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India to see rapid growth in cooling demand, says Engie

Company representative says AC penetration to grow at a CAGR of 10%, space cooling requirements to grow 3–5 times by 2030 and forecasts up to 50% increase of centralised and District Cooling penetration in the next 2–3 years

| | Mar 5, 2019 | 10:15 am
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Dubai, UAE, 5 March 2019: Cooling demand is set to grow rapidly in India, said Frederic Claux, Head of Assets, Engie MESCAT and Board Member, Tabreed, adding that with the exception of the northern part of the country, which has a cooler climate, the rest of India experiences hot tropical climate conditions and that comfort cooling will be important in central and southern areas. “As a reference, four cities in India, namely Chennai, Mumbai, Kolkata and Delhi have higher population and cooling degree days than the warmest cities in US, such as Los Angeles or Miami,” he said.

Frederic Claux, Head of Assets, Engie MESCAT and Board Member, Tabreed

Providing an overview of opportunities in the country, Claux said that currently the cooling penetration in the country’s urban building stock is only around five per cent. “AC penetration is forecast to grow at a CAGR of 10%, with domestic space cooling requirements forecast to grow 3-5 times by 2030,” he said. “At the same time market studies forecast a dramatic increase of centralised and District Cooling penetration of up to 50% in the next 2-3 years.”

Speaking on the opportunities driving the market, Claux added that a number of factors are contributing to the development of District Cooling in India, such as a fast-growing economy and increasing urbanisation, attractive credit ratings and rapid growth of real estate projects that are estimated to increase by seven times till 2030. “Stress on urban resources, electricity shortages and climate change mitigation also play an important role, as well as stringent energy policies for demand-side management, which will require an increasing focus on energy efficiency, supported by a favourable regulatory environment,” he said. Additional factors, he said, are, “the development of Smart and Green cities and commercial mixed-use developments, with a demand for more efficient cooling technologies and commercially viable sustainable alternatives.”

 

Hannah Jo Uy is Assistant Editor at Climate Control Middle East magazine. She may be contacted at hannah@cpi-industry.com


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