The Indian government has said air conditioner (AC) manufacturers boost sales to help manage peak electricity demand and maintain grid stability during the upcoming summer months. This effort aims to reduce electricity consumption and support environmental goals.
Government Encourages Promotion of Energy-Efficient Air Conditioners
As per the sources, the Indian government has urged air conditioner manufacturers to boost sales of energy-efficient models. They have been encouraged to introduce schemes and use brand ambassadors to persuade consumers to replace older ACs with newer, five-star-rated models. This move aims to reduce peak power demand and ensure a stable electricity supply during the upcoming summer.
This is the first time the government has urged companies to focus on selling five-star ACs after last year’s high sales and increased power demand. The forecast for this year also predicts an early and hot summer.
The Bureau of Energy Efficiency (BEE) is also discussing with the industry to set the minimum temperature of ACs to 20°C, instead of the current 16°C.
Initiative Causes
The Bureau of Energy Efficiency (BEE) mentioned that nearly 30 percent of ACs installed are over eight years old and use 40-50 percent more electricity than current 5-star models. The government has asked companies to encourage customers to upgrade to the latest 5-star ACs. This will help save up to 60 percent in energy, lower electricity bills, reduce peak power demand, and ensure a stable power supply, contributing to India’s energy security.
Industry Response and Growth Projections
Daikin Air Conditioning India’s Managing Director, KJ Jawa, called the government’s request to companies an unprecedented move. He believes that, along with the upgrade scheme, this will help consumers save on electricity bills and recover the cost of a new AC in 2-3 years.
Jawa mentioned that there are about 55 million ACs older than 10 years that need replacing. He suggested that a government policy offering incentives would encourage consumers to replace these old units.
Blue Star’s Managing Director, B Thiagarajan, warned that the grid load could increase 3-4 times by 2030 if older ACs aren’t replaced, especially with the rise in electric vehicles. He suggested that an incentive scheme for replacing old ACs or buying new ones could help, as 5-star ACs make up only 25 percent of the market due to their higher prices.
Written by Sridhar J
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