IEA – Efficient Grid-Interactive Buildings in India: Status and Opportunities

The report assesses opportunities for efficient grid-interactive buildings (EGIBs) to support India's clean energy transition.

EGIBs combine energy efficiency, smart digital technologies, and demand-side flexibility to optimize energy use, reduce or shift peak demand, and better align consumption with renewable energy generation. The buildings sector is critical in India's energy transition due to rapidly increasing electricity demand driven by cooling and appliance use, alongside a growing share of variable renewable energy in electricity generation. Without targeted action, unmanaged peak loads and variable supply could threaten grid stability and increase system costs. EGIBs provide solutions to optimize electricity use, reduce peak demand, and enhance system flexibility. The report evaluates India's policy landscape and opportunities in areas including efficiency, decarbonisation, smartness, resilience, materials, and building-to-grid interaction. It recommends a comprehensive policy package involving regulations, incentives, and information to scale up EGIB adoption. Scaling EGIBs would help align India's growing building stock with climate goals, reduce system costs, and improve energy security.