The government could reduce its summer peak electricity demand by up to 2,590 megawatts (MW) by replacing conventional household fans with energy-efficient models, potentially saving $730 million in electricity costs annually and avoiding more than $4 billion in investment in coal-fired power plants, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA).
The report, titled ‘Household Space Cooling in Bangladesh: Role of Energy-efficient Fans,’ says household fans account for as much as 5,212MW of the country’s summer electricity demand, while energy-efficient brushless direct current (BLDC) fans represent only 1.4% of fans currently in use.
The findings come as Bangladesh struggles to meet growing electricity demand, with power shortages and load-shedding continuing to put pressure on the power sector.
The study estimates that replacing inefficient household fans with BLDC models could save 6,913 gigawatt-hours (GWh) of electricity annually, equivalent to Tk89.87 billion ($730 million).
It could also reduce the need for more than $4 billion in future investment in coal-fired power generation, according to the report.
The research, authored by Shafiqul Alam, IEEFA’s lead energy analyst for Bangladesh, draws on a survey of 435 households across 26 districts, covering different monthly income groups.
It found that conventional household fans typically consume 70 watts or more, while BLDC models operate at around 35 watts, allowing households to achieve substantial electricity savings without compromising their basic cooling needs.
Household fan usage is a major contributor to evening peak demand, with consumption reaching its highest level at around 9pm.
Bangladesh recorded a peak electricity demand of 19,027MW at 9pm on 27 August 2026, the report noted.
Even low-income households commonly use up to two fans during summer, adding to pressure on the national grid. At times, the gap between electricity demand and supply has resulted in load-shedding exceeding 3,500MW.
“Global energy supply disruptions have compounded challenges, making it harder for the Bangladesh Power Development Board (BPDB) to meet power demand. Wider adoption of energy-efficient fans will reduce demand and ease the pressure on BPDB,” Alam said.
Despite the potential savings, consumer awareness remains a major barrier to wider adoption.
Around 75% of households surveyed were unaware that energy-efficient BLDC fans were available in the market. However, 96% expressed willingness to switch after learning about their energy-saving potential.
The higher purchase price remains a significant obstacle, particularly for low-income families.
A conventional fan costs around Tk2,000, while a BLDC fan is priced between Tk5,000 and Tk6,300, making the initial investment difficult for many households.
Families earning up to Tk25,000 a month, representing around 40% of households, pay an average summer electricity bill of Tk663. Without financial assistance, the investment in a BLDC fan would take between 7.7 and 9.6 years to recover through electricity savings.
However, the report estimates that bulk procurement combined with revenue from carbon credits could reduce the payback period for this income group to around 4.8 years.
The study recommends that the government introduce a nationwide programme to accelerate the replacement of inefficient household fans, supported by a dedicated super energy service company (ESCO).
It also calls for greater public awareness, the introduction of energy-efficiency standards and labelling for fans, and financial support to make BLDC models more affordable.
Other recommendations include establishing on-bill financing facilities for low-income households, implementing the programme through the proposed super ESCO, and introducing a robust system for quality control and monitoring.
The Sustainable and Renewable Energy Development Authority (SREDA) should finalise standards and energy-efficiency labels for fans to help consumers identify efficient products, the report says.
The proposed programme could use bulk purchasing to lower retail prices and channel future carbon revenue into subsidies for low-income households.
” As Bangladesh’s energy sector challenges mount, the country must prioritise measures that can provide quick relief by curbing demand growth. Energy-efficient fans are one such measure, cutting demand as soon as they are installed,” Alam said.