Why India’s Space Cooling Sector Needs to Innovate?

Sumedha Malaviya and Dhilon Subramanian

News headlines in India have been dominated by heatwaves plaguing several parts of the country since February this year. For Kerala, Indian Meteorological Department (IMD) issued a heatwave alert in nine districts in February 2024, as the heat index (the combination of dry and wet bulb temperatures) climbed to 50 degrees Celsius in several parts of the state. The State of the Global Climate 2023 report, released by the World Meteorological Organisation (WMO) in March this year, confirmed that 2023 was the hottest year ever, since the recording of observed global mean surface temperatures started 174 years ago.

According to the International Energy Agency (IEA), in August 2023, a 23% increase in India’s peak electricity demand (220 GW) was attributed to demand from ACs and fans; the two main mechanical cooling appliances used for space cooling. In fact, AC ownership has tripled since 2010 (24 units per 1000 households) leading to a 21% increase in electricity demand for space cooling between 2019 and 2022. Modelling results on India’s electricity demand under IEA’s STEPS (Stated Policies Scenario) indicate that by 2050, India’s total residential AC electricity demand will exceed the total electricity demand from Africa in 2022. Amongst Asian economies, India’s penetration of ACs was 7-9% in 2022, lower than the world average of 37% in 2022. As grid supply improves, more Indians are expected to buy ACs and fans, even while India’s per capita access to cooling energy remains one of the lowest in the world.

The rising cooling energy demand from mechanical equipment is only one part of the problem. Most ACs sold in Indian markets today use high Global Warming Potential (GWP) refrigerants. Additionally, the highly efficient product is not the baseline in Indian markets. The average efficiency of ACs sold is 3-star, while the average ceiling fan sold in the market is 1-star even when units with 50-70% more efficiency are available.

Can we continue to meet our needs for thermal comfort this way? How can we ensure thermal comfort for all, when the ability to afford cooling services varies? There is a need to look beyond old solutions to solve current problems. Innovations in space cooling can (1) improve efficiency of existing products; (2) make access to cooling affordable for all; (3) reduce and optimize the need for cooling energy, and (4) minimize the negative externalities associated with refrigerant-based cooling. In addition to technology, innovations in financing can address the high upfront costs and other non-economic barriers associated with more sustainable technologies and products (for example, behavioural barriers).

Some of the innovations in space cooling are on the horizon:

• Radiant cooling is an innovative technology that utilizes cooled surfaces to remove heat from a space, providing efficient and comfortable cooling without the need for traditional air conditioning systems.
• Indirect evaporative cooling is a sustainable cooling method that leverages the evaporation of water to cool air indirectly, offering an energy-efficient alternative to conventional air conditioning.
• Thermal energy storage-based space cooling solutions utilize phase change materials to store and release cold energy, allowing for more efficient cooling during peak demand periods. By integrating thermal energy storage into air conditioning systems, buildings can reduce energy consumption and shift cooling load to off-peak hours, contributing to energy savings and grid stability.
• Renewables-based cooling solutions, such as solar cooling, aim to integrate solar generation with cooling demand patterns to optimize energy usage and reduce the need for energy storage. This involves leveraging solar energy to power cooling systems during peak demand periods, aligning cooling operations with solar energy generation to maximize efficiency and minimize reliance on grid power. Additionally, advancements in thermally-driven heat pumps enhance the efficiency and sustainability of the technologies.
• Passive cooling techniques cover a range of strategies aimed at reducing heat gain and improving thermal comfort within buildings. This includes the implementation of cool roofs, which are designed to reflect sunlight and absorb less heat than traditional roofing materials. Additionally, movable shading systems such as adjustable louvers or external blinds can be used to control heat gain and optimize day light while minimizing heat gain. Insulating facades and incorporating efficient roofing designs in existing housing can also help.  

Innovative business models are the key to improve delivery of existing efficient technologies and overcoming high upfront costs typical of highly efficient alternatives. With the growing popularity of servitization business models in Europe, under which the services being delivered from the product are sold instead of the product itself, Cooling-as-a-service (CaaS) has emerged as a promising innovation. The model further fosters customer-centric product innovations and promotes stronger attention to environmental, economic and social impacts of solutions offered by manufacturers or suppliers. CaaS also incentivizes (1) providers to maintain and effectively service the equipment, and (2) design modular equipment allowing for reusing or recycling of assets.

Many solutions are at varying stages of market readiness. To overcome the information barriers that consumers face, platforms to spread awareness about innovative solutions are needed. These platforms can provide open, unbiased information on the technical and economic aspects of innovative technologies.

WRI India is organizing a sustainable cooling technology showcase event to provide such a platform for innovative cooling technologies for Kerala, in partnership with EMC-K on May 30th in Kochi. Click below to know more.

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