Adani Expands Its District Cooling Business with New Facilities

Adani Energy Solutions Ltd (AESL), the power transmission arm of the Adani Group, is expanding its district cooling services (DCS) business. The company has been developing this segment for the past few years and is now setting up large-scale cooling facilities across industrial, commercial, residential, and mixed-use projects.

What is District Cooling?

District cooling is a centralised system that distributes chilled water or another cooling medium from a central plant to multiple buildings through a network of pipes. This system is more energy-efficient and cost-effective than individual cooling units for each building.

New Revenue Stream for Adani

The district cooling business will be a new source of income for AESL. This business is managed by AESL’s subsidiary, Adani Cooling Solutions Ltd (ASCL), which also operates in power transmission, distribution, and smart metering.

How the Cooling-as-a-Service Model Works

AESL has adopted a Cooling-as-a-Service (CaaS) model under the DBFOO (Design, Build, Finance, Own, and Operate) framework. Under this model:

• Adani bears the full capital investment (capex).

• Users only pay for the cooling they use.

• This helps real estate developers save on heating, ventilation, and air conditioning (HVAC) costs.

• The cost varies depending on the project scope and ranges from ₹1-1.5 lakh per ton of refrigeration (TR).

Adani’s Partnership with MAHAPREIT

Adani Cooling Solutions has partnered with Mahatma Phule Renewable Energy and Infrastructure Technology (MAHAPREIT), a Maharashtra government-owned entity. The two companies signed an MoU to develop district cooling systems (DCS) across Maharashtra, including the Mumbai Metropolitan Region.

A company spokesperson stated that the partnership will help integrate district cooling into the master plan for new and upcoming developments in Mumbai and Navi Mumbai through policy interventions.

Targeted Locations for DCS

The planned district cooling projects will be built on land designated for public utility infrastructure. Some of the key locations include:

• Mira Bhayandar

• Thane (Kisan Nagar, Hiranandani Estate)

• Mulund

• India Jewellery Park

• Mahape

• Bharat Diamond Bourse, BKC

Benefits of District Cooling

One of the biggest advantages of district cooling is its energy efficiency. Since the cooling demand is managed centrally, it benefits from economies of scale, reducing operational and maintenance costs.

• Residential users can save up to 30-35% on cooling costs.

• Commercial users can save 20-25% on cooling expenses.

India’s Growing Cooling Market

According to the India Cooling Action Plan 2019 and District Cooling Guidelines 2023, India’s cooling demand is expected to increase nearly sixfold, from 130 MTR in 2022-23 to 720 MTR by 2037-38.

• In 2023, India’s per capita cooling energy consumption was 147 kWh, significantly lower than the global average of 1,539 kWh.

• AC penetration in India is only 8%, compared to 60-90% in other developing countries.

• Despite this, India has the highest cooling degree days (CDD) globally, exceeding 4,200 billion.

About Adani Energy Solutions Ltd

Adani Energy Solutions Ltd, previously known as Adani Transmission Ltd, is a leading electric power transmission company based in Ahmedabad. It is among the largest private-sector power transmission firms in India.

Adani Energy Solutions share price opened at ₹822.00, reached a high of ₹838.90, and a low of ₹820.50, with the current price standing at ₹828.10, up by ₹7.85 or 0.96% as of 10:18 AM IST on March 25.

Conclusion

Adani’s expansion into district cooling aligns with India’s increasing demand for energy-efficient cooling solutions. With government partnerships and a focus on sustainable infrastructure, Adani Cooling Solutions is set to play a major role in the country’s cooling industry.

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