India's power consumption to grow on rise in AC sales

India is likely to witness a sharp jump in power consumption on account of rise in sales volume of air conditioner (AC), propelled by rising disposable income levels in the country, says a report.
According to the US Energy Information Administration's (EIA) new "Today in Energy" brief, energy demand for space cooling is growing rapidly in India and around the world, driven by rising incomes and a natural preference for certain ambient air temperatures.
Currently, India has a relatively low penetration of air conditioning, while the United States is a much more saturated market, the report said.
The latest data from EIA's Residential Energy Consumption Survey, 87 per cent of US households have air-conditioning equipment, while similar data for India show just 2 per cent of Indian households have air conditioning.

"However, air conditioners are among the most prevalent purchases for the growing Indian middle class, with air conditioner sales increasing by 20 per cent annually in recent years," the report added.
About 3.3 million air conditioners were sold in India during the 2013-14 fiscal year, adding to the 25 million total units in the country, it said.

To help relieve upward pressure on energy demand because of space cooling needs, India began its first efficiency program for air conditioners through the Bureau of Energy Efficiency (BEE) in 2006.
An early analysis of the program from Lawrence Berkeley National Laboratory (LBNL) estimated that the standards and labels would save 27 terawatt-hours of electricity use annually by 2020, nearly 14 per cent of projected electricity use for air conditioning in 2020.

While, without the efficiency program, the study projected a base case consumption of 42 terawatt-hours in 2010, 195 terawatt-hours in 2020, and 552 terawatt-hours in 2030 for air conditioning, the analysis added.