Adani Energy Solutions Expands District Cooling Business with New Facilities
Adani Energy Solutions (AESL), the transmission arm of the Adani Group, is expanding its district cooling services (DCS) business as a major move towards energy-efficient cooling solutions in India. As part of its business expansion plans, AESL is establishing multiple large-scale DCS facilities in industrial, commercial, residential, and mixed-use developments.

With growing needs for cost-effective and sustainable cooling, AESL is emerging as a leader in the district cooling business based on its experience in energy management and infrastructure.

What is District Cooling?
District Cooling Services (DCS) is a centralized cooling system that circulates chilled water or some other cooling medium from a single facility to several buildings via a pipe network. This configuration improves energy efficiency, lowers operating expenses, and offers better cooling performance than conventional building-level air conditioning units.

The global shift towards energy-efficient and climate-friendly cooling technologies has put district cooling at the forefront of urban infrastructure planning, and AESL’s expansion aligns with this growing trend.

Adani’s Investment in Cooling-as-a-Service (CaaS) Model
AESL is implementing Cooling-as-a-Service (CaaS) under a DBFOO model (Design, Build, Finance, Own, and Operate). This approach enables real estate developers and businesses to access district cooling without incurring high capital expenditures.

Rather, consumers pay per use, lowering initial HVAC (heating, ventilation, and air conditioning) investment costs.

The cost of capex ranges from ₹1 lakh to ₹1.5 lakh per ton of refrigeration (TR), depending on the scope of the project.

The model releases considerable financial capital for real estate developers to invest in other key infrastructure requirements.

AESL conducts its cooling operations under Adani Cooling Solutions (ASCL), its special subsidiary for district cooling business. The major intention of the company is to promote energy efficiency, reduce the cost of cooling, and aid in India’s long-term climate sustainability objectives.

Strategic Partnership with Maharashtra Government
Adani Cooling Solutions (ASCL) has recently executed a Memorandum of Understanding (MoU) with Mahatma Phule Renewable Energy and Infrastructure Technology (MAHAPREIT), a Maharashtra state-owned company, to establish district cooling infrastructure within the Mumbai Metropolitan Region and elsewhere under MAHAPREIT’s purview.

Major Points of the Agreement:
Integration into Urban Planning: The collaboration seeks to weave district cooling systems into Maharashtra’s master plan so that new and future developments in Mumbai and Navi Mumbai embrace green cooling solutions.

Strategic Location Deployment: The DCS units would be built in high-density commercial and residential locations like:

Mira Bhayandar

Thane (Kisan Nagar, Hiranandani Estate)

Mulund

India Jewellery Park

Mahape

Bharat Diamond Bourse (BKC)

Using government policy-level interventions, the partners aim to speed up the use of district cooling technology in Maharashtra.

Energy Efficiency and Cost Savings of DCS
Its energy efficiency is one of the benefits of district cooling. Through economies of scale and high-efficiency cooling technologies, DCS saves energy by centralizing the cooling load.

Cost Reduction and Efficiency Gain
Residential Users: DCS lowers cooling cost by 30-35%.

Commercial Buildings: 20-25% cost saving on cooling charges.

Efficiency in Operation: Centralized cooling facilities are cheaper to operate and maintain compared to individual air conditioners.

Besides, DCS helps attain the sustainability objective in the following ways:

Mitigation of greenhouse gases emitted from conventional HVAC units.

Efficient utilization of power, resulting in less energy consumed from urban power grids.

The Emergence of India’s District Cooling Market
As per the India Cooling Action Plan 2019 & District Cooling Guidelines 2023, India’s cooling demand is expected to increase four times from 130 million tons of refrigeration (MTR) in 2022-23 to 720 MTR in 2037-38.

Important Statistics:

India’s per capita cooling energy usage in 2023 was 147 kWh, which is significantly lower than the world average of 1,539 kWh.

Penetration of air conditioning (AC) in India is a mere 8%, as against 60-90% in other developing countries.

India boasts one of the highest cooling degree days (CDD) globally, with over 4,200 billion, signifying huge potential for sustainable cooling.

As India continues to urbanize and temperatures continue to rise, district cooling is poised to be an integral part of sustainable urban planning.

Future Prospects: Scaling Up India’s Cooling Infrastructure
As urban areas expand and energy-efficient cooling demand increases, Adani Energy Solutions is positioned to spearhead India’s shift towards sustainable cooling solutions.

AESL’s future plan involves:

Growing its DCS presence outside Maharashtra to other metropolitan areas.

Utilizing AI and IoT to maximize cooling distribution and energy efficiency.

Partnering with real estate developers to incorporate district cooling into new urban developments.

Increasing renewable energy integration into cooling systems, in line with India’s clean energy objectives.

With government policies favoring clean energy solutions and the private sector investing in climate-conscious infrastructure, Adani’s district cooling expansion is expected to reshape India’s cooling landscape in the coming decades.