IEEFA Study/Energy-efficient BLDC fans can cut Bangladesh's peak power demand by 2,590MW

Dhaka, Nov 2 (UNB)-Replacing energy-inefficient household fans with energy-efficient brushless direct current (BLDC) models could reduce Bangladesh’s summer peak power demand by up to 2,590 megawatts (MW) and avoid over US$4 billion in future investments for coal-fired power plants, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA).

The report, titled ‘Household space cooling in Bangladesh: Role of energy-efficient fans’ and authored by Shafiqul Alam, Lead Energy Analyst-Bangladesh at IEEFA, is based on a comprehensive survey of 435 households across 26 districts.

According to the study, household fans dedicated to space cooling account for up to 5,212MW of Bangladesh’s summer power demand, with usage peaking around 9 PM. On August 27, 2026, the country’s peak electricity demand reached 19,027MW at 9 PM.

While BLDC fans operate at 35 watts (W) compared to 70W or more for traditional inefficient models, they currently account for a mere 1.4 percent of household fans in use. Wider adoption of these efficient fans could save 6,913 gigawatt-hours (GWh) of electricity annually, valued at BDT 89.87 billion (USD 0.73 billion).

Awareness and Upfront Cost Barriers:

The study reveals that 75 percent of surveyed households are unaware of the availability of BLDC fans in the market. However, once informed of their energy-saving potential, 96 percent of respondents expressed a willingness to switch.

High upfront costs remain a primary deterrent: while a conventional inefficient fan costs around Tk 2,000 ($ 16.3), a BLDC fan is priced between Tk 5,000 ($ 40.7) and Tk 6,300 ($51.3). For households earning up to Tk25,000 ($ 203.42) a month—making up about 40 percent of total households—the investment takes between 7.7 and 9.6 years to pay back without financial assistance.

Policy Recommendations:

To overcome financial and informational hurdles, IEEFA has called on the government to adopt a structured, seven-step approach:

Design a national programme for energy-efficient household fans and establish a super energy service company (ESCO) to drive implementation.

Raise public awareness regarding energy-efficient fans and their long-term cost-saving benefits.

Finalise standards and labelling for fans through the Sustainable and Renewable Energy Development Authority (SREDA) to help consumers identify efficient models.

Implement a cost-reduction strategy via bulk-purchase mechanisms and the utilization of future carbon revenue, which could reduce the payback period for low-income households to 4.8 years.

Establish accessible financing mechanisms for low-income families, such as utility-supported on-bill financing.

Develop a robust quality control and monitoring framework.

"As Bangladesh’s energy sector challenges mount, the country must prioritise measures that can provide quick relief by curbing demand growth," said Shafiqul Alam, emphasizing that energy-efficient fans reduce power demand immediately upon installation.

Source: UNB