The federal government of Pakistan has sanctioned a national govt project to substitute 88 million outdated and inefficient fans with new energy-efficient fans within next 10 years. The program, developed by the National Energy Efficiency and Conservation Authority (NEECA), will partially upgrade 50 million rural and 38 million urban household fans at a cost of more than the estimated deal of over Rs350 billion.
The Ministry of Finance has made available Rs2 billion, as a technical supply grant under the scheme. The new energy-efficient fans will be sold at installment prices which the consumers will have added to electricity bills. Banks will give financing at KIBOR plus 2 percent over 18 months, supported by a government risk guarantee of Rs1.5 billion.
The model adheres to the Islamic Musaawamah, as banks choose those who are willing to apply to the model in accordance with their timely payments of electricity bills. The programme is optional and one should apply online through the portal NEECA.
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Installation, disposal of old units, and after sales will be done by the manufacturers of fans. It has been pointed out by experts that cooling appliances use the almost 12,000 MW of electrical power in the summer season, with a huge portion of this power being used by fans.
By replacing old units with more energy-efficient fans as part of this govt programme, this is likely to cut peak power demand by up to 5,000 MW, alleviating the pressure on the national grid and curbing the power crisis.
