Pakistan’s federal government approved a transformative Rs350 billion initiative to replace 88 million outdated and inefficient fans with modern, energy-efficient models over the next decade. Spearheaded by the National Energy Efficiency and Conservation Authority (NEECA), the “Fan Replacement Programme” aims to reduce peak power demand by up to 5,000 megawatts, alleviating strain on the national grid, especially during summer.
The program targets 50 million fans in rural households and 38 million in urban homes. Key features include:
- Cost and Funding: The initiative, estimated at Rs 350 billion, includes a Rs 2 billion technical supply grant from the Ministry of Finance and a Rs 1.5 billion risk guarantee to support financing.
- Financing Model: Consumers can purchase energy-efficient fans through 18-month instalment plans at KIBOR plus 2%, based on Islamic Musaawamah principles. Payments will be integrated into electricity bills, with banks selecting applicants based on timely bill payment history.
- Implementation: The program is voluntary, with applications accepted via NEECA’s online portal at www.neeca.gov.pk. Fan manufacturers will handle installation, safe disposal of old fans, and after-sales service.
Pakistan’s summer electricity demand from cooling appliances, including fans and air conditioners, exceeds 17,000 megawatts, with fans alone contributing nearly 12,000 MW. By replacing inefficient fans, the program is expected to:
- Reduce peak power demand by up to 5,000 MW.
- Ease pressure on the national grid, mitigating frequent power outages.
- Lower consumer electricity costs through the use of energy-efficient technology.
- Support Pakistan’s energy conservation goals and reduce reliance on costly power generation.
Pakistan faces recurring energy crises as peak summer demand strains an already overburdened grid. The Pakistan Business Council estimates that power outages cost the economy Rs1.3 trillion in 2024. The Fan Replacement Programme supports broader efforts to improve energy efficiency, building on initiatives such as distributing LED lighting and promoting the use of solar energy.
Energy experts praise the program as a critical step toward sustainability. Dr. Amjad Riaz, an energy policy analyst, noted, “Replacing inefficient fans can save significant energy, equivalent to the output of multiple power plants, while reducing household expenses.” The initiative also supports Pakistan’s commitment to reducing carbon emissions under global climate agreements.
Consumers interested in the program can:
- Visit www.neeca.gov.pk to apply.
- Submit proof of timely electricity bill payments for eligibility.
- Select an energy-efficient fan model and opt for the instalment plan.
Manufacturers will ensure proper installation and eco-friendly disposal of old fans, adhering to environmental standards.
