India Can Save ₹2.2 Lakh Crore by Doubling AC Efficiency: Study

New Delhi: India can prevent severe power shortages and save up to ₹2.2 lakh crore ($26 billion) by improving air conditioner (AC) efficiency, a new study revealed on Wednesday.

The study, conducted by the India Energy and Climate Center (IECC) at UC Berkeley, highlights the rapid rise in AC usage. India adds 10-15 million new ACs annually, with 130-150 million more expected in the next decade.

Without action, ACs alone could drive peak power demand to 120 GW by 2030 and 180 GW by 2035. This could cause electricity shortages as early as 2026, warned lead researcher Nikit Abhyankar.

The government is pushing for energy-efficient cooling. The Bureau of Energy Efficiency (BEE) urges manufacturers to adopt 5-star-rated ACs, which can save up to 60% energy and cut millions of tonnes of CO2 emissions.

The study suggests updating India’s energy standards by 2027, making today’s 5-star efficiency the new 1-star minimum. This change could prevent power shortages equal to 120 large power plants by 2035.

Efficient ACs may cost more upfront but could save consumers between ₹66,000 crore and ₹2.25 lakh crore ($8-26 billion) in electricity bills. They would pay for themselves in just 2-3 years.

The study also calls for new AC testing methods suited to India’s humid climate, ensuring better cooling and moisture control.

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