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Built-In Savings: A U.S.-India Partnership on Energy-Efficient Buildings

Built-In Savings: A U.S.-India Partnership on Energy-Efficient Buildings

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The United States and India should aggressively pursue opportunities to curb energy waste in the building sector in order to reduce their greenhouse gas pollution, enhance their energy security, and grow their economies.
The United States and India should aggressively pursue opportunities to curb energy waste in the building sector in order to reduce their greenhouse gas pollution, enhance their energy security, and grow their economies.

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Published by: Center for American Progress on Mar 13, 2014
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1 Center for American Progress | Built-In Savings
Built-In Savings
A U.S.-India Partnership on Energy-Efficient Buildings
By Bracken Hendricks, Peter Ogden, and Ben Bovarnick March 13, 2014
A shared challenge: Inefficiency of buildings in the United States and India
In order o reduce heir greenhouse gas polluion, enhance heir energy securiy, and grow heir economies, he Unied Saes and India should aggressively pursue opporu-niies o curb energy wase, paricularly in he building secor.Tere is clear evidence o inefficiency wihin he U.S. building sock. According o he U.S. Energy Inormaion Adminisraion, or EIA, residenial and commercial build-ings in he Unied Saes in 2010 consumed 40.3 quadrillion Briish hermal unis, or Q-BUs, o energy󲀔22.1 Q-BUs in residenial buildings and 18.2 Q-BUs in commercial buildings. Hal o i, or 20.4 Q-BUs, was los o inefficiency. Buildings accoun or 41.1 percen o oal U.S. energy consumpion and a similar share o naional greenhouse gas emissions. In 2010, his accouned or 2,267 million meric ons o carbon dioxide, or MM CO
2
󲀔1,232 MM CO
2
 in residenial buildings and 1,035 MM CO
2
 in commercial buildings. Te Unied Saes mus marshal subsanial new public and privae invesmens ino his secor or rerofis and new appliances, includ-ing household elecronics and heaing and cooling unis.
1
On a naional scale, such upgrades have enormous upron coss: Reducing energy demand in buildings by 30 percen over he nex 10 years would require a $279 billion invesmen. Te payback over his period is ar greaer, however, as his same invesmen  would yield more han $1 rillion in energy savings. Many o hese invesmens would offer payback periods beween wo and eigh years and suppor he creaion o 3.3 mil-lion job years.
2
India, meanwhile, has a similar opporuniy o capialize on energy-efficiency inves-mens in is building secor. While he U.S. building sock will grow slowly in he com-ing years, Indias is on pace o riple by 2030, and i will have o add 700 million o 900 million square meers o residenial and commercial space annually o mee demand.
3
 
 
2 Center for American Progress | Built-In Savings
Tis rapid building growh is having a significan impac on India’s energy demand, creaing inrasrucure challenges and increasing he counry’s dependence on coal impors. In 2010, India impored 90 meric ons o coal󲀔14 percen o he counry’s demand󲀔a a cos o $9.3 billion;
4
 he Inernaional Energy Agency projecs ha unless significan acion is aken, his share will grow o 37 percen o Indian coal consumpion  by 2030 o 2035, even hough domesic producion is expeced o riple.
5
 As in he Unied Saes, however, addressing he challenges in Indias building secor presens an unrealized opporuniy. By one esimae, enhanced efficiency would save India $42 billion per year and avoid 2,988 megawats, or MW, o new generaion capac-iy annually hrough 2030.
6
 Tese savings would represen approximaely 29 percen o he average annual capaciy added during India’s 11h Plan rom 2007 o 2012.
7
In spie o he differences in he make up and growh raes o heir respecive build-ing socks, he Unied Saes and India ace some similar challenges ha hey can and should joinly address hrough new policies and parnerships. In boh counries, or insance, energy-efficien producs ofen have higher upron coss, while heir lower liecycle coss are oo ofen overlooked in invesmen decisions. Moreover, he relaively new naure o energy-efficien echnologies means ha many consumers and financial insiuions are unamiliar wih he significan cos benefis o such producs. Te coss and savings o energy efficiency are also insufficienly quanified and are no made read-ily accessible or consumers and invesors, who ofen lack clear inormaion signals on he economic benefis o efficiency invesmens.
8
Forunaely, a good plaorm already exiss on which bilaeral cooperaion can be  buil: he U.S.-India Parnership o Advance Clean Energy-Deploymen, or PACE-D. Trough his iniiaive, he Indian Bureau o Energy Efficiency and he U.S. Agency or Inernaional Developmen, or USAID, are working ogeher on he implemena-ion o India’s Energy Conservaion Building Code, or ECBC, a volunary scheme o promoe he adopion o efficien sandards.
9
 Te PACE-D echnical Assisance Program has also issued a join repor ha recognizes he need or addiional U.S.-India cooperaion in he building secor.
10
 o ollow up on he work already underway in PACE-D, he Unied Saes and India should seek o explore new bilaeral avenues or cooperaion ha creae a wo-way sree o knowledge sharing on which o address  building energy demands.
 
3 Center for American Progress | Built-In Savings
New opportunities for U.S.-India cooperation in building efficiency
Federal standards and protocols
Te Unied Saes and India have he capaciy or srong ederal acion o influ-ence building efficiency and smar power consumpion. Tis will include policies o enhance appliance energy sandards, building resiliency, and elecric marke reorms o suppor he growh o disribued generaion and o manage he inermitency challenges associaed wih wind and solar power. A U.S.-India parnership o develop shared sandards and proocols in clean and efficien energy echnology would pro-moe he growh o clean energy markes in boh counries. Tis effor should include collaboraion in he ollowing areas:
Increasing uniformity and credibility in building efficiency audits.
 
In boh he Unied Saes and India, a major impedimen o efficiency invesmen is he inabiliy o home-owners and businesses o access credible energy audis ha demonsrae he ne worh o he financial savings associaed wih efficiency improvemens and communicae hese savings o lenders. Te PACE-D join repor by he Indian Minisry o Power and USAID ound ha Indian lenders ofen do no have sufficien awareness o he value associaed wih clean energy loans.
11
Similarly, U.S. building efficiency improvemens remain insufficienly accouned or in real esae markes, which discourages propery owners rom invesing in long-erm efficiency savings. A U.S.-India collaboraion wih privae lenders and major financial insiuions on efficiency audi sandards would help lenders ineresed in expanding heir loan porolios include energy-efficiency loans and encourage propery owners o cos-effecively inves in building efficiency.
Establishing shared distributed generation technical protocols.
 
Energy efficiency, disribued generaion, and advanced smar-grid echnologies are becoming increas-ingly inegraed wih elecric grids. Tere is an indusry need o esablish open-source proocols or daa exchange and ineroperabiliy. A join parnership could assemble leaders rom he inormaion and communicaions echnology, clean ech, and radi-ional energy indusries o accelerae developmen o shared sandards and proocols or new echnology deploymen.
Improving local electricity market regulation.
 
 While he Unied Saes and India have  very differen local elecriciy marke regulaory srucures, here is much o be learned hrough echnical exchange and dialogue on innovaive marke rules and policy sruc-ures o enable greaer peneraion o disribued generaion, energy sorage, and dis-pachable energy efficiency on he energy grid. Tis collaboraion will specifically ocus on bringing ogeher uiliy regulaors and oher regional energy marke paricipans, companies, and governmens o accelerae innovaion in energy markes.

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