Cities in India are engines of economic growth and hold a central position in propelling the social and economic development of the country. Further, services being the major source of country’s economic growth mean that it is inevitable that the existing cities will grow and expand, new cities will be born, and urbanization will proliferate. That being said, the looming global threats that are exacerbated by the creation and expansion of cities imply that the environmental deterioration caused by cities can no longer be overlooked. Energy efficiency measures that can contain the future demand is recognized as the best way forward, for achieving low carbon development in cities. This study is an attempt toward gaining insight into the household electricity consumption behaviors of Nagpur and Bhopal, two Central Indian cities which are expected to have huge economic potential in future years. This simulation based study is conducted using an agent-based computational model, and the target areas for addressing energy efficiency measures, are identified using sensitivity analysis. Findings from the study present evidence that population growth, appliance ownership and income growth are the most significant processes that will determine future household electricity demand in both the cities. It was also identified that energy efficient appliances and rooftop solar panel installation policies holds potential in containing the future household electricity demand.