Empower Reports 44% Growth in Contracts Amid Rising Demand
Empower, the world's largest district cooling services provider, has reported significant growth in customer consumption and contracts in the first half of 2024.
Summary
Empower has announced a 20% increase in district cooling consumption and a 44% growth in contracts in H1 2024. The company's connected capacity has reached 1.53 million refrigeration tons, driven by high occupancy rates and new mega projects in Dubai.
Emirates Central Cooling Systems Corporation PJSC (Empower), the world's largest district cooling services provider, has announced a remarkable 20% increase in district cooling consumption in the first half of 2024 compared to the same period in 2023. This surge represents a significant rise in demand for the company's services over the past five years, culminating in an approximate 55% increase from 2019 to 2023.
The rise in consumption is attributed to high occupancy rates in existing real estate projects in Dubai and the addition of several large-scale real estate projects to Empower's portfolio. The company's well-diversified customer base, spanning residential, commercial, hospitality, retail, entertainment, and other segments, has also played a crucial role in this growth. These segments have increasingly adopted environmentally friendly practices and focused on reducing carbon emissions.
In response to the growing demand, Empower's connected capacity reached 1.53 million refrigeration tons (RT) in the first half of 2024. Additionally, the contracted capacity surged to over 1.72 million RT, marking a 44% growth in the number of agreements signed during the period compared to the same period last year. This growth underscores the importance of district cooling systems in the planning and designing of modern, environmentally friendly buildings in Dubai and globally.
Empower is committed to developing the district cooling infrastructure in Dubai and adopting the best technologies in its operations to accommodate the increasing number of mega urban projects. The company has also expanded its share of the Dubai district cooling market to over 80% by the end of 2023.
HE Ahmad bin Shafar, Chief Executive Officer of Empower, stated, 'The remarkable growth in demand for our environmentally-friendly district cooling services is a natural result of customers' confidence in the quality of our services and the addition of several new mixed-use and mega projects to our portfolio. We are witnessing a growing awareness among real estate developers, building owners, and end-users about the economic and environmental benefits of district cooling solutions.'
Given the company's strong performance and market position, it is advisable for investors to hold their positions in Empower. The company's continued growth and expansion, coupled with its commitment to sustainability, make it a promising player in the district cooling industry.
Source
Summary
Emirates Central Cooling Systems Corporation PJSC (Empower), the world's largest district cooling services provider, reported a 20% increase in district cooling consumption and a 44% rise in contracts in the first half of 2024 compared to the same period in 2023. This growth is attributed to high occupancy rates in existing real estate projects in Dubai and a significant increase in new large real estate projects. Empower's connected capacity reached 1.53 million refrigeration tons (RT), and contracted capacity grew to over 1.72 million RT. The company now holds over 80% of the Dubai district cooling market as of the end of 2023. Empower attributes this growth to customer confidence and the environmental benefits of district cooling.
