In hot and humid climate zones (ASHRAE 1A to 3A), as well as extremely cold climates (ASHRAE 6 and 7), energy recovery systems can significantly reduce peak heating and cooling demand, as well as energy consumption. The Munters Drycool ERV combines several technologies to create a dedicated otudoor air unit capable of efficient dehumidification. Units incorporate an energy recovery wheel, desiccant dehumidification wheel, and DX cooling system. The DX cooling system rejects heat upstream of the desiccant wheel, to provide "free" energy for the regeneration of the desiccant material. Designers should size units carefully to best balance equipment size with fan pressure drop.