Indian Office Space Going Green: Survey Shows Demand For Renewable Energy
April 30th, 2024
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A significant shift is brewing in the Indian commercial real estate sector, driven by a growing tenant demand for sustainable office spaces. According to a recent study by JLL, a staggering 87 per cent of office occupiers in India believe that at least half of their office portfolio should be powered by renewable energy sources by 2030. This push aligns with broader net zero carbon (NZC) goals and reflects a growing prioritisation of environmental responsibility among businesses.
Major Cities Leading the Charge
The survey results indicate a geographically diverse interest in sustainable office spaces. While Delhi leads the pack with 43 per cent of occupiers seeking eco-friendly options, major metropolises like Mumbai (27 per cent), Bengaluru (17 per cent), and Chennai (13 per cent) are also witnessing a surge in demand. Interestingly, the banking and finance sectors are spearheading this sustainability drive, followed by construction, manufacturing, and consultancy industries.
Reaching Net Zero Through Renewables
The JLL study highlights a strong preference for on-site renewable energy generation, with one-third of respondents (33 per cent) believing it will be a non-negotiable requirement by 2030. Furthermore, 87 per cent of those surveyed anticipate that over half of their energy needs will be met by renewable sources within the next six years. This optimism is tempered by the recognition of a potential supply gap for sustainable buildings. The report suggests that demand for eco-friendly office spaces is likely to outstrip supply in the coming years.
Industry Experts Weigh In
Commenting on the findings, Radha Dhir, CEO & country head, India, JLL, emphasised the growing importance of prioritising green energy sources in commercial real estate portfolios. She underscored the need for well-crafted and thoughtful renewable energy strategies, highlighting the real estate sector's potential to become a key player in shaping the future of renewable energy and a greener tomorrow.
Kamya Miglani, head of ESG Research, Asia Pacific, JLL, echoed this sentiment, pointing towards a similar trend across the Asia Pacific region. Countries like Australia, China, Vietnam, and India are at the forefront of this transition, collectively contributing to a significant portion of the global increase in renewable energy capacity.
Collaboration is Key
The JLL study suggests a two-pronged approach to bridge the gap between demand and supply for sustainable office spaces. Firstly, a strategic combination of on-site renewable energy generation, like solar PV installations, and off-site procurement through Renewable Energy Certificates (RECs) and Power Purchase Agreements (PPAs) is recommended. Secondly, the report emphasises the importance of assessing the feasibility of solar installations and local grid connections for individual sites. Exploring the potential for energy sharing with other buildings within a portfolio is also seen as a promising strategy.
The JLL study paints a clear picture of a rapidly evolving Indian commercial real estate landscape. With a growing focus on sustainability and net zero carbon goals, the demand for eco-friendly office space is surging. Collaboration between landlords and occupiers will be crucial in meeting this demand and creating a more sustainable future for the industry.
Source: timesproperty.com
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