DHAKA, November 2, 2026 - Replacing conventional household fans with energy-efficient brushless direct current (BLDC) models could reduce Bangladesh’s summer peak electricity demand by up to 2,590 megawatts (MW), save billions of taka annually and help avoid more than US$4 billion in future investment in coal-fired power plants, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA).
The study titled “Household Space Cooling in Bangladesh: Role of Energy-Efficient Fans” finds that household fans alone account for up to 5,212MW of summer electricity demand, with consumption peaking around 9pm. Bangladesh recorded a peak demand of 19,027MW at 9pm on August 27, 2026.
Based on a survey of 435 households across 26 districts, the report says BLDC fans account for only 1.4 percent of household fans currently in use, despite their significantly lower electricity consumption. A typical BLDC fan operates at around 35 watts, compared with 70 watts or more for conventional inefficient models.
Wider adoption of BLDC fans could save up to 6,913 gigawatt-hours (GWh) of electricity annually, equivalent to BDT89.87 billion (US$730 million), the study estimates. The reduction in demand could also ease pressure on the Bangladesh Power Development Board (BPDB), particularly during the summer when load-shedding can exceed 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, said Shafiqul Alam,” IEEFA’s Lead Energy Analyst for Bangladesh and author of the report.
The study notes that replacing inefficient fans could also help avoid more than US$4 billion in future capital expenditure in coal-fired power plants. The estimated investment savings would be sufficient to replace all inefficient household fans currently in use across the country.
However, the high initial cost remains a major barrier. While a conventional fan costs around BDT2,000, a BLDC model costs between BDT5,000 and BDT6,300. The survey found that 75 percent of households were unaware of the availability of energy-efficient fans, although 96 percent expressed willingness to switch after learning about their energy-saving potential.
For households earning up to BDT25,000 a month, which account for around 40 percent of the country’s households, the investment in BLDC fans could take 7.7 to 9.6 years to recover through electricity-bill savings. The payback period could fall to around 4.8 years through bulk procurement combined with revenue from carbon credits, the report says.
IEEFA recommends a national program to accelerate the transition, supported by a dedicated super energy service company (ESCO). The proposed measures include public awareness campaigns, finalization of fans’ energy efficiency standards and labelling by the Sustainable and Renewable Energy Development Authority (SREDA), bulk purchasing to lower prices, and financing schemes for low-income households.
The report also proposes using future carbon revenue to support affordability, introducing on-bill financing through utilities, and establishing strong quality-control and monitoring mechanisms.
Energy-efficient fans are one such measure, cutting demand as soon as they are installed, Alam said, arguing that Bangladesh should prioritize demand-side measures that can provide quicker relief as pressure on the power sector grows.
