2 Center for American Progress | Built-In Savings
Tis rapid building growh is having a signiﬁcan impac on India’s energy demand, creaing inrasrucure challenges and increasing he counry’s dependence on coal impors. In 2010, India impored 90 meric ons o coal14 percen o he counry’s demanda a cos o $9.3 billion;
he Inernaional Energy Agency projecs ha unless signiﬁcan acion is aken, his share will grow o 37 percen o Indian coal consumpion by 2030 o 2035, even hough domesic producion is expeced o riple.
As in he Unied Saes, however, addressing he challenges in India’s building secor presens an unrealized opporuniy. By one esimae, enhanced eﬃciency would save India $42 billion per year and avoid 2,988 megawats, or MW, o new generaion capac-iy annually hrough 2030.
Tese savings would represen approximaely 29 percen o he average annual capaciy added during India’s 11h Plan rom 2007 o 2012.
In spie o he diﬀerences in he make up and growh raes o heir respecive build-ing socks, he Unied Saes and India ace some similar challenges ha hey can and should joinly address hrough new policies and parnerships. In boh counries, or insance, energy-eﬃcien producs ofen have higher upron coss, while heir lower liecycle coss are oo ofen overlooked in invesmen decisions. Moreover, he relaively new naure o energy-eﬃcien echnologies means ha many consumers and ﬁnancial insiuions are unamiliar wih he signiﬁcan cos beneﬁs o such producs. Te coss and savings o energy eﬃciency are also insuﬃcienly quaniﬁed and are no made read-ily accessible or consumers and invesors, who ofen lack clear inormaion signals on he economic beneﬁs o eﬃciency invesmens.
Forunaely, a good plaorm already exiss on which bilaeral cooperaion can be buil: he U.S.-India Parnership o Advance Clean Energy-Deploymen, or PACE-D. Trough his iniiaive, he Indian Bureau o Energy Eﬃciency and he U.S. Agency or Inernaional Developmen, or USAID, are working ogeher on he implemena-ion o India’s Energy Conservaion Building Code, or ECBC, a volunary scheme o promoe he adopion o eﬃcien sandards.
Te PACE-D echnical Assisance Program has also issued a join repor ha recognizes he need or addiional U.S.-India cooperaion in he building secor.
o ollow up on he work already underway in PACE-D, he Unied Saes and India should seek o explore new bilaeral avenues or cooperaion ha creae a wo-way sree o knowledge sharing on which o address building energy demands.