A light-bulb moment for the Indian fan market

  • September 22, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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A light-bulb moment for the Indian fan market

Subject :Environment

Section: Sustainable development

Introduction

  • The Indian ceiling fan market is evolving due to policy shifts and the push for sustainable energy use.
  • Inspired by India’s LED revolution, this change aims to cut energy consumption, support climate goals, and meet rising ceiling fan demand.

Energy Transition and Ceiling Fans

  • India’s goal to reduce harmful emissions per unit of GDP by 45% by 2030 necessitates a sharp reduction in energy consumption.
  • Households account for nearly one-third of India’s electricity consumption, and ceiling fans, used by 90% of households, contribute significantly. (Council on Energy, Environment, and Water (CEEW) survey, 2020)
  • The India Cooling Action Plan anticipates a growth in fan usage to a billion units by 2038, up from 500 million, due to rising incomes and temperatures.

The ‘Star Rating’ Program 

  • The Bureau of Energy Efficiency (BEE) introduced the Standards and Labelling (S&L) program, known as the ‘star rating’ program.
  • BEE was established in 2002, under the provisions of the Energy Conservation Act,  2001.
  • It operates under the Union Ministry of Power.
  • Mandatory Star Rating: The ‘star rating’ program became mandatory for ceiling fans in 2022, replacing the voluntary program.
  • Price Barrier: ‘5-star’ rated fans are twice as expensive as unrated fans, posing a barrier to adoption.
  • Demand Aggregation: Energy Efficiency Services Limited (EESL) plans to launch a demand aggregation program to sell 10 million ‘5-star’ ceiling fans, aiming to replicate the success of the Unnat Jyoti by Affordable LEDs for All (UJALA) program for LED lamps.

Steps to a Transformation

  • Technology-Agnostic Policy: To allow demand aggregation for various fan technologies, including induction motors and brushless DC (BLDC) motors.
  • Balance Between Price and Quality: To avoid lower-quality products entering the market, which could erode consumer trust.
  • Boosting Domestic Manufacturing: Foster high-quality domestic manufacturing capacity for high-efficiency fans to reduce import dependence and promote export.
  • Strengthening Standard and Labelling Program: Dedicate resources to strengthen the standard and labeling program, ensuring that energy-efficient fan models reach consumers and non-compliant models are removed from the market.

Energy Efficiency Services Limited (EESL)

  • It was founded in 2009.
  • It is a joint venture of four national Public-Sector Undertakings:
  1. NTPC Limited
  2. Power Finance Corporation Limited
  3. Rural Electrification Corporation Limited
  4. POWERGRID Corporation of India Limited
  • EESL is leading the market-related activities of the National Mission for Enhanced Energy Efficiency (NMEEE), one of the eight national missions under the National Action Plan on Climate Change.

India Cooling Action Plan (ICAP)

  • It provides a long-term vision for addressing cooling needs across various sectors, including residential and commercial buildings, cold-chain, refrigeration, transport, and industries.
  • Launched in 2019, under the Ministry of Environment, Forest and Climate Change.
  • Targets: by 2037-38
    • 20-25% reduction in cooling demand.
    • 25-30% reduction in refrigerant demand.
    • 25-40% reduction in cooling energy requirements.
A light-bulb moment for the Indian fan market Environment