tenants, from the standpoint of safety, reliability and scalability. It also increases the value of a building.

Power and space saving

　The space in individual buildings normally required for installing boiler and chiller facilities is freed up, making space for leased areas such as warehousing and car parking. At the same time, district heating and cooling saves building owners the trouble of operating and maintaining building air conditioning systems. They no longer need to find qualified technicians to operate the boiler and chiller equipment, doing away with the associated labor costs.
　Not only that, the need for chimneys, cooling water piping and cooling towers is eliminated, increasing building design freedom. Rooftops can be used for gardens or a helipad instead. Since the weight rating required of the rooftop is also reduced, construction costs are also often lower.

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