Potential benefits from improved energy efficiency of key electrical products: The case of India

The economy of the worldʹs second most populous country continues to grow rapidly, bringing prosperity to a growing middle class while further straining an energy infrastructure already stretched beyond capacity. At the same time, efficiency policy initiatives have gained a foothold in India, and promise to grow in number over the coming years. This paper considers the maximum cost-effective potential of efficiency improvement for key energy-consuming products in the Indian context. The products considered are: household refrigerators, window air conditioners, motors and distribution transformers. Together, these products account for about 27% of delivered electricity consumption in India. The analysis estimates the minimum Life-Cycle Cost option for each product class, according to use patterns and prevailing customer marginal rates in each sector. This option represents an efficiency improvement ranging between 12% and 60%, depending on product class. If this level of efficiency was achieved starting in 2010, we estimate that total electricity consumption in India could be reduced by 4.7% by 2020, saving over 74 million tons of oil equivalent and over 246 million tons of carbon dioxide emissions. Net present financial savings of this efficiency improvement totals 8.1 billion dollars.