As India prepares for another intense summer, its power grid is under strain. With temperatures soaring, millions of households and businesses are turning to air conditioners (ACs) for relief. However, ACs are fast becoming the single largest driver of peak electricity demand, especially in the evening and nighttime hours. According to a study, without urgent policy action, ACs alone could contribute up to 120 gigawatts to peak electricity demand by 2030 and 180 gigawatts by 2035, placing enormous stress on the grid.
The current minimum energy performance standard (MEPS) for room air conditioners in India is outdated and requires urgent revision. The study proposes a clear roadmap for raising India’s MEPS over the next decade, starting with the current five-star level (ISEER 5.0) and gradually increasing to ISEER 6.3 by 2030, matching the most efficient AC models already available in India.
Tightening AC efficiency standards is a cost-effective way to reduce future electricity demand and strengthen India’s power system. According to the study, a strengthened MEPS could reduce peak demand by 10 GW by 2028, 23 GW by 2030, and 60 GW by 2035, equivalent to 120 large power plants. This would help India avoid up to ₹7.5 trillion in new power generation and grid infrastructure costs.
Consumers also stand to benefit directly, as energy-efficient ACs may carry slightly higher upfront prices but pay for themselves in two to three years through lower electricity bills. Over time, the net savings are substantial, ranging from ₹66,000 crore to ₹2.25 lakh crore by 2035.
Improving energy efficiency is not the primary driver of AC prices, and many efficient, no-frills models are already available at comparable prices to less efficient models. Efficiency delivers the same result faster, cheaper, and with zero emissions.