India Plans Air Conditioner Temperature Rules to Save Power

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Air conditioning units during high temperatures in New Delhi, India.

India is working with appliance makers to standardize the cooling range of air conditioners to ensure that the minimum temperature is not set below 20C (68F), in an effort to cut the energy use of these power guzzlers.

The plan, although at an initial stage, reflects the government’s focus to boost energy efficiency as electricity consumption soars. In recent years, demand has outpaced generation capacity, leaving parts of the country without power during sweltering summer months of April through June. Currently, thermostats on some of these devices can be adjusted to as low as 16C.    

“Temperatures would be set in the range of 20C-28C,” Power Minister Manohar Lal told reporters at a press conference in New Delhi on Tuesday. “This would be done for ACs at homes, hotels and even in cars.”

Air conditioners account for about 50 gigawatts, or one-fifth, of the maximum load, said Pankaj Agarwal, the ministry’s top bureaucrat. Studies have shown that every 1C increase in AC temperature leads to a reduction of 6% in power consumption, which would mean savings of 3 gigawatts of peak demand, he said at the same event. India has about 100 million of these appliances and is installing almost 15 million every year, Agarwal said. 

Tightening energy efficiency standards for cooling could save 60 gigawatts in India’s peak electricity demand by 2035, avoiding 7.5 trillion rupees ($88 billion) of new generation and grid infrastructure, according to a study published by the University of California, Berkeley, in March.

“Limiting minimum AC temperatures at 20C can provide us the twin benefits of comfort and energy efficiency,” said Aarti Khosla, director at consultancy Climate Trends. “Trying to super-chill our surroundings can be a heavy burden on the power grid and we, as Indians, need to understand that.”  

The nation’s maximum demand hit a record of 250 gigawatts last summer and was estimated to climb 8% this year. Frequent rains in May have so far kept the demand in check, although a return of heat waves this month has resulted in a rise in consumption. The national grid controller reported a maximum demand of almost 241 gigawatts on Monday, the highest so far this year. 

“Even if the peak requirement reaches the estimated 270 gigawatts, we are fully prepared to meet it,” Lal said. 

Separately, the minister said that the government is working on a plan to invite companies to build 30 gigawatt-hour battery storage projects to widen the use of renewable energy and reduce the nation’s dependence on fossil fuels. The government plans to give subsidies of 54 billion rupees to encourage investors. The tenders will be out in three months, Lal said.  

(Updates to add analyst’s comment in sixth paragraph.)

©2025 Bloomberg L.P.

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