Doubling energy efficiency of ACs can save consumers Rs 2.5 lakh crore over next decade: Study

Doubling the energy efficiency of room air conditioners in India over the next decade could save consumers up to Rs 2.5 lakh crore and reduce peak demand by 147 GW by 2035.

India can avoid power shortages and save consumers up to Rs 2.5 lakh crore by doubling the energy efficiency of room air conditioners (ACs) over the next decade, according to a new study.

It stated that a long-term policy roadmap, extending eight to 10 years, for improving efficiency of ACs could reduce peak demand by 10 GW by 2030 and 47 GW by 2035 -- equivalent to roughly 100 large power plants.

The study, 'Beating the Heat: How Air Conditioner Efficiency Standards Help India Avert Power Shortages and Cut Consumer Bills', was done by the India Energy and Climate Center (IECC) at University of California (UC) Berkeley, and released on Monday.

In a statement, Nikit Abhyankar, the study's co-author and UC Berkeley faculty member, said, ''ACs are already contributing 60 to 70 GW to peak demand, and their growth is outpacing the grid's ability to keep up after sunset. 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.''.

The analysis also revealed that efficient ACs offer substantial consumer benefits. Even with slightly higher upfront prices, they could deliver net savings of Rs 90,000 to Rs 2,40,000 crore over the life of ACs.

Amol Phadke, co-author of the study, and UC Berkeley faculty member, in a statement, said, ''A common concern is that more efficient ACs will be more expensive. But our analysis of global markets, including India, shows that efficiency is not the main driver of retail prices.''.

''With the 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 added.