Towards Sustainable Consumption and Production: Energy Efficiency Labeling in India

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1 Towards Sustainable Consumption and Production: Energy Efficiency Labeling in India June rd International Expert Meeting on 10 Year Framework of Programmmes on SCP (Marakkech Process) Tanmay Tathagat Collaborative Labeling and Appliance Standards Program [CLASP]

2 Background Energy Efficiency Standards and labeling a key provision of the Energy Conservation Act 2001 Bureau of Energy Efficiency [BEE] was established in 2002 to implement the provisions of the Act came out with an Action Plan with S&L as a priority area CLASP and international agencies were key partners in the process since July

3 International Support India s S&L program has been supported by several donors United Nations Foundation (UNF) United States Agency for International Development (USAID) United States Environmental Protection Agency (USEPA) Ministry of Economy (METI) of Japan GTZ s IGEN Program 12 July

4 Stakeholders in the Steering Committee Product Manufacturers Industry Associations Government Agencies Research Organizations NGOs Testing Agencies Consumer Organizations Indian/International Experts 12 July

5 Labeling Process 1. Identify and prioritize products for labeling 2. Set up Steering Committee including all stakeholders 3. Identify critical issues and organize technical subcommittees 4. Finalize test procedures, lab specifications, minimum technical qualifications 5. Assess market and product characteristics wrt energy efficiency 6. Develop technical criteria for labeling 7. Develop implementation and enforcement plan 8. Draft notification after finalizing all the technical and admin details 9. Launch labels 10. Consumer awareness campaign 11. Check and challenge testing 12. Program monitoring, review, and updates 12 July

6 Top Candidates for Energy-Efficiency Labels 1. Domestic refrigerators 2. Air conditioners 3. Fluorescent lamp ballasts 4. Fluorescent tube lamps 5. Electric motors 6. Washing machines 7. Boilers 8. Furnaces 9. Storage water heaters 10. Heat pumps 11. Pumps 12. Fans 13. Television sets 12 July

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11 Training 12 July

12 Workshop on Thermodynamic and Techno-Economic Analysis 12 July

13 Refrigerator GHG Reduction Potential 12 July

14 AC GHG Reduction Potential 12 July

15 Market and Consumer Research Nationwide Studies conducted in 2003 and % respondents mentioned that while purchasing, label in refrigerator is very useful and 69% mentioned very useful in AC 95% respondents said that they will buy refrigerator which contains the label 12 July

16 Consumer Buying Behaviour Quality of Compressor 12.2 Space for fitting in bottles / vessels as per my need Quality of after Sales Service Has latest technology 20.9 Electricity consumption 24.5 Has a strong & sturdy body 26.2 Guarantee / Warranty offered 32.7 Stylish looks 36.7 Price 43.6 Brand Name / Popular Brand July 2007 In % 16

17 Market Status at the beginning of the Program Proposed NF Star Rating Plan Annual Energy Use (kwh/year) Star 2 Star 3 Star 4 Star 5 Star Adjusted Volume (Liters = 1.74*Freezer Volume + Fresh Food Volume) Equation for the1 star line is KWh/year = (0.7 Vadj tot) 12 July

18 Market Based Approach for Energy Labeling Manufacturers will self certify the products by adopting approved testing procedure, and will be liable for the accuracy of the label Govt. will conduct random check testing Consumers can also challenge the validity of the label If the products are incorrectly labeled, then, apart from penal actions under existing legal provisions*, labels will be withdrawn 12 July

19 Information Currently Available Pentacool 12 July

20 Efficiency of Indian Window Air Conditioners 50 Average 8.4 EER 40 Models >10.5 EER 12 July

21 Design Options 0 Source: Industry Estimates Design Options Rs. btu/hr EER Baseline compressor EER 10 coil diameter is 7mm grooved tubes (2 row + 2 row L Shape condensor) Increase heat Exchanger Diameter to 9.5 mm for evap + 50% increase in surface area for evaporation Incr Compressor EER to Add Subcooler Increase Cond Coil Area by 50% BPM Fan Motor **Variable Speed Compressor July

22 Engineering Input Data Cost-Efficiency Replationship for Indian Air conditioners (1.5 ton) Retail Price Annual Energy Consumption Rupees kwh/yr Baseline (compressor EER of 10.0) Increase heat exchanger +50% incr evap area Incr compressor EER to 10.8 Add subcooler Incr cond coil area by 50% BPM Fan motor Variable speed compressor 1200 Design Options 12 July

23 Consumer Impact Analysis For per-unit impacts of more efficient products on consumers, we used payback period, life-cycle cost (LCC) analysis The payback period is the time required for savings in operating costs to equal the extra initial cost of a more L efficient product. OC LCC = P + n The LCC is given by the following n= 1 (1 + DRformula: ) Hours Energy Use Total cost UEC LCC Delta LCC Payback Design Options Rs. btu/hr EER kwh/yr Rs. kwh Rs. Rs. 0 Baseline compressor EER 10 coil diameter is 7mm grooved tubes (2 row + 2 row L Shape condensor) Increase heat Exchanger Diameter to 9.5 mm for evap + 50% increase in surface area for evaporation Incr Compressor EER to Add Subcooler Increase Cond Coil Area by 50% BPM Fan Motor **Variable Speed Compressor July

24 Shipments and Stock Modeling First Purchases from increases in saturation and population Replacements from previous shipments Stock from previous shipments and survival function Appliance Shipments (Thousands) 16,000 14,000 12,000 10,000 First Purchase Replacements User Shipments-Base Case Number of Units 8,000 6,000 4,000 2, Year 12 July

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31 Next Steps Making S&L Mandatory Market based programs Training Support to SMEs Program Assessment Refinement Revisons Including Additional Products Consumer Electronics External Power Devices Harmonization 12 July

32 Partnership for Success The success of the GEF MT program is dependent on collaboration with industry Commitment required for allocation of resources and sharing of information Experience shows that such programs create a win-win situations for all involved: consumers, manufacturers, and the government 12 July

33 THANK YOU Tanmay Tathagat