Bangladesh could avoid more than $4 billion in future investment in coal-fired power plants by replacing inefficient household fans with energy-efficient models, according to a new study published by the Institute for Energy Economics and Financial Analysis (IEEFA) on Monday.

Wider adoption of brushless direct current (BLDC) fans could also cut the country's summer peak electricity demand by up to 2,590 megawatts (MW) and save 6,913 gigawatt-hours (GWh) of electricity annually, worth around 8,987 crore taka ($730 million), the study found.

The report, titled Household Space Cooling in Bangladesh: Role of Energy-Efficient Fans, is based on a survey of 435 households across 26 districts. It found that BLDC fans consume around 35 watts, compared with 70 watts or more for conventional models.

The report, titled Household Space Cooling in Bangladesh: Role of Energy-Efficient Fans, is based on a survey of 435 households across 26 districts. It found that BLDC fans consume around 35 watts, compared with 70 watts or more for conventional models.

Household fans currently account for up to 5,212MW of Bangladesh's summer electricity demand, while energy-efficient BLDC models make up just 1.4% of fans in use.

Bangladesh's electricity demand typically peaks at around 9pm. On August 27, 2026, peak demand reached 19,027MW at that time.

“Wider adoption of energy-efficient fans will reduce demand and ease the pressure on the Bangladesh Power Development Board,” said Shafiqul Alam, IEEFA's lead energy analyst for Bangladesh and the report's author.

Despite the potential savings, awareness of the technology remains low. Around 75% of surveyed households were unaware that energy-efficient fans were available in the market. However, 96% said they would be willing to switch after learning about their energy-saving potential.

The higher upfront cost remains a major barrier. While conventional fans cost around 2,000 taka, BLDC models are priced between 5,000 and 6,300 taka.

For households earning up to 25,000 taka a month, the investment could take 7.7 to 9.6 years to recover through lower electricity bills. The study said bulk procurement combined with carbon revenue could bring the payback period down to 4.8 years.

The report recommends launching a national programme to promote energy-efficient fans through bulk purchasing, financing support for low-income households, and improved standards and labelling.

It also proposes setting up a government-backed super energy service company to oversee the programme's implementation.

“As Bangladesh’s energy sector challenges mount, the country must prioritise measures that can provide quick relief by curbing demand growth,” Alam said. “Energy-efficient fans are one such measure, cutting demand as soon as they are installed.”