The Rising Demand for Air Conditioning: Environmental Costs, and Global Transformations
Context:
A severe heatwave combined with high humidity is significantly boosting air conditioner sales nationwide. India’s rapidly growing AC market is expanding into new areas and driving an unprecedented surge in demand for cooling solutions.
More on the news:
- Air conditioner ownership in India has increased threefold since 2010.
- By 2023, there will be 24 air conditioners per 100 households in India, according to the World Energy Outlook 2023 report by the International Energy Agency (IEA).
- The 2011-12 National Sample Survey Office (NSSO) report indicated that 12% of households had either air coolers or air conditioners.
- The 2022-23 NSSO report shows that the combined ownership of these appliances has nearly doubled to 24%.
- The IEA estimates that household air conditioner ownership in India will grow ninefold by 2050, reaching over 1 billion units.
The Cost of Cool Air:
Impact on Power Generation:
- Large-scale use of air conditioners increases electricity demand significantly.
- Electricity consumption for space cooling rose by 21% between 2019 and 2022. Nearly 10% of current electricity demand is due to space cooling needs.
Reliance on Fossil Fuels:
- A significant portion of electricity is generated from fossil fuels, primarily coal.
- In FY24, coal-fired power generation accounted for 75% of total electricity generation. India’s coal-fired thermal capacity increased to 218 GW in FY24 from 205 GW in FY20, reflecting a 6% growth.
Greenhouse Gas Emissions: Increased use of ACs leads to higher electricity demand, which, in turn, raises greenhouse gas (GHG) emissions.
Refrigerants and Global Warming: Air conditioners use refrigerants like hydrofluorocarbons (HFCs) or hydrochlorofluorocarbons (HCFCs), which contribute to global warming if leaked.
Urban Heat Island Effect: ACs contribute to the ‘urban island effect,’ where cities experience higher temperatures compared to surrounding rural areas. ACs release heat outside, warming the external environment.
The Production Linked Incentive Scheme for White Goods (PLIWG)Objective:
- The scheme creates a comprehensive component ecosystem for Air Conditioners and LED Lights in India, integrating the country into global supply chains.
- Notified By: Department for Promotion of Industry and Internal Trade (DPIIT).
- Implementation Period: FY 2021-22 to FY 2028-29.
- Objectives: The scheme proposes financial incentives to boost domestic manufacturing and attract large investments in the White Goods manufacturing value chain.
- Incentives: Financial Incentive: 4-6% on incremental turnover over the base year (2019-20). Duration: Incentives provided for a period of 5 years. Scope: Applies to goods sold in India and exported globally.
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White Goods:
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The Transformative Effect of Air Conditioning on Global Migration and Urban Growth:
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