ABB to boost energy efficiency in Shangri-La with district heating system

Date: 17/06/2014

Press release
The implementation of Shangri-La County district heating project, shifting from inefficient coal-fired stoves to one coherent district heating system will not only protect the ecological environment but also promote the local economic development as well as improve the quality of people’s life. The heating solution will set up a new standard for energy efficient heat production in China.

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Skovlunde, Denmark, June 17, 2014 – ABB, the leading power and automation technology group, is to supply a complete district heating system to Dêqên Tibetan Autonomous Prefecture Heat Development Co., Ltd. of Development & Investment Group (DHDC) in Shangri-La in the Himalayas, China. The district heating system is expected to be commissioned in the 3 quarter of 2015. The order is worth $ 26 million and was booked in the first quarter of 2014.

Shangri-La, formerly known as an earthly paradise, is hidden under a blanket of severe destroy of environment and air pollution from the dispatched stoves by cutting wood that are the primary source of heat among its 50,000 residents. Now the air pollution will be substantially reduced and the protection of the local ecological environment is promoted, by introducing district heating phase I project in five districts in of Shangri-La, 3,300 meters above sea level in the northwest of Yunnan Province in China.

These 5 areas are partially financed through DANIDA’s mixed credit program, a development program under the Danish Government.

“Denmark has a unique position within energy efficient and environmental friendly district heating which this order also proves. District heating has been recognized as a huge enabler to reduce CO2-emssion by using surplus heat from power production”, says Claus Madsen, Country Manager of ABB in Denmark.

ABB will supply the equipment from the steam to water heat exchanger in the boiler room to the end user installation including electrical and mechanical equipment needed to supply sufficient heat to the citizens. ABB`s automation and electrical solution interconnects and monitors the new heating plants for maximum efficiency, which will help to provide a safe, reliable source of heat for about 50,000 residents. In addition ABB will supply air-source heat pumps to move from individual heat-only boilers and stoves to boilers based on electricity. The pumps will boost the system`s energy efficiency, and help improve quality of life substantially by reducing coal-fired emissions.

Daily temperatures in Shangri-La can vary quite dramatically in winter, from as extremely low as minus 27 to one degree Celsius. To ensure that the needs of the residents are met, five local SCADA-systems will communicate with a central control and monitoring system in order to deliver enough heat in the most efficient way.

The shift from the use of stoves to the district heating systems will provide substantial environmental benefits; about 17,000 tons of coal will not be burnt in Shangri-La every year, which is approximately the equivalent of 105,000 tons in annual carbon dioxide emissions. 460 tons of dust emission will be reduced. 220,000 m3 of woods and the energy used to transport them for 1.8 million kilometres will also be saved (electricity of up to 38,000 MWh).

The project will be handled in collaboration between ABB in Denmark and ABB in China. Denmark is a world leader in district heating systems with an annual export of USD 855 million expected to grow by a factor three within 2020. Thus, ABB in Denmark is Centre of Competence for ABB’s global district heating business.

ABB ( is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 150,000 people.