DECISION XXVIII/3 TEAP WORKING GROUP REPORT ENERGY EFFICIENCY

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1 DECISION XXVIII/3 TEAP WORKING GROUP REPORT ENERGY EFFICIENCY Roberto Peixoto and Ashley Woodcock, TEAP Energy Efficiency Working Group Co-chairs T E A P Montreal, 20-24

2 Decision XXVIII/3 Recognizing that a phase-down of hydrofluorocarbons under the Montreal Protocol would present additional opportunities to catalyse and secure improvements in the energy efficiency of appliances and equipment, Noting that the air-conditioning and refrigeration sectors represent a substantial and increasing percentage of global electricity demand, Appreciating the fact that improvements in energy efficiency could deliver a variety of co-benefits for sustainable development, including for energy security, public health and climate mitigation, Highlighting the large returns on investment that have resulted from modest expenditures on energy efficiency, and the substantial savings available for both consumers and Governments, Montreal, 20-24

3 Decision XXVIII/3 (cont) Requests the TEAP to review energy efficiency opportunities in the refrigeration and air-conditioning and heat-pump sectors related to a transition to climate-friendly alternatives, including not-in-kind options Invites parties to submit to the Ozone Secretariat by May 2017, on a voluntary basis, relevant information on energy efficiency innovations in the refrigeration, air-conditioning and heat-pump sectors Requests the TEAP to assess the information submitted by parties and to report thereon to the Twenty-Ninth Meeting of the Parties Montreal, 20-24

4 Sources of informaqon EE is a broad topic of major importance with an enormous amount of published literature and information EEWG identified many relevant, current publications from organizations working on EE improvements and related topics over many years EEWG also considered recent MP reports, presentations, and submissions from parties Montreal,

5 Response to Dec XXVIII/3 As requested in the decision, report focuses on energy efficiency opportunities in the RACHP sectors related to a transition to climate-friendly alternatives, including not-in-kind options Report considers the following categories of EE opportunities: Technology opportunities; Policy, regulatory and information opportunities; and Financial and related incentives Montreal,

6 TEAP Energy Efficiency Working Group (EEWG) Co-chairs: Roberto Peixoto, (Brazil, co-chair RTOC) Ashley Woodcock, (UK, co-chair TEAP) Members: Suely Carvalho (Brazil, senior expert TEAP); Marco Gonzalez (Costa Rica, senior expert TEAP); Bella Maranion (USA, co-chair TEAP); Fabio Polonara (Italy, co-chair RTOC); Marta Pizano (Colombia, co-chair TEAP); and Dan Verdonik (USA, co-chair HTOC). Montreal, 20-24

7 Party Submissions As requested by Decision XXVIII/3, 19 submissions (including EU and African Group) were received. They were of varied scope, and some provide very comprehensive information including: Development and implementation of national regulations and policies that encourage or enforce use of EE equipment Use of utility incentives for promoting efficient energy use as well as use of EE equipment; other financial incentives to support consumer appliance purchases Support for R&D on system and equipment design Many examples of projects and case studies installing EE equipment TEAP incorporated this information into the report Montreal,

8 Background Global RAC equipment installed base (annual production): Domestic Refrigeration 1.5 billion (170 Million) AC 600 Million (100 Million) MAC 700 Million (70 million) RACHP increasing worldwide A5>>nonA5 (population growth, urbanisation, increasing domestic, commercial and automobile AC, cold chain ) RACHP consumes 17% electricity worldwide Cities in tropics: AC >60% of power generation mid afternoon Fonte: Carrier Montreal,

9 Global Warming Impact of RACHP ~80% indirect: electricity use ~20% direct: release of refrigerants, (especially with old equipment with high GWP refrigerants) Reduce GHG Emissions: Transition to low GWP refrigerants Reduce energy consumption Increase Energy Efficiency Reduce cooling load Improve maintenance Montreal,

10 Energy Efficiency Ratio EER, Coefficient of Performance COP are used interchangeably: Ratio of cooling capacity:input power Seasonal Energy Efficiency Ratio (SEER): Efficiency taking into account seasonal temperature variation in a country or region Star Ratings: developed as national standards based on SEER Compared to theoretical maximum efficiency: Current RACHP 30% - 60% Future technology developments could achieve 70-80% Going further has proved to be prohibitively expensive Montreal,

11 Technology OpportuniQes Refrigerants: Small improvements in EE without changes in design Limited to current classes of chemicals/new blends Components and Control systems Large improvements in EE in new equipment, with better control systems and improved components Many already available require application Reduced leakage from new equipment Opportunity EE improvement in new equipment designs concurrent with the transition to low GWP refrigerants Montreal,

12 Technology OpportuniQes (cont) Improved control and monitoring of systems Variable speed compressor Oil-free compressor, magnetic bearings More efficient heat-exchanger Recovery of thermal energy Integration of HVAC system with medium temperature and low-temperature refrigeration plants Supermarket: Multi-ejector technology for CO 2 parallel compression system Motion sensors for occupancy detection; indoor set point temperature optimisation Increased insulation to reduce thermal load Montreal, 20-24

13 Not-in-Kind Mature NIK technologies occupy small niches of the market (e.g. absorption technologies, thermoelectric refrigeration, air cycle). Magnetic refrigeration for the domestic sector holds promise, but the impact on EE is uncertain. District Cooling using absorption chillers, cogeneration and tri-generation plants Montreal, 20-24

14 Policy, RegulaQon, InformaQon OpportuniQes Minimum Energy Performance Standards (MEPS) Labelling helps raise consumer awareness Building codes for Energy Efficiency Good practice guidelines for training, maintenance and operation of RACHP to maintain high EE performance and reduce refrigerant leakage Market mechanisms (e.g. Buyers Club, government bulk procurement) Legislation for energy savings and energy efficiency, by utilities and energy distribution companies Montreal,

15 Minimum Energy Performance Standards (MEPS) MEPS limit the maximum energy consumption of equipment Can be combined with labelling schemes Can remove poor EE products from market Benefit from political and stakeholder commitment Can evolve with innovation as EE improves Montreal,

16 Opportunity to strengthen MEPS in A5 parqes Many A5 parties don t have MEPS for RACHP in place, or MEPS are set at a lower standard RACHP equipment has lower EE in A5 parties Adoption of strengthened MEPS could drive improved EE of equipment Improved EE equipment could enable higher MEPS Access to accredited laboratories is important for effective enforcement of MEPS Montreal,

17 Financial and related incenqves Financial incentives are already widely used in national energy management strategies to drive EE could support implementation of EE programmes concurrently with transition to low GWP refrigerants Examples: Rebates/credits on equipment: mitigate the higher initial price of new and more EE equipment. Loans: extend the repayment period until lower running costs for EE equipment offset the purchase cost Tax penalties: increase the purchase price of less EE designs Tax incentives: to encourage R&D for improved EE designs Montreal, 20-24

18 Key Messages Increased Energy Efficiency has been an important side benefit of the Montreal Protocol through two previous transitions of refrigerants over 30 years Demand for RACHP equipment is increasing rapidly especially in A5 parties RACHP already consumes ~1/6 th of the world s electricity There are many opportunities to achieve improvements in Energy Efficiency during the transition to low GWP refrigerants A coordinated domestic transition to low GWP refrigerants could include a parallel effort on improving Energy Efficiency of RACHP equipment Montreal,