Adani Energy Solutions (AESL), the power transmission arm of the Adani group, is expanding its district cooling services (DCS) business. This move is part of the company’s strategy to diversify its revenue streams and leverage its existing expertise in transmission and distribution. DCS is a centralized system that distributes chilled water or a medium to multiple buildings through a network of pipes, providing energy efficiency and cost savings compared to individual building cooling systems.
AESL has been incubating DCS for several years and has set up large-scale facilities across various sectors, including industrial, commercial, residential, and mixed-use projects. The company is operating under a “cooling-as-a-service” (CaaS) model, where it undertakes projects under a design, build, finance, own, and operate (DBFOO) model. This model allows real estate developers to avoid significant upfront investments in HVAC systems.
The company has partnered with Maharashtra government-owned Mahatma Phule Renewable Energy and Infrastructure Technology (MAHAPREIT) to set up a DCS system in the Mumbai metropolitan region. The partnership aims to provide CaaS in various locations, including Mira Bhayandar, Thane, Mulund, India Jewellery Park, Mahape, and Bharat Diamond Bourse. The DCS system is expected to reduce energy consumption by 30-35% for residents and 20-25% for commercial users.
With the Indian cooling market expected to grow fourfold by 2037-38, and the per capita cooling energy consumption in India at around 147 kWh, there is a significant opportunity for DCS to make a significant dent in the market. The partnership with MAHAPREIT is expected to be a key step in this direction.