India can prevent power shortages, help cut power bills by doubling efficiency of ACs: Study

NEW DELHI: India can prevent power shortages and help consumers save up to Rs 2.5 lakh crore by doubling energy efficiency of room air conditioners (ACs) over next decade, a new study from India Energy and Climate Center (IECC) at University of California, Berkeley has said, as the country’s power grid strains under another intense summer.

Study highlighted that India adds 10-15 million new ACs annually, with another 130-150 million expected over next decade. Without policy intervention, ACs alone could drive 120 GW of peak power demand by 2030 and 180 GW by 2035, it said.



“ACs are already contributing 60 to 70 GW to peak demand, and their growth is outpacing grid’s ability to keep up after sunset,” said Nikit Abhyankar, a UC Berkeley faculty member and lead author of the study. “Without intervention, we risk blackouts or costly emergency fixes. But with smart policy, we can turn this challenge into a win for consumers, manufacturers and the grid.”

According to a power ministry official, extensive use of ACs in urban and semi-urban areas amid rising mercury levels had pushed national power demand to an all-time high of 270.8 GW on May 21. The official added that there were an estimated 1.3 crore AC units in the country, and the numbers were growing at 15-20% annually.

The study mentioned that Bureau of Energy Efficiency has planned an upgrade to AC efficiency standards in 2028, which may raise the minimum threshold by 25%. It called for a long-term roadmap that progressively raises the bar until the most efficient AC available in India today becomes the minimum standard by 2033.

This could reduce peak demand by 10 GW by 2030 and 47 GW by 2035 -- equivalent to roughly 100 large power plants -- while saving an estimated Rs 8 lakh crore in avoided power infrastructure investment, study observed. It added that efficient ACs also offer substantial consumer benefits and, even with slightly higher upfront prices, could deliver net savings of Rs 90,000-2.5 lakh crore by 2035, paying for themselves within 2-3 years through lower electricity bills.

“A common concern is that more efficient ACs will be more expensive,” said Amol Phadke, co-author and UC Berkeley faculty member. “But our analysis of global markets, including India, shows that efficiency is not main driver of retail prices. With right policy support, higher efficiency can go hand in hand with lower costs as manufacturers scale production, supply chains mature and markets become more competitive,” he said.