PROMOTION OF HIGHER EFFICIENCY ROOM AIR CONDITIONERS IN THE PHILIPPINES: NATIONAL ROADMAP ON ENERGY-EFFICIENT AIR CONDITIONERS

Transcription

1 PROMOTION OF HIGHER EFFICIENCY ROOM AIR CONDITIONERS IN THE PHILIPPINES: NATIONAL ROADMAP ON ENERGY-EFFICIENT AIR CONDITIONERS Endorsed by JUNE 2016

2 This report has been produced as part of the ASEAN-SHINE program. ASEAN-SHINE is an initiative implemented by the International Copper Association, in partnership with UNEP, SIRIM, RCEE, EEI and IIEE. Program ID Project title Promotion of higher efficiency room air conditioners National Roadmap on Energy-Efficient Air Conditioners Acronym ASEAN-SHINE Funded by European Union, Switch-Asia program Grant amount 1,749, EUR Contract ref. DCI-ASIE 2012/ Name of beneficiary European Copper Institute Partners - United Nations Environment Programme - Division of Technology, Industry and Economics (DTIE), Energy Branch - International Copper Association Southeast Asia - Electrical and Electronics Institute - SIRIM QAS International - Integrated Institute of Electrical Engineers - Research Center for Energy and Environment Contact person Pierre Cazelles Director Partnerships Asia International Copper Association China pierre.cazelles@copperalliance.asia Program implementation team Technical Advisor Funding Steering Committee

3 Promotion of higher efficiency room air conditioners National Roadmap on Energy-Efficient Air Conditioners PHILIPPINES June 2016 Endorsed by Prepared by Financial support Disclaimer: This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.

4 NATIONAL POLICY ROADMAP: PHILIPINNES TABLE OF CONTENTS page Executive Summary Rationale I. Background II. Vision III. Goals and Targets IV. NRm Major Components A. Legal Basis B. Testing Infrastructure C. Mutual Recognition Agreement D. Monitoring, Verification and Enforcement E. Reporting F. Information, Education and Communication (IEC) G. Sustainability V. Actions and Measures VI. Supporting Policies to Promote Products with Better Energy Performance at the National Level Annex 1A. PESLP Proposed Implementation Arrangements: Program Development and Implementation Annex 1B. PESLP Implementation Arrangements: Application Procedure for Compliance to PESLP Annex 1C. PESLP Proposed Implementation Arrangements: PPR Development Process LIST OF FIGURES Figure 1. NRm Initiatives and Timeline Figure 2. NRm Development Process Figure 3. MEPS Stringency and Coverage Cooling Capacity in ASEAN Economies Figure 4. Program Development and Implementation Process Figure 5. Application Procedure for Compliance to PESLP Figure 6. PPR Development Process

5 NATIONAL POLICY ROADMAP: PHILIPINNES LIST OF TABLES Table 1. Philippine Minimum EER Requirements for RAC from 1995 to 2002 Table 2: Goals and Targets of the NRm Table 3. Initiatives and Milestones Table 4. Support Activities and Milestones for Strengthened Implementation of PESLP page LIST OF ABBREVIATIONS AEC AIR APAEC ASEAN ASEAN SHINE BPS DC DOE DTI EEE EER ERTLS EUMB ICA ICC IEC IEC ISO kj/h LATL MEPS MRA MVE MTOE NEECP NRm ASEAN Economic Community ASEAN Integration Report ASEAN Plan of Action for Energy Cooperation The Association of Southeast Asian Nations ASEAN Standards Harmonization Initiative for Energy Efficiency Bureau of Philippine Standards Department Circular Department of Energy Department of Trade and Industry Electrical and Electronic Equipment Energy Efficiency Ratio Energy Research and Testing Laboratory Services Energy Utilization Management Bureau International Copper Association Import Commodity Clearance Information, Education and Communication International Electro-technical Committee International Organization for Standardization kilojoule per hour Lighting and Appliance Testing Laboratory Minimum Energy Performance Standard Mutual Recognition Agreement Monitoring, Verification, Enforcement Metric Tons of Oil Equivalent National Energy Efficiency and Conservation Program National Roadmap

6 NATIONAL POLICY ROADMAP: PHILIPINNES LIST OF ABBREVIATIONS PAIA PEP PESLP PLIA PNS PPR PS RAC SCD TC TWG UNEP Philippine Appliance Industry Association Philippine Energy Plan Philippine Energy Standard and Labelling Program Philippine Lighting Industry Association Philippine National Standard Particular Product Requirement Philippine Standard Room air conditioner Standard Conformity Division Technical Committee Technical Working Group United Nations Environment Program

7 NATIONAL POLICY ROADMAP: PHILIPINNES 1 EXECUTIVE SUMMARY The development of a National Roadmap (NRm) for Room Air Conditioners (RAC) is an initial step to improve the competitiveness of the Philippine RAC industry in the face of the ASEAN economic integration heralded by the open market scenario among the ten (10) ASEAN member countries of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The NRm specifies the plan of action to meet the 2020 timeline set by the ASEAN Economic Community (AEC) to harmonize test and evaluation methods and the Minimum Energy Performance Standard (MEPS). The NRm for RACs is largely anchored on the anticipated implementation of the restructuring of the Philippine Energy Standards and Labelling Program (PESLP) through the newly approved and published Department Circular entitled Declaring the Compliance of Importers, Manufacturers, Distributors and Dealers of Electrical Appliances and other Energy Consuming Products with the Philippine Energy Standards and Labelling Program (PESLP) as a Policy of the Government. The NRm is a product of stakeholders discussions and consultations led by the DOE in partnership with UNEP and ICA in the framework of the ASEAN Standards Harmonization Initiative for Energy Efficiency (SHINE). The initiatives under the NRm and overall timeline are summed up in Figure 1. Figure 1. NRm Initiatives and Timeline

8 2 NATIONAL POLICY ROADMAP: PHILIPINNES NATIONAL ROADMAP on Energy-Efficient Air Conditioners The NRm development process for the Philippines involves the following activities: Figure 2. NRm Development Process RATIONALE The Philippine National Roadmap (NRm) is a plan of action for improving the energy efficiency of air conditioners by 2020 through policy development and application of specific technology and initiatives to meet short and long term goals consistent with the National Energy Efficiency and Conservation Program (NEECP) and the country s ASEAN commitments. The residential sector in the Philippines is the third largest energy consuming sector, with an average share of 17.5 % in the country s total energy consumption during the planning period With the projected household growth rate of 2.04% per year, the total number of households is expected to reach 28.7 million in 2030 from 18.5 million in Electricity demand in the residential sector will increase its average share by 58.5 % in 2030 from 26.8 % in 2011 at an annual growth rate of 3.6% per year. 3 The commercial sector s energy requirement on the other hand is projected to increase from 2.6 MTOE in 2011 to 4.6 MTOE in 2030, growing at an annual growth rate of 2.7%. The collective energy savings under the current implementation of the Philippine Energy Standards and Labelling Program (PESLP) consistently rated first among the energy efficiency programs of the DOE as reported in the Philippine Energy Plan (PEP) for the planning period The PEP lists the 2011 energy savings from the PESLP at 2.29 MTOE. A proactively managed PESLP is expected to bring a parallel substantial increase in energy 1 Philippine Energy Plan (PEP) 2 PEP PEP

9 NATIONAL POLICY ROADMAP: PHILIPINNES 3 savings to directly impact the rise in energy demand brought about by the continuing population and economic growth of the country. Additionally, as a member of the ASEAN and signatory to the ASEAN Economic Community (AEC), the Philippines, through the Department of Energy (DOE), is pursuing progressive actions to meet the challenges of the ASEAN economic integration where a single market and production base is one of the identified pillars to achieve greater regional and global opportunities for the ASEAN member countries. At the 3 rd meeting of the ASEAN Ministers on Energy in Kuala Lumpur, Malaysia last 7 October 2015, a Joint Ministerial statement Powering ASEAN towards a Greener Community was issued and included an endorsement of the Regional Policy Roadmap to harmonize air conditioning standards in ASEAN countries by The objective of the Regional Policy Roadmap is to mitigate energy demand and greenhouse gas emissions by pushing to increase the market share of energy efficient air conditioners. The ASEAN Integration Report of 2015 (AIR 2015) 4 mentions free flow of goods as one of the measures towards opening up the regional market and lists harmonization of standards as a key to achieving this end. With this fundamental course of action, the DOE is developing this national roadmap to harmonize testing/evaluation standards and minimum energy performance standard of air conditioners, with the rest of ASEAN member states of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The air conditioner NRm will set policies and initiatives to enable the country to meet the 2020 deadline of the regional Policy Roadmap for air conditioners standards harmonization. A positive parallel impact on other appliances under the PESLP (linear and circular fluorescent lamps, CFLs, refrigerators and soon to be covered televisions, washing machines and motors) is expected such that the country can be assured of the continuing significant contribution of the program in reducing national energy demand and maintaining, if not increasing, market share for national products within the regional economy and beyond in an open market environment. This NRm development is in partnership with the United Nations Environment Program (UNEP) and the International Copper Association (ICA) within the framework of the ASEAN Standards Harmonization Initiative for Energy Efficiency (ASEAN SHINE), with support and co-funding from the European Union grant program Switch Asia. 4 ASEAN Integration Report 2015, ASEAN Secretariat Jakarta

10 4 NATIONAL POLICY ROADMAP: PHILIPINNES I. BACKGROUND The PESLP started with room air conditioners in 1992 through an agreement by and between the DTI, the DOE and the then Association of Home Appliance Manufacturers (AHAM), now called the Philippine Appliance Industry Association (PAIA). Through the years until the transfer of the LATL facilities from Quezon City to Taguig City, the coverage has expanded to refrigerators and lighting products with the added participation of the Philippine Lighting Industry Association (PLIA) in the program. The operating system of the old PESLP agreement required pre-testing procedures for safety and energy performance prior to market placement of products. Due to the relatively longer time required for energy performance tests as compared with safety tests, ICC/PS mark issuances were delayed. The ICC/PS marks are DTI labels attached to products that have been tested and found to be fit for consumer use and which indicate market readiness. Without the energy performance tests and labelling requirement, the products need to pass only the safety tests for issuance of the same. The DTI then issued the following changes in the prevailing practice related to BPS product certification schemes to facilitate ease in doing business without compromising product safety. BPS Memorandum Circular No. 08 instructing the BPS to pay attention to product safety and study the possibility of declaring performance and energy labelling standards voluntary BPS DAO 15-01, Series of This issuance stated, among other products, Performance and Labeling Standards of lighting products covered previously under the BPS Mandatory Product Certification Scheme are now subject to mandatory markings/labels on a self-declaration basis. However, Safety Standards for such lighting products are still implemented under the said BPS Mandatory Product Certification Scheme. The DOE considers the above DTI Memorandum Circular No. 08 and BPS DAO 15-01, Series of 2015 as timely catalysts to explore new implementation possibilities under its own charter to maintain certain products under mandatory compliance and help ensure the realization of progressively bigger energy savings. Instruction No. 8 issued at the recent APEC Energy Ministers Meeting held in Cebu last October 13, 2015 is also given important consideration, where member economies were encouraged to develop MEPS in Building Code and energy appliances, industrial equipment and smart metering devices. Figure 3 shows the Philippine s standing of 2.67 in MEPS level in comparison with the ASEAN target MEPS level of 2.9. The Philippines realizes its responsibility to facilitate the means for the local industry players to maintain business competitiveness under the open market scenario beginning with ensuring that Philippine RACs meet the ASEAN MEPS requirement.

11 NATIONAL POLICY ROADMAP: PHILIPINNES 5 Figure 3. MEPS Stringency and Coverage Cooling Capacity in ASEAN Economies for Single-Split ACs and Harmonized MEPS EER 2.9 EER (W/W) COOLING CAPACITY (BTU/H) Singapore Thailand Malaysia Philippines Indonesia (inverter) Vietnam Indonesia (non-inverter) Under the NRm, the DOE assumes the leadership for energy-related issuances and regulations including MEPS. DTI has indicated its support to the DOE in this objective. Table 1. Philippine Minimum EER Requirements for RAC from 1995 to 2002 The cooling capacities reflected in the above table will be the starting level from which the MEPS will be changed within a timeframe in accordance with the consensus reached with relevant stakeholders. The DOE expects no difficulty in meeting the required MEPS stringency level within or earlier than the regional timeframe because local manufacturers are already producing higher MEPS air conditioners relative to the documented official Philippines current MEPS level shown above. 5 Philippine EERs are measured rather than rated values.

12 6 NATIONAL POLICY ROADMAP: PHILIPINNES II. VISION The DOE vision is to reach the ideal Energy State by 2030 by ensuring the best energy choices for a better quality of life 6. Consistent with this vision and through the NRm, the DOE sees the institution emerging from being a national leader in energy efficiency in air conditioners and other appliances to being among the regional leaders in the ASEAN and beyond. III. GOALS AND TARGETS The goals and targets in Table 2 will enable the DOE and local stakeholders to work together towards attaining MEPS regional harmonization at the level of 2.9 by 2018 and in the future aim for even higher MEPS as may be possible. Table 2: Goals and Targets of the NRm 6 DOE Vision, DOE Portal

13 NATIONAL POLICY ROADMAP: PHILIPINNES 7 IV. NRm MAJOR COMPONENTS The goals and targets in Table 2 will enable the DOE and local stakeholders to work together towards attaining MEPS regional harmonization at the level of 2.9 by 2018 and in the future aim for even higher MEPS as may be possible. A. LEGAL BASIS The legal framework for the implementation of a restructured PESLP under the DOE emanates from Republic Act 7638, also known as Department of Energy Act of 1992 which mandates the agency to: a. b. Ensure a continuous, adequate, and economic supply of energy through integrated and intensive exploration, management and development of indigenous energy resources and, the judicious conservation, renewal and efficient utilization of energy in keeping with the country s economic growth and development, and, Rationalize, integrate and coordinate various programs of government towards self-sufficiency and enhanced productivity in power and energy without sacrificing ecological concerns. Specifically for the PESLP, a proposed Department Circular based on the DOE mandate and entitled Declaring the Compliance of Importers, Manufacturers, Distributors and Dealers of Electrical Appliances and other Energy-Consuming Products with the Philippine Energy Standards and Labelling Program (PESLP) as a Policy of the Government is under consideration for approval by April 2016.

14 8 NATIONAL POLICY ROADMAP: PHILIPINNES As of the finalization of this NRm and consistent with the timeline of 2016, the proposed Department Circular was approved by the DOE Secretary in 28 April 2016 and published on 30 April 2016 in newspapers of general circulation. 7 Publication is a requirement prior to implementation. B. TESTING INFRASTRUCTURE The PESLP relies on the DOE s and third party laboratories capability to test for the energy performance of RACs. As of this writing, the new DOE test facility for RACs that can handle units up to a capacity of 50,000 kj/h is still under installation and will be commissioned by August The new facility will be fully equipped to test the fixed and variable type RACs, and ISO accreditation is expected in Until such time, ISO certified and accredited local laboratories and recognized foreign laboratories under the Mutual Recognition Agreement (MRA) in the ASEAN region are available to provide testing services to stakeholders. On the test facility side, one of the primary requirements for MRA accreditation is compliance to the provisions of ISO Due to site transfer of the laboratory in 2012 from Quezon City to Taguig City, the originally issued ISO for the RAC Test Facility is no longer valid such that the laboratory accreditation has to be renewed after the new testing facilities are commissioned. The NRm reflects the timeline as 2017 for the new accreditation to be obtained. C. MUTUAL RECOGNITION AGREEMENT Through the DTI, the Philippines participates in the ASEAN sectoral MRA for Electrical and Electronic Equipment which recognizes test results and certifications from other ASEAN laboratories subject to the requirements of the agreement. Any possible changes in the MRA will be addressed by the DTI through consistent coordination with relevant MRA entities. D. MONITORING, VERIFICATION AND ENFORCEMENT The DOE will comply with the provisions of a good MVE regime as specified in the 2010 Collaborative Labelling and Appliance Standards Program s (CLASP) A Practitioner s Guidebook on Best Practice Monitoring, Verification and Enforcement for Appliance Standards & Labeling which provides information frameworks based on experiences of existing standards and labelling program, limited only by country- specific conditions. 7 Philippine Daily Inquirer and Philippine Star.

15 NATIONAL POLICY ROADMAP: PHILIPINNES 9 a. Monitoring Monitoring for compliance on labelling requirement will be the responsibility of the DOE and its conduct will be guided by manpower and budget availability. Options for monitoring include the following: - Third-party monitoring as may be engaged by the DOE - DOE field offices in the Visayas, Mindanao and Luzon - Joint initiative with other government entities The best monitoring arrangement may be the subject of a feasibility study to ensure that the data obtained will be a good representation of market conditions as regards RACs. b. Verification of Compliance to MEPS and Declared Energy Performance Manufacturers under the post market arrangement will be through testing of units at the DOE RAC test facility or any MRA recognized RAC laboratory as may be available. The samples are collected from the market and tested in accordance with the provisions that will be defined under the Particular Product Requirement (PPR) for RACs. Cost centers for this part of MVE where manufacturers/distributors play a significant role will also be defined under the PPR. c. Enforcement Special attention must be given to enforcement and application of sanctions because, in the absence of an enabling law directly authorizing the same, the DOE is presently not in a position to enforce and apply sanctions for noncompliance. With the above condition, the DTI has expressed willingness to explore the possibility of deputizing the DOE to enable the enforcement of sanctions and penalties through the use of legal instruments such as a memorandum of agreement between the two agencies. In the medium term, a consolidated Energy Conservation Bill which is now pending in Congress, is seen to address all pending issues related to energy efficiency and conservation regulations and compliance including the pertinent powers to impose penalties where needed. Thus, a continuing effort to have it passed into law shall be actively pursued. Choosing the most effective MVE arrangement is critical since the success of its implementation will result to the following benefits, among others: increased credibility of energy labels resulting to more energy savings recognition by compliant industry participants that higher investment returns result from greater market credibility higher rate of compliance provides a measure of the effectiveness of the standards and labeling program minimize, if not prevent, the influx of sub-standard products in the market

16 10 NATIONAL POLICY ROADMAP: PHILIPINNES E. REPORTING The Philippines, through the DOE, needs to participate in the development of the Regional Product Information Database by the ASEAN Center for Energy (ACE), which is targeted to be completed by The data base is intended to provide product information to member economies and alerts on non-compliance related cases. The continuing participation of the DOE in the meetings of the Energy Efficiency and Conservation Sub Sector Network (EE & C-SSN) under ACE can provide updated information to enable pro-active action on the possible requirements of regional reporting of test results and other information. On the local front, the DOE needs to improve market data gathering initially through projected sales declaration by program participants in their service request forms to address the invisibility 8 of measures to define the success or failure of the standards and labelling program. Because of industry sensitivity to opening up their market data, a non-disclosure policy maybe necessary to make the process more acceptable to program participants. The scheme is seen to greatly improve the estimation of energy savings in the country under the PESLP. F. INFORMATION, EDUCATION AND COMMUNICATION (IEC) While the Consumer Welfare and Promotion Office (CWPO) of the DOE is tasked to promote energy plans, programs and projects, the Energy Utilization Management Bureau (EUMB), likewise conducts promotional programs and activities relevant to energy efficiency and conservation and is provided with the much needed annual financial support to reach a wider set of population for IEC on energy efficiency and conservation purposes. A consolidation of various IEC campaigns on energy efficiency and conservation by these units is seen to yield better results in the use of resources and shall be pursued. G. SUSTAINABILITY The continuing development and entry of new EEE products in the market with its progressive facility and budgetary requirements, among others, may necessitate a study of the future of the PESLP. The private sector had become increasingly active in putting up testing facilities for appliances and other electrical and electronic products because of good economic returns driven by existing government policies on energy efficient appliances but it remains for the DOE to expand the PESLP coverage to other appliances where the focus is more on reducing consumers energy demand Space and budget requirement 9 for new facilities and manpower complement and sustainable budget for the equipment maintenance together with the continuing 8 Philippines Energy Efficiency Strategy, 9th proof_serd_energy Efficiency Asian Development Bank 9 Except for the possible budget responsibility of the air con industry in the Verification portion of the MVE, all other expenses for the initiatives under the NRm will mainly be provided by the national government as provided for and approved under the General Appropriations Act and/or donor agencies as may be available.

17 NATIONAL POLICY ROADMAP: PHILIPINNES 11 technical enhancement need of personnel are seen to limit the expansion of the scope of the PESLP in the long term. A feasibility study for an Energy Center, consistent with earlier ideas expressed by the DOE for an Energy Efficiency and Conservation Center 10 establishment will provide the initial direction on how the government should proceed in the coming years regarding the PESLP In the interim, the DOE shall continue to support the PESLP through the EUMB-EECD and ERTLS-LATL. V. ACTIONS AND MEASURES Table 3 lists a matrix of the course of action for the attainment of harmonization in testing methods and MEPS in consonance with the ASEAN objective. It also includes country specific activities that will support future decisions for the PESLP. Table 3. Initiatives and Milestones 10 National Energy Efficiency and Conservation Roadmap for the Philippines

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20 14 NATIONAL POLICY ROADMAP: PHILIPINNES The continuing development and entry of new EEE products in the market with its Other support activities are identified in Table 4, which are intended to strengthen the implementation of the PESLP and other energy efficiency and conservation measures.

21 NATIONAL POLICY ROADMAP: PHILIPINNES 15 Table 4. Support Activities and Milestones for Strengthened Implementation of PESLP VI. SUPPORTING POLICIES TO PROMOTE PRODUCTS WITH BETTER ENERGY PERFORMANCE AT THE NATIONAL LEVEL Energy efficiency and conservation program is an intrinsic part of a sound energy plan such that the DOE formally launched the National Energy Efficiency and Conservation Program in 2004 to focus on the development and promotion of new technologies and the practice of sensible energy habits. To this end, the DOE continues to promote energy efficiency and conservation through aggressive dissemination of energy standards, energy efficient products and innovative technologies through specific programs and activities throughout the year. Some of the programs and activities that are promoted nationally are the following:

22 16 NATIONAL POLICY ROADMAP: PHILIPINNES Philippine Energy Standards and Labelling Program it ensures that consumers have the information they need to make the right choices when they purchase household appliances, lighting products and soon, motors. Dissemination of the following guidelines from the Philippine Efficient Lighting Market Transformation Project: a. Energy Conserving Design of Buildings b. Efficient Lighting c. Roadway Lighting Guideline Don Emilio Abello Energy Efficiency Award-an annual recognition award for initiatives of private companies and managers who have implemented energy efficiency and conservation program that resulted in considerable energy savings. Government Energy Management Program a program for energy efficiency and conservation targeting agencies and institutions of government where government agencies are required to reduce electricity and energy consumption by 10% and this is embodied in Administrative Order 126.

23 NATIONAL POLICY ROADMAP: PHILIPINNES 17 Annex 1A. PESLP PROPOSED IMPLEMENTATION ARRANGEMENTS Figure 4. Program Development and Implementation Process Annex 1B. PESLP IMPLEMENTATION ARRANGEMENTS Figure 5. Application Procedure for Compliance to PESLP

24 18 NATIONAL POLICY ROADMAP: PHILIPINNES Annex 1C. PESLP PROPOSED IMPLEMENTATION ARRANGEMENTS Figure 6. PPR Development Process

25 PROMOTION OF HIGHER EFFICIENCY ROOM AIR CONDITIONERS IN THE PHILIPPINES: NATIONAL ROADMAP ON ENERGY-EFFICIENT AIR CONDITIONERS