CoolingEfficiency – India Pushes for Smarter AC Standards Amid Rising Power Demand
CoolingEfficiency – India may significantly reduce electricity shortages and lower household energy expenses if it improves the efficiency standards of room air conditioners over the next decade, according to a recent study by the India Energy and Climate Centre at the University of California, Berkeley.

The report comes as the country faces increasing pressure on its power network during another season of extreme summer temperatures. Researchers estimate that India currently adds between 10 million and 15 million new air conditioners every year, while another 130 million to 150 million units are expected to enter homes and offices in the coming decade.
Growing Cooling Demand Raises Pressure on Power Grid
The study warns that if no additional policy measures are introduced, air conditioners alone could contribute nearly 120 gigawatts of peak electricity demand by 2030. That figure may climb to 180 gigawatts by 2035, accounting for more than 30 percent of the country’s projected peak power requirement.
Researchers noted that cooling demand has already become a major contributor to evening electricity consumption, particularly after sunset when solar power generation falls sharply. According to the report, rising dependence on inefficient cooling appliances could increase the risk of power outages and force costly emergency infrastructure expansion.
Nikit Abhyankar, one of the lead researchers and a faculty member at UC Berkeley, said India still has time to avoid severe stress on the electricity system if timely policy decisions are implemented. He explained that improving appliance efficiency can benefit both consumers and the national grid while reducing the need for expensive backup measures.
Stronger Efficiency Standards Recommended
The report welcomed the Bureau of Energy Efficiency’s proposed revision of air conditioner standards in 2028, which aims to raise the minimum efficiency requirement by around 25 percent.
However, researchers believe additional long-term steps are necessary. They suggested a phased roadmap that would continue tightening standards until the highest-performing air conditioners currently available in India become the minimum acceptable standard by 2033.
According to the analysis, such measures could lower peak electricity demand by around 10 gigawatts by 2030 and nearly 47 gigawatts by 2035. The study compares this reduction to the output generated by almost 100 large power plants.
Experts also estimate that avoiding the construction of additional power infrastructure could save nearly ₹8 lakh crore in future investments.
Consumers Could Benefit From Lower Bills
The report highlighted that highly efficient air conditioners may initially cost slightly more, but the long-term savings could outweigh the higher purchase price. Researchers estimate consumers may collectively save between ₹90,000 crore and ₹2.4 lakh crore by 2035 through lower electricity bills.
The study stated that these additional costs could typically be recovered within two to three years because of reduced energy consumption.
Amol Phadke, another co-author of the report, said concerns about higher prices for efficient appliances are often overstated. He explained that global market trends show retail prices are influenced more by manufacturing scale, supply chain maturity, and market competition than by efficiency technology alone.
Domestic Manufacturers Already Expanding Efficient Models
The report also observed that India’s appliance market has already started adapting to higher efficiency expectations. More than 1,000 air conditioner models currently available in the country already perform above the existing 5-star efficiency benchmark.
Researchers said many of these models are being produced by Indian companies, creating an opportunity for local manufacturers to expand production under government initiatives such as Make in India and production-linked incentive schemes.
Jose Dominguez, a researcher associated with the study, said India has the potential to become an important global supplier of affordable and energy-efficient cooling systems if supportive policies continue.
Future Decisions Seen as Critical
Urban air conditioner ownership in India remains relatively low at around 15 percent, but demand is increasing rapidly as temperatures rise and incomes improve.
The researchers stressed that decisions made in the next few years will have a long-term impact because every newly installed air conditioner adds to future electricity demand for many years.
The report concluded that improving cooling efficiency now could help India manage rising temperatures, reduce strain on the power system, and support sustainable energy growth without placing additional financial pressure on consumers.