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Energy Efficiency Standards Energy Efficiency Standards and Labeling in India and Labeling in India Current Situation and Challenges Current Situation and Challenges Alvin Jose Research Associate /Consultant TERI/BEE IEEJ: February 2011

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Page 1: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 2: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

• 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

Page 3: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 4: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 5: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

• 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

Page 6: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 7: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 8: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 9: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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The Energy Labeling ProgramIEEJ: February 2011

Page 10: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 11: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 12: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

BEE Star Labels IEEJ: February 2011

Page 13: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 14: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 15: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 16: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 17: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 18: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 19: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 20: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 21: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 22: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 23: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 24: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 25: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 26: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 27: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

Consumer / Sales Executives awareness and Consumer / Sales Executives awareness and Educational Educational programprogram

IEEJ: February 2011

Page 28: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

IEEJ: February 2011

Page 29: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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

Page 30: Energy Efficiency Standards and Labeling in Indiaeneken.ieej.or.jp/data/3694.pdf · Energy Efficiency Standards and Labeling in India ... •Assessment of the data needs for the program

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[email protected] , [email protected]

Contact:

IEEJ: February 2011

Contact : [email protected]