India faces a unique cooling challenge, characterized by one of the lowest access rates to cooling globally, with per-capita energy consumption for space cooling at just 69 kWh, a significant contrast to the world average of 272 kWh. Paradoxically, despite this low access to cooling, the country has been grappling with intensified heatwaves due to climate change, posing a dual threat to human life and economic productivity. Over 90% of the nation falls into the “extremely cautious” or “danger zone,” making India one of the first places in the world to experience heat waves that surpass the human survivability limit. Adding to the complexity, around 380 million people, constituting 75% of India’s workforce, are engaged in heat-exposed labor, making them highly vulnerable to extreme heat. A McKinsey & Company report highlights that heat wave-related productivity and health effects could potentially threaten nearly 4.5% of India’s GDP by the end of the decade.
The cooling demand in India is projected to grow at a rate of 15-20% annually, reaching up to eight times its current level by 2037-38. This surge in demand has led to challenges such as endangering food security, public health issues, and power grid failures in certain regions. To address these challenges, the country has been compelled to build excess grid capacity and rely on fossil fuels due to the intermittent nature of renewable energy sources, putting India’s net zero targets and commitments at risk.
Critical sectors such as manufacturing, housing, food and beverage, cold chain, and pharmaceuticals, which are vital for human survival, are heavily reliant on air conditioning, contributing to an estimated 1,950 million tons of carbon dioxide emissions annually. To safeguard India’s interests both economically and socially, it is essential for these key sectors to decarbonize and adopt sustainable cooling practices and technologies.
District cooling presents a promising and green solution that can effectively meet the escalating cooling demand in various industries while reducing carbon footprints. These systems are designed to be cost-effective, energy-efficient, and environmentally friendly compared to conventional cooling methods. Rooted in principles of circularity, district cooling plants provide cooling to multiple buildings within its network, using chilled water circulated through insulated pipes, similar to utilities like gas, electricity, or water. By aggregating cooling needs, district cooling systems substantially reduce the installed base and power load requirements, resulting in significant energy savings of 20 to 50% compared to conventional air conditioning systems. The water used for chilling can be sourced from sewage treatment plants or other natural water sources such as seawater to reduce or completely eliminate potable water requirement. Similarly, the chiller system can be powered through waste heat produced in waste to energy plants or renewable power in conjunction with thermal energy storage for night time operations.
District cooling systems have vast potential to revolutionize the cooling needs of various industries in India, promoting sustainability and reducing environmental impact.
One of the most significant applications of district cooling is in space cooling for residential, commercial, and retail buildings. With India’s space cooling expected to contribute to 45% of the country’s peak electricity demand by 2050, district cooling can reduce peak power capacity by up to 30 percent on average (with an additional 20 percent reduction that can be unlocked through thermal energy storage). By aggregating cooling needs of multiple buildings within a district, the overall cooling load and power demand can be reduced, resulting in lower energy consumption and reduced carbon emissions, while supporting equitable access to cooling.
Data centers, essential for the digital economy, are power-intensive and require robust cooling solutions to maintain uninterrupted operations. With data center capacity expected to nearly double to 1,700-1,800 MW by FY25. MW, the adoption of district cooling can play a pivotal role in ensuring reduced carbon footprint, making them more environmentally friendly and contributing to India’s green energy transition, all while guaranteeing SLA-based KPIs for availability and energy efficiency.
India has the largest footprint of cold stores in the world, led by online grocery and pharma, cold storages stock stood at 37.4 million metric tonnes in 2020. However, the market is not only highly fragmented and unorganized, it also relies on zero GWP ammonia refrigerant and obsolete technologies, making it energy inefficient and high GHG emitter. Development of an integrated cold chain network, leveraging district cooling, can lead to a reduction in refrigerant demand by 10% and potential emissions reduction of approx. 77 metric tonnes CO2e annually by 2038, while supporting food and health security by reducing wastage.
District cooling can efficiently cater to the cooling needs of manufacturing facilities, warehousing or dark stores, public infrastructure such as airports and metro stations, and other transportation-related cooling requirements.
In conclusion, district cooling systems offer a holistic and sustainable approach to meet the cooling demands of various industries in India. By adopting district cooling across diverse sectors, India can significantly reduce energy consumption and carbon emissions, positively impacting human health, air quality, access to clean energy, and the creation of green employment opportunities. As India endeavors to build a greener and more resilient future, district cooling emerges as a transformative solution, reshaping the cooling landscape for industries and fostering sustainable and inclusive economic growth.
