India: Energy Efficient Housing – Final Programme Audit
Energy efficiency (EE) in residential buildings has to date only received limited attention in India despite the exponential growth of residential housing for middle income families and the accompanying increase in energy demand in recent years.
Therefore, in 2010, the German development bank KfW, under the auspices of the German Ministry for Economic Cooperation and Development (BMZ), initiated a program to foster the energy efficiency in new residential buildings in India.
The program focused on two main measures: firstly, the German Fraunhofer Institute for Building Physics and “The Energy and Resource Institute” (TERI) in New Delhi developed an IT-tool which calculates the energy demand of residential buildings and potential savings against a baseline which represents the current standard building design in India.
Secondly, KfW extended a credit line of EUR 50 million to the National Housing Bank (NHB) of India for on-lending to commercial banks and specialized housing finance institutions which provide loans for energy efficient homes.
The program has been very successful – in only one year, the entire credit line was disbursed and almost 2,000 loans were given to buyers of energy efficient apartments in 12 new residential building complexes. As part of the final program evaluation, MACS was contracted by KfW to implement the following final audits:
- Energy audits in buildings where EE-loans were disbursed to verify the implemented EE measures
- Review of the financial operations between KfW, NHB and the local lending institutions to ensure a proper allocation of the funds
- Collection of feedback from the program stakeholders (e.g. financial institutions and developers) to foster future EE activities in the residential sector in India
The final program audit demonstrated a successful project implementation and proper allocation of the funds overall but also revealed some limitations in regards to the implemented approach. KfW will take these aspects into account when considering future EE projects in the residential housing sector in India.