If India does not update the Minimum Energy Performance Standards for air conditioners by 2035, 30 per cent of the country’s power demands will be by air conditioners, says a new report.
The MEP is a standard that sets such benchmarks that energy consumption is reduced so as to promote the use of more efficient models. It also lowers electricity bills and reduces the impact on the environment.
A study (India Can Avert Power Shortages and Cut Consumer Bills with Stronger AC Efficiency Standards) from the India Energy and Climate Center (IECC) at University of California (UC) Berkeley has pegged at ₹2.2 lakh crore the amount that can be saved by consumers by doubling the energy efficiency of room air conditioners (ACs) over the next decade.
The study highlights that India adds 10–15 million new ACs annually, with another 130–150 million expected 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 per cent of projected totals.
This kind of growth is outpacing India’s power supply and could lead to serious electricity shortages as early as 2026, according to Nikit Abhyankar, the study’s lead author and UC Berkeley faculty.
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.
The report underscores that even with slightly higher upfront prices, ACs can deliver net savings of ₹66,000–2,25,000 crore by 2035—paying for themselves within two to three years through lower electricity bills.
The study’s author also point out that it is a misconception that efficient ACs are more expensive. Right policy support, higher efficiency can lead to lower costs because of economies of scale, better supply chains, and competitive markets.
Another suggestion is that AC test procedures in the country should be altered to better reflect the country’s humid climate. In cities like Mumbai or Chennai, for instance, dryness is as important as coolness.
Nihar Shah, co-author and IECC lead on cooling, said ACs that remove moisture from the air can keep people comfortable while using only half as much electricity.
Though urban AC ownership at present is just 10 per cent, this figure is seeing a rapid uptick, Thus decisions need to be taken now to shape the energy future.