Green Buildings:

An Energy Opportunity for Future

Presented By:

Ronak Sacheti
MBA –II year, SPM
 Order of Presentation
• Overview
• Benefits of Green Buildings
• Perception & Realities
• Economics of Green Building
• Market Equilibrium
 Why Energy Efficiency

Four drivers for action

• Rising energy prices
• Climate change
• Security of Supply
• Economic Growth

3
Why Energy Efficiency in Buildings
Globally, buildings account for:
• 40% energy use
• 42%water consumption
• 40% solid waste
• 50% raw material use
• 50% of air pollution
• 42% GHG emission
• 50% water pollution
Source : Bureau of Energy Efficiency ( BEE)
In India construction sector is growing at a
rate of 9.2% as against the world average of
5.5% and contributes to 7% of India’s GDP

Source: Asia Pacific Energy Research Institute, 2008

 Key Facts
• India’s urban population would grow to about
473 million in 2021 and 820 million by 2051.
• In India demand for office space is driven by
the increasing share of the services sector in
the Indian economy
• Shopping centres/malls : By the end of 2010,
space of 79 million sf in 257 centres are in 15
largest cities of India

Source: Deutsche Bank Report on India’s Commercial Real Estate, 2009

 
 Energy used by Buildings in India
Sector wise Energy Consumption Commercial Buildings
Others
8%
Transportation
3%
HVAC
32% Lighting
60%
Residential
23%

Agariculture
31%

Residential Buildings
Commercial
7% Others
TV 10%
4% Lighting
Refrigeration 28%
13%

EV Cooler
4% A/C
Industrial Fans 7%
37% 34%

Source: Bureau of Energy Efficiency ( BEE), 2009

 Energy Efficient Buildings
"A green building is one which uses less water,
optimises energy efficiency, conserves natural
resources, generates less waste and provides
healthier spaces for occupants, as compared
to a conventional building."

Source: Indian Green Building Council ( IGBC)

Benefits of Green Buildings
 Energy Savings Realized
Normal Green Annual
Area %
Building Building Building Energy Saving
(Sq. ft) Reduction
(Kwh) (Kwh) (Rs in Lakhs)

Wipro 1,75,000 48,00,000 31,00,000 40% 102

ITC 1,70,000 35,00,000 20,00,000 45% 90

CII Godrej
20,000 3,50,000 1,30,000 63% 9
GBC

Source : Bureau of Energy Efficiency ( BEE)

Source: Miller, Spivey and Florance (2009)
Perception and Realities-1

Perception
●
Green Buildings are
costlier

●
●The cost could be slightly higher than a conventional building. But this
needs to be seen with a different paradigm.
●Green buliding would last for about 50 or 60 or even 100 years! The
●

Realities saving due to lower operating cost is for entire life span of the buliding
while the incremental cost is one time cost only about 8-10%. The cost
of green building is lower than a conventional building in a long run.
Typical Pay back period for various Green Buildings
Building City Year Built in Area Rating % increase Payback
awarded (SQ FT) achieved in cost (years)

CII- Hyderabad 2003 20000 Platinum 18% 7

Godrej GBC
ITC Green Gurgaon 2004 1,70,000 Platinum 15% 6
Centre
Wipro Gurgaon 2005 1,75,000 Platinum 8% 5
Grundfos Chennai 2005 40,000 Gold 6% 3
Pumps
Technopolis Kolkata 2006 72,000 Gold 6% 3

Spectral Noida 2007 15,000 Platinum 8% 4

Services
Consultants

HITAM Hyderabad 2007 78,000 Silver 2% 3

Source : Bureau of Energy Efficiency ( BEE), 2007

Perception and Realities-2

Perception ●
● Green Buildings have to be air-conditioned

●
●
Green building concept can be applied for non-air conditioning
buildings too.
●
● Applied on three such buildings in India
Realities ●
● IGP Office
●
● Gulbarga
●
● Hyderabad institute of Technology and Management
Perception and Realities- 3

Perception ●
● Green Buildings take more time

●
● There is absolutely no difference in the time involved
Realities in constructing a Green Building vis. a.vis. a normal
building
 Market Potential for Green
Buildings in India
Projected Certified Green Estimated Market
Year Buildings Potential
(Nos. Per year) (in Million US $)

2006 20 80

2007 50 200

2008 150 500

2012 1000 4000

Source: Indian Green Building Council ( IGBC)

Green Building Movement in India
Criteria 2001 Till date

CEO’s and senior people 50 6000

involved

No. of professional trained on 0 7000

green building concept

No. of registered green 1 768 registered buildings

buildings

Green building footprint 466.22 million sqft

IGBC membership 0 1050 members

(90 Founding Members)

Source: Indian Green Building Council ( IGBC), 2009

 Regulations and Rating
• The Energy Conservation Act 2001
• The Bureau of Energy Efficiency (BEE)
• Energy Conservation Building Code
• Indian Green Building Council
• Green Rating for Integrated Habitat
Assessment (GRIHA)
Real barriers in Indian Construction
Industry
• In a colony developed by the builders, he only constructs
while the energy bill is to be paid by the tenant or owner.
• Increase in initial building cost restricts the builders from
not adopting energy efficiency measures in their buildings
• Unavailability of efficient equipments in India is another
major barrier.
• No incentives from the government
• Information asymmetry
• Back up industry in terms of materials, equipments and
technical expertise is not coming up as fast as the
construction industry
 Green buildings and the Social Optimum

Price of
Green
building Supply
(private cost)

Social
value
Demand
(private value)

0 QMARKET QOPTIMUM Quantity of

Green Building

Copyright © 2004 South-Western

Developer- Buyer Matrix
How to achieve market equilibrium?
STAKE HOLDERS SCOPE OF INFLUENCE
Developers/Ow  New Building Project objectives,
ners budget and design team selection
 Capital budgets for upgrade of
existing buildings
 Selection and policy for building
management
Occupants  Appliance efficiency
 Staff awareness raising
Government  Policy setting and
enforcement
 Public awareness raising
 Creation of a level playing field
 Capacity building
 Example setting
Industrial  Catalyst for action by all stakeholders 
Associations
and NGOs
LEADERSHIP ACTIONS
 Build or buy expertise
 Make energy efficiency a part of the design brief
 Pursue integrated design
 Right Size key building systems
 Commission the building to realize energy efficient savings
 Make efficient operations part of the building operations
strategy
 Set targets and align budgets
 Adopt lifecycle costing
 Plan and implement energy conscious building upgrades
 Adopt energy management best practices
 Increase staff awareness
 Establish regulatory minimums for energy performance
 Provide incentives for performance beyond regulatory
minimums
 Demonstrates best practices and adopt higher
requirements for public buildings
 Build capacity through investments in skills enhancements
and education and sponsored R&D
 Raise public awareness of the link between conservation
and environment and national security
Help build industry capacity through providing professional
and technological expertise or getting companies in touch
with other organizations that may help through
establishing networks of experts
 Provide resource, education and opportunities for green
building improvement
Go Green