Why Appliance Energy Efficiency Matters
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1 2009/SOM2/MAG/WKSP/004 Session 2 Why Appliance Energy Efficiency Matters Submitted by: International Energy Agency (IEA) Workshop on Environmental Goods Services Singapore 28 July 2009
2 Why Appliance Energy Efficiency Matters Richard A. Bradley, PhD Head of Energy Efficiency Environment Division International Energy Agency 28 July 2009, Singapore OECD/IEA, 2009 IEA energy efficiency policy analysis Sector/end-use analysis & implementation support Appliances/Equipment p Buildings Transport Industry Indicators Stardisation International cooperation outreach G8 Recommendations Progress reporting Cross-sectoral policy analysis Finance Barriers Energy efficiency strategies Evaluation & compliance Carbon constrained world Cities Utilities Energy scenarios Other Workshops/Facilitation Implementing Agreements Bi-lateral measures Non-member countries Country reviews 1
3 The IEA s CO 2 savings potential 2
4 IEA publications on equipment energy efficiency Also several information papers including one on the feasibility of liberalising trade in efficient appliances conducted jointly with the OECD OECD/IEA
5 IEA appliance efficiency publications INTERNATIONAL ENERGY AGENCY Policy is needed: the market doesn t deliver all cost-effective savings Missing or partial information on energy efficiency it is not visible to end users Low levels of awareness re cost-effective savings potentials Split incentives: Llord-Tenant issue; division of capital acquisition vs. operation & maintenance budgets; energy capital lifespan often longer than ownership period, etc. Fragmented supply chains shortage of necessary skills to deliver higher efficiency Energy budgets have low priority: EE is bundled-in with more important capital decision factors All result in emphasis on 1st not Life-cycle costs 4
6 General trend: more-common stringent energy labels stards Energy labels minimum energy performance stards (MEPS) are now in place or under development in economies that comprise ~80% of the World s population: 73 countries The most common products to be addressed are refrigerators room air conditioners Regulations for other energy using equipment such as lighting, clothes washers, electric motors, vehicles are becoming more common 73 countries with over 80% of the world s population have stards labelling Matory stards Voluntary Stards Comparative Label Endorsement Label Algeria* EU Algeria* Australia Australia India Argentina* Brazil Bangladesh* Indonesia* Australia China Bulgaria Korea Bangladesh* Chinese Taipei Brazil* Switzerl Bl Bulgaria EU Canada Brazil Japan Chile* Canada Korea China Chile* Singapore Columbia* China* Switzerl Czech Republic Columbia* UK Egypt* Czech Republic USA Estonia Egypt* EU Estonia Hungary EU India* Hong Kong Iran Hungary Israel India Japan Indonesia Korea Iran Lithuania* Israel Malaysia Japan Maldives* Korea Mexico Lithuania* Nepal* Malaysia* New Zeal Maldives* Peru* Mexico Philippines Nepal* Pol New Zeal 5
7 The number of stards labelling regulations had grown to 878 in regulations regulations Residential electrical appliance electricity consumption in IEA countries, Electricity consumption (TWh/ye ear) Base case Current policies LLCC from
8 Residential electricity consumption in IEA countries Electrici ity Consumption (TWh) 2,700 2,600 2,500 2,400 2,300 IEA 22 (IEA Statistics) Cool Appliances 2003 Despite national efforts, electricity consumption is growing at nearly twice the rate estimated in Cool Appliances, , Drivers in residential electricity consumption USA, Australia, Lighting Color Televisions Other Uses Space Cooling Dishwashers Clothes Dryers Personal Computers Cooking Clothes Washers Furnace Fans Water Heating Freezers Space Heating Refrigeration Misc 1998 Stby CE ICT Lighting Pools Kitchen Clothes washers, Refrigeration Change in Electricity Consumption (TWh) Change in Electricity Consumption (TWh) 7
9 What do we mean by gadgets? Consumer Electronics (CE), which includes: TVs, Set Top Boxes, VCR/DVDs, HiFi, MP3s, video consoles, chargers, etc. Information Communication Technology (ICT), including: PCs, monitors, laptops, modems, mobile phones & chargers, printers, copiers, faxes, routers, broadb etc. Widely traded internationally 160 Ex xport Value (USD billion n) Refrigeration Air-condioners ICT Water heating, microwaves 8
10 The ICT CE sector Electricity consumption by grew by nearly 7% each year from Fastest growing energy usage sector now 15% of all residential electricity use In 2008: 700 TWh of electricity each year 100 GW of generating capacity USD 80 billion in annual electricity bill Looking Forward Elect tricity Consumption (TW Wh) BAU electricity likely to grow by 250% by Sundry ICT & CE PCs & Monitors Set-top top Boxes Televisions 9
11 Drivers of growth Dramatic reduction in the purchase price of equipment Cut in cost of flat screen TVs, PCs, plus introduction of many low cost consumer items, e.g. digital cameras, MP3 players, photo printers Rapid growth in stock: The advent of households with multiple users Introduction of highly desirable products, such as flat screens, but older stock remains in use Switch off of analogue TV broadcast by 2015 Leads to increased set-top boxes digital TV Greater access to services: Penetration of pay-tv services, basic specialised content Users of Broadb grew 300% since 2000; driving penetration of PCs Increased unit energy consumption Growing hours of use per household New activities equipment: video gaming, recording, picture viewing editing, digital picture frames Simultaneous activities e.g. watching TV, surfing web, listening to music Growing functionality often requires more energy e.g. high definition An alternative future Large savings potential though current technologies power management: > 30% energy savings available for no additional lifetime costs > 50% energy savings available using current technologies at small cost (may be zero net cost if avoided carbon cost is considered) Additional savings through commercialisation of specific new technologies e.g. OLEDS Best available technology (BAT) savings are: More than 50% of 2030 energy consumption 7% of new global electricity requirements between (from WEO) USD 130 billion in 2030 consumer energy bills Avoidance of 150 GW generating capacity Stabilised GHG emissions Since costs are falling fast, BAT may be the lowest life cycle cost soon! 10
12 Greenhouse Gas Emissions from CE ICT in households 1200 Gree enhouse Gas Emissions s (Mt CO2) BAU LLCC BAT The role of government policies for ICT CE These potential savings will not occur without policy intervention Policies should encouraging to use their capacity to be smarter To regulate their power requirements to the functions provided, i.e. only use what they need Automated so not reliant upon behaviour of consumers Applied across the broad spectrum of electronic equipment Countries should develop forward plans, coordinated d with other economies industry Specify long-term interim targets (energy or GHGs) Identify policy measures to assist The book identifies more than 30 detailed policies for ICT CE equipment 11
13 Conclusions Without new policies, the projected energy dem from information communications technologies consumer will undermine our energy security climate change mitigation. The energy consumed by these gadgets will triple by 2030 to 1700 TWh (today s total residential consumption of the US Japan) Higher efficiency technologies that are already available would half this dem We need strong, robust government policies that ensure greater energy efficiency 12
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