Transforming India’s cooling future: Investing in efficient, low emission innovations

The Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) in August 2021 cautioned that the Indian subcontinent could expect increased occurrences of severe and frequent heat waves in the next decade. The G20 Climate Risk Atlas also warned in 2021 that heat waves across India would likely last 25 times longer by 2036-65 if carbon emissions remain high, as in the IPCC’s worst-case emission scenario. Soon, India could become one of the first places in the world to experience heat waves that would break the human survival limit. 

In India, between 2019 and 2022, there was a 21% rise in electricity usage attributed to space cooling. Presently, approximately 10% of the total electricity demand is driven by the need for space cooling and by 2050, 45% of India’s peak electricity demand is expected to come from space cooling alone. However, only 10% of the households were air-conditioned as of 2021, making us one of the countries with the lowest access to efficient and affordable cooling solutions, given the high capex and opex costs of the existing solutions. 

Thermal comfort is a basic necessity that should be accessible to all rather than a privilege reserved for a select few. Bridging this gap and making affordable solutions widely available is crucial to ensure that thermal comfort becomes a universally accessible standard of living in an affordable and efficient way. 

Rampant usage of inefficient solutions: The challenge  

The average efficiency of ACs in India is relatively low, given the cost-sensitive nature of the Indian market. The building sector offers huge potential for reducing cooling demand and improving energy efficiency, considering buildings consume 30-35% of India’s total energy. Broadly, 75-85% of the emissions generated by a building occur during its operations, of which 35-40% is by the HVAC systems. 

Space cooling requirements consistently indicate that technological advancements in AC systems are key to significantly reducing electricity consumption and, consequently, greenhouse gas emissions cost-effectively. 

One such technology Social Alpha has recently invested in is built by Albatross Energetics .

Innovation and technology: The solution cooling the gap 

Albatross Energetics has developed a liquid desiccant hybrid air conditioning (LDHAC) system that offers significant energy efficiency advantages (30-50% higher) over traditional vapour compression refrigeration (VCR) systems, resulting in reduced operational expenses.  

The system utilises a liquid desiccant to effectively manage indoor humidity without overcooling, resulting in a higher coefficient of performance (COP). This innovative system stands out due to its ability to provide superior energy efficiency while maintaining optimal indoor air temperature.  

This innovation can be applied in two key areas: first, in commercial spaces such as hospitals and hotels, where it can reduce the cost of maintaining good indoor air quality through smart and energy-efficient Dedicated Outdoor Air Systems (DOAS); and second, in industries, where it can enhance precision in process air control while reducing the energy intensity and carbon footprint in dehumidification sectors like food, chemicals, pharmaceuticals, electronics, and data centres, thereby minimising production losses. 

The key advantage lies in the design of the system, which enables the use of liquid desiccant material to provide cooling and dehumidification efficiently by avoiding issues like carryover.  Additionally, the innovative use of organic solutions as liquid desiccants in air conditioning systems in the case of Albatross offers significant benefits, unlike commonly used lithium-based ionic salts, which come with issues of corrosion, toxicity, and higher cost.  

Market potential and business viability  

Air conditioning demand and electricity consumption intensity in commercial buildings are much higher than in residential areas. The commercial sector's floor area is projected to grow 1.5-2 times in the next decade and 2.5-3 times by 2037-38. 

Albatross’ target markets are Industries and commercial sectors in highly humid geographies. The estimated market size, determined by analysing the yearly sales of Fresh Air Handling units (FAHU) systems, shows a consistent growth rate, with a CAGR of 6.50%.  

Impact potential  

The company’s 5 TR (Tons of Refrigeration) LDHAC prototype demonstration at IIT Bombay showed a 30% reduction in power demand and a 40% increase in moisture removal efficiency compared to conventional VCR systems. The implementation of the Albatross product at scale holds great promise, avoiding GHG emissions in the range of at least 72 KtCO2e through energy savings by 2030. This effort directly addresses the primary challenge of climate change, supporting SDG 13: Climate Action, facilitating SDG 12: Responsible Consumption and Production, and SDG 7: Access to Affordable and Clean Energy. 

The people behind Albatross Energetics 

Sudarsan M S and SRIHARI BALAJI founded Albatross. Sudarsan is a mechanical engineer from IIT Madras and a first-generation entrepreneur with strong expertise in sustainable cooling solutions and an interest in business management. Sudarsan was a part of Social Alpha’s Entrepreneurs for Impact (E4i) program in August 2020.  

Srihari B is a mechanical engineer from IIT Bombay who has worked in the past as a Project Technical Assistant in the Heat Pump Lab at IIT Bombay. A hands-on mechanical engineer, he is an expert in thermal and fluid engineering.  

Dr Milind Rane is the company's technical advisor. He is also the Institute Chair Professor and Founder of Heat Pump Lab, IIT Bombay. He has published several research papers related to heat pumps and cooling systems.  

Regulatory landscape 

In India, there is currently no standardised protocol for testing and certifying liquid desiccant-based commercial air conditioning systems.  

While international standards established by organisations like ASHRAE and AHRI exist for conventional air conditioning systems, there are no specific guidelines for liquid desiccant-based AC solutions, as these products are still in the early stages of development. There is a need to establish standards and testing procedures for liquid desiccant-based ACs to harmonise efficiency parameters. Certifications related to performance, emissions (refrigerant leakage), and safety from reputable agencies are critical to bolster the appeal and credibility of these systems in the market. 

The way forward  

The issue of frequent and prolonged heatwaves puts immense pressure on electricity grids by pushing up peak demand for cooling. These can lead to power outages, leaving people unable to restore healthy levels of thermal comfort in the industrial and food sectors at appropriate temperatures.  

This is concerning, considering the rapid pace of economic growth alongside growing urbanisation. Hence, high-impact translational research from academia and institutes, supported by early-stage investment, is essential for successfully commercialising high-impact solutions in response to the urgent challenges posed by climate change.  

Commercialisation at an accelerated pace is key, considering half of the emissions savings needed in  2050  to reach net‐zero emissions rely on technologies that are not yet commercially available. 

Social Alpha is committed to supporting energy-efficient cooling solutions that have the potential to reduce carbon and cost footprints. We are keen to assess and support design, process, material and technological innovations in the HVAC space, which can save energy and have a high potential for CO2 emission avoidance. 

Written by Aditi Arya , Climate and Sustainability, Social Alpha