A new study by the University of California, Berkeley’s India Energy and Climate Center (IECC) suggests that doubling the energy efficiency of room air conditioners (ACs) in India could save consumers up to Rs 2.2 lakh crore ($26 billion) by 2035. The study highlights that India’s growing demand for ACs, with over 10-15 million new units added annually, could lead to severe power shortages and peak power demands of 120 GW by 2030 and 180 GW by 2035, nearly 30% of projected totals.
To mitigate this, the study recommends updating India’s Minimum Energy Performance Standards (MEPS) by raising the 1-star label to ISEER 5.0 equivalent to today’s 5-star level and tightening standards every three years. This could avoid 10 GW of shortages by 2028, 23 GW by 2030, and 60 GW by 2035, equivalent to 120 large power plants.
The study also notes that even with slightly higher upfront prices, efficient ACs could deliver net savings of Rs 66,000 to 2,25,000 crore ($8-26 billion) by 2035, paying for themselves within 2-3 years through lower electricity bills. The findings also show that over 600 AC models, 20% of all offerings, already exceed India’s top efficiency threshold, the 5-star level, with many produced by domestic manufacturers.
The report also calls for updating AC test procedures to better reflect India’s humid climate, where comfort depends not just on cooling but on moisture removal. The study suggests that Indian manufacturers can lead in developing more efficient ACs that remove moisture from the air, which can keep people comfortable while using only half as much electricity.
Overall, the study emphasizes that doubling the energy efficiency of ACs can be a win for consumers, manufacturers, and the grid, and that policy intervention is needed to achieve this goal. With India’s growing demand for ACs, it is essential to ensure that these devices are designed to be efficient, affordable, and comfortable, rather than contributing to power shortages and blackouts.