Apr 18, 2013
By implementing energy-efficiency and sustainability features, Mumbai’s Godrej Bhavan has achieved significant financial and environmental quality benefits.
Building owners and real estate developers throughout India's rapidly expanding urban areas stand to benefit financially from energy-efficiency building upgrades, according to a landmark business case study released of the Godrej Bhavan building in South Mumbai, which cut its electricity costs by 28 percent.
This comprehensive analysis of efficiency upgrades, produced by the Natural Resources Defense Council (NRDC) and the Administrative Staff College of India (ASCI), demonstrates that India's transforming building market can help the country meet its growing energy needs through efficiency.
"The Godrej Bhavan building case study confirms the practical, cost-effective, and energy-saving opportunities available with energy efficiency," said Anjali Jaiswal, director of the Natural Resources Defense Council's India Initiative. "With India's energy crisis worsening, scaling up energy efficiency in buildings will be critical to ensuring that businesses and cities can continue to grow a sustainable way."
As described in the case study, Saving Money and Energy: Case Study of the Energy-Efficiency Retrofit of the Godrej Bhavan Building in Mumbai, Godrej & Boyce upgraded the six-story South Mumbai building Godrej Bhavan in 2010 after decades of paying high electricity bills. By implementing comprehensive energy-efficiency and sustainability features-including efficient cooling and lighting systems, energy management and metering, and water flow metering-Godrej Bhavan has achieved significant financial and environmental quality benefits for the building owners and occupants.
Only two years after the upgrade, Godrej Bhavan's electricity use has already dropped by more than 12 percent, representing a 28.6 percent savings in electricity costs. The company is on track to quickly recover the costs of its energy-efficiency retrofits. Electricity bill savings alone will allow Godrej & Boyce to pay back retrofit costs (Rupees 5,384,000/USD $99,704) in as little as 4.7 years. Fifteen years after the upgrade, Godrej & Boyce could realize up to Rs. 6,980,000 in cumulative electric bill savings.
"The Godrej Bhavan retrofit confirms the low-hanging cost-saving opportunities from energy efficiency. Just two years after the upgrade, we are already reaping significant financial and energy savings," said Jamshyd Godrej, Chairman, Godrej & Boyce. "By investing in energy efficiency, businesses can realize measurable savings on their energy bills while also protecting the environment."
This case study comes on the tail of historic blackouts in July 2012, which left 700 million people without power, revealing the severity of India's energy crisis. As India continues to urbanize, its building-occupied area is estimated to climb sharply, from 8 billion square meters in 2005 to a projected 41 billion square meters in 2030, according to McKinsey & Company.
The Godrej Bhavan case study was authored by the Natural Resources Defense Council (NRDC) and the Administrative Staff College of India (ASCI). Godrej & Boyce, Ingersoll Rand and Trane, and the Confederation of Real Estate Developers Association of India (CREDAI) served as knowledge and dissemination partners. No funds were exchanged between these parties to develop the study. Case study development was supported in part by the Shakti Sustainable Energy Foundation.