Standards and Labelling policies for buildings, appliances & equipments

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1 IEA Energy Training Week 2013 April 9 th, 2013 Standards and Labelling policies for buildings, appliances & equipments Dr. Yamina SAHEB International Energy Agency Yamina.saheb@iea.org

2 Minimum Efficiency Performance Standards (MEPS) Advantages Provide predictable effects of eliminating low-efficiency products Can ratchet levels periodically Can maximize consumer benefits Very low per unit transaction costs Consumer bear the costs and receive savings benefits Disadvantages Usually mandatory may require consensus/cooperation among multiple stakeholders May incur some up-front costs to consumers Requires good compliance & enforcement policy Savings Potential Determined by feasible technology and cost-effectiveness

3 US MEPS for refrigerators

4 average energy per new refrigerator (kwh/year) or average retail price (1999$) Impact of US MEPS on refrigerators Year kw h/yr Price (1999$) Real retail price in 2002 was 40% lower than in 1980, efficiency 70% better, average change 4% per year

5 Comparative label Advantages Manufacturers continue to offer wide range of efficiencies Receive market incentive for efficiency (against inefficiency) Consumers pay technology costs and receive savings benefits Utilities and government develop basis for incentives and standards Costs are generally low but requires testing Disadvantages Hard to predict impact (compared to standards) May be difficult to update efficiency categories May not maximize consumer benefits. Savings Potential Determined by market demand for higher efficiency products

6 Impact of EU Refrigerator Energy Label Source: CLASP

7 EU Energy Label: Introducing A+ and A++ Seven classes, seven colours - new top marks Layout of the label allows for up to three new energy classes Total number of classes still limited to seven Labelling colour scheme will be adjusted accordingly Energy classes and specific products that must be labelled to be determined by an EC working group Advertising of white goods must indicate energy efficiency Energy labelling obligation will also apply to energy-related products

8 Energy performance Certificate (EPC) Energy Performance Certificates (labels) provide a way of rating individual buildings (both residential and non-residential ones) on how energy efficient (or inefficient) they are in relation to the amount of energy needed to provide users with expected degrees of comfort and functionality. Energy Performance Certificates need to be enforced.

9 What is the implementation status of EPCs? Implementation responsibilities Assessment method EPCs issued since AT National & regional Calculated rating January 2008, January 2009 (public buildings) BE Regional CZ National Calculated and measured rating (public buildings) Calculated rating DK National Calculated rating 2006 FR National DE National HU National Calculated and measured rating Calculated and measured rating Calculated and measured rating IE National Calculated rating NL National PL National PT National Calculated rating Calculated rating Calculated rating Flanders Region: November 2008 (sale), January 2009 (rent), January 2009 (public buildings). Non-residential expected in 2011 January 2009 (new buildings and existing renovated buildings) November 2006 (sale rez and non-rez), July 2007 (rent), July 2007 (new buildings), January 2008 (public buildings) 2002 (new buildings), July 2008 (existing buildings) January 2009 (new and public buildings), January 2012 (existing buildings) January 2007 (new rez buildings), July 2008 (new non-rez and public buildings), January 2009 (existing buildings) January 2008 (sale and rent), January 2009 (public buildings, and social housing) January 2009 (new buildings, renovations, existing buildings for sale/rent and public buildings) July 2001 (new rez and non-rez buildings >1000 m2), July 2008 (new buildings), january 2009 (existing and public buildings) ES National & regional Calculated rating 2007 (new buildings), after 2010 (existing buildings) Source BPIE 2011

10 How many buildings/apartments are labeled? Source BPIE 2011

11 Endorsement Labels Advantages Usually voluntary - manufacturers can opt in or out Provide association between efficiency and quality Consumers bear costs and receive savings Costs generally low Disadvantages Difficult to predict impact of program May not maximize consumer benefits Savings Potential Determined by market demand for highest efficiency products

12 ENERGY STAR U.S. government/industry endorsement labelling partnership Initiated by U.S. EPA (1992) and U.S. DOE (1994), initially for energy-efficient computers Now: efficient products in more than 40 categories, including household appliances, building products, computers & electronics, office equipment, residential heating and cooling equipment, lighting Efficient homes and buildings based on standardized approach for measuring energy performance Tools and materials to help partner organization's efforts to promote energy efficiency, like: Promotional Energy Star marks Advertising campaigns and promotional materials Performance rating systems Sales training materials, educational brochures Awards in recognition of excellence

13 ENERGY STAR How a Product Earns the ENERGY STAR Label Product can earn the ENERGY STAR label by meeting the energy efficiency requirements set forth in ENERGY STAR product specifications Specifications are established based on guiding principles, i.a.: Products must contribute to significant energy savings Products must have features and performance demanded by consumers Consumer can recover additional costs through savings A market share of ENERGY STAR qualified products in a particular category of 50% or higher will prompt consideration for a specification revision Also other factors weigh into the decision, i.a.: Change in Federal minimum efficiency standards Technological changes with additional savings potentials

14 On Mode Power (W) ENERGY STAR TVs: On Mode Limits Are Constant Above Certain Size ENERGY STAR TV On Mode Requirements Version 3.0 Version 4.0 Version Comparable Viewable Screen Size (inches) 20 " 32" 40" 46" 50" 60" Screen Area (square inches)

15 Setting energy efficiency requirements What are possible target technology/efficiency levels? What will be the impact of the policy once implemented? Impacts on consumers and manufacturers Life cycle costs National Impacts Energy consumption Economic Environmental (CO2, SOx, NOx, mercury, CFCs, etc.) Supply capacity (electricity, natural gas)

16 Analysis methodologies Statistical analysis: Allows for precise determination of percent of models to be eliminated by standards (or impacts of labelling program raising market to higher categories) Requires data on performance of all models on the market, often before labelling or standards regime is fully established Allows good evaluation of energy and carbon impacts of program Does not allow evaluation of financial impacts of program Techno-economic analysis: Efficiency levels achievable using designs known to be cost effective Requires data relating equipment cost vs. efficiency Allows precise evaluation of cost effectiveness Allows evaluation of national financial impact of program

17 Statistical analysis for the EU refrigerators Source: CLASP

18 Technico-economic analysis Engineering/economic analysis is considerably more complex than statistical analysis and requires more data Steps for engineering analysis Select appliance classes: differences in service/utility provided Select baseline units, representative of their class Usually, the least efficient model is chosen as baseline because this permits analysis of all possible levels of efficiency standards starting from eliminating the least efficient Select design options that improve energy efficiency Calculate efficiency improvement for each design option Combine design options and recalculate efficiency improvements Develop cost estimates for each design option Costs of manufacturing, installing, and maintaining each design option, including aftersales services for maintaining high-efficient equipment Generate cost-efficiency curves Engineering/economic analysis ensures that there is at least one practical way to meet the standard, frequently suggesting cost-effective yet stringent standards

19 Manufacturer Selling Price ($) Technico-economic analysis for US transformers SA1CuCu M2CuAl M2CuCu M3AlAl M3CuAl M3CuCu M6AlAl M6CuAl ZDMHCuCu % 98.60% 98.80% 99.00% 99.20% 99.40% 99.60% 99.80% Transformer Efficiency at 50% Load Quantify energy savings by technology design Calculate incremental manufacturer cost (or equipment price) by efficiency

20 For S&L programs

21 Institutional framework Legislation, regulatory framework should define: The specific roles and mandates of Government entities in charge of program design, mandating labelling and MEPS, enforcement, monitoring and verification Mandates and procedures for elaboration of test procedures and labelling standards: standardization institutes and/or government agencies

22 Stakeholders involvement Government agencies Standardization institute Certification and accreditation bodies Test laboratories Manufacturers and importers of equipment Consumer organizations and NGOs Technological research institutes Equipment distributors Energy utilities

23 Testing and certification Elements of energy testing infrastructure: Energy test procedure Facilities for testing and monitoring compliance Procedures and organizations for enforcement Test procedures: Are usually national standards developed adopted by the national standardization institute Could be unique domestic procedures or established (adapted) international procedures Testing facilities: Almost every appliance requires a unique test facility Testing is usually done by commercial facilities (certified and accredited private laboratories of laboratories of manufacturers) Compliance testing should be done under government supervision Round-robin testing can compare testing results and improve the quality of testing in commercial facilities Verification testing for compliance

24 Raising awareness and capacity building Consumer awareness: Public awareness campaigns Communication tactics include advertising, press releases, special events, etc. Dissemination channels include mailings, radio, newspapers, transit advertisements, TV, ing, dedicated websites, banner advertisements, etc. Training should be provided to: Government officials Sales personnel Inspectors Sources: PPEE, Chile; FVSA, Argentina

25 Standards & Labels have significant potential for long-term mitigation impacts Gt CO IncandescentLamps Refrigeration Television Standby SpaceHeating WaterHeating SpaceCooling Oven Laundry FluorescentLamps Fan EES&L Total IEO Total Residential Sector Wedges IncandescentLamps Refrigeration Television Standby SpaceHeating 4.5 WaterHeating Space Cooling Oven Laundry TIER 1 Standards TIER 2 Standards Fluorescent Lamps Fan

26 Key messages S&L programs: should be mandatory should have stringent requirements to achieve market transformation (best available technologies) Should be enforced to ensure their effective implementation Endorsement labels should target only very high efficient products Energy requirements should be regularly revised to ensure technology alignment Governments need to invest on: Institutional and organization framework Training and capacity buildings Monitoring, verification and enforcement

27 IEA Energy Training Week 2012 April 3 rd, 2012 Monitoring, Verification and Enforcement for buildings and appliances energy efficiency policies Dr. Yamina SAHEB International Energy Agency

28 Definitions Monitoring comprises the collect and analysis of data. It s an on-going process Verification is the process of determining whether a product (building, appliance, equipment) actually performs according to its claimed energy performance value Enforcement is about responding to noncompliance offences with a suite of timely and appropriate actions

29 Benefits of MV&E for each stakeholder Stakeholder Costs Benefits Government/programme management Compliant participant Non-compliant participant Higher MV&E expenditure -Higher compliance costs -Higher investment required in new technology High risk sanctions at least equal to the economic benefits Attainment of programme targets -Products priced at a premium -Economic return on investment -Access to new markets in jurisdictions with high energy efficiency requirements -Products priced at a premium -Economic return on investment -Access to new markets in jurisdictions with high energy efficiency requirements

30 Buildings Energy Codes Compliance in China Research & Development Government-related Stakeholders Third Parties National Level CABR MOHURD Local Level Local Building Research Entities Local Construction Administration Department Building Design Companies Drawing Inspection Companies Local Quality Supervision Stations Construction Companies Construction Inspection Companies Test Centers and Labs

31 Implementation of Compliance on buildings energy codes in China Stage 1: Preparation Stage 2: Building design and inspection Stage 3: Construction and inspection Stage 4: Completion Land use permit Building design Construction Building completion Team formation through a bidding process Design inspection Inspection Final compliance report Construction permit issued Certificate for occupancy Market

32 Compliance rate to buildings energy codes in China (urban areas) 100% 90% 97% 98% 98% 99.50% 90% 95.40% 80% 82% 70% 65% 71% 60% 50% 53% 54% Design Construction 40% 30% 20% 21% 10% 0%

33

34 Key messages MV&E is key in ensuring effective implementation of buildings and appliances energy efficiency policies MV&E organizations should be defined at early stage of policy design MV&E require resources (human and financial) Sanctions should be strong enough to discourage non-compliance Compliance results should be made public

35

36 Group Planning Exercise Describe Current status/existence of Building energy codes Comparative Labels and Endorsement Labels Minimum Energy Performance Standards (MEPS) MV&E program What are the next steps required for policies and for stakeholders to increase energy efficiency?

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