The Power of Four: Doubling India’s Energy Efficiency Through Strategic Appliance Replacement

In Kim Stanley Robinson’s gripping science fiction novel “The Ministry for the Future,” the devastating heatwaves serve as a stark reminder of the severe consequences of inaction on climate change. These fictional yet plausible scenarios underscore the imperative to address climate change with urgency. Just as the book illustrates the catastrophic human and ecological impacts of extreme heat, our real-world actions must be guided by the understanding that mitigating climate change is not optional but essential for our survival and well-being.

As we continue to navigate the complexities of climate change and the urgent need for sustainable development, the role of energy efficiency has never been more critical. At Energy Efficiency Services Limited (EESL), we are committed to leading this charge, particularly in light of the resolutions from the G20 and COP28 to double the rate of energy efficiency globally. Achieving these ambitious goals requires innovative thinking, targeted strategies, and a concerted effort across various sectors. One of the most compelling insights from my recent back-of-the-envelope calculations is the transformative potential of focusing on just four key household appliances: fans, air conditioners, bulbs, and tubelights. By replacing these with energy-efficient and super-efficient alternatives, we can make significant strides toward our energy efficiency goals, yielding significant outcomes.

The Bureau of Energy Efficiency estimates that in 2020-21, India saved approximately 113.16 billion units of electricity, which equates to reducing CO2 emissions by 94.44 million tonnes annually. While this is a commendable achievement, the challenge ahead is to double these savings to meet the targets set by international commitments. My calculations show that by focusing on replacing just these four types of appliances with EESL’s energy-efficient options over the next five years, we can achieve remarkable results: 166% of the current rate of energy efficiency in just two years of the deployment phase; 226% of the current rate within three years, and by the fifth year, we would be saving three times the current rate of CO2 emissions (triple the rate of energy efficiency).

However, the path to doubling the rate of energy efficiency is not as easy as it may appear from what I have posited above. This represents the overall potential; the strategic change of all these appliances across the country within five years, especially in a market-based environment, is a considerable challenge. The idea of writing this article is to articulate both perspectives: how within reach doubling the rate of energy efficiency is by merely focusing on four appliances, and how difficult it is given the challenges of convincing individuals and organizations to make a complete switch.

Should this be done, how much would it cost? My calculations suggest that this would require a total investment of Rs 37,000 crore over five years, with the Governments across the country spending approximately Rs 9,000 crore in total; while the consumers and the private sector covering the remaining Rs 28,000 crore. The investment of Rs 28,000 crore by consumers may appear large, but it is not so if defrayed across 31 crore households over five years. Breaking it down, this translates to an annual requirement of just Rs 180 per household per year, which is minuscule. Additionally, the Financial Internal Rate of Return (FIRR) for such a measure is significantly high, with cash flows becoming net positive between the second and third year itself on a national standing. At a consumer level though, due to subsidised cost of electricity, the FIRR is slightly lower, but still throwing up a robust value.

The return on this investment is not just measured in energy savings and reduced emissions but also in the broader impact on sustainable development and climate resilience. Achieving these targets will not happen organically; it requires a deliberate and concerted effort. As thought leaders and stakeholders in the fight against climate change, we must champion these initiatives and advocate for policies and programs that support large-scale adoption of energy-efficient technologies.

The journey to doubling our rate of energy efficiency is ambitious, but it is within our reach. By targeting the replacement of fans, air conditioners, bulbs, and tubelights, we can unlock significant energy savings and environmental benefits. At EESL, we are committed to driving this change and invite all stakeholders to join us in this critical endeavor. Together, we can create a more sustainable and energy-efficient future for India and the world. Let’s harness the power of these four appliances and lead the way in energy efficiency through eeslmart.in . The time to act is now! International Energy Agency (IEA) Energy Efficiency Services Limited

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