India Can Avert Power Shortages and Cut Consumer Bills by Requiring More Efficient Air Conditioners

India is experiencing a rapid surge in electricity demand driven by the widespread adoption of room air conditioners (ACs), propelled by rising incomes, urbanization, and increasingly severe heat waves. We estimate that between 2025 and 2035, India will add an additional 130 million new room ACs, and without targeted interventions, room ACs alone could contribute over 180 GW to India’s peak load by 2035, straining the power system and necessitating costly investments in new capacity.

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Mumbai cityscape turning purple at dusk

By several tokens, 2024 was a historic year. While it set a record as the warmest year to date, there was also significant progress on the clean energy front. India reached a major milestone, surpassing 200 GW of renewable energy capacity in Q4 2024.

Comparing Solar Costs & Deployment in India and the United States

Over the past decade, India has witnessed substantial declines in solar installation costs, driven by innovative policies and falling prices of solar modules. Competitive solar auctions have significantly reduced tariffs, dropping from over $0.20 per unit in 2010 to below $0.03 per unit today.

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India is rapidly expanding its transmission network to meet the fast growing electricity demand: the Central Electricity Authority projects an expenditure of $50 Billion for the transmission system (including new lines, substations, etc.) during 2022-27.

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Farmers in india transporting hay into the back of a truck over extreme heat and haze

Heatwaves in India are starting earlier, lasting longer and getting more intense.
Since May 13, 2024, capital city New Delhi recorded 40 consecutive days with temperatures exceeding 40 degrees Celsius. Between April and June 2024, the country saw around 40,000 suspected cases of heatstroke and dozens of heat-related deaths.