Air conditioners have emerged as an essential cooling solution due to rapidly rising heat stress. This is especially true in India, which is projected to become one of the largest contributors to global cooling demand. Approximately 130–165 million RACs will be sold between 2025 and 2030, almost doubling India’s existing stock. This rapid growth in cooling is already straining the power system. Without intervention, major consequences to energy bills, cooling access, and grid stability will prevail.

This report explores how integrating demand response (DR) technologies into room ACs (RACs) can help India slash cooling-related energy demand without compromising the RAC end-user’s thermal comfort and presents a call to action for key stakeholders.

Key Findings

• CLASP’s analysis suggests that India will be market-ready for DR-RACs by 2028, with approximately 53–67 million units deployed by 2030.
• Adoption of the DR-RAC initiative detailed in this analysis could reduce India’s peak demand by 8–10 GW—equivalent to erasing the entire peak demand of Delhi in 2024—and save 563–709 GWh of electricity in 2030.
• Peak demand savings from DR-RACs could help avoid $12.8 billion in grid investments by 2030—equivalent to $473 per participating DR-RAC owner—which is enough to effectively offset the cost of the unit.
• DR-RACs can help India alleviate demand surges that would otherwise need to be met with additional power plant and grid investment.
• The incremental costs for integrating DR in an RAC in India will likely remain at the lower end of the $10–$30 range.

Call to Action

1. RAC manufacturers, consumers, and utilities must support the Bureau of Indian Standards (BIS) in developing DR-RAC standards
   1. Technical standardization is essential: Establishing technical standards for DR-RACs is a critical prerequisite and will help build confidence in DR-RACs as a reliable resource option for the grid.
   2. India should develop DR standards by leveraging global best practices: BIS should draw from examples of other countries and relevant international standards to develop robust DR-RAC standards that are contextualized to India’s needs and conditions.
2. Stakeholders must begin to build the basis for DR-RACs within their own segments
   1. Appliance manufacturers: Support the development of standards, incorporate DR-RAC-compliant components into RAC designs, and collaborate with policymakers to advance DR regulations.
   2. Utility (or DR aggregators-operators): Quantify the benefits of DR-RACs, explore different business models, conduct pilot programs, and educate consumers about cost-saving opportunities.
   3. Technology and testing labs: Support the development of DR-RAC standards, develop appropriate test methods, and invest in DR-RAC testing and certification.
   4. Researchers and policymakers: Investigate economic incentives, behavioral drivers, policies, and regulatory mechanisms to accelerate DR-RAC adoption.
3. Investors must catalyze funding to scale DR-RAC deployment
   1. Public- and private-sector investments: Mobilize investments to support research and development and manufacturing of DR-RACs, scale business models, implement demonstration projects, and support grid modernization to integrate DR.
   2. Financial institutions: Develop innovative financing models such as risk-sharing mechanisms or green bonds to incentivize DR-RAC adoption and implement DR programs.
   3. Government support: Introduce subsidies or tax incentives to lower the upfront cost of DR-enabled RACs, encouraging manufacturers to integrate DR capabilities.

Minimum energy performance standards (MEPS) are a proven regulatory measure used widely to drive improvements in appliance energy efficiency. CLASP’s tool, World’s Best MEPS, compares current standards for six key appliance and equipment types across ten economies and identifies the most ambitious standards.

This document explains the tool’s methodology behind benchmarking different policies from around the globe. It outlines representative units, efficiency targets and thresholds, and the standardization of metrics needed to ensure fair and consistent comparisons across products and economies.

Types of appliances & equipment covered:  

• Lighting
• Industrial electric motor systems
• Air conditioners
• Refrigerators
• Water heaters
• Space-heating equipment

Economies covered:  

• Brazil
• Canada
• China
• European Union (EU)
• India
• Indonesia
• Japan
• South Africa
• United Kingdom
• United States

Long-term, sustainable growth in solar-powered appliance and equipment markets will require a significant increase in financing available to companies and customers. Carbon finance is one mechanism that could drive funding to this market, making solar-powered appliance and equipment more affordable. However, the current infrastructure for carbon finance in this sector is not fit for purpose and needs an upgrade.

This report presents a strategic approach for improving carbon credit financing into the Productive Use Appliance (PUA) sector in Africa, with a particular focus on solar- powered irrigation, cooling, and milling. It provides a comprehensive review of existing carbon methodologies applicable to PUAs and offers practical recommendations for their improvement.

The review uses a novel evaluative framework and analyzes each methodology’s use of baseline studies, monitoring, reporting and verification processes, integration of social and environmental safeguards, and alignment with both voluntary and compliance carbon markets.

Key Findings

• A review of existing methodologies for carbon projects involving solar PUAs revealed significant gaps, especially in terms of regional applicability, data consistency, and monitoring accuracy.
• These gaps limit the effectiveness of the methodologies, making it difficult to capture the true emissions reduction potential of solar PUA projects across different regions, particularly in Africa.

Recommendations

• Develop a new, consolidated solar PUA carbon methodology
• Conduct robust, standardized baseline studies
• Support innovation around digital monitoring, reporting, and evaluation
• Develop and adopt an emission reduction calculation tool

Read the “Carbon Credit Financing for Productive Use Appliance Markets” research paper for more findings.

About Efficiency for Access 

Efficiency for Access is a global coalition dedicated to advancing access to energy and affordable, energy efficient appliances. It is co-managed by CLASP and Energy Saving Trust.

Appliance energy efficiency is a proven, affordable, and scalable way to reduce climate emissions and improve the lives of millions.

Efficient appliances and equipment are essential infrastructure that turn energy into opportunities for people to thrive. In 2024, CLASP stayed steadfast in our mission to help communities around the world harness the power of efficient appliances to slash emissions, drive sustainable development, and support climate adaptation and resilience. We support leaders to realize the cross-cutting climate, health, and economic benefits of efficient appliances for people and planet.

2024 was a busy year as CLASP celebrated 25 years of impact with our global network of partners. In the same year CLASP expanded into new geographies, grew our global team, and fueled progress with sector-leading evidence.

With five regional offices spanning the globe, CLASP collaborates with governments, industry, civil society, and other key stakeholders to emphasize how appliance efficiency can improve the lives of billions of people and reduce the impact of climate change.

Accelerating Ambitious Climate Action

CLASP helps governments make appliances climate-friendly and people-positive through ambitious policy. In 2024, CLASP supported the adoption of 28 policies that will avoid 3.3 gigatons (GT) CO₂ by 2050.

Scaling Sustainable Energy Access

Climate-vulnerable communities around the world need affordable, efficient appliances to strengthen food security, improve healthcare, and unlock economic opportunities. In 2024, CLASP focused on research, financing, and new partnerships to make transformative appliances accessible for those who need them most.

CLASP’s Global Presence

CLASP showcased the transformative power of energy efficient appliances, lighting and equipment by bringing our innovative solutions, international expertise, and industry collaboration to key global events.

Finances

With generous donor support for our mission, CLASP expanded our funding in 2024 – increasing our revenue by 10% as compared to 2023.

We are proud of our team’s positive global impacts in 2024. We look forward to driving progress towards a brighter future for people and the planet in 2025!

CLASP Team | CLASP Board | Donors & Financials

This CLASP report presents insights from surveys of 8,000 demographically representative adults across eight European countries, France, Italy, Poland, Romania, Slovakia, Spain, Sweden, and the United Kingdom. The research provides valuable data for European policymakers on ways to accelerate the transition to cleaner, more efficient electric hobs (cooktops).

The report examines European consumers’ views and behaviours concerning gas and electric hobs, focusing on their usage, preferences, energy efficiency awareness, purchase criteria, health perceptions, ventilation practices, and opinions on potential policy measures.

Key Findings

• Most Europeans support a shift to cleaner, safer, and healthier electric cooking, but they need more exposure to induction technology to be fully convinced of its benefits.
• Supportive pricing and clear information are key factors in encouraging the transition to electric cooking, as consumers tend to prefer more energy-efficient and less polluting products.
• Consumers lack accurate information about the real efficiency of different hob technologies; their views are shaped by their personal experiences and familiarity with the hobs they use.
• Europeans have limited awareness of the impact gas cooking has on indoor air quality and often fail to ventilate adequately while cooking.
• Consumers feel that it’s the manufacturers’ responsibility to reduce pollution from gas hobs, and governments should help support the transition to more efficient and healthier electric cooking.

Recommendations

• Consumers should be able to select the most energy-efficient and least polluting hobs. Ecodesign regulations should remove the least efficient and most polluting options from the market. Clear information on the health risks of gas hobs should be made available through instruction manuals, webpages, or displayed on a future energy label or warning icon on hobs and ventilation hoods.
• National governments should offer incentives to encourage the shift to electric cooking and ensure that electricity prices are competitive with gas.
• Consumer organisations, non-governmental organisations, and forward-thinking producers and retailers should inform consumers about the health risks of gas cooking and the benefits of electric hobs. A successful transition to cleaner, more efficient electric hobs requires consumers to experience a new electric technology firsthand.

The surveys address technical, behavioural, and policy questions related to hob usage, which have been raised by policymakers, industry, and civil society. Detailed results for each country can be found in the annexes.

To ensure objectivity and representative results, CLASP commissioned Opinium Research, an independent polling organisation, to conduct the surveys. CLASP analysed the Europe-wide data and compiled this report, which builds on Opinium’s national analyses and findings.

Visit our Cook Cleaner Europe webpage to view additional resources on gas and electric cooking.