Growing at a compound annual growth rate (CAGR) of 10% till 2020,1 India’s air-conditioner (AC) purchases are expected to become the world’s largest contributor to new electricity demand between 2017 – 2040,2 adding about 150 GW to 2030 peak demand. The penetration of ACs is expected to rise from 5% to 70% by 2040, substantially increasing the energy demand. These can be addressed by highly efficient ACs that work above the highest energy efficiency ratio [EER] 3 3.5.
As ACs become a necessity in the country, they also are a major source of emissions, despite efficiency protocols in place. The refrigerants from air conditioners and refrigeration are estimated to add another 14-27% to the rising global warming4.
There is thus an urgent need to leapfrog efficiency and enhance affordability. One way is by bringing super-efficient air conditioners, benchmarked even higher than the prevailing ISEER 5.0 rating, to tackle the rising electricity demand. The move will imbibe sustainability and reduce GHG emissions, which are responsible for climate change.
With the current nationwide effort of cutting emissions amidst the backdrop of a digital revolution, EESL is working with manufacturers to bring super energy efficient air conditioning technologies to the market under its EESL Super-Efficient Air Conditioning Programme (ESEAP). Created to fulfil superior technical specifications, these devices would help to tackle the challenge of cutting GHG emissions amidst an increased demand for ACs and the electricity needed to run them.
EESL’s ACs will offer a three-year comprehensive warranty (including five-year warranty on key components) to consumers to help them save their electricity bills with its 5.2 ISEER offering. The effort would enable both residential and institutional, to become a part of the larger contribution to cut emissions and limit the peak energy demand to 90GW by boosting their savings. Designed for both home and institutional use, the ACs will be home-delivered and installed, and eligible for after-sales. To meet the nationwide demand, EESL is identifying urban and rural distribution infrastructure.
Currently, EESL has deployed its Super Energy Efficient ACs to institutional buyers at the same cost as those available in the market, in a move that will cut electricity bill by about Rs. 11,162 (USD 1,719) per annum with wattage at 1000 W, and emissions by 1000kgs a year.
For institutional orders from large organisations like banks and PSUs, we will undertake ACs replacement, free of charge. Instead, EESL's benefit sharing B2B model will reduce power bills over the next five years. Additionally, EESL will benefit from the economies of scale via procurement costs, thereby transforming the Indian air conditioner market.
The effort is a testimony to EESL’s goal of setting the new normal with future-ready technologies that have the potential to follow mass adoption for a lager social impact.
3 EER is the coefficient of performance which is calculated by dividing the cooling capacity by the input wattage. However, globally the energy efficiency is measured through Seasonal Energy Efficiency Ratio [SEER], which involves defining annual temperature profile and usage patterns as well. BEE as defined India’s SEER as the ratio of the total annual heat that the AC removes from indoor air while operating on cooling in active mode, to the total annual amount of energy consumed by it during the same period.