Partnership to Advance Clean Energy-Deployment (PACE-D)

Technical Assistance Program

HVAC Market Assessment

and

Transformation Approach for India

August 5 2014

HVAC MARKET ASSESSMENT

2

Methodology

+

+ + +

Manufacturers’ brochures

Industry reports Journal papers Published databases

+

+ + +

Market size

Product usage Key drivers [& barriers] Future Trends

+ Growth rate

Qualitative

50 In-depth interviews with stakeholders

Primary Research

Quantitative

90 7

Semi-structured questionnaires for

participants across locations

+

+ +

Alternate Technologies

Barriers to EE Future Trends

+ Design Priorities +

+ +

HVAC product preferences

Key decision parameters Future Trends

+ Existing practices

Secondary Research 1 2

Climate Zones | India Location Consultants/Architects

Builders/Developers

Mumbai

Chennai

Hyderabad

Delhi

Bangalore

Kolkata

Hot & Dry

Composite

Warm & Humid

Temperate

Cold

Total 30 30

6 6

3 3

4 4

3 3

77

4 4

3 3

Pune

Builders/Developers

30

6

3

4

3

7

4

3

All Climate Zones

Included in the Survey

1 2 3 4 5 6 7 8 9 10 11

Qualitative Interviews | Sample size and constitution

Associations

Facility Managers

Manufacturers

Distributors

Consultants/ Architects

Builders/ Developers

Commercial Facilities [Malls/Hotels/ Multiplexes]

3

3

6

11

11

8

8

50 Total Sample Size

2 4 6 8 10 12 14 16 18 20 22

Quantitative Survey| Sample size and constitution

Delhi

Mumbai

Kolkata

Chennai

Hyderabad

Pune

Bangalore

21

18

9

12

9

9

13

Consultants/ Architects

Builders/ Developers

End-users

90 Total Sample Size

Comprehensive Survey

90 Experts in 7 Major

Cities

6

Mr. G.C. Modgil CEO Sterling India-Consulting Engineers

Mr. N.C Gupta CEO Gupta Consultants and Associates

Mr. Milind Gawde Manager - Engineering Breach Candy Hospital

Mr. Atul DGM, Facility K. Raheja Corporation

Mr. Krishan Kumar Manager - Maintenance Ambience Mall, Vasant Kunj

Mr. Karan Raina Manager – Utility The Great India Place

Mr. Vivek Gupta Architect Arvind Vivek & Associates

Mr. Santosh Shindane Engineer Bhabha Hospital

Mr. Nitin Joshi Senior General Manager Blue Star Limited

Mr. S P Singh G M - Services Vipul Tech Square

Mr. Mukesh Assistant Manager - Engineering Division

Apollo Hospitals Enterprise Ltd.

Mr. Sanjay Koul Manager - CHP Proposals International Coil Ltd.

Mr. Rohit Yadav Assistant Manager- Engineering Phoenix Marketcity

Mr. Praveen Kumar Manager - Services Omaxe Ltd.

Mr. Vineet Shukla Head - HVAC systems WSP Consultants

Acknowledging Experts and Contributors

7

Mr. Vivek Maheswari General Manager ETA Engineering Pvt. Ltd.

Mr. Rahul Buliyan Senior Manager -Commercial Projects Amrapali Group

Mr. Dhanprakash Garg Head - Commercial Projects MVLl Limited

Mr. Saurabh Singh Rathod AVP - Commercials Climaveneta Climate Technologies Pvt. Ltd.

Mr. Rajesh Head - Operations SK Air Conditioner

Mr. Vikash Upadhyay Project Manager Jones Lang Lasalle (JLL)

Mr. Amaan Managing Director Comfort Aircon

Mr. Rana Co-Owner Vitzer Enterprises

Mr. Wilson Project Manager Kwality Air Tech Engineering Pvt. Ltd.

Mr. Manoj Juneja Managing Director Harmony Inc.

Mr. Lalit Bedi Managing Director Cool Breeze Aircon Pvt. Ltd.

Mr. Narender Gandhi Team Leader - North Trane

Mr. Mayank Architect Shift

Mr. Raghvendra Bisen DGM - Planning Peninsula Land Ltd.

Mr. Saurabh Diddi Energy Economist Bureau Of Energy Efficiency (BEE)

8

Mr. Vijay Bali VP - Sales & Marketing Reynold India Private Limited

Mr. Rama Murti Manager - Operations Updater Services (P) Ltd. (UDS)

Mr. Amit Gulwade Sr. Engineer RS Kulkarni and Consultancy

Mr. Naresh Engineer Vactal Engineers Pvt. Ltd.

Mr. Satish Yadav Deputy Manager Emerson Climate Technologies (India) Ltd.

Mr. Rajiv Managing Director Kromatics

Mr. Abdul Aziz S A Managing Director Peace HVAC Systems Pvt. Ltd.

Mr. Vijay Chawla Technical Head Bharti Realty

Mr. Umesh Managing Director Bright International Bright Freezer (India)

Mr. Aryan Kaushik Manager - Maintenance Ajnara Grace

Mr. Joytiity Parkash Purchase Manager Ascent Group Limited

Ms. Pallavi Priya Sr. Architect Dezlabs

Mr. Mahesh Managing Director McD d Built Environment Research Laboratory Pvt. Ltd.

Mr. Agnelo Rodricks Managing Director Weather Cool Sales Pvt. Ltd.

Ms. Hemali Senior Architect KNS Architects Pvt. Ltd.

9

Mr. Karthik Managing Director Design Ttree Service Consultants Pvt. Ltd.

Mr. Ravinder Mehata Secretary Refrigeration and Air-Conditioning Manufacturers Association of India

Mr. Rishi Bagga Manager - Business Development Knight Frank

Mr. Pradeep Kumar Associate Director, Building Energy Systems

TERI (The Energy and Resources Institute)

Mr. Sandeep Patil Manager Kolte Patil Developers Ltd.

Guidance Dr. Ajay Mathur

Mr. Bhaskar Sarma

Mr. Sanjay Seth

Expert Review Mr. Girija Shankar

Ms. Shammi Noor

Peer Reviewers Dr. Nihar Shah

Mr. G. C. Modgil

10

QUANTITATIVE ASSESSMENT

HVAC Market in India

11

20

Building Stock in India | Categorization

40

60

80

100

2005 2030

Residential Residential

Office

Office

Retail

Retail

Hospitality

Hospitality

M i l l

i o n s

q u a r e

m e t e

r

2 4 6 8 10 12 14 16 18 20 22

City-wise Survey| Upcoming retail space

Delhi

Mumbai

Kolkata

Chennai

Hyderabad

Pune

Bangalore

22

18

8

9

11

11

21

Upcoming Retail Space [in %]

13

0

1000

2000

3000

4000

5000

6000

7000

2005 2030

Mil

lio

n m

2

Residential

Office

Retail

Hospitality

Hospital

Educational

Building Sector - Growth Estimates (2030)

Residential and Office

Buildings Lead the

Growth

37% 47%

16%

1 2 Medium & Large Commercial + + + +

Packaged Systems Ductable Splits Variable Refrigerant Flow

VAM + Central Systems

Residential & Small Commercial + + +

Window units Room ACs Split ACs

HVAC Systems in India | Macro-level Market Categorization

Housing units Boutiques Shops Dispensaries

Office complexes SEZs Airports Metro Stations Institutes Hotels Malls

Retail Dairy Brewery Hospitality

3 Process Refrigeration + + +

+ +

Deep freezers Ice machines Precision cooling

machines Bottle coolers Water dispensers

20%

Residential and Commercial Energy-use | Categorization by end-use

35

40%

60%

80%

100%

Residential Commercial

7

30

13

4 4 7

31

59

10

fan

AC

lighting

refrigerator

[evap cooling]

[TV]

others

HVAC

lighting

others

Segments Types of HVAC System Used

Residential Predominantly window and unducted (or ductless) split systems. High end

residential buildings have also started using VRF/ VRF systems.

Infrastructure

(Airports/Metros)

Demand for water cooled chillers (centrifugal and screw chillers

specifically) is more because of higher tonnage requirements and greater

efficiency. VRF systems are also installed in smaller facilities and in

buildings with some specific space conditioning needs within large

infrastructure projects.

Healthcare Centrifugal, screw and water cooled chillers are common.

Education VRF systems are preferred in smaller establishments and centrifugal

systems are more in demand in large projects.

Ductless Splits Ducted Splits

LG Carrier

Voltas Blue Star

Samsung Voltas

Daikin Hitachi

Hitachi LG

Panasonic Daikin

Onida

ETA

Blue star

500,000

Split Units vs Window Units | Number of units sold

1,000,000

1,500,000

2,000,000

2,500,000

2010

3,000,000

3,500,000

2012 2011 2013 2014 2015

N o o

f U n i t s

Window Units

Split Units

Leading market players in Split Systems

5,000

Variable Refrigerant Flow (VRF) Systems| Number of units sold and projected sales

10,000

15,000

30,000

2010 2012 2011 2013 2014 2015 N

o o

f U n i t s

VRF Systems

20,000

25,000

35,000

2,000

Indoor Packaged and Roof-top Units| Number of units sold and projected sales

4,000

6,000

8,000

2010 2012 2011 2013 2014 2015

N o o

f U n i t s

Indoor Packaged

Roof-top Unit

18

500

Chillers| Number of units sold and projected sales by heat rejection method

1000

1500

2010 2012 2011 2013 2014 2015

N o o

f U n i t s

2000

2500

2016

Absorption

Centrifugal

m i l l

i o n U

S d

o l l a

r s

50

100

150

200

250

Reciprocating Screw Scroll Standard

Centrifugal

Turbocor

Centrifugal

Absorption

Voltas Trane Blue JCI Blue Star Thermax

Carrier Diakin Star Carrier JCI Voltas

Voltas Voltas Trane

Blue Star

JCI

Carrier

500

Chillers| Number of units sold and projected sales

1,000

1,500

2010 2012 2011 2013 2014 2015

N o o

f U n i t s 2,000

2,500

2016

>700 kW 350-700 kW

100-350 kW

351 Kw

Carrier Blue Star Carrier

Thermax Voltas Thermax

Blue Star Carrier Blue Star

JCI JCI JCI

Voltas Daikin Voltas

Daikin Thermax Kirloskar

Kirloskar Others Daikin

ETA ETA

Others CIAT

Others

20

50

Chillers| Number of units sold and projected sales by Compressor Type

100

150

2010 2012 2011 2013 2014 2015

N o o

f U n i t s 2000

2500

2016

Absorption Scroll Reciprocating Centrifugal Screw

Chiller Type Capacity Range (kW)

Scroll and Reciprocating 7 – 1600

Screw 140 -6000

Centrifugal 350 -35,000

Air cooled positive displacement Upto 1500

Water cooled positive displacement Above 1500

Absorption chillers 140 -17,500

Capacity Range of different chiller types

10

Fan Coil Units| Number of units sold and projected sales

20

30

2010 2012 2011 2013 2014 2015

N o o

f U n i t s

40

50

2016

Volume

m i l l

i o n U

S d

o l l a

r s

35

70

140

Value

60

105

10

Air Handling Units| Number of units sold and projected sales

20

30

2010 2012 2011 2013 2014 2015 N

o o

f U n i t s

40

50

2016

Volume

m i l l

i o n U

S d

o l l a

r s

50

100

200

150

Value

60

2010 2011 2012E Average Average Average

INR million Units INR

million Units INR million Units

MSP INR-

2010

MSP

INR-

2011

MSP INR-

2012E

Chillers 11,203.80 4028 12,798.80 4335 10,662.20 3780 2,781,486 2,952,43

0 2,820,680

Air handling

units 4,100.10 30829 4,606.80 39825 5,133.50 45500 132,996 115,677 112,823

Fan coils 376.7 34333 535.7 44220 541.3 46000 10,971 12,113 11,768

Other

terminal units 321.6 34745 356 37524 398.8 41276 9,255 9,488 9,661

Total 16,002.20 103935 18,297.30 125904 16,735.70 136556 153,963 145,328 122,556

HVAC System Market, 2010-2012

Chillers, 4335, 3%

Air handling

units, 39825, 32%

Fan coils, 44220, 35%

Other terminal

units, 37524, 30%

Central Plant Air Conditioning Market (unit), 2011

Chillers, 12798.8,

70%

Air handling

units, 4606.8,

25%

Fan coils, 535.7, 3%

Other terminal

units, 356, 2%

Central Plant Air Conditioning Market (INR Million), 2011

Screw, 400,000 ,

46%

Centrifugal,

300,000, 34%

Scroll, 100,000,

11%

Absorption,

75,000, 9%

Chillers Market TR

24 Cities with largest HVAC installed capacities (TR) (2010)

De

lhi/

NC

R

Mu

mb

ai

Ah

me

da

ba

d

Ko

lka

ta

Ch

en

na

i

Hy

de

rab

ad

Ba

ng

alo

re

Pu

ne

Ja

ipu

r

Luc

kn

ow

Su

rat

Ka

np

ur

Ind

ore

Na

gp

ur

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

25

Delhi/ NCR

27%

Mumbai

14%

Ahmedabad

10% Kolkata

10%

Chennai

9%

Hyderabad

8%

Bangalore

7%

Pune

3%

Jaipur

3%

Lucknow

3%

Surat

2%

Kanpur

2%

Indore

1%

Nagpur

1%

Top 7 Cities

Account for 85% of

Installed Air-

Conditioning

26 Energy Use for Air-Conditioning - Growth Estimates (2030)

0

200

400

600

800

1000

1200

1400

1600

Sector Energy Use (2005) (kWh) Sector Energy Use (2030) (kWh)

Th

ou

sa

nd

s

Hospital

Hospitality

Retail

Office

Residential

Residences and

Offices Dominate

HVAC Energy Use

27

window< 5 TR (small DX) 26%

splits< 5TR (small DX) 60%

Large DX Systems,5-30 TR 3%

VRF/ VRV 2%

< 50 TR (central system) 1%

50 - 250 TR (central system) 3% >250 TR (central system)

5%

HVAC Market Share by Technology (Installed TR 2010)

28

HVAC sales by technology (2010) The size of the bubble indicates the annual sales by cooling capacity (TR)

window< 5 TR (small DX), 2,187,500

splits< 5TR (small DX), 4,977,187

Large DX Systems,5-30 TR, 271,815

VRF/ VRV , 202,500

< 50 TR (central system), 69,895

50 - 250 TR (central system), 217,810

>250 TR (central system), 409,200

1

10

100

1,000

600 6,000 60,000 600,000 6,000,000

Sa

les

(U

S $

Milli

on

)

No. of units

Small DX Systems

~ 7 Million TR Large DX Systems

~ 0.5 Million TR

Central Systems

~ 0.6 Million TR

29

HVAC market growth forecast (2010-2030)

Window units (thru wall)

Split units, < 5TR

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

2010 2015 2020 2025 2030

Sa

les

by V

olu

me

>250 TR (central system) 50 -250 TR (central system)

30 Relative efficiencies of HVAC technologies

6.00

5.50

4.50

4.50

4.00

4.00

3.00

2.40

2.20

5.10

4.60

3.60

3.60

3.30

3.00

2.50

2.30

2.20

0.00 1.00 2.00 3.00 4.00 5.00 6.00

Centrifugal chillers

Water Cooled Screw chillers

Reciprocating chillers

Scroll chillers

Variable Refrigerant Flow Systems (VRF)

Air cooled Screw chillers

Multi splits

Split air conditioners

Window air conditioners

Typical System EER Equipment EER

~ 300% Difference in Energy

Efficiency within Current

Technologies

31

Cumulative Energy Savings Potential for HVAC Technologies (2010-2030)

27,672

669,780

32,235

233,167

18,784 36,398 47,494

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Window units (thru wall)

Split units, < 5TR Large DX Systems, 5-30 TR

VRF/ VRV 255 TR (central system)

Th

ou

san

d M

eg

aw

att

Ho

urs

(M

Wh

)

Small DX

Systems Large DX

Systems

Central Systems

QUALITATIVE ASSESSMENT

HVAC Market in India

32

10% 20% 30% 40% 50%

Key purchase decision makers for HVAC equipment

Building Owners

Design Engineers

Consultants

Architects

Construction Managers

HVAC Contractors

Others

48

40

32

31

27

18

10 90 Total Sample Size

20%

Survey | EE label as differentiators in the purchase process

40%

60%

80%

100%

Architects/ Consultants

Builders/ Developers

End Users

All

1

2

3

4

5

4.4

4.2

unwilling willing if cost neutral

neutral willing even at higher cost

willing whatever the cost

Overall score [scale 1 to 5]

willing whatever the cost willing even at higher cost neutral

willing if cost neutral

unwilling

4.1

4.2

45

41

13

50

23

4 7 4

70

23

14

52

30

7

7

20%

Survey | The future of energy efficient HVAC systems

40%

60%

80%

100%

Architects/ Consultants

Builders/ Developers

End Users

All

1

2

3

4

5 4.1 4.2

not promising at all

not too promising

nuetral somewhat promising

very promising

Overall score [scale 1 to 5]

very promising

somewhat promising

nuetral

not too promising

not promising at all

4.0

4.1

20%

Survey | Does EE label impact system purchase decision?

40%

60%

80%

100%

Architects/ Consultants

Builders/ Developers

End Users

All

No

Yes

83 93

10

90

11

89

17 7

20%

Survey | Relevance of Energy Efficiency

40%

60%

80%

100%

Architects/ Consultants

Builders/ Developers

End Users

All

1

2

3

4

5 4.2

4.1

4.2 4.2

very irrelevant

somewhat irrelevant

neither/ nor

somewhat relevant

very relevant

Overall score [scale 1 to 5]

very relevant

somewhat relevant

neither/nor

somewhat irrelevant

very irrelevant

20%

Survey | Willingness to promote energy efficient HVAC systems

40%

60%

80%

100%

Architects/ Consultants

Builders/ Developers

End Users

All

1

2

3

4

5 4.1

4.0

very unlikely

somewhat unlikely

nuetral somewhat likely

very likely

Overall score [scale 1 to 5]

very likely

somewhat likely

nuetral

somewhat unlikely

very unlikely

3.9

4.0

20

53

27

20

53

24

3 3 2 10

57

20

17

58

23

20%

Survey | Willingness to pay for energy efficient HVAC systems

40%

60%

80%

100%

Architects/ Consultants

Builders/ Developers

End Users

All

1

2

3

4

5

4.0

unwilling willing if cost neutral

neutral willing even at higher cost

willing whatever the cost

Overall score [scale 1 to 5]

willing whatever the cost willing even at higher cost neutral

willing if cost neutral

unwilling

3.9

4.0

10

40

43

46

37

7

10 13 11

10

33

17

41

38

10 7 4.1

Ove

rall

sati

sfact

ion

highly satisfied

Quantitative Survey| Satisfaction with

current HVAC usage [Base= 90] [all figures in percentage]

32

5

9

9

2

1

3

4

5

20

8

70

2

21

4

50

21

2

50

30

7

44

30

4

52

23

4

57

21

23

5

0

7

58

21

21

50

26

2

54

9

13

2

1 2

22

7

18

2

Perf

orm

an

ce

Eff

icie

ncy

Ele

ctri

city

con

sum

pti

on

Desi

gn

an

d

typ

e o

f

du

ctw

ork

Air

flo

w

Wh

ole

-ho

me

deh

um

idif

iers

Qu

iet

op

era

tio

n

Valu

e f

or

mo

ney

No

n-p

ollu

tin

g

refr

igera

nts

Main

ten

an

ce

satisfied

neutral

dissatisfied

highly dissatisfied

Ove

rall

sati

sfact

ion

4.2

4

2

1

3

4

5

4.3

4.1

3.9

4

3

.6 4

4.2

4

4 4.1

4 4.1

3.7

3.9

4

2

3.9

3.9

Perf

orm

an

ce

Eff

icie

ncy

Ele

ctri

city

co

nsu

mp

tio

n

Desi

gn

an

d

typ

e o

f

du

ctw

ork

Air

flo

w

Wh

ole

-ho

me

deh

um

idif

iers

Qu

iet

op

era

tio

n

Valu

e f

or

mo

ney

No

n-p

ollu

tin

g

refr

igera

nts

Main

ten

an

ce

4.4

4.1

4

.1

4

4 4.1

3

.9

4

4

3.9

4.3

4

3.9

4

3.9

4

4.1

4.1

3

.6

3.9

3.9

4

3.9

4 4.2

Quantitative Survey| Stakeholder satisfaction [Mean Scores]

All

Consultants/ Architects

Builders/ Developers

End-users

Parameters All Consultants/

Architects

Builders/

Developers End Users

Ran

kin

g*

R1

R1+

R2

R1+

R2+

R3

R1

R1+

R2

R1+

R2+

R3

R1

R1+

R2

R1+

R2+

R3

R1

R1+

R2

R1+

R2+

R3

Base 90 30 30 30

Reduced energy

costs 50 66 76 57 63 67 47 63 77 47 73 83

Reduced maintenance costs

19 55 66 27 53 63 13 43 57 17 70 77

Environmental awareness

11 31 45 5 37 53 10 37 50 17 20 33

Increase reliability-

fewer malfunctions 11 14 36 12 13 27 10 17 40 10 13 40

Improved occupant

health 8 15 25 3 10 13 13 27 40 7 9 23

Benefits of going

green 11 10 18 15 13 30 7 7 7 17

Increased economic benefits through job

creation

7 12 28 - - 27 7 13 30 - 10 27

Motivators for

Promoting Energy

Efficient HVAC

Systems [Figure in percentage]

40

Barriers in

Accepting/Promoti

ng Energy Efficient HVAC Systems

41

Expectations from Energy Efficient HVAC Systems [Figures in percentage]

42

Energy

Efficiency

Technologies

most likely to

be popular in

the near-future [Figures in percentage]

Owners

Brand name Price

Past experience

with the brand

Peer

recommendation

Opinion of architects

and consultants

Consultants

Technology

Cost

Proven Track

After sales

Service

Operating cost

/ Energy

efficiency

Relatively less

important

Performance

Specs

Warranty

Product

Appearance

Maintenance

Place of

purchase

Value for Money

Environmental impact

Critical Factors for HVAC Purchase Decisions

LEARNINGS FROM MARKET

RESEARCH

44

• High level of awareness, but false notion of having

adequately addressed EE in HVAC decision making

– Energy efficiency considerations are already perceived as being

factored in HVAC purchase decisions my most stakeholders

– Most of the survey respondents felt that they have adequately

incorporated energy efficiency considerations into the decision

making process.

– Yet, most of them also felt that they were not certain if they were

actually getting the appropriate performance gains and

savings benefit in actual operations.

45

Key Findings of Market Research

• Key decision makers don’t have the most reliable

information on Energy Performance of HVAC Systems

– The demand of high efficiency and new technology is being led by

end users more than any other stakeholder in the process.

– Decisions on HVAC purchases are heavily influenced by

vendors and contractors.

– End-users are wary of potentially prejudiced sources of

information, but they have limited access to objective

information.

46

• There is no clear understanding of cost benefit of

energy efficiency in HVAC.

– Uncertainty about the total cost of ownership.

– Energy efficient HVAC systems often don't show savings as

advertised.

– Product efficiency vs system efficiency is still not understood by

most end-users, and they tend to make decisions based on

individual equipment performance.

47

• Brand driven approach still predominates the large

HVAC market.

– Advertising and branding appear to play an important role in

market perception of energy use, which may not be substantiated

by actual performance.

– Product driven approach rather than system efficiency

perspective

– Most manufacturers have a range of products with varying energy

efficiency, but certain brands are automatically associated with

high performance, even though a low efficiency system may be

selected.

48

• ‘Good cooling capability’ seems to be the most

important factor for system selection amongst end-users

and developers.

– This translates to over sizing of equipment as well as a perceived

down-side of energy efficiency in HVAC.

– The market perception is that energy efficiency in HVAC system

may come at a cost to comfort.

• There is a clear split incentive for developer and even

amongst end-users there is insufficient information

about the total cost of ownership of HVAC systems.

49

• Lack of expertise in correct sizing and selection

• Thumb rules used for many decisions

• Concerns about ODS and future of certain chillers

• Lack of standardization of energy efficiency

performance across different HVAC systems types

makes it very difficult to compare different system options

• Office, Healthcare, Educational and Industrial Buildings

show large HVAC market potential in the coming years.

50

• Most common complaint is that the running cost is very

high, even in cases the HVAC system was selected for

efficiency

– No monitoring of claims of efficiency

• Lack of expertise in O&M is the most common reason for

higher than expected energy use by the HVAC systems

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• The perceived risks of changing technology,

disrupting occupants, incurring debt, or entering into

complicated agreements outside of core business areas

for many owners and developers.

• The HVAC system is not updated or enhanced as long as

there are no major complaints from the facility.

• The cost of energy is not clearly allocated to different

end-uses in self occupied buildings.

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• Inadequate knowledge of performance of non-

traditional HVAC systems. This includes hybrid cooling

systems, high efficiency equipment, as well as new types

of cooling systems like radiant, and under-floor systems.

• Knowledge of energy performance does not come from

credible sources.

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• Even though there is a good awareness of the latest

innovation through trade shows and international

magazines, local experience and expertise is scant

• Even though cooling is acknowledged as the biggest

concern, most utilities in India have not done anything

actively to reduce HVC energy demand.

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HVAC MARKET TRANSFORMATION -

APPROACH FOR INDIA

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• Information barrier

– Information on appropriate comfort standards and other design factors

– Information on appropriate design and LCC for HVAC systems

– information on actual performance of installed systems

– Information on high performance HVAC system design (considering variability and seasonality of usage)

– Information on correct installation and commissioning

– Information on operation and management practices

– Information on actual performance of conventional as well as new systems

• Cost Barrier

– High capital cost of EE equipment

– Additional apace, water, or ancillary requirements of EE systems

– Split Incentive

• Policy

– Expanding the coverage of the Mandatory EE standard

– Information on high performance system through branding and Labeling

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BARRIERS TO MARKET TRANSFORMATION

Market Transformation

Consumer & Manufacturer Engagement

Conducive Market Conditions

Supporting Public Policy

Enabling Technology

• Fostering an ethic of integrated design and

performance-based design/build activities in the country

• A bigger market for EE products and technologies

– providing substantive incentives for development,

implementation and import of energy efficient

products/technologies

• Performance Testing and Communication of System

Performance to End-users

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APPROACH TO MARKET TRANSFORMATION

Key Market Transformation Strategies

•Capacity building of independent institutions to assess and

disseminate HVAC domain knowledge

– Focus on whole system based approach to design rather than

equipment based as practiced currently.

– Periodic HVAC system performance surveys and benchmarking

– Training program and certification for working professionals

– Training programs for Operators & Maintenance teams

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• Developing an HVAC application based test and demonstration

facility for engineers, end-users

• Mandatory Enforcement of HVAC equipment efficiencies

specified in the Energy Efficiency Building Codes

• Benchmarking and Labeling of Energy Efficient HVAC equipment

• Large Energy Efficient HVAC Demonstration Projects

• Energy Efficient Design For HVAC Systems In All New Public And

Government Buildings

• UTILITY DRIVEN ENERGY EFFICIENCY AND DSM PROGRAMS IN

KEY CITIES

– Delhi NCR, Mumbai, Chennai, Kolkata, Hyderabad, and Bangalore

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• Targeted Energy Efficiency Programs for Residential and

Small HVAC systems

• Incentive for Upgradation and Replacement of Industrial

and Large Commercial systems

• Promoting Super Efficient HVAC technologies in the

medium to long term

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Thanks

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