India can avert power shortages with stronger AC efficiency standards: Study

Study shows India can save up to $26 billion by doubling AC energy efficiency, avoiding power shortages and benefiting consumers.

India can avoid severe power shortages and save consumers up to ₹2.2 lakh crore ($26 billion) by doubling the energy efficiency of room air conditioners (ACs) over the next decade, according to a new study at University of California (UC) Berkeley.

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The study conducted by India Energy and Climate Center (IECC) highlights that India adds 10 to 15 million new ACs annually, with another 130 to 150 million expected over the next decade.

"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. Without policy intervention, ACs alone could drive 120 GW of peak power demand by 2030 and 180 GW by 2035--nearly 30% of projected totals," the study shows.

The report recommends 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 growth is outpacing India's power supply and could lead to serious electricity shortages as early as 2026," said Nikit Abhyankar, the study's lead author and UC Berkeley faculty.

"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.