Source:Bureau of Energy Efficiency (BEE) (2015)
Incorporation of energy efficiency in the buildings sector would result in the development of a market for energy efficient products (Building insulation, energy efficient windows, glass and frames, high efficiency HVAC equipment), improved design practices for lighting, natural ventilation/free cooling systems, lower energy use and electricity bills, reduced connected load and an improved power factor. (Shabnam Bassi, Bureau of Energy Efficiency). However, there exist certain barriers like lack of awareness about the benefits of incorporation of energy efficiency measures, a higher initial cost of energy efficient technologies, and lack of information about the payback periods for the same and an asymmetry in the sharing of costs and benefits. State and local governments, real estate developers, and financial institutions are critical to the successful development and implementation of energy-efficient buildings. While existing government policies, building-rating systems, and active stakeholders do provide a foundation for accelerating progress in energy efficiency, as India's real estate market continues to grow, the current policy framework needs to be further developed and implemented by coordinated stakeholder action. It is therefore critical that these three leading stakeholder groups : state and local governments, real estate developers, and financial institutions drive development and adoption of energy efficiency measures in the buildings market for new construction and major retrofits.