Govt Plans AC Temperature Cap at 20°C to Curb Power Demand: Here’s What You Need to Know
New Delhi: The Indian government is set to implement a new rule that would prevent users from setting their air conditioners below 20°C. This move, aimed at managing electricity consumption amid rising summer demand, will apply across homes, hotels, and vehicles, according to Power Minister Manohar Lal Khattar.
The proposed regulation is part of a broader energy-saving initiative that would standardise the AC temperature range between 20°C to 28°C. “This is a first-of-its-kind experiment aiming to unify temperature settings across the country,” Khattar said at an event in Delhi.
Why This Move?
The primary goal behind this step is electricity conservation, particularly during the scorching summer months when the power grid comes under extreme stress. As per government data, air conditioners contribute nearly 50 gigawatts to India’s energy use — around one-fifth of the nation’s total power load.
Pankaj Agarwal, a senior official in the Ministry of Power, Housing and Urban Affairs, noted that increasing the AC temperature setting by even 1°C can reduce energy consumption by 6%. This means that a collective shift in thermostat settings could lead to significant power savings — about 3 gigawatts during peak periods.
The Bigger Picture
India currently has around 100 million air conditioners, with an additional 15 million units being added annually. According to a study by the University of California, Berkeley, tighter energy regulations on AC usage could save up to 60 gigawatts in peak electricity demand by 2035. This would potentially eliminate the need for investments worth ₹7.5 trillion ($88 billion) in new power infrastructure.
Heatwaves and Power Pressure
As temperatures soar, power outages become a major concern. Last summer, the country’s electricity usage peaked at 250 gigawatts, and estimates suggest it could reach 270 gigawatts this year. On Monday alone, the demand touched 241 gigawatts, marking the highest usage so far in 2025.
Despite the strain, Khattar assured that the government is well-prepared to handle peak load. Standardising AC temperature settings is expected to relieve pressure on the grid and minimise blackouts, especially during heatwaves.
Push for Renewable Energy
The government isn’t stopping at regulating air conditioning. Minister Khattar also announced plans to boost green energy storage by inviting bids to build battery systems with a total capacity of 30 gigawatt-hours. This will support the storage of solar and wind energy, reducing dependency on fossil fuels.
To encourage participation, the Centre plans to offer ₹5,400 crore in subsidies, with tenders expected to be issued within three months.
