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© OECD/IEA 2014
Energy Efficiency Standards and Labeling (S&L) Normas y Etiquetado de Eficiencia Energética
David Morgado
Energy Analyst
Energy Efficiency in Emerging Economies
© OECD/IEA 2014
Topics What are Standards and Labeling (S&L)?
Types of S&L and MEPS
Importance of S&L
S&L Status Worldwide
S&L Case Studies – USA, Australia, EU, Thailand and Latin America
© OECD/IEA 2014
What is Standards and Labeling?
Also known as Energy Efficiency/Performance or
Appliance Labeling
One of the most common measures (voluntary or mandatory) use to increase energy efficiency of electrical appliances
Two Main Types of Energy Efficiency Labels
Endorsement Labels (e.g. Energy Star, PROCEL) or
Comparative Labels (e.g. Brazil, Australia/New Zealand, European Energy Labels, China, India)
© OECD/IEA 2014
What is Standards and Labeling?
Three Main Types of Energy Efficiency Standards:
Prescriptive Standards: Particular feature or device be installed in all new products
Minimum Energy Performance Standards (MEPS): Minimum efficiencies must be achieved OR maximum energy consumption
High Energy Performance Standards (HEPS): Specific high efficiencies must be achieved. Usually voluntary
Class-Average Standards (e.g. Japan): Average efficiencies of a manufactured product type
© OECD/IEA 2014
Endorsement Labels
© OECD/IEA 2014
Comparative Labels
© OECD/IEA 2014
Importance of S&L – Creating a More Efficient Economy
Ensures consumers can make informed decisions and purchase electrical appliances based on the Energy Performance (e.g. cost, efficiency, energy use)
Helps change mind-set of consumers to consider long-term energy costs
Creates demand for more efficient models and reduces proliferation of low efficiency models (next slide)
© OECD/IEA 2014
Benefits of S&L
Source: S&L Guidebook, 2nd Edition
Energy Efficiency
Nu
mb
er o
f U
nit
s So
ld Before S&L
After Standards
After S&L
Standard Level
© OECD/IEA 2014
Examples of the Benefits of S&L
Recorded fall in average electricity consumption and prices for several major appliance types in
selected countries
Legend:
A/C – Air
Conditioners
Cold –
Refrigerators &
Freezers
CW – Clothes
Washer
CD – Clothes
Dryer
F – Freezer
Rf - Refrigerator
Source: IEA, 2009
© OECD/IEA 2014
How can Utilities benefit from S&L?
Enables Market Transformation from low
efficiency to high efficiency
Can help reduce electricity consumption and peak demand
Helps Utilities to:
Understand the efficiency level of appliances available in the market
Create support mechanisms for efficient appliances
Better manage growing demand for electricity
Reduce investment in new capacity and infrastructure
© OECD/IEA 2014
Developing Country without S&L
Low efficient appliances continue to enter the
market
Cheap low efficient appliances = household electricity costs increase + higher demand for electricity
Peak demand can become a challenge
Need for greater investment in electricity generation irrespective of energy source
Investment is reflected in the electricity tariff and also bites into household income
© OECD/IEA 2014
S&L Status Worldwide
84% of the countries surveyed have a labelling scheme of which 90% are
mandatory – Latin America well placed in labelling for refrigerators
*Other: mandatory energy audits, mandatory energy managers, mandatory energy consumption
reporting; mandatory energy savings plans, mandatory energy training, and incandescent lamp
phase-out
Source: World Energy Council Survey 2013
© OECD/IEA 2014
S&L Status Worldwide - Label
Source: World Energy Council Survey 2013
© OECD/IEA 2014
S&L Status Worldwide - MEPS
Source: World Energy Council Survey 2013
© OECD/IEA 2014
S&L for Refrigerators
© OECD/IEA 2014
S&L for Air Conditioners
© OECD/IEA 2014
MEPS for Lighting
© OECD/IEA 2014
Case Studies – United States
Standards launched in 1975
MEPS for 50 products
Energy Guide (Comparative Label) launched in 1978
Covers 11 products
Energy Star (Endorsement Label) launched in 1992
Covers 60 products
Voluntary
Followed mostly by Mexico, Central America, Venezuela and Jamaica
© OECD/IEA 2014
Case Studies – United States – Achievements with MEPS
Source: S&L Guidebook, 2nd Edition
© OECD/IEA 2014
Case Studies – United States – Impact of MEPS on energy use, volume and costs
© OECD/IEA 2014
Case Studies – United States – Savings achieved under Energy Star Programme
Sourc
e: 2
01
1 A
nn
ual
Rep
ort
- w
ww
.ener
gyst
ar.g
ov
Term of Comparison – Brazil Annual Electricity Generation above 500 billion kWh
© OECD/IEA 2014
Case Studies – Australia
In the 80s, household appliances:
30% of total electricity consumption
40% of residential GHG emissions
Energy Rating Label launched in 1986
Covers 8 appliances of which 7 Mandatory & 1 Voluntary
MEPS launched in 1992 (16 Mandatory, 1 Voluntary)
Energy Star launched in 1999
Covers 6 products
Voluntary
2000
2010
1986
© OECD/IEA 2014
Case Studies – Australian Energy Label
The Star Rating indicates the energy
efficiency of the appliance on a scale of 1 to 6
stars. In this case 3.5 Stars
Appliance Type and Model Number
How much energy the appliance typically
uses annually in kilowatt hours (kWh) when
tested to the Australian / New Zealand
Standard
The Australian / New Zealand Standard under
which the appliance was tested
© OECD/IEA 2014
Case Studies – Australian Energy Label Website and Application
http://www.energyrating.gov.au/
© OECD/IEA 2014
Case Studies – Australian Energy Label Comparing Ratings
Comparison of 1-Star and 3.5-Star Rating Fridges/Freezers of different capacities
Sou
rce:
IIE
C,
20
12
© OECD/IEA 2014
Case Studies – Australia – Impact of MEPS on Energy Consumption of Refrigerators
Sourc
e: e
ner
gyra
ting.g
ov.a
u
© OECD/IEA 2014
Case Studies – Australia – Impact of MEPS on Energy Consumption of Freezers
Sou
rce:
en
ergyra
tin
g.g
ov.a
u
© OECD/IEA 2014
Case Studies – Australia – Historical and Projected Energy Savings from S&L for Refrigerators and Freezers
Sou
rce:
en
ergyra
tin
g.g
ov.a
u
© OECD/IEA 2014
Case Studies – Australia – Historical and Projected Energy Savings from S&L for Refrigerators and Freezers
Sourc
e: e
ner
gyra
tin
g.g
ov.a
u
© OECD/IEA 2014
Case Studies – European Union
Energy Label Directive introduced in 1992
25% final energy needs from households
27 Member Countries
Mandatory for refrigerators, freezers, washing machines, electric ovens, ACs and lighting
Customers willing to pay more for EE appliances (40 – 50%)
Pre-2010 Label has A to G grading
Post-2010 Label has A+++ to D grading
Majority of South American Countries opting for the EU Label model (e.g. Argentina, Brazil, Chile, Colombia)
Pre-2010
Post-2010
© OECD/IEA 2014
Case Studies – European Union Energy Label
Electricity Consumption per year
Water consumption, drying efficiency, volume/
capacity, noise level, spin drying efficiency, etc
The Energy Rating indicates the energy
efficiency of the appliance on a scale of A+++
to D, with A+++ being the most energy efficient
class
© OECD/IEA 2014
Case Studies – Impact of European Union Energy Label on Refrigerator Market Share
Sou
rce:
ww
w.c
lasp
on
line.
org
© OECD/IEA 2014
Case Studies – Impact of European Union Energy Label on Cooling Appliances
Improvement of energy efficiency of cooling appliances in 10 selected EU
countries (2000 - 2010)
Sourc
e: w
ww
.com
e-on-l
abel
s.eu
© OECD/IEA 2014
Case Studies – S&L in Thailand
Label N.5 introduced in 1992
Managed by the Electricity Authority of Thailand (EGAT) under Demand-Side Management Program
Aimed at Market Transformation to High Efficiency Refrigerators and ACs
Voluntary & applies to 14 products
MEPS
Mandatory Refrigerators and Air Conditioners
Voluntary for CFLs, 3-Phased Motors, Linear Fluorescent Lamps
Rate of Compliance = 97%
Managed by Government
© OECD/IEA 2014
Case Studies – Thailand Energy Label
Initial Challenges:
Availability of High Efficiency Refrigerators and Air Conditioners
Customer Awareness on Energy Efficiency
Price of High Efficiency Refrigerators and Air Conditioners
Voluntary Scheme
Initial Strategy
EGAT to Promote High Efficiency Appliances
Sign voluntary agreements with manufacturers to ensure label use
© OECD/IEA 2014
Case Studies – Impact of Thailand Energy Label on Energy Consumption
Energy
Efficiency
Program
Launch
date
Savings Target
(1998)
Achieved (2000)
MW GWh MW GWh
Refrigerators 1994 27 186 73 533
Air Conditioners 1995 22 117 47 679
Cost Effectiveness:
Estimate total expenditure = 57.4 million US dollars
Cost of Energy Savings = 0.02 USD/kWh
© OECD/IEA 2014
Case Studies – S&L in Latin America
Brazil (Programa Brasileiro de Etiquetagem)
Established in 1984
Mandatory for 26 appliances
Energy Label introduced in 1993 (PROCEL)
MEPS for 7 appliances including natural gas appliances
Mexico (Ley Federal de Metrologia y Normalizacion)
20 Standards for 15 appliances and 5 systems
Label FIDE for appliances that surpass the standards
1993 – 2004 - Savings of 52.700 GWh (equivalent 25% of national generation in 2004 – 2.844 MW avoided capacity)
90s - Argentina, Colombia, Peru and Venezuela
2000s – Bolivia, Chile, Ecuador, Colombia, Peru, Central America
© OECD/IEA 2014
Case Studies – Energy Savings resulting from Energy Standards for Refrigerators in Mexico
© OECD/IEA 2014
Recommended Reading Material
CLASP, 2005. Energy-Efficiency Labels and Standards: A Guidebook for Appliances, Equipment and Lighting, 2nd Edition. http://www.clasponline.org/en/Resources/Resources/StandardsLabelsGuidebook
APEC, 2012. Survey of Market Compliance Mechanisms for Energy Efficiency Programs in APEC Economies. http://publications.apec.org/publication-detail.php?pub_id=1285
Energy Charter Secretariat, 2009. Policies that Work - Introducing Energy Efficiency Standards and Labels for Appliances and Equipment. www.encharter.org/.../user.../EE_Standards_and_Labels_2009_ENG.pdf
IEA, 2009. Executive Summary - Gadgets and Gigawatts: Policies for Energy Efficient Electronics. http://www.iea.org/Textbase/npsum/Gigawatts2009SUM.pdf
APEC, 2011. Reducing Trade Barriers for Environmental Goods and Services in APEC Economies - Mapping Exercise for Energy Efficient Products. http://www.egeec.apec.org/www/UploadFile/110105APEC-EE-ICF-Final-Report_rev_clean.pdf
© OECD/IEA 2014
Group Exercise
Explain how your country could or has
benefitted from S&L for electrical appliances?
What are the challenges and barriers of implementing S&L in your country? What could be improved? Any lessons learnt from implementing S&L in your country?
Do the consumers recognize and understand energy labelling in your country? If not, what would you to promote and raise awareness?