Current Market Scenario For Energy Efficiency In India

Energy efficiency is very specific to end-use applications or particular systems. However, on an aggregate economy wide basis, energy efficiency does not provide a useful measure for comparison due to variations in the structure of energy supply and the end-use energy applications. Reduction in energy intensity is a part of the sustainable development program since it is closely linked to the management of climate change. With recent economic expansion, construction investment growth in India is forecasted at 12% overall and 23% in the commercial sector. India will add 80% of the total floor space estimated for 2030. Without a concerted effort to reduce energy intensity in buildings, the additional demand for electricity will exacerbate the chronic power shortage situation in India. Indian policymakers have started a three-pronged approach to market transformation, i.e. rating systems to recognize leaders in energy efficiency, financial incentive programs to move the middle of the market, and codes and standards to raise the entire market to desired efficiency levels. This paper reviews the status of these activities and the infrastructure for setup, scaling and compliance for each market transformation approach. Recognizing the challenges in India and using lessons learned from past experiences, we present recommendations for Indian policymakers to enable rapid market transformation in the building energy efficiency sector.