Govt to start fan replacement program to save energy

The federal government is launching a 10-year program to replace old electric fans across Pakistan with new energy-efficient fans. This plan is designed to reduce electricity consumption and promote the use of sustainable energy.

The program is backed by a Rs2 billion fund and will use an “on-bill Islamic financing” model. It will target around 88 million outdated fans, which is about 60 percent of the 147 million fans currently in use in the country.

This initiative, which is expected to be launched by the Prime Minister later this month, could save an estimated 6000 to 7000 megawatts in electricity during peak demand times.

How Will the Program Work

• The scheme will allow people to replace their old fans and pay for the new ones in installments added to their electricity bills.

• Each energy-efficient fan is estimated to cost Rs10,500.

• Consumers can pay back the amount over 6 to 18 months.

• Loans will be given at KIBOR plus 2 percent, and the government will provide a 10 percent guarantee in case of defaults.

Power companies like K-Electric and other distribution companies will manage the payments with support from NADRA, commercial banks, and digital platforms.

Who Will Benefit

The program targets low-income households and aims to reduce the 11000MW cooling load during hot summer months. It also supports efforts to cut carbon emissions and encourage energy-efficient practices.

Preparations Underway

The National Energy Efficiency and Conservation Authority NEECA is leading the program. It is working with fan manufacturers and developing a digital portal to help consumers register easily.

At a recent meeting, Finance Minister Muhammad Aurangzeb stressed the importance of preparing quickly so the first phase of the program can start within two to three weeks.

This program is expected to help families save money on electricity bills and contribute to Pakistan’s energy conservation goals.

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