Indians can avert power shortages, save Rs 2.2 lakh cr with energy efficient ACs: Study

The study, led by researchers at the India Energy and Climate Center (IECC) at the University of California (UC) Berkeley, US, highlighted that India adds 10-15 million new ACs annually, with another 130-150 million expected over the next decade.

New Delhi: Even as India braces for another intense summer, a new study on Wednesday showed that the country can avoid severe power shortages and save consumers up to Rs 2.2 lakh crore ($26 billion) by doubling the energy efficiency of room air conditioners (ACs) over the next decade.

The study, led by researchers at the India Energy and Climate Center (IECC) at the University of California (UC) Berkeley, US, highlighted that India adds 10-15 million new ACs annually, with another 130-150 million expected over the next decade.

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Without policy intervention, ACs alone could drive 120 GW of peak power demand by 2030 and 180 GW by 2035 — nearly 30 per cent of projected totals. “This growth is outpacing India’s power supply and could lead to serious electricity shortages as early as 2026,” said lead author Nikit Abhyankar, faculty at UC Berkeley.

“ACs are becoming one of the biggest drivers of peak demand, and without intervention, we risk blackouts or costly emergency fixes. But with smart policy, we can turn this into a win for consumers, manufacturers, and the grid,” he added.

The study comes as the Union government is also intensifying its push for energy-efficient cooling solutions. The Bureau of Energy Efficiency (BEE) has urged air-conditioner manufacturers to accelerate the adoption of BEE 5-star-rated models.

According to the BEE, replacing older air conditioners with BEE 5-star-rated models could yield significant benefits, including up to 60 per cent energy savings, reduced peak power demand, enhanced grid stability and energy security, major climate impact, and cutting millions of tonnes of CO2 emissions annually.

Meanwhile, the study recommended updating India’s Minimum Energy Performance Standards (MEPS), beginning with a 2027 revision that raises the 1-star label to ISEER 5.0 — equivalent to today’s 5-star level — and tightening standards every three years.

This alone could avoid 10 GW of shortages by 2028, 23 GW by 2030, and 60 GW by 2035 — equivalent to 120 large power plants. “This is not just about long-term energy savings — it’s an immediate grid reliability solution,” Abhyankar said.

Efficient ACs also offer massive consumer benefits. Even with slightly higher upfront prices, they could deliver net savings of Rs 66,000-2,25,000 crore ($8-26 billion) by 2035 — paying for themselves within 2-3 years through lower electricity bills.

The study also called for updating AC test procedures to better reflect India’s humid climate, where comfort depends not just on cooling, but on moisture removal.