Appliance Standards and Market Transformation
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1. Appliance standards and market transformation policies like labeling play a key role in reducing energy use and achieving energy savings. 2. Standards introduced from 2009-2010 for appliances like refrigerators are expected to save consumers $43 billion over 30 years. Additional savings could come from negotiated industry agreements. 3. The Alliance to Save Energy promotes energy efficiency worldwide through advocacy and education on policies like appliance standards and labeling.
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Appliance Standards and Market Transformation
- 1. Appliance Standards and Market Transformation Jeffrey Harris Vice President – Programs Reducing Energy Use: The Role of Appliance Standards EESI Briefing – April 15, 2010
- 5. Synergy: Appliance Standards and Complementary Policies RD&D Original Distribution Efficiency Number of Units New Distribution “ Market-pull”: Information, Rebates, Public Procurement, (etc.) Efficiency standards
- 6. Impact of Standards and MT Policies: 3 Examples Source: S. Nadel, ACEEE, in ECEEE 2003 Summer Study, www.eceee.org 75% 60% 25% 20 30 40 50 60 70 80 90 100 110 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 Year Index (1972 = 100) Effective Dates of National Standards = Effective Dates of State Standards = Refrigerators Central A/C Gas Furnaces SEER = 13 Source: Art Rosenfeld
- 7. Some Technology Advances Occur without Standards
- 9. DOE Budget for Appliance Standards Doubled (FY10-11) DOE Budget (2010$ millions)
- 10. DOE’s Challenge: A Heavy Lift for Standards and Test Methods
- 12. Beyond Standards: FTC “Comparison” Energy Label
- 13. Appliance Labeling (II): Voluntary “Endorsement” Label
- 14. Should FTC Consider a “Categorical” Label ?
- 15. Consumers Need Help to Understand & Use Labels Proposed FTC Light Bulb Label
- 17. Needed: Need “Multiple Metric” Standards (e.g., grid-connected) Could this be the next peaking (or “spinning reserve”) power plant?
- 18. Needed: Efficiency Standards Specific to New Construction
- 19. Needed: Progressive Efficiency (Bigger Should be More Efficient)
- 20. RD&D as the Foundation for Next-Generation Standards “ Drop-in” Heat Pump Water Heater
- 21. Appliance Standards & Labeling Offer Global Savings Potential
Editor's Notes
- Founded 1977: Senators Humphrey and Percy Business and Government Leaders 170 Associates ($1.5 T annual sales, in US + 50 countries)
- 1) WH Stds (ASAP Press Release 4/10): - Over 30 years: 2.6 quads of energy over 30 years (= total needs of ~13 million households for 1 year Consumers save ~$8.7 B CO2 cut by 154 million metric tons (= 30 million cars for 1 year) Full transition to HP + condensing gas WH would save 4X as much: ~10 quads of energy and reduce CO2 emissions by ~500 million metric tons. 2) Fluor + incand. Reflector lamp s (ASAP Press Release 6/09): T8 replace T12 Halogen IR reflector lamps Over 30 years: 1.2 trillion kilowatt-hours over thirty years (= all homes in the U.S. in 1 year) – about 12.3 Q primary ( JH calc. ) Businesses and consumers save $35 billion (net) CO2 cut by ~600 million metric tons ( = nearly 110 million cars for 1 year) 3) Another 20+ rulemakings under this Administration 4) Consensus Stds: (potential savings of $44 B by 2030) - Outdoor lighting (11/09) – NEMA, ASAP, ACEEE, NRDC, ASE, PG&E - Save 24 to 42 billion kWh annually (= output of 3 to 6 1000 MW power plants) - ~~$31 B (rough est., JH – 5 yrs @ 12 B kWh/yr + 10 yrs @ 33 B kWh/yr * $0.08/kWh – conservative ,for incremental cost) - Furnace, AC, HP (10/09) – AHRI, ASAP, ACEEE, NRDC, ASE … +NEEP, NWPPC, CEC - Save consumers ~$13 billion (net) 2013 to 2030 - Between now and 2030 save 3.7 quads (=18 million households for 1 year) annual CO2 reduced 23 million metric tons of CO2 in 2030 (=4 million cars every year)
- Idealized effic. distribution Efficiency standards cut off low end Successful RD&D raises high end Market-oriented strategies, incl. purchasing, shift avg. efficiency levels… … creating a new efficiency distribution
- In past 30 years, thanks to State and Federal Standards (and market preparation with utility rebates and labeling): 25% furnace efficiency improvement (and more to come due to DOE standard) 40% AC efficiency improvement 75% refrigerator efficiency improvement Today’s new refrigerators use 75% less energy than in 1973, while: Capacity up 29% Price down 64 %
- Transition from CRTs to flat-panel LCD monitors has taken less than 15 years Transition from Day-Timer (and other calendars) to PDAs has been even faster
- -Appliance stds budget up by a factor of 3-4 from a few years ago - Although BT budget is also increasing as % of EERE, appliance stds allocation increased from 12-13% of BT budget to about 17% (2011 request).
- 2010-2011: 17 standards to be issued + 20 test methods to review/update This will put DOE on track to achieve the savings estimated by ASAP “KA-Boom” report (7/09): Potential to save, cumulatively by 2030: 1,900 terawatt-hours (1.9 trillion kilowatt-hours) $123 billion for consumers + businesses reduce CO2 158 million tons per year by 2030 (roughly = 63 large conventional coal-fired power plants) And States can help – e.g., CA adopted new TV standards (11/09) to take effect 2011 (33% savings), with a second tier in 2013 (50% svgs) - TVs (+ STB, etc.) can use 10% of home electricity, per CEC - 1000 models already meet CA standard – thanks in part to Energy STAR
- Issues: Many consumers still don’t understand the “scale” Metrics differ – and sometimes “more efficient” is to the right, sometimes to the left! Comparisons made within narrow classes (most efficient SxS uses more energy than LEAST efficient top-freezer!) Same with chest vs upright freezer Same by refrig or freezer capacity
- 1) Energy STAR: Since 1992 40,000 models in 60 product categories 3,000 mfrs and 1500 retail partners 300 M products purchased in 2009 Basis for federal tax credits, utility DSM rebates, and state rebates (ARRA) Over 75% brand recognition International Challenges: updating the spec (keep at or near top 25 percentile) verifying self-certifications 2) Also NEMA “Premium” – motors, fluorescent ballasts
- India Japan EU – also for buildings, cars ADVANTAGES: Consistent buyer message Framework for incentives Clear “stepping stones” for regular advancement of efficiency Basis for international “alignment” - among trading partners or globally
- Advanced technology, high-efficiency equipment can be easier to justify for new construction, but difficult or costly to install as replacement in an existing home. – but little or no added cost if designed into a new home Examples: - condensate drain and outside air ducting for condensing furnace or WH - electric outlet within 6 feet for forced-burner WH
- Examples include TVs, refrigerators – maybe houses (LEED-homes, Energy Star, and some local building codes)
- DOE Lighting “L-Prize” - $10 M + Federal purchases – per EPACT-2005. Philips had first entry – now being tested. ORNL – Industry partnership on HP water heater. In general, DOE (and other) R&D can look ahead to creating a more efficient “max-tech” level and also look at ways to reduce mfg. costs
- More than 50 countries around the world have adopted S&L programs From M. McNeil et al. 2008. “Global Potential of Energy Efficiency Standards and Labeling Programs”. LBNL 72512. S&L global potential to save 1 Gt CO2 per year by 2030 (14 Gt cumulatively, 2010-2030). Reduce residential emissions to 2005 levels by 2030 Level commercial emissions now to 2030 account for 20-33% of all GHG reductions for buildings, found cost-effective in last IPCC analysis (Levine, Urge-Voorsatz, 2007) Challenge: 1) Fill the gaps 2) Drive market competition and international trade in efficient products by - harmonizing test methods - test-lab certification + “mutual recognition” - “alignment” of standards and labeling tiers (good-better-best-TopTen) From S. Meyers et al. 2008. “Realized and Projected Impacts of U.S. Energy Efficiency Standards for Residential and Commercial Appliances.” LBNL 63017 Standards will reduce buildings primary energy use and CO2 in 2030 by 4% compared to BAU Residential sector savings is larger, at 8%. Cumulative energy savings = 39 quads by 2020, and 63 quads by 2030 Cumulative NPV of consumer benefit = $241 billion by 2030, and $269 billion by 2045 Overall consumer B/C ratio 2.7 to 1 (1987-2050)