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Energy Efficiency Standards Energy Efficiency Standards and Labeling in India and Labeling in India
““Current Situation and ChallengesCurrent Situation and Challenges””
Alvin JoseResearch Associate /Consultant TERI/BEE
IEEJ: February 2011
• Energy Conservation Act enacted in 2001
• Bureau of Energy Efficiency set up as the nodal central agency
• State Designated Agencies at the state level created for
implementation of the Act.
Legal Framework for Energy Efficiency
• Act empowers Bureau and Central Government to specify Energy
Consumption Standards.
• Prohibit manufacture or sale or import of equipments and appliances
that do not meet standards.
• Require display of Energy performance labels on equipments and
appliances.
Energy Conservation Act
IEEJ: February 2011
Bureau of Energy Efficiency
• Established in 2002, under the Energy Conservation Act, 2001.
• Improve energy efficiency through various regulatory and promotional instruments– Plan, manage and implement provisions under the EC Act
• Appliance standards and labeling• Industrial energy benchmarks• Energy Conservation Building Codes• Monitor energy use in high energy-consumption units• Certify and accredit energy auditors and energy managers
– Provide a policy framework and direction to national energy conservation activities
– Disseminate information and knowledge, and facilitate pilot and demonstration projects
IEEJ: February 2011
Institutional frame work for regulation for Energy Efficiency
• BIS – National Standards Body Formulation & Implementation of National Standards Production certification, Quality system certification, EMS
certification etc.• Bureau of Energy Efficiency (BEE)
BEE is established to implement & monitor the Energy Conservation Act, 2001
One of the key thrust areas of EC Act, 2001 is Standards & Labeling Programme
Formulation of Energy Efficiency Standards.• Laboratories accredited by National Accreditation Board of
Laboratories• Educational Institutions.• Manufacturers and Manufacturing Associations• Consumer Organizations• Ministries and key stakeholders.
IEEJ: February 2011
• To reduce overall energy consumption by use of Energy Efficient equipments/ appliances 18 BU by 2012 (~3000 MW).
• Targeted an avoided capacity addition of over 3000 MW during XI plan of Govt. of India.
Mission – S & L ProgrammeIEEJ: February 2011
Step 1: Decide whether and how to implement Energy Efficiency Labels and Standards.• The potential impact of the standards by quantifying their predicted environmental and monetary benefits shall be addressed.
• Screening and selecting which types of products are the highestpriorities.
•Assessment of the data needs for the program.
• Backing up with the test procedures and testing facilities adopted in other countries.
Step 2: Develop a testing Capability.All manufacturers’ product must be evaluated in a same way which requires a standard testing facility, test procedure and a process for assuring compliance with testing requirements.
S&L Methodology
IEEJ: February 2011
Step 3 & 4: Design and implement a Labeling program and analyze and set Standards.From consumers’ perspective, the energy label is the most important element of the program. Label design can be established involving consumer research as an important element.
A Standard can be set to:
• eliminate inefficient models currently in the market.
• avoid import of inefficient products.
• encourage local manufacturers to develop more economically efficient products.
Several types of analyses such as technical, market, national impact etc are conducted to ensure that a standard achieve its purpose.
Step 5: Design and implement a communication campaign.Effective S&L program require a communication campaign to support acceptance and use of new standards and labels.
IEEJ: February 2011
Step 6: Ensure program integrity.After the program initiation, a verification regime (to determine the product energy performance compliance to the program) is needed to ensure program’s integrity.
Step 7: Evaluate the program.To maintain the program over the long run, the government shall monitor the program’s performance to gather information to guide adaptation to changing circumstances and to clearly demonstrate the public that the expected benefits are actually being achieved.
Good program require periodic revision and update. Review cycle can typically range from 2 to 12 years.
IEEJ: February 2011
9
The Energy Labeling ProgramIEEJ: February 2011
Products covered under Indian S&L Program
Current List 1. Frost-free Refrigerators2. Tubular Fluorescent Lamps (TFL)3. Air-conditioners 4. Direct cool /Frost Free Refrigerators5. Distribution Transformers6. Motors7. Pump sets 8. Ceiling fans9. LPG Stoves10.Colour TVs11.Storage Water Geysers12.Washing Machines
Launched on 18th May 2006 , for 4 products by BEE
IEEJ: February 2011
Future Future ‐‐ Equipments / appliances Equipments / appliances for S&Lfor S&L ProgramProgram
11
Electronic Ballast Computer Monitors Kerosene StovesConsumer Electronics
Adaptive DefrostCommercial Freezers Visi CoolersChocolate CoolersChest CoolersHeat PumpsMulti Split Systems
Industrial Fans & BlowersDiesel Generating setsBoilersCompressors
Home Appliances
Industrial Equipments
Uninterrupted Power Supply (UPS)External Power Supplies (EPS)Battery Chargers (BCs) Standby Power equipmentsVehicles
Refrigerator &AC Systems
Other Appliances
IEEJ: February 2011
BEE Star Labels IEEJ: February 2011
Market Transformation Potential : CTV, LCD and Plasma
Yearly Energy Consumption
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
0 5 10 15 20 25 30 35 40 45 50 55
Screen Size ( inches)
Ener
gy C
onsu
mpt
ion
(kW
h/Ye
ar)
CRTLCDPlasmaSeries4Series5
Addressing both Active and Standby Power Consumption , with an Growth rate of 7 % for CRT , 10 % for LCD and 2 % for Plasma.
20% improvement in efficiency in CRT and 5% in LCD/ Plasma targeted
IEEJ: February 2011
Market Transformation Potential : Storage Water Heaters
Market Share of Various Water Heater
Manufacturers
Symphony1% Crompton
6%
Others40%
MTS- Racold25%
Venus9%Bajaj
12%Usha Lexus7%
300000450000
600000800000
10000001300000
1700000
2200000
2850000
2000 2005 2006 2007 2008 2010 2012 2015 2020
Market Future
30% reduction in standby losses
IEEJ: February 2011
Market Transformation Potential: Pump sets
20%0.24 mn
10%0.12 mn
70%0.84 mn
SubmersibleMonoblockO W Sub
Total 1.2 mn Units(2003-04)Pumps < 7.5 kW- 3 Phase
National Mfrs. 30%
Local Mfrs. 50%Regional Mfrs. 20%
Growth rate over last two years - 5-8%v Negligible imports
15% improvement in efficiency targeted
IEEJ: February 2011
Market Transformation Potential : Ceiling Fans
0
5
10
15
20
25
Mn Units
2001-02 2002-03 2003-04
10.5% 19%5%
1.25 mn
6%1.5 mn
7%1.75 mn
82%20.5 mn
CeilingTablePedestalOthers
Source: IFMA Annual Report 2003-04
• Estimated market size(2003-04) - 25 mn. Units• 55%45% Share among Regional/Local-National
12% improvement in efficiency targeted
IEEJ: February 2011
Market Transformation Potential : Induction Motors
EFF3
EFF2
EFF 1
IEEMA members
Small MM
Focus area
Minimum BenchmarkCrompton
Greaves 40%
Bharat Bijlee& Others 7%
ABB 16%
Siemens 37%
Source: Primary Survey, AFF Estimates
Market Share - EFF1 Motors (Nos.)
EE Motors: Current Market Status
Market growth CAGR of 2 % , with 50 % unorganized sector
5% improvement in efficiency targeted
IEEJ: February 2011
0
10
20
30
40
50
60
70
80
1 Star 2 Star 3 Star 4 Star 5 StarStar Band Category
Labe
led
Prod
uctio
n Pe
rcen
tage
(%)
2007 - 2008 2008 - 2009 2009 - 2010
Market transformation in Air ConditionersBenchmarking with efficient products leading
Market to transform into Greener products
Graphical representation of labeled production sales data for 3 consecutive years shown above demonstrates the increase in demand / sales of higher star rating models in the market
Market transformation in Air Conditioners
Star Rated Products
IEEJ: February 2011
Market transformation in Air Conditioners
In order to examine the shift in market towards higher rating models, the weighted average energy efficiency ratio has been calculated for the last 3 consecutive years.
EER values mentioned above represents an increase of approx. 2% in the value of EER over the consecutive years leading industries and market towards higher energy efficient appliances.
Energy Efficiency Ratio
IEEJ: February 2011
Market transformation in Air ConditionersSpecific Energy Consumption
0.34
0.35
0.36
0.37
0.38
0.39
0.4
2007 - 2008 2008 - 2009 2009 - 2010
Spec
ific
Ener
gy C
onsu
mpt
ion
Split Window Avg
Chart shown above illustrates the specific energy consumption, considering room air conditioners in overall there is a decrease in energy being consumed to achieve a cooling capacity from the year 2007-08 to 2009-10
IEEJ: February 2011
Market transformation in RefrigeratorsStar Rated Products
0102030405060708090
100
1 Star 2 Star 3 Star 4 Star 5 StarStar Band Category
Labe
led
Prod
uctio
n (%
)
2007 - 2008 2008 - 2009 2009 - 2010
Chart above illustrates the pattern of labelled production respective to the star band category. As in comparison to the 2 previous years the production for 5 star rated models has increased by more than 40% in the year 2009-10. Also the maximum number of products sold in the year 2009-10 lies under 5 star category thus resulting in market shift towards more efficient appliances.
IEEJ: February 2011
Market transformation in RefrigeratorsSpecific Energy Consumption
1.5
1.55
1.6
1.65
1.7
1.75
1.8
2007 - 2008 2008 - 2009 2009 - 2010Spec
ific
Ener
gy C
onsu
mpt
ion
Chart shown above provides an overall pattern of specific energyconsumption combining both direct cool type and frost free type refrigerator. The decreasing trend of specific energy consumption illustrates the fact that more number of higher efficient appliances are being sold in the market resulting in energy saving and market shift towards more efficient appliances.
IEEJ: February 2011
Purchase Drivers of Energy Efficient Appliances
8 5 5 59 8 5
16 1111 7 523 15 10 13 13
12111010
1617
91112
14
Long Life Runningcosts ie.,electricityeff iciency
Price ofproduct
Advancedtechnology
Brand nameResale value Looks &Design
Hassle freeperformance
Offer /discountavailable
Rank 1 Rank 2 Rank 3
Ranking factors for purchase of Refrigerator
5 3 2 37 3 2
14
10 5 7 334
1121
3 10 5514
1319
26
818
20
7
Long Life Price ofproduct
Runningcosts ie.,electricityeff iciency
Resale value Brand name Advancedtechnology
Hassle freeperformance
Looks &Design
Offer /discountavailable
Rank 1 Rank 2 Rank 3
Ranking factors for purchase of Air conditionerAll figures in percentages
All figures in percentages
Base: Recent purchasers of ACs (261)
Source: CLASP‐BEE Report,2009
IEEJ: February 2011
Awareness of the BEE Labeling Program
19
36
136
2632
13
37
67
All (4776) Urban(1336)
Rural(3440)
North(1162)
South(1187)
East (1222) West(1206)
Refrigerator(1759)
AC (261)
All figures in percentages
•Close to 1/5th of the General Public is aware about the BEE Labeling Program, this is without any pro
•There is higher awareness of the initiative in urban in comparison to rural areas
•Higher awareness amongst recent purchasers of Refrigerators and ACs.
Source: CLASP‐BEE Report,2009
IEEJ: February 2011
Impact of BEE Media and Awareness Campaign
33 30 3323 27
19
58
2 617
4431
17
75
I enjoyedseeing this ad
The program issomethingappealing
It is an eye-catchy ad
I makes me feelthat the
program is forme
It could be anad for anyconsumerdurableproduct
Could notunderstand the
Ad
Made me feellike buying the
star ratedproduct
Television Print
All figures in percentages Base: Recall seeing the ad for BEE Star labelling on TV / Print
Source: CLASP‐BEE Report,2009
One of the major outcome of the Study was that there is a need of continuous Media Campaign by BEE for increase recall value among consumers.
IEEJ: February 2011
5.7
7.5
5.35.7 5.8 5.75.55.95.6
7.4 7.6 7.6 7.6 7.57.57.5
Ove
rall
Price
Res
ale
value
Ener
gy
Con
sum
ption
Life
of t
he
prod
uct
ICoo
ling
capa
city
Abilit
y to
reta
in
fresh
ness
Has
sle
free
func
tioning
Non Star Rated Star Rated
All figures in percentages Base: All recent purchasers of Star rated Refrigerators (1091)
Perceptions of Star rated Refrigerators Vs Non star rated Refrigerators
6.41
7.7
5.54
6.42 6.48 6.356.446.486.467.45
7.72 7.64 7.7 7.77.647.85
Ove
rall
Price
Res
ale
value
Ener
gy
Con
sum
ption
Life
of t
he
prod
uct
ICoo
ling
capa
city
Abilit
y to
ensu
re
quality
of a
ir
Has
sle
free
func
tioning
Non Star Rated Star Rated
All figures in percentages Base: All recent purchasers of Star rated Refrigerators (1091)
Perceptions of Star rated AC’s Vs Non star rated AC’s
Source: CLASP‐BEE Report,2009IEEJ: February 2011
Consumer / Sales Executives awareness and Consumer / Sales Executives awareness and Educational Educational programprogram
IEEJ: February 2011
IEEJ: February 2011
Challenges and Barriers• Aggregation of Baseline Data.• Lack of Established Testing Protocols for EE.• Strengthening of Nationwide Testing Capacity• Unorganized market for several appliances plays key role in
regional markets.• Institutional Challenges for upscale of such a nationwide
scheme.• Sustainable & Robust Model for Monitoring and Verification • Continuous and Strategic Media Campaign• Public Procurement and Payback based Purchases in terms of
EE appliances• Incentive based Promotion for Manufacturers in addition to
the market based promotion.• Technical and Manpower Support for further enlargement
IEEJ: February 2011