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

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  • McNeil, Michael A.
  • Iyer, Maithili
  • Meyers, Stephen
  • Letschert, Virginie E.
  • McMahon, James E.

Abstract

The economy of the world's 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.

Suggested Citation

  • McNeil, Michael A. & Iyer, Maithili & Meyers, Stephen & Letschert, Virginie E. & McMahon, James E., 2008. "Potential benefits from improved energy efficiency of key electrical products: The case of India," Energy Policy, Elsevier, vol. 36(9), pages 3467-3476, September.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:9:p:3467-3476
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    Cited by:

    1. Fankhauser, Samuel & Jotzo, Frank, 2017. "Economic growth and development with low-carbon energy," LSE Research Online Documents on Economics 86850, London School of Economics and Political Science, LSE Library.
    2. Patrick Schroeder & Manisha Anantharaman, 2017. "“Lifestyle Leapfrogging” in Emerging Economies: Enabling Systemic Shifts to Sustainable Consumption," Journal of Consumer Policy, Springer, vol. 40(1), pages 3-23, March.
    3. Singh, Vivek Kumar & Henriques, Carla Oliveira & Martins, António Gomes, 2018. "Fostering investment on energy efficient appliances in India–A multi-perspective economic input-output lifecycle assessment," Energy, Elsevier, vol. 149(C), pages 1022-1035.
    4. Ghosh, Sajal, 2010. "Examining carbon emissions economic growth nexus for India: A multivariate cointegration approach," Energy Policy, Elsevier, vol. 38(6), pages 3008-3014, June.
    5. Ghosh, Sajal, 2009. "Electricity supply, employment and real GDP in India: evidence from cointegration and Granger-causality tests," Energy Policy, Elsevier, vol. 37(8), pages 2926-2929, August.
    6. Cabeza, Luisa F. & Urge-Vorsatz, Diana & McNeil, Michael A. & Barreneche, Camila & Serrano, Susana, 2014. "Investigating greenhouse challenge from growing trends of electricity consumption through home appliances in buildings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 188-193.
    7. Kavita Sharma & Garima Gupta, 2013. "An Investigation into Consumer Behaviour for Energy Labelled Products," Vision, , vol. 17(4), pages 269-278, December.
    8. Letschert, Virginie & Desroches, Louis-Benoit & Ke, Jing & McNeil, Michael, 2013. "Energy efficiency – How far can we raise the bar? Revealing the potential of best available technologies," Energy, Elsevier, vol. 59(C), pages 72-82.
    9. Grottera, Carolina & Barbier, Carine & Sanches-Pereira, Alessandro & Abreu, Mariana Weiss de & Uchôa, Christiane & Tudeschini, Luís Gustavo & Cayla, Jean-Michel & Nadaud, Franck & Pereira Jr, Amaro Ol, 2018. "Linking electricity consumption of home appliances and standard of living: A comparison between Brazilian and French households," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 877-888.
    10. Hussain Ali Bekhet & Lee Lian Ivy-Yap, 2014. "Highlighting Energy Policies and Strategies for the Residential Sector in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 448-456.
    11. Kimmich, Christian & Sagebiel, Julian, 2016. "Empowering irrigation: A game-theoretic approach to electricity utilization in Indian agriculture," Utilities Policy, Elsevier, vol. 43(PB), pages 174-185.
    12. van Ruijven, Bas J. & van Vuuren, Detlef P. & de Vries, Bert J.M. & Isaac, Morna & van der Sluijs, Jeroen P. & Lucas, Paul L. & Balachandra, P., 2011. "Model projections for household energy use in India," Energy Policy, Elsevier, vol. 39(12), pages 7747-7761.
    13. Gerke, Brian F. & McNeil, Michael A. & Tu, Thomas, 2017. "The International Database of Efficient Appliances (IDEA): A new tool to support appliance energy-efficiency deployment," Applied Energy, Elsevier, vol. 205(C), pages 453-464.
    14. Park, Won Young & Phadke, Amol & Shah, Nihar & Letschert, Virginie, 2013. "Efficiency improvement opportunities in TVs: Implications for market transformation programs," Energy Policy, Elsevier, vol. 59(C), pages 361-372.
    15. Bhattacharyya, Subhes C., 2010. "Shaping a sustainable energy future for India: Management challenges," Energy Policy, Elsevier, vol. 38(8), pages 4173-4185, August.
    16. Patankar, Neha & Fell, Harrison G. & Rodrigo de Queiroz, Anderson & Curtis, John & DeCarolis, Joseph F., 2022. "Improving the representation of energy efficiency in an energy system optimization model," Applied Energy, Elsevier, vol. 306(PB).
    17. Nihit Goyal, 2021. "Limited Demand or Unreliable Supply? A Bibliometric Review and Computational Text Analysis of Research on Energy Policy in India," Sustainability, MDPI, vol. 13(23), pages 1-23, December.
    18. Vivek Kumar Singh & Carla Oliveira Henriques & António Gomes Martins, 2019. "Assessment of energy‐efficient appliances: A review of the technologies and policies in India's residential sector," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(3), May.

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