Optimizing Energy Efficiency: An Integrated Life Cycle Costing Approach for Centralized Cooling Plants

Abstract

Gas District Cooling (GDC) is an emerging technology utilizing natural gas-based systems for efficient district-scale cooling. This study develops a comprehensive Life Cycle Costing (LCC) model integrating capital expenditure (CAPEX) and operational expenditure (OPEX) for Thermal Energy Storage (TES) and Electrical Chillers (ECs) within GDC plants. Validated through a case study at an academic institute's GDC plant in Malaysia, the model assesses breakeven scenarios, revealing that project feasibility is optimal under case-II conditions, emphasizing the importance of operational efficiency for sustained economic viability throughout the plant's lifespan. These insights enhance understanding of financial considerations and investment strategies for adopting GDC technology in urban cooling applications, highlighting the need for strategic planning and lifecycle management to optimize economic performance and support broader sustainable development goals. Ongoing research will further refine LCC models, advancing the economic competitiveness of GDC as a key component of sustainable urban cooling solutions.