CHENNAI: Tamil Nadu is looking at issuing green bonds for sustainable urban infrastructure, including district cooling systems — centralised plants which could cool entire buildings by passing chilled water through a network of pipelines.
A report titled Opportunities for District Cooling System in Tamil Nadu, which was submitted to Chief Minister M K Stalin recently has recommended the state take a leaf out of the Singapore model wherein green bonds are issued for such projects.
A district cooling system is a centralised plant producing chilled water, which is transferred to buildings and facilities through an underground network of insulated pipes. A control system regulates the temperature of chilled water and monitors flow rate.
According to the report, green bonds could be issued by the CMDA to finance district cooling in smart city districts. Additionally, loans could be taken from development banks such as the Indian Renewable Energy Development Agency.
The report suggested property tax rebates, reduced power tariffs or capital subsidies for developers implementing district cooling in high growth areas such as the Chennai IT Corridor or TN industrial estates.
Citing example of Tabreed, an Abu Dhabi-based district cooling provider, where a company is given exclusive rights to provide cooling services in specific urban areas, the report suggests that TN retain regulatory authority but allow concessionaires operational control.