India’s massive growth in power demand could be significantly reduced if buildings are designed to communicate with the electricity grid and adjust their energy use automatically. By shifting when appliances like air conditioners run, these flexible buildings can cut the projected increase in peak electricity demand by as much as half, according to the authors of the newly released report.
The report states that “this increase could be cut in half with widespread adoption of more efficient building designs, other passive cooling strategies and stricter minimum energy performance standards for appliances.” It also notes that “managing peak demand through realising flexibility potential in buildings – by shifting or reducing their consumption during high-demand hours – offers a cost-effective alternative that enhances system efficiency and reliability.”
Essentially, much of the strain on India’s power grid comes from everyone using electricity at the same time, especially for cooling during hot weather. Instead of building expensive new power plants that are only needed for a few hours a day, flexible buildings use smart technology to automatically lower or move energy use to times when the grid is less stressed. This allows buildings to help balance the system by cooling rooms early or timing appliance use to avoid busy periods without making people uncomfortable, which helps keep the power supply stable and lowers costs.
The report “Efficient Grid-Interactive Buildings in India: Status and opportunities” was published by the International Energy Agency in March 2026. Authored by Ksenia Petrichenko and Simrat Kaur, the study provides a strategic roadmap for India to integrate energy efficiency with smart digital technologies to support the nation’s clean energy transition.
