Government Launches Nationwide Energy-Efficient Fan Replacement Initiative

The Federal Government has formally launched the Prime Minister’s Fan Replacement Programme, an initiative aimed at replacing 100 million conventional ceiling fans with energy-efficient alternatives, while simultaneously signalling potential restructuring of power sector debt as part of comprehensive energy reforms.

At the inauguration ceremony, Federal Minister for Power Awais Leghari stated that the Prime Minister and the Federal Cabinet are aligned on implementing structural reforms within the energy sector. He confirmed that various debt restructuring mechanisms are under active consideration to address financial imbalances and stabilise the power sector.

The Minister disclosed that electricity demand has, at certain intervals, declined to approximately 8,000 megawatts. He attributed this reduction in part to accelerated solar adoption following previously elevated tariff rates. The resultant decrease in grid demand has created operational inefficiencies, with generation plants operating for limited durations while incurring year-round maintenance obligations.

Addressing the issue of net metering, he confirmed that the Power Division would engage with the National Electric Power Regulatory Authority pursuant to the Prime Minister’s directives. Existing net-metered consumers, however, will continue under the prevailing regulatory framework.

The Minister further stated that electricity tariffs have declined by up to 20 percent over the past 18 to 20 months. Protected consumers have reportedly received relief ranging between 35 and 40 percent, while industrial tariffs have been reduced by approximately 35 percent to nearly 11.5 cents per unit over the past two years.

Under the Fan Replacement Programme, consumers will be eligible to exchange conventional fans for energy-efficient models upon payment of approximately Rs1,000. The earlier condition requiring mandatory return or buyback of old units has been withdrawn to facilitate wider participation.

The initiative is expected to significantly curtail electricity consumption, alleviate peak-load pressures, and reduce the need for additional generation capacity. The Minister highlighted that clean energy currently constitutes approximately 55 percent of the national generation mix, with a strategic target of increasing this share to 90 percent by 2034.

Federal Minister for Climate Change Musadik Malik underscored the economic and environmental rationale of the programme, estimating that households could save up to Rs12,000 per fan annually. He linked energy efficiency measures to broader climate resilience objectives, particularly in light of recent flood-related economic disruptions.

Managing Director of the National Energy Conservation Authority, Humayoun Khan, observed that the initiative would contribute to reduced electricity consumption and enhanced grid stability.

In a separate statement, Federal Minister for Finance and Revenue Muhammad Aurangzeb confirmed that the Ministry of Finance has allocated Rs2 billion as a 10 percent first-loss risk guarantee to incentivise commercial bank financing under the scheme.

He disclosed that a pilot phase involving 11 banks has already been completed, during which 186 energy-efficient fans were installed through disbursements amounting to Rs1.35 million, benefiting 67 consumers. The forthcoming phase will focus on scaling up implementation in coordination with the State Bank of Pakistan and participating financial institutions.