Transforming the Building Energy Efficiency Market in India: Lessons from the USA
With recent economic expansion, construction investment growth in India is forecast at 12 percent overall and 23 percent in the commercial sector. India will add 80 percent 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 country’s chronic power shortage situation. Indian policymakers have started a three-pronged approach to market transformation: rating systems to recognize leaders, financial incentive programs to move the middle of the market, and codes and standards to raise the entire market to desired efficiency levels.
This policy brief provides an overview of the status of these activities and the infrastructure for setup, scaling, and compliance for each market transformation approach. It juxtaposes the situation in India with the history in the United States, providing summary statistics for such key industry metrics as energy cost and construction cost. Recognizing the challenges in India and using lessons learned from the U.S. experience, the authors present recommendations for Indian policymakers to enable rapid market transformation in the building energy efficiency sector.