The global energy crisis presents a significant challenge that impacts not only human populations but also ecosystems and biodiversity. In India, the demand for energy has escalated rapidly, driven by industrialisation, urbanisation, and population growth, resulting in increased pressure on both conventional energy sources and environmental systems. This study aims to evaluate the Energy Efficiency (EE) and renewable energy policies in India, examining the balance between economic growth, environmental sustainability, and government action. The “E-score” methodology is employed to assess the EE performance across selected Indian states, highlighting critical gaps in policy implementation and providing insights into opportunities for improvement. Furthermore, the feasibility of implementing District Cooling Systems (DCS) in Pune is explored, with the city selected as a representative case study due to its growing urban landscape and climate challenges. The adoption of DCS, a highly efficient cooling technology, is considered a promising solution to address urban heat islands and reduce the energy consumption associated with conventional cooling methods. Through a comprehensive analysis, this research underscores the necessity of an integrated approach that incorporates economic, environmental, and social dimensions in the formulation of sustainable energy strategies. The study further advocates for proactive measures at local, state, and national levels to facilitate a seamless transition to renewable energy sources and achieve long-term energy sustainability. The findings emphasise the importance of developing adaptive policies that are aligned with the broader objectives of climate change mitigation, highlighting the potential of DCS as a key component in India's energy transition. By contributing to the understanding of effective energy management and policy frameworks, the study provides valuable insights for policymakers, urban planners, and energy practitioners in the pursuit of a sustainable and resilient energy future for India's cities.