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Market Assessment Report for Chillers in India

This report examines the potential for GHG emissions reduction and energy consumption in India through the adoption of a mandatory efficiency labeling program for chillers in India. CLASP and Environmental Design Solutions provided technical assistance to the Bureau of Energy Efficiency to assess the market for chillers in India.

Chillers in an HVAC (Heating, Ventilation, and Air-Conditioning) system enable heat transfer from an internal air-conditioned space to the external environment, maintaining internal temperatures lower than external ones. Cooling is pivotal across sectors like automotive, transportation, residential, commercial spaces, and cold chains. With rising temperatures, the demand for cooling has increased and the market has grown at a CAGR (Compound Annual Growth Rate) of ~8.5% over the past five years.

According to the India Cooling Action Plan (ICAP), chiller systems will comprise 11% of space cooling energy use by 2037–38. Additionally, the installed capacity of chillers in India is expected to reach 38.1 million Tons of Refrigeration (TR) by 2037-38, growing from the present 5.7 million TR as of 2017-18.

This report highlights the transition of the current voluntary Standards and Labeling (S&L) program for chillers to a mandatory one, which was initiated in September 2018. The voluntary phase has 46 chiller models registered across 6 key manufacturers. To prepare for the mandatory phase, understanding the Indian chiller market’s current state is crucial. This study compiles comprehensive data from primary and secondary sources and provides recommendations for the mandatory phase of the chiller S&L program.

The Bureau of Energy Efficiency’s (BEE) policy for chillers can enhance energy-efficient chiller adoption. This growth also aligns with India’s energy-saving objectives and reduces carbon footprint by eliminating inefficient chillers through mandatory S&L measures.

BEE and CLASP aim to mandate the existing voluntary S&L program. To achieve this, they coordinated with Environmental Design Solutions for a comprehensive Indian chiller market assessment. The research covers various aspects including market size, segmentation, and performance data for different chiller types and capacities.

The study’s outcomes encompass:

  1. Insights into the performance distribution of current market-available chillers, alongside overall performance enhancements compared to 2020.
  2. For the study, technical committee meetings were held with stakeholders, including manufacturers, manufacturers’ associations, NABL BIS, and test labs. These meetings enabled players in the market to present the challenges faced by them to the BEE and the committee.
  3. During the stakeholder discussions, BEE and technical committee members jointly decided to transition the program to a mandatory labeling scheme from 1st Jan 2024, with validity till 31st Dec 2025.

The cumulative energy savings from the chillers labeling program till 2030 is estimated to be 19.3 TWh and 15.9 million-ton CO2e. Refer section 5 of the report for detailed analysis.

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