IEA examines potential for grid-interactive buildings in India
The report examines how buildings can optimise energy use, shift or reduce peak demand, and align consumption with renewable generation.
Efficient grid-interactive buildings could help India manage rising electricity demand while improving grid reliability, according to the International Energy Agency (IEA).
Its report, Efficient Grid-Interactive Buildings in India: Status and Opportunities, assesses how buildings can become more responsive to the grid by combining energy efficiency, smart controls and demand-side flexibility – such as shifting or reducing electricity use at peak times.
India’s building energy use has been increasing at nearly 2% per year since 2010, exceeding 8EJ in 2023, and accounts for more than a third of the country’s total energy demand.
Space cooling is the largest and fastest growing driver of peak electricity demand in buildings, with around 130-150 million additional air conditioning units expected to be installed between 2025 and 2030.
The report says India already has a strong base, including building energy codes, appliance standards, rooftop solar and smart meter rollout. However, wider use of grid-interactive buildings will need stronger policy and market support.
Key priorities include demand response, dynamic tariffs, smart inverters and building energy management systems, as well as clearer ways for buildings to provide grid services such as reducing peak demand, supporting voltage control and helping with frequency response.
