India’s scorching temperatures and soaring need for cooling are putting the country’s power grid under serious strain, and some experts believe a fresh wave of high-tech air conditioners could change the game, reducing electricity use without sacrificing comfort. At a summit in Mumbai, folks from the Rocky Mountain Institute and CEPT University shared research suggesting these new energy-efficient ACs could transform India’s cooling demand, which might cut energy use by up to 60%.

Why Is India’s Cooling Demand Increasing at a High Rate?

• Extreme heat intensifying: The latest weather in Mumbai has seen temperatures soar to 38.7°C, which is nearly 6°C higher than the average temperature in March, indicating the increase in extreme weather events due to climate change.
• Large population at risk: Research indicates that about 60% of districts in India, accounting for 76% of the country’s population, are at very high risk of extreme heat, thus increasing the need for cooling solutions.
• Exploding AC market: India’s air-conditioning market size was valued at about $6.15 billion in 2025, indicating a high growth rate due to an increase in income levels and urbanization.
• Massive future demand: Experts predict that India is likely to have over 1 billion room air conditioners in operation by 2050, thus increasing the need for cooling solutions as electricity demand is expected to increase by as much as nine times the rate in 2022.

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How Do Next-Generation Air Conditioners Save Energy?

• Humidity Optimisation Technology: Unlike current air conditioners, which only reduce the temperature, advanced air conditioners focus on reducing humidity levels, enabling people to feel comfortable without over-cooling the rooms.
• Less Energy Consumption: According to the Rocky Mountain Institute, most current air conditioners waste over 30 percent more energy due to the need for people to lower the thermostat to cope with humidity levels.
• Practical Savings: The efficiency of next-generation air conditioners was proven through field trials conducted over a period of nine months in Palava City, Maharashtra, where it was found that such designs reduce electricity consumption while maintaining comfort levels.
• Potential Savings: Advanced cooling technologies have the potential to reduce energy consumption by as much as 60 percent, thereby reducing overall energy demand.

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What Steps Are Needed to Scale These Efficient Cooling Technologies?

The establishment of more stringent government regulations, independent testing labs, and collaboration amongst industry participants will all be necessary for the successful transition to the implementation of super-efficient air conditioners. Policymakers and industry stakeholders agree that the scaling will be a major contributor to climate resilience and energy security for India.

As temperatures in urban areas continue to climb and economic growth continues to rise, energy-efficient cooling systems will greatly reduce India’s growth-driven power needs while reducing greenhouse gas emissions. With sufficient market penetration of these new systems over the next several decades, experts believe energy-efficient ACs could transform India’s cooling demand without the corresponding massive increase in electricity consumption.

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