Digital tools like smart meters and sensors allow buildings to communicate directly with the power grid, creating a two-way flow of information that helps balance electricity supply and demand instantly. According to the authors of the newly released report, this connectivity turns buildings into active assets that can automatically adjust their energy consumption based on real-time signals from utilities.
“Digitalisation is a key enabler of EGIBs. Smart meters, sensors, controls and data analytics allow real-time monitoring and optimisation of energy use. These technologies also facilitate automated responses to grid signals, enabling buildings to participate in time-varying pricing schemes and grid services without compromising occupant comfort.”
This technology essentially gives a building a digital nervous system that can sense when the local power grid is struggling or when there is a surplus of clean energy available. Instead of being passive users, buildings can now “listen” to the electric company and respond by automatically shifting heavy power usage to cheaper times or reducing their demand during peak hours. This process happens behind the scenes, ensuring people stay comfortable while making the entire energy system more reliable and efficient.
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.