Rescaling the Energy Label No.5: 2006 version in Thailand

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1 ก ก ก ก 2549 Rescaling the Energy Label No.5: 2006 version in Thailand Srinual Soksod and Panu Suwicharcherdchoo Appliances Efficiency Improvement Project, Demand Side Implementation Division, EGAT 53 Moo 2 Charunsanitwong Rd., Bangkruai District, Nonthaburi Thailand Tel: Fax: panu.s@egat.co.th Abstract For over a decade, EGAT, through its Demand Side Management Programs (DSM), has played a leading role in the management of the electricity consumption in all key sectors including residential, commercial, and industrial sectors while educating the energy conservation awareness and efficient energy utilization concepts to the public and particularly young generations. The implementation of the DSM Programs has highly succeeded and well surpassed the set target. EGAT has continuously pursued the participation in conservation program featuring No.5-labelling campaigns on several energy efficient appliances including compact fluorescent lamps, refrigerators, air conditioners, ballasts, and electric fans. In 2004, No.5-labelling campaigns were also extended to other kinds of appliances. A new Energy Saving Electric Rice Cooker Program was unveiled on July 29, In addition, EGAT also signed an agreement with the Illuminating Engineering Association of Thailand for the energy efficiency improvement of new models of luminaries, new products to be added into the No.5-labelled appliances. In 2006, the Department of Alternative Energy Development and Efficiency (DEDE), the Ministry of Energy and EGAT Plc. will launch the Program of Rescaling the Energy Label No.5 for room air conditioning system and refrigerator, first. It should reduce the electricity peak demand by 5-10 per cent and should reduce the energy demand by 5 per cent for the whole country. The Ministry of Energy and EGAT Plc. jointly take responsibility for the rescaling scheme in For another product such as an electric fan, a rice cooker, a compact fluorescent lamp etc., there will be a minor change in Energy Label No.5. Rescaling the energy label is the policy of the Ministry of Energy as well as EGAT Plc. to improve efficiency of the household appliances to higher level. In conclusion, this paper will reveal the details of how to rescale the Energy Label No.5: 2006 version in Thailand. 1. Introduction The DSM was created within EGAT by a Cabinet resolution for the purpose of implementing DSM programs in the electric power sector. The resolution, which defines the DSM mission and mandate, specifically mentions six categories of electrical appliances that significantly contribute to Thailand s electricity demand growth. These include the following: T-8 fluorescent tubes, Air conditioners, Refrigerators, Compact fluorescent lamps, Low lass magnetic ballasts and Electric motors. The DSM Subcommittee oversees the activities of the DSM and has representatives from the following key organizations: EGAT Governor serving as a Chairman, National Energy Policy Office Secretary General serving as a Vice Chairman, One representative from the Ministry of Finance, One academician, MEA representative, PEA representative, DEDP representative, Energy Conservation Center of Thailand representative, EGAT s representative serving as a secretary, NEPO s representative as an assistant secretary, EGAT s representative as another assistant secretary. Thailand has experienced rapid economic growth for the past two decades. This rapid growth of the Thai economy has resulted in a significant increase in the power demand. To slow down the growth in the peak demand and to combat environmental degradation, comprehensive demand side management (DSM) efforts were introduced in Thailand in the early 1990s. In 1990, the DEDP completed an initial study of the potential for electricity savings in Thailand. That study concluded that a demand side management program should be undertaken by the Electricity Supply Industry (ESI) to reduce investment in new power plants. In 1991, a follow-up study conducted by Monenco/BC Hydro recommended that a utility-funded and managed DSM program be initiated immediately in Thailand. Subsequently, the International Institute of Energy Conservation (IIEC) assisted EGAT in preparing a comprehensive DSM plan that was approved by the Government in November, In December, 1991, a cabinet resolution gave EGAT the legal mandate and authority to establish the Demand Side Management Office (DSMO) as a new division. The DSMO

2 ENETT mandate was to implement DSM programs in the Thai electric power sector in cooperation with the two distribution companies, the MEA and PEA. The activities of the DSMO were to be overseen by the DSM subcommittee whose members are appointed by the NEPC. The DSMO was officially formed in December 1992 within EGAT as the executing agency for planning, administration, implementing, and evaluating five-year pilot DSM programs in Thailand in the following areas: Load management-direct load control and thermal energy storage projects, Commercial/Service Sector-Lighting (high efficient fluorescent lamps and ballasts) and new buildings (energy efficient design and equipment), Industrial Sector-High efficient motors, Residential Sector-High efficiency air conditioners refrigerators, fluorescent lamps, and household appliances. In recognition of the unique potential of the Thai DSM effort to serve as a model for similar conservation efforts in other developing countries, the World Bank provided support for DSM projects in Thailand starting in Its initiative had the support from the Global Environmental Facility (GEF) as well as bilateral donors such as Australia and Japan, which offered a confessional loan for DSM programs. One of the principal goals of the program was to use DSM measures to reduce greenhouse gas emissions. fluorescent lamps; 2,799,302 Air-Conditioners; 2,852,440 ballasts; 12,855,749 refrigerators; and 11,311,870 electric fans. Apart from the appliances, EGAT has also labeled 6,477,462 bags of brown rice, amounting to 12, tons. The consumption of brown rice not only saves energy but is also good for our health. As part of the efforts to maintain the efficiency standards of the labeled appliances and to protect consumer rights, EGAT randomly buys the Energy Label No.5 appliances in the market for a retest every year. The appliances that fail to meet the earned efficiency rating will be stripped off the labels or have their efficiency rating level lowered. They will then be banned from advertising using the previously earned efficiency rating label. 2. BACKGROUND OF THE ENERGY LABEL NO.5 IN THAILAND Following the overwhelming success of the Energy Efficiency Fluorescent Program in 1993, EGAT has asked manufacturers and importers of electrical appliances to have their products tested by the Electrical and Electronics Institute under the standard guidelines of the Thai Industrial Standards Institute (TISI) for energy efficiency labeling. Since the launch of the first energy efficiency labeling of refrigerators in 1994, the Energy Label No.5 has been widely recognized as the designation of energy efficiency. It has also sprawled the introduction of many other high efficiency appliances into the market including Air- Conditioners in 1995, Ballasts in 1998 as well as compact fluorescent lamps and electric fans in Also in 2001, EGAT along with manufacturers and importers of refrigerators agreed to increase the efficiency rating by 20% to ensure a greater energy saving for consumers. As of June 2004, EGAT has labeled 4,931,600 compact Figure 1: Energy Label No.5 : Version 3. FACT SHEET ABOUT THE ENERGY LABEL NO.5 IN THAILAND EGAT s energy labels for refrigerators and air conditioners rank the products on a scale of #1 to #5, where a rating of #5 is the highest efficiency level and #3 is average. The label also shows consumers the average energy consumption per year (kwh/year) and the average electricity price per year (Baht/year). Since these programs are voluntary, manufacturers/distributors choose not to label their products if tests reveal that their products are less efficient than average (#3). Thus, no product in the market shows #1 or #2 label. To obtain an energy label, one sample unit must be randomly selected from a pool of at least 30 units of the same model (same size and features) and sent to the

3 ENETT Thailand Industrial Standards Institute (TISI) laboratory for energy performance testing. Once the model 1 has been tested, it is issued a label with a ranking between #1 to #5 according to its efficiency value compared to the average efficiency value within its size category. Then, the manufacturer/distributor may choose whether or not to use the assigned label on their product. Table 1: Energy Efficiency Rating: Air-Conditioner Rating No. 5 > < < THE ENERGY LABEL NO.5 FOR HOUSEHOLD APPLIANCES Energy Label No.5 is recognized among consumers as a designation of energy efficiency on various products such as refrigerator, air-conditioner, compact fluorescent lamp, ballast, fan, nutritious brown rice, rice cooker, and electric lamp. Promoting the use of high efficiency appliances is one of the important strategies of Demand Side Management (DSM) of the Electricity Generating Authority of Thailand (EGAT). Thus, the residential sector is the first target of implementation as it comprises 12 million households, which accounts for 22% of the country s energy consumption. If many households use high efficiency appliances, the energy demand of the country will be much decreased. Energy Label No.5 is an innovative alternative for consumers to get better benefit from electricity use but paying less. The most important factor is that it reduces national energy consumption. 4.1 Energy Efficient Refrigerator: The Energy Efficient Refrigerator Program made its debut on September 20,1994. The resultant energy efficiency labeling efforts created a market demand for energy efficient refrigerators. Later in 2001, the refrigerator standard was 20% upgraded to be Energy Label No Energy Efficient Air-Conditioner: Air-conditioner is the most electricity-consumed appliance in the residential sector and the business sector. The Energy Efficient Air-conditioner Program was unveiled on September 20, Energy Efficient Compact Fluorescent Lamp: The energy efficient compact fluorescent lamp saves 70-75% of energy. It also lasts longer than the existing one. The Million Hearts, Million Lights Program to encourage consumers to use compact fluorescent lamps was initiated on September 20, Energy Efficient Ballast: The energy efficient ballast saves 40% of energy and gives more confidence in safety. The Energy Efficient Ballast Program was introduced on February 1, Energy Efficient Electric Fan: The energy demand from using fans increases the total energy of the country 70 MW. each year. The Energy Efficient Electric Fan Program made its debut on September 20, Nutritious Brown Rice: The Nutritious Brown Rice Program was initiated on February 18, 1999 as a part of the efforts to reduce energy used in the milling process. It saves 60% of energy consumption and certified by the Ministry of Commerce and the Rice Inspection Committee of the Thai Chamber of Commerce for the high quality and great taste. 4.7 Energy Efficient Electric Rice Cooker: The number of electric rice cookers in Thailand is more than 12,000,000 with total sale of 1,500,000 each year. The Energy Efficient Electric Rice Cooker Program was unveiled on July 29, This new electric rice cooker will save 10% of electricity consumption. 4.8 Energy Efficient Electric Luminaire: Memorandum of the cooperation for The Energy Efficient Electric Luminaire No. 5 Program was signed between EGAT and the Illuminating Engineering Association of Thailand (TIEA) on September 28, 2004 for the study to improve the electric lamp. The new model of electric lamp will not only reduce a number of fluorescents in the existing lamp but also the heat from fluorescents. 5. RESCALING THE ENERGY LABEL NO.5 : 2006 VERSION 5.1 Air-Conditioner: Analysis of EGAT s data General information 9 years (From )

4 ENETT No rescaling 818 Models with 1,527,493 Labels 8, , Btu/h Max. = 14.78, Min. = 9.86 Avg. = 11.07, Label-weighted = Standard Deviation = 0.38 Facts about the Standard and Labeling Scheme 1.0 point difference between each level 10.6 performs like a minimum requirement. Almost all are No.5 labels. (Only 4 models accepted No.4 level.) Endorsement rather than comparative label No maximum requirement (Target) Most satisfied models gather slightly above No.5 labels share about 40-50% of the whole market. Tentative A/C Rescaling Scheme Below is the summary of A/C Labeling rescaling scheme. This is just a tentative plan of EGAT and DEDE (Department of Alternative Energy Development and Efficiency). It also requires some fine adjustments and approvals from the whole working committee. Table 2: Energy Efficiency Rating () : Air-Conditioner Energy Efficiency Level March 11, or 2009 Premium No.5 N/A No No.4 (9.6) No (9.6) 10.0 Remarks: 1. (9.6) = MEPS Minimum Energy Performance Standard 2. After March 2005, products with below 9.6 will not be allowed to sell in Thailand marketplace. 3. At the beginning of 2006, there might be rescaling as specified in the table. 4. The next tier would be around 3 years after the first step is effective, i.e or Figure 2: Energy Label No.5 : 2006 Version 5.2 Refrigerator : Analysis of EGAT s data General information (10 years) 13 participants 14,299,833 labels issued (at market share of 90%) 1 door229 models 2 doors 295 models - 3 doors 19 models Energy Consumption Criteria - Use kwh/year to identify efficiency instead of Energy Factor (Adjusted Volume / EC) - According to the final meeting of 11 June Set MEPS as No.3 - MEPS 7.5% as No.4 - MEPS 15% as No.5 - AV = Adjust Volume - EC = Energy Consumption per year

5 ENETT AV L > 100 Table 3: Energy Efficiency Rating: Refrigerator Energy Consumption Criteria for 1- Door refrigerators L >= No =MEPS 300 +AV 0.80 =EC EC = 0.46AV No.4 (MEPS - 7.5%) 278 +AV 0.74 =EC EC = 0.43AV No.5 (MEPS - 15%) EC = 0.68AV EC = 0.39AV Energy Consumption Criteria for 2- Door or more refrigerators Refrigerator. For other products such as an electric fan, a rice cooker, a compact fluorescent lamp etc., there will be a minor change in Energy Label No REFERENCES 1. EGAT, 2005, Appliances Efficiency Improvement Project Handbook, Bang Kruai, Nonthaburi 2. EGAT, DSM Thailand Demand Side Management ( ). Bang Kruai, Nonthaburi 3. Nittaya Kaewkhum, Model and Transition Strategy: Demand-Side Management under Privatized Electricity Supply Industry in Thailand for the Electricity Generating Authority of Thailand. Rajabhat Institute, Suan Dusit, Bangkok AV L > No =MEPS EC = 0.46AV No.4 (MEPS - 7.5%) EC = 0.43AV No.5 (MEPS - 15%) EC = 0.39AV ACKNOWLEDGEMENT Special thanks to EGAT Plc. which sponsors the financial support. L >= 450 EC = 0.80AV EC = 0.74AV EC = 0.68AV In 2006, the Department of Alternative Energy Development and Efficiency (DEDE), the Ministry of Energy and EGAT Plc. will launch the Program of Rescaling the Energy Label No.5 for the room air conditioning system and refrigerator, first. It should reduce the electricity peak demand by 5-10 per cent and should reduce the energy demand by 5 per cent for the whole country. The Ministry of Energy and EGAT Plc. jointly take responsibility for the rescaling scheme in For another product such as an electric fan, a rice cooker, a compact fluorescent lamp etc., there will be a minor change in Energy Label No.5. Rescaling the energy label is the policy of the Ministry of Energy as well as EGAT Plc. to improve efficiency of the h o u s e h o l d a p p l i a n c e s t o t h e h i g h e r l e v e l. 6. CONCLUSION Next year, 2006, the Department of Alternative Energy Development and Efficiency (DEDE), the Ministry of Energy and EGAT Plc. will launch the Program of Rescaling the Energy Label No.5 for Air-Conditioner and 1-door