Smart technologies that allow buildings to communicate with the power grid could significantly reduce the cost of electricity for families, according to the authors of the newly released report. These grid-interactive measures are projected to lower household energy bills by 7% to 12% in advanced economies and by nearly 20% in emerging markets by 2050.
The report emphasizes that “EGIBs can lower energy bills through more efficient operation and participation in demand response programmes.” Detailed findings highlight that “IEA analysis shows that such measures can lower household electricity bills by 7–12% in advanced economies by 2050, and by nearly 20% in emerging markets and developing economies.”
To put this simply, these buildings act like smart assistants that can coordinate with the local utility company. Instead of just drawing power whenever an appliance is turned on, the house uses sensors and automated systems to decide the best time to run heavy-duty equipment like air conditioners. By automatically shifting these tasks to times when electricity is cheaper or more abundant, homeowners save money without having to manually change their habits or sacrifice their comfort.
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.
