The building sector in India consumes over 30 per cent of the total electricity consumed in the country annually and is second only to the industrial sector. With nearly two-thirds of the built infrastructure yet to come up till 2050, advancement and innovation in the construction sector are becoming important. Of the total electricity consumed in the building sector, about 75 per cent is used in residential buildings. The current growth in residential and commercial electricity consumption indicates that electricity consumption by residential buildings will rise by five times and that by commercial establishments it will increase by three times by 2032. Therefore, the country needs to actively pursue strategies and invest in the construction of green and smart buildings to move towards sustainability and efficiency. Smart and green buildings can potentially help reduce energy consumption by 20-40 per cent over their lifetime.
Smart buildings use internet-connected devices so as to increase efficiency and reduce expenditure on electric appliances related to heating and lighting. These smart devices are embedded within heating, ventilation and air-conditioning (HVAC) systems, lighting systems, elevators, EV charging points, etc. in order to enhance energy efficiency comprehensively.
Smart home technology, also referred to as home automation, provides homeowners security, comfort, convenience and energy efficiency by allowing them to control smart devices, often by a smart home app on their smartphone or other networked device. Smart devices reduce idle running of energy consuming systems. At the household level, these devices are integrated to enable the sharing of user data related to each application and automate actions based on owners’ preferences and the external environment. Furthermore, these devices are connected to a larger network, and they send anonymised consumption data of each individual unit to the distribution utility, aiding the utility to enhance grid efficiency and reduce grid-related operations and maintenance. The exponential decline in processor sizes and cost coupled with the increase in capacity and speed is driving their adoption by households. Additionally, machine learning- and AI-related advancements and the development of smartphones are providing a further fillip to the adoption of smart devices in households.
Smart buildings also have rooftop solar installations, which generate electricity during the day. The surplus electricity is supplied to the grid. At night and during peak hours, these buildings draw electricity from the grid. It is necessary for smart buildings to integrate smart home energy management systems (SHEMS) into their establishments so as to manage variable energy demand on one end and intermittent energy supply from variable renewable energy sources on the other end. These SHEMS also facilitate trading of excess electricity and procurement of electricity when there is a deficit while being economically profitable for homeowners. The operational scope of SHEMS will further widen when battery energy storage systems (BESSs) become affordable and can be deployed in buildings.
Deploying SHEMS requires investment in physical sensors and devices, communication mesh/ network connecting the data from these IoT devices, an integrated management system for data processing in accordance with predetermined energy efficient commands, user interface for monitoring and controlling the system, smart meters, etc.
Smart buildings are capable of reducing energy consumption by 20-40 per cent compared to current levels, which is substantial as energy costs are equivalent to 30 per cent of a building’s operating cost. Moreover, according to some researchers, these upgrades pay back via efficiency gains and cost savings in energy costs over five to seven years of their deployment. The payback period depends on the extent of upgrade, level of consumption, cost of upgrade, method of financing, provision of subsidy, etc.
Discoms can reap enormous benefits by encouraging the development of smart buildings, as these establishments will, in turn, help utilities to reduce their aggregate technical and commercial losses while increasing the level of grid reliability. Smart buildings will also provide an additional unit of electricity supply, allowing discoms to procure electricity at more competitive rates. Furthermore, utilities will be able to charge tariffs using the time-of-day system after taking into account the demand and supply dynamics.
It is expected that these developments will facilitate the evolution of cities into smart cities and help optimise energy consumption.
Green (sustainable) buildings prioritise resource efficiency and sustainability, and are developed by employing processes that are environmentally responsible and discharge minimal waste during construction. Such buildings are planned and designed in order to optimise water as well as energy consumption. They have clear waste disposal mechanisms that maximise reuse and recycling of materials.
The India Green Business Council (IGBC) currently aggregates the views and ideas of developers, builders, architects and consultants to set guidelines and facilitate the construction of green buildings. Since 2001, the IGBC guidelines have enabled the construction of 2.23 billion square feet of green buildings in the country. IGBC-certified buildings can reduce energy consumption by 20-30 per cent over their lifetime. The rating programme provides exhaustive guidelines regarding HVAC systems, pumps/motors, lighting, etc. in the building. These buildings also encourage the installation of off-grid/captive renewable energy technologies such as rooftop solar.
Green buildings take into account design and architectural considerations with the objective of reducing HVAC consumption. Essentially, these buildings are designed to minimise heat loss in winter and heat gain in summer by adopting various measures both within the building and around it.
Cisco Smart Campus in Bengaluru provides a good template of a green building in general. The Cisco campus generates 7 MWh of green energy every year in addition to recycling 100 per cent of disposal discharge. The exterior walls are installed with fully polished glass coating. The campus used recycled resources and renewable materials for construction. Another example is the Patni Knowledge Centre in Noida which receives natural sunlight in 70 per cent of its working space. Additionally, it incorporates rainwater controlling methods to make it a zero discharge site.
Building energy codes are effective tools for achieving energy efficiency in the construction and operation of buildings. The rating system for green buildings was started in the early 2000s with the Green Rating for Integrated Habitat Assessment (GRIHA), which evaluates the environmental performance of a building holistically over its entire life cycle. It was started by TERI (as it is called today) and the Ministry for New and Renewable Energy.
Together with government agencies as well as local and international experts, the Ministry of Power’s Bureau of Energy Efficiency developed the Energy Conservation Building Code (ECBC) for commercial buildings in 2007 and amended it in 2017. The code basically prescribes the energy performance standards for commercial buildings to reduce energy consumption.
It has been observed that ECBC-compliant buildings are 17-42 per cent more efficient than conventional ones, which shows a tremendous potential in terms of energy savings. Therefore, fiscal incentives should be given by the government so as to encourage more buildings to become ECBC compliant.
The government is spearheading various programmes such as the National Mission on Enhanced Energy Efficiency (NMEEE), the Smart Cities Mission and the National Cooling Action Plan that include plans for improving energy efficiency from residential and commercial households. Extending the reach of the NMEEE to include households and commercial establishments will help in enhancing their energy efficiency.
Issues and challenges
- Financial outlay: India will have to invest a substantial sum of money over the next decade in smart grid infrastructure, smart city infrastructure, etc. in order to enable and push the development of smart buildings. These buildings will accrue much of their benefits on being complemented by smart city and smart grid infrastructure. For example, smart buildings with solar PV panels will accrue higher returns on investment if there is a smart grid enabling two-way flow of electricity.
- Product regulation and compliance laws: The absence of product regulation or compliance law is a barrier to growth of smart home automation systems. At present, OEMs and developers do not have standard guidelines (including minimum energy efficiency), electrical and electronic safety standards for developing new applications and hardware for the Indian market. The certifications and standards available internationally regarding hardware, software and communication (in terms of frequency) may not match local requirements.
- Lack of policy or mandate for builders for home automation and green housing: The majority of homes are constructed by realty developers without factoring in sustainability and efficiency objectives. In the absence of a policy guideline or mandate, the housing segment does not target home automation as a pre-sales option. Later (post-occupancy) adoption of home automation by a consumer becomes a costly and difficult affair, as the enabling fittings/provisions need to be created afresh and the cost of products/services increases. Mandates in municipal by-laws requiring the construction of smart and green housing are needed to drive this trend.
- Absence of standards and interoperability protocols: Consumers buying smart appliances are locked into the product with limited scope of integration with other IoT-based components of their household. Additionally, the costs of switching from one manufacturer to another are prohibitively high. Therefore, the absence of standards and interoperability protocols is a major problem vis-à-vis smart devices.
The way forward
India is poised to urbanise rapidly in the coming decades. It will have an urban population of 600 million by 2030, up from 400 million in 2018. This will accelerate the construction of buildings over the next decade, and also spur the growth of smart and green buildings. Hence, it is vital for the government, building developers, financial institutions and owners to devise a strategic roadmap committing to achieving smart and green targets for the next decade.