District Cooling: A Systemic Approach for Maharashtra's Energy Future

As Indian cities face rising temperatures, rapid urbanisation, and increasing energy demand, the need for sustainable cooling is becoming urgent. At the same time, national ambitions such as Make in India and digital transformation depend on reliable cooling solutions. Yet much of the renewable energy added in recent years has been used to meet rising cooling demand—making cooling central to India’s energy transition. By 2038, India’s cooling needs across buildings, cold chains, data centres, transport, and industry are projected to grow eightfold. Space cooling alone could account for 45% of peak electricity demand by 2050. Incremental efficiency improvements will not be sufficient; a more systemic, scalable approach—such as District Cooling—is essential.

District Cooling Systems (DCS) centralise the production and distribution of cooling, improving energy efficiency by up to 50% and reducing peak power demand by as much as 40%. Integrated with renewable energy, waste-to-energy, and water systems, DCS supports circular economy goals and offers lifecycle cost savings of up to 25%. It also ensures equitable access to cooling, strengthens urban resilience, and reduces environmental impact.

While not a silver bullet, DCS is a practical, strategic intervention that aligns modern infrastructure with traditional Indian values of harmony with nature. India’s heritage of passive cooling—from shaded courtyards to water features—offers valuable lessons for today. Bridging indigenous knowledge with technological innovation presents a contextually relevant way forward.
 

Maharashtra, India’s most industrialised state, is well placed to lead this transition. In 2022–23, its industrial sector consumed nearly 59,000 million units of electricity—a 10.3% increase from the previous year. DCS adoption in dense urban zones such as the Bandra-Kurla Complex, Dharavi, Mindspace Airoli, and major industrial developments like the Reliance Industrial Hub and Bidkin Industrial Area could reduce demand by 1 GW, cut emissions by 80 million tonnes, and attract USD 1.5 billion in investment.

Realising this potential will require robust policy frameworks, public-private partnerships, and integrated urban planning. Capacity-building and knowledge-sharing platforms are equally critical, helping to merge traditional wisdom with modern engineering.

This report sets out a systematic approach to energy and cooling for Maharashtra—positioning the state as a frontrunner in sustainable urban development, while supporting inclusive economic growth and climate resilience.

This report is an initiative undertaken as a part of the Memorandum of Understanding signed between Tabreed India and Gesellschaft für Internationale Zusammenarbeit (GIZ)’s ‘Energy Efficiency Cooling’ programme, jointly implemented with the Bureau of Energy Efficiency (BEE), Ministry of Power, and funded by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) as part of the International Climate Initiative (IKI), to accelerate adoption of sustainable cooling practices.