Cooling India’s Future: The Strategic Role of District Cooling Systems

The webinar “Cooling India’s Future: The Strategic Role of District Cooling Systems” brought together experts to discuss how India can address its rapidly growing cooling demand through sustainable solutions. Moderated by Trupti Yargattimath from the UNEP Copenhagen Climate Centre, the session highlighted that cooling is no longer a luxury but a critical infrastructure need in India’s urban future. With cooling demand projected to grow eightfold in the next two decades, reliance on standalone air conditioning threatens to overload power grids and increase carbon emissions. Trupti emphasized, “District cooling is not just a technical upgrade; it is a paradigm shift,” noting its potential to cut energy consumption by 30–50% and reduce peak power demand.

Piyush Sharma, Deputy Head of Energy Efficiency Projects at GIZ, provided an in-depth overview of the Energy Efficient Cooling Project, launched in 2019 under the India Cooling Action Plan. He explained that the project aims to create an enabling ecosystem for district cooling through market development, awareness campaigns, and policy advocacy. Piyush detailed four major outputs: technical and economic solutions, business and financial models, establishment of a District Cooling Hub, and financing options. He shared milestones such as feasibility studies, economic models, and policy briefs, and noted progress like Maharashtra introducing DCS-specific electricity tariffs and Tamil Nadu publishing a DCS roadmap. “We have been successful in mainstreaming district cooling in India’s energy efficiency discourse,” he remarked, while stressing the need for continued awareness and private sector engagement.

Benjamin Hickman, Programme Manager at UNEP India, focused on the barriers to scaling district cooling and the role of the upcoming District Cooling Hub. He explained that the hub will provide centralized support for policy development, project implementation, and capacity building. Benjamin underscored the importance of integrating district cooling into urban planning and master plans, stating, “We need a long-term vision at the state and city level, cutting across electoral mandates.” He cited examples from Tamil Nadu and Maharashtra, where UNEP is supporting roadmaps and pilot projects, and highlighted efforts to standardize contracts, map supply chains, and develop model business frameworks. He also pointed to transformative projects in Delhi, Hyderabad, and Gujarat, emphasizing that district cooling should be treated as a public utility alongside water and power.

Shravya Garuda from Amberside Advisors provided a strategic perspective on business models and financing. Drawing on UK experience with district heating, she explained that viable financial structures—whether public-led, private-led, or PPP models—are essential for attracting investment and ensuring project longevity. “Risk allocation and cash flow certainty are critical,” she noted, discussing BOT and BOOT models and the importance of anchor customers. Shravya highlighted that India’s urbanization offers opportunities for district cooling in Greenfield developments and stressed the need for policy clarity, viability gap funding, and innovative approaches like energy-as-a-service models. She concluded, “A whole-system approach—technical, financial, and behavioral—is required to make district cooling viable in India.”

The Q&A session reinforced these themes. Piyush identified short-term challenges such as lack of awareness, high perceived costs, and absence of anchor customers, recommending measures like continuous outreach, private sector pilots, and smart city integration. Benjamin emphasized three key actions for sub-national policymakers: setting long-term visions, embedding district cooling in urban planning, and addressing regulatory barriers to ensure a level playing field.

The webinar closed with a call to action for stakeholders to collaborate in shaping a sustainable cooling future for India, leveraging district cooling as a cornerstone of climate-aligned urban development.