Efficient fans could save 2,590MW, avert $4b in coal power investment

Bangladesh could reduce its peak electricity demand in summer by up to 2,590 megawatts (MW), save Tk8,987 crore in annual electricity costs and avoid more than $4 billion in investment in new coal-fired power plants by replacing conventional household fans with energy-efficient brushless direct current (BLDC) models, according to a new study.
The findings by the Institute for Energy Economics and Financial Analysis (IEEFA) suggest Bangladesh could ease pressure on its electricity system through more efficient power use rather than relying solely on additional generation. This comes as the sector faces rising demand, fuel shortages and inadequate plant output. Despite over 29,000MW of installed capacity, uninterrupted supply remains difficult during peak demand due to dependence on gas, coal and liquid fuel.
In October, fuel shortages forced dozens of plants offline and pushed load-shedding to 2,500MW, exposing the gap between installed capacity and available electricity. Against this backdrop, IEEFA unveiled its report, Household Space Cooling in Bangladesh: Role of Energy-efficient Fans, on Monday, arguing that efficient household appliances could quickly ease grid pressure, especially during evening peaks. Fans account for up to 5,212MW of summer demand, peaking around 9pm, but BLDC models make up just 1.4% of household fans.
“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,” Shafiqul Alam, IEEFA’s lead energy analyst for Bangladesh and author of the report, told the Daily Sun.
Bangladesh’s peak demand hit 19,027MW at 9pm on 27 August, against 29,143MW of installed capacity, while August’s maximum reported shortfall was 3,757MW. A survey of 435 households in 26 districts found that replacing inefficient fans with BLDC models could cut peak demand by 1,670–2,590MW, save 6,913GWh and Tk8,987 crore ($730 million) annually, and avert over $4 billion in future coal-fired power plant investment, IEEFA estimates.
Local manufacturers are showing growing interest, though higher prices remain a barrier for the households. 
PRAN-RFL Group Marketing Director Kamruzzaman Kamal said its Click BLDC fans, introduced in 2024, now include seven models priced at Tk5,500–Tk11,500, offering up to 65% energy savings. Selected models consume around 35 watts while maintaining strong airflow, with motors and circuit boards manufactured in-house to ensure quality and performance.
“Since fans are among the most frequently used electrical appliances in households, switching to BLDC technology can make a noticeable difference in monthly electricity bills. Although the initial purchase cost is higher, regular savings on electricity can make the investment economical in the long run,” he said.
Kamal said Click plans to introduce BLDC table, wall and stand fans, making them affordable through competitive pricing and nationwide distribution. 
BRB Cables Sales and Marketing Director Md Mahabubul Wahid said BLDC fans use around 35 watts against conventional fans’ 80 watts, saving about 50% electricity. Recently entering the market, BRB expects the technology to dominate in coming years.
“By 2030, almost all fans in Bangladesh could be BLDC models,” he said.
He added that efficient fans offer affordable cooling in Bangladesh’s hot, humid climate, reducing reliance on power-intensive air conditioners. 
Walton Senior Brand Manager Md Mahmudul Hasan called the BLDC shift comparable to the transition from incandescent bulbs to LEDs. Walton models use around 35 watts against conventional fans’ 70–110 watts, potentially saving households Tk2,800–Tk3,000 annually at 16 hours’ daily use, depending on usage and tariffs. Walton manufactures its own motors and has supplied over 1 lakh BLDC fans to 200–250 factories in two years.

Challenges in popularising BLDC
Despite wider availability, BLDC fans cost Tk5,000–Tk6,300 against Tk2,000 for conventional models, IEEFA says. This puts them beyond many households’ reach: around 40% earn up to Tk25,000 monthly, with average summer electricity bills of Tk663. Despite long-term savings, their upfront cost means a 7.7–9.6-year payback for these households without financial support, depending on daily use.
Although 75% of surveyed households were unaware of BLDC fans, 96% were willing to switch after learning about potential savings. However, 64% could pay upfront, 12% preferred instalments and 24% needed government support. 
IEEFA proposes nationwide bulk procurement, targeted aid and awareness campaigns, with bulk buying cutting costs by 25% and carbon-credit revenue subsidising low-income buyers.

Long term plan needed
Replacing inefficient fans could avoid over 86 million tonnes of CO₂ emissions in 20 years, generating an estimated $259.88 million in carbon revenue to subsidise over 50 million fans by Tk600 each. Combined with bulk procurement, this could cut the payback period for households earning up to Tk25,000 to 4.8 years, depending on usage and revenue realisation.
IEEFA also recommends a government-backed Energy Service Company (ESCO) to manage financing, procurement and monitoring; Sustainable and Renewable Energy Development Authority (SREDA)-approved efficiency standards and labels; instalment-based on-bill financing; and quality controls to ensure promised savings.
“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.

The reporter can be reached at [email protected]