Air Conditioning Drives New India Power Demand, Green CEO Says

(Bloomberg) -- The biggest source of new electricity demand in India is coming from air conditioning, outpacing transport and data centers.

As India’s per capita income increases and summer temperatures hit new highs, people are going to require more cooling, Sumant Sinha, chief executive officer of ReNew Energy Global Plc., said in an interview in London.

Sinha’s comments come as India has said it’s working with appliance makers to limit the minimum temperature for air conditioners to 20C (68F). The appliances account for about one-fifth of the peak electricity load, according to the government. In recent years, electricity demand has outpaced generation capacity, leaving parts of the country without power during the sweltering summer months of April through June.

“The biggest demand for new electricity in India comes from cooling, from air conditioning,” Sinha said.

As a manufacturer of solar panels, Sinha says he’s waiting to see if there’s an opportunity to sell to the US. Tariffs set by President Donald Trump are more punitive for China than India, helping balance out some of the cost difference.

“We have to wait and see how the dust settles on both the size of the US market, as well as the tariffs on China and on India to eventually find which way it’s going to go,” he said. “If the window opens up, of course, we would look at it.” 

Sinha declined to give an update on progress with the offer he’s made, along with Abu Dhabi Future Energy Company PJSC-Masdar, Canada Pension Plan Investment Board and Platinum Hawk C 2019 RSC Limited, to take ReNew private.

“Step one is to take the company private, which, based on the company’s last statement, is still an ongoing process, and therefore we have to wait for whatever happens after that,” he said.

©2025 Bloomberg L.P.