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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

Energy Efficiency Standards and Labeling (S&L) … Efficiency Standards and Labeling (S&L) Normas y Etiquetado de Eficiencia Energética ... Price of High Efficiency Refrigerators

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Page 1: Energy Efficiency Standards and Labeling (S&L) … Efficiency Standards and Labeling (S&L) Normas y Etiquetado de Eficiencia Energética ... Price of High Efficiency Refrigerators

© 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

Page 2: Energy Efficiency Standards and Labeling (S&L) … Efficiency Standards and Labeling (S&L) Normas y Etiquetado de Eficiencia Energética ... Price of High Efficiency Refrigerators

© 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

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© 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)

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© 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

Page 5: Energy Efficiency Standards and Labeling (S&L) … Efficiency Standards and Labeling (S&L) Normas y Etiquetado de Eficiencia Energética ... Price of High Efficiency Refrigerators

© OECD/IEA 2014

Endorsement Labels

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© OECD/IEA 2014

Comparative Labels

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© 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)

Page 8: Energy Efficiency Standards and Labeling (S&L) … Efficiency Standards and Labeling (S&L) Normas y Etiquetado de Eficiencia Energética ... Price of High Efficiency Refrigerators

© 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

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© 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

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© 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

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© 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

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© 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

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© OECD/IEA 2014

S&L Status Worldwide - Label

Source: World Energy Council Survey 2013

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© OECD/IEA 2014

S&L Status Worldwide - MEPS

Source: World Energy Council Survey 2013

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© OECD/IEA 2014

S&L for Refrigerators

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© OECD/IEA 2014

S&L for Air Conditioners

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© OECD/IEA 2014

MEPS for Lighting

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© 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

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© OECD/IEA 2014

Case Studies – United States – Achievements with MEPS

Source: S&L Guidebook, 2nd Edition

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© OECD/IEA 2014

Case Studies – United States – Impact of MEPS on energy use, volume and costs

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© 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

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© 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

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© 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

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© OECD/IEA 2014

Case Studies – Australian Energy Label Website and Application

http://www.energyrating.gov.au/

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© 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

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© OECD/IEA 2014

Case Studies – Australia – Impact of MEPS on Energy Consumption of Refrigerators

Sourc

e: e

ner

gyra

ting.g

ov.a

u

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© OECD/IEA 2014

Case Studies – Australia – Impact of MEPS on Energy Consumption of Freezers

Sou

rce:

en

ergyra

tin

g.g

ov.a

u

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© 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

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© 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

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© 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

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© 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

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© OECD/IEA 2014

Case Studies – Impact of European Union Energy Label on Refrigerator Market Share

Sou

rce:

ww

w.c

lasp

on

line.

org

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© 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

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© 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

Page 35: Energy Efficiency Standards and Labeling (S&L) … Efficiency Standards and Labeling (S&L) Normas y Etiquetado de Eficiencia Energética ... Price of High Efficiency Refrigerators

© 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

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© 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

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© 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

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© OECD/IEA 2014

Case Studies – Energy Savings resulting from Energy Standards for Refrigerators in Mexico

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© 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

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© 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?

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© OECD/IEA 2014

Gracias

[email protected]