India is the second-fastest growing economy in the world. Increasing income levels, affluence and changing consumer behaviour have helped establish a growing demand for different white goods. Room AC penetration in India is at approximately 5 percent, and the expected increase in power consumption by air conditioning systems will need to be reduced through cost-effective energy efficiency measures.

This study has been conducted to assess the current air conditioner market in terms of numbers, types, capacities, supply chain structure and existing technologies. It provides insights into the best-available options to move to energy efficient products along with their cost effectiveness and saving potential. This study will also attempt to identify various gaps/potential barriers in ratcheting up energy standards and suggest policy actions and recommendations to improve energy efficiency standards.

The report was prepared by PwC for CLASP. The Engineering Analysis was provided by Lawrence Berkeley National Laboratory (LBNL).