CHEMICAL ENGINEERING TRANSACTIONS  
 

VOL. 56, 2017 

A publication of 

 

The Italian Association 
of Chemical Engineering 
Online at www.aidic.it/cet 

Guest Editors: Jiří Jaromír Klemeš, Peng Yen Liew, Wai Shin Ho, Jeng Shiun Lim 
Copyright © 2017, AIDIC Servizi S.r.l., 

ISBN 978-88-95608-47-1; ISSN 2283-9216 

Technical and Economic Evaluation of District Cooling 

System as Low Carbon Alternative in Kuala Lumpur City 

Liu Wen Huia,b, Haslenda Hashima,b, Lim Jeng Shiuna,b, Zarina Abdul Muisa,b, Liew 

Peng Yena, c,  Ho Wai Shina,b,* 

aProcess Systems Engineering Centre (PROSPECT), Research Institute of Sustainable Environment (RISE), Universiti 

Teknologi Malaysia (UTM), 81310 UTM Johor Bahru, Johor, Malaysia. 
bFaculty of Chemical and Energy Engineering (FCEE), Universiti Teknologi Malaysia (UTM), 81310 UTM Johor Bahru, 

Johor, Malaysia. 
c Department of Environmental Engineering and Green Technology, Malaysia-Japan International Institute of Technology 

(MJIIT), Universiti Teknologi Malaysia (UTM), Jalan Sultan Yahya Petra, 53100, Kuala Lumpur, Malaysia. 

hwshin@utm.my 

Kuala Lumpur (KL) city which has started its initiatives to become one of the low carbon cities in Malaysia, has 

the potential of implementing District Cooling System (DCS) in its existing energy system. Nowadays, most 

office buildings in Malaysia are utilising the conventional air-conditioning at each individual premise for space 

cooling purpose. In the development into a low carbon city, DCS could replace the conventional air-conditioners 

as it is more energy-efficient and subsequently reduces carbon emission to the environment. This study aims to 

compare and evaluate on four different cooling systems that are suitable to be implemented in KL city. A case 

study is created where a cooling load of 250,000 kWh/month of five office buildings in the same vicinity in KL 

city is to be met. Three parameters are studied to evaluate the cooling systems, namely energy consumption, 

costing and carbon emission, on a yearly basis. The result shows that centralised DCS is expensive in term of 

its initial investment and operational costs compared to individual air-conditioner. However, the type of energy 

source in DCS is an important factor to determine the total energy consumption and carbon emission of the 

cooling system. DCS that combines biogas-fired steam boiler and absorption chiller is the best option to be 

implemented. The system can generate own electricity to be used on-site, while the use of biogas effectively 

can achieve a carbon-neutral electricity production.  

1. Introduction 

District cooling system (DCS) is a utility which produces and supplies chilled water from a central plant to multiple 

buildings. The chilled water supplied is used for space cooling and process cooling in the buildings (Augusto et 

al., 2013). DCS consists of three main components: the central cooling plant, the distribution system and the 

energy transfer stations (ETS) which are on the customers or buildings’ side. Central cooling plant constitutes 

of the cooling equipment, chillers, cooling tower, power generation and thermal storage. Chilled water is 

generated at the central cooling plant by chillers. Water-cooled chiller (cooling processes as shown in Figure 1) 

is the most common type of chiller because it is relatively cheaper and is able to cater the cooling demand 

diversity between different buildings within the district. Cooling towers are used to reject waste heat from the 

chillers into natural make-up water from the oceans, deep lakes or rivers (Energy Land, 2016).  

The second element of DCS - the distribution system are made of a piping network that transfers the chilled 

water from the central cooling plant to different individual ETS, with the help of pumps at controlled rates and 

loads. In hot climate regions, underground buried pipelines should be used (Kaushik and Nand, 2015). At ETS, 

plate type heat exchangers (HEX) which serves as a connection interface to deliver chilled water supply to 

customers, via secondary pumping system and chilled water piping inside the entire building. Figure 1 illustrates 

the how the DCS is operated from the central plant to the customers’ ETS.  

 

                               
 
 

 

 
   

                                                  
DOI: 10.3303/CET1756089

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Please cite this article as: Liu W.H., Hashim H., Lim J.S., Muis Z.A., Liew P.Y., Ho W.S., 2017, Technical and economic evaluation of district 
cooling system as low carbon alternative in kuala lumpur city, Chemical Engineering Transactions, 56, 529-534  DOI:10.3303/CET1756089   

529



 

Figure 1: Configuration of the three main components of DCS operating with water-cooled chiller unit 

DCS is an energy-efficient air-conditioning system that offers massive cooling energy (chilled water) production. 

The fact that DCS consumes about 20–35 % less electricity than the conventional air-conditioning systems at 

individual premises, making DCS a desirable and well-suited urban utility service, particularly in commercial 

districts with high cooling load density (Tey, 2010). Via its large-scale operation, DCS is able to create more 

economic advantages when compared to in-building chiller plants. Centralised DCS also allows users to utilise 

building space more effectively. Energy efficiency in buildings can be improved via DCS because the 

maintenance can be streamlined. 

1.1 Kuala Lumpur towards a Low Carbon City 

Malaysia government aims to have a city or township of zero carbon emissions in all 14 states by 2026. To date, 

Malacca City (a tourism propagated city) and Iskandar Malaysia (a new developed region in Johor) have been 

developed and implemented the Low-Carbon Cities Framework (LCCF) to reduce the national carbon emission 

target up to 45 % by year 2030. There are four key areas which LCCF is tapping into for carbon emission 

reduction: transportation, environmental quality, buildings and energy, waste and water management (The Star, 

2016).  

There are several cities in Malaysia that are in queue for their way to be transformed into a low carbon city; one 

of them is Kuala Lumpur (KL) City. KL city is Malaysia’s metropolis, which its population and economic growth 

are rising exponentially in the past decade. In 2015, 1.78 M population has occupied KL city with an area of 243 

km2 (Department of Statistics Malaysia, 2016). The local energy demand in KL is surging significantly, especially 

in commercial (34 %) and residential sectors (21 %). This growing trend subsequently leads to issues concerning 

energy security, rising fuel prices and environmental effect.  

In tropical countries like Malaysia (temperature range is 22–32 °C), space conditioning is important that cooling 

demand is crucially high to be met for thermal comfort. Saidur (2009) conveyed that in a typical mid-rise office 

building, air-conditioners (AC) consumes the largest amount of energy (57 %), followed by lightings (19 %), lifts 

and pumps (18 %), and other equipment (6 %). In line with the LCCF, DCS becomes one of the most potential 

technologies that could be implemented in buildings and energy sector.  

This paper will discuss on the benefits of DCS implementation as one of the low carbon initiatives in KL city, by 

comparing DCS with KL city’s current energy cooling system for governmental office buildings. The following 

section will discuss about case studies considered for the analysis, including the parameters which will be 

compared. 

2. Methodology 

2.1 Case Study 

In this section, four different cooling systems that can be implemented in KL city are studied. Their descriptions 

and relevant data are listed in Table 1. A typical governmental office building in Malaysia has an average cooling 

load of 250 kW per building. Five similar buildings in the same vicinity are considered in this case study of DCS 

application. Assuming the operation hour is from 0800 h to 1800 h (total 10 h), 5 d a week, 4 weeks a month, 

the total cooling load of the five buildings is 250,000 kWh/month. According to Tariff C1 (medium voltage general 

commercial tariff) from TNB (2016), for each kW of maximum demand per month, it will be charged at a rate of 

RM 30.3/kW, while for the total kilowatts used, RM 0.365/kWh.  

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2.2 Mathematical equations 

For each cooling system, three parameters including energy consumption and the associated cost and carbon 

emission are estimated via the following equations: Eq(1) for energy consumption, Eq(2-6) for costing and Eq(7) 

for carbon emission. Due to limited data, several assumptions have to be made.  

2.2.1 Energy consumption 

Assuming that the coefficient of performance, COP of cooling system is 1.0,  

Total Energy Consumption, TC (MWh/y) 

= Unit power (kW) x 2,400 (h/y) x No. of cooling unit x 0.001 (MW/kW) 
(1) 

Table 1: Cooling systems used in the case study 

Cooling system Type of energy source Description and data Source 

S1: 

Conventional Individual 

AC 

Gas-generated grid 

electricity 

 Type: Ceiling Cassette Split Unit 

 Working fluid: R410A (refrigerant) 

 Cooling Capacity: 23,000 Btu/unit  

 Power: 3.6 kW/unit 

 Price: RM 3,388/unit 

 Maintenance: RM 400/unit.y 

DAIKIN, 

2016 

S2: Conventional 

Individual AC 

Biogas-generated grid 

electricity 

 Same cooling system model as in S1. 

 Biogas selling rate = RM 0.2786/kWh  

SEDA, 

2016 

S3: 

DCS with 

Refrigerant  

Compression  

Technology 

Natural gas-fired 

electricity 

 Chiller power: 1,250 kW 

 Chiller capacity: 1,375 kW 

 Working fluid: R134A (refrigerant) 

 1 kWh cooling needs 0.5 kWh electricity 

 Installation price: RM 4,562,000 (Including 

chiller, cooling tower, distribution pumps, 

and other cooling equipment) 

 Maintenance: RM 34,300/y 

Zabala, 

2009 

S4: 

DCS with Absorption 

Cooling Technology 

 

Biogas-generated 

Combined Heat & 

Power (CHP)  

cogeneration plant 

 Single-effect chiller with a steam boiler and 

turbine 

 Chiller power: 1,250 kW 

 Chiller capacity: 1,375 kW 

 Working fluid: R134A (refrigerant) and LiBr 

(absorbent) 

 1 kWh cooling needs 1.1 kWh heat (steam) 

 1 kWh of biogas consumed can produce 78 

% steam, 20 % electricity and losses 2 %.   

 Installation price: RM 3,287,209 (Including 

chiller, cooling tower, distribution pumps, 

and other cooling equipment) 

 Maintenance: Negligible 

Zabala, 

2009 

2.2.2 Life-Cycle Costing 

Costing is based on annual worth analysis. It is assumed that the life-cycle of all four cooling systems in this 

study is 10 years. The annuity factor, A10,0.1 is 6.1446 for an investment of 10-year period and a 10 % rate of 

return.  

Investment cost, IC (RM) = No. of cooling unit x Unit price (RM) (2) 

Operational Cost for Electricity, OCe (RM/month)  

= No. of unit x [P (kW) x 30.3 (RM/kW) + P (kW) x 200 (h) x 0.365 (RM/kWh)] 
(3) 

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Operational Cost for Biogas, OCb (RM/month) = No. of unit x [P (kW) x 200 (h) x 0.2786 

(RM/kWh)] 
(4) 

Maintenance Cost, MC (RM/y) = No. of cooling unit x Unit maintenance cost (RM) (5) 

Equivalent Annual Cost, EAC (RM/y) = IC/A10,0.1 + OC x 12 months + MC (6) 

2.2.3 CO2 emission  

Assuming that the grid power is generated from natural gas, the major fuel source contributing to 52.7 % of the 

total fuel mix generation of electricity in Malaysia (Tan et al., 2013). With this, the baseline CO2 emission factor 

for Peninsular Malaysia is 0.741 tCO2/MWh (SEDA, 2016). 

Total CO2 emission, TE (tCO2/y) = TC x 0.741 tCO2/MWh (7) 

3. Results and Discussion 

Table 2 shows the calculated values of three parameters studying on four cooling systems, as to fulfill a total 

cooling demand of 250,000 kWh/month of five buildings in the same vicinity. In the current office buildings in 

Malaysia, most of them run on individual AC system which is less efficient. To meet a minimum cooling load of 

250 kW, a building needs 37 conventional electrically driven AC compressor system. As a result, individual AC 

has the highest electricity consumption about 1,600 MWh/y. Comparing S3 and S4, S3 consumes a higher 

electricity because compression work is needed in producing chilled water. For S4, with biogas of 4,230 MWh/y 

used, a side electricity output of 846 MWh/y can be generated. If this electricity is used on-site for the chiller 

operation, a surplus of 605 MWh/y electricity can be sold for profit.  

S2 has the same consumption and cooling capacity as S1. However, due to the different fuels used for electricity 

generation, S2 is cheaper in term of operational cost. Since DCS is a large-scale centralised utility site, its 

installation and operational costs are relatively higher than individual AC systems. Note that the power and 

costing calculation for both DCS types do not consider steam boiler nor ETS, because the main aim of this study 

is to compare between the cooling systems. The type of fuel used in cooling systems is an important factor 

which directly affect the costing, especially the operational cost, and the environmental impact. Assuming biogas 

is carbon neutral, the electricity generation for S2 and S4 has zero CO2 emission. 

Table 2: Comparison of four different cooling systems in term of three parameters 

Cooling system Total Energy Consumption  

(TC) 

Costing Total CO2 emission  

(TE) 

S1: Individual AC-  

Gas-generated grid 

electricity 

Electricity = 

1,598.4 MWh/y 

IC = RM 626,780 

OC = RM 68,797.80/month 

MC = RM 74,000/y 

EAC = RM 1,001,579.16/y 

1,184.4 tCO2/y 

 

S2: Individual AC –  

Biogas-generated grid 

electricity 

Electricity = 

1,598.4 MWh/y 

IC = RM 626,780 

OC = RM 37,109.52/month 

MC = RM 74,000/y 

EAC = RM 621,319.80/y 

0 tCO2/y  

S3: DCS – Refrigerant 

Compression Technology 

Electricity = 1,500 MWh/y IC = RM 4,562,000 

OC = RM 83,500/month 

MC = RM34,300/y 

EAC = RM 1,778,744.50/y 

1,111.5 tCO2/y 

S4: DCS – Absorption 

Cooling Technology 

Electricity = 240.9 MWh/y 

Electricity production 

= 846.15 MWh/y 

Biogas = 4,230.77 MWh/y 

IC = RM 3,287,209 

OC = RM 84,172.38/month 

MC = Negligible 

EAC = RM 1,545,047/y 

0 tCO2/y 

 

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4. Conclusion 

This is a preliminary study to compare and evaluate the feasibility of introducing DCS in replace with 

conventional single air-conditioning system in office buildings in KL city. As a city with compact population and 

limited land mass, the implementation of a large-scale centralised DCS in KL is a more energy-efficient and 

sustainable approach for space conditioning. In real scenario, it should be noted that a high dense urban city 

like KL city would have reached more than 500 MW of cooling load, which could be served by more than one 

district cooling plants and the piping network could have been more complicated. 

From this study, despite of large investment cost, DCS with biogas fuelled CHP and absorption cooling system 

not only can reduce electricity loads by generating electricity for on-site usage, but also reduces carbon emission 

compared to other cooling systems. DCS is thermally driven cooling system, which is indirectly fired by either 

gas or renewable sources such as biogas or biomass. The hot and humid weather in Malaysia makes DCS 

using absorption cooling feasible as the technology are able to use the “free” and abundant waste heat or 

renewables as fuel, therefore it is more sustainable and reduces the reliance on grid electricity. 

Governmental policies and energy prices will influence the pace of sustainable development and deployment of 

new energy-efficient technologies in KL metropolitan city, by considering the economic factors and global market 

conditions. However, prior to construction and implementation of DCS, it is important to conduct more system 

simulations and optimizations that represents the real scenario which is able to perform at its optimal operation 

conditions while minimizing the system cost and avoid unnecessary energy wastage.  

Abbreviations 

AC  Air conditioners 

CHP  Combined Heat and Power 

DCS  District Cooling System 

ETS  Energy Transfer Stations 

GDP  Gross Domestic Product 

HEX Heat Exchanger 

KL  Kuala Lumpur 

Variables 

A  Annuity factor [no unit] 

COP  Coefficient of performance [no unit] 

EAC  Equivalent annual cost [RM/y] 

IC  Investment cost [RM] 

MC  Maintenance cost [RM/y] 

OC  Operational cost, OCe for electricity, OCb for biogas [RM/month] 

P  Power [kW] 

TC  Total energy consumption [MWh/y]  

TE  Total CO2 emission [tCO2/y] 

Acknowledgments  

The authors wish to thank the Ministry of Higher Education (MOHE) and Universiti Teknologi Malaysia (UTM) 

for providing financial support, under the research grant number R.J130000.7846.4F771 and 

Q.J130000.2642.11J33. The acknowledgement is also dedicated to MyBrain (MyPhD) Scholarship from MOHE 

to the first author. 

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