BRESL project report

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BRESL PROJECT
REPORT
ON
MANUFACTURER SUPPORT
PROGRAM

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BARRIER REMOVAL TO THE COST EFFECTIVE DEVELOPMENT AND
IMPLEMENTATION OF ENERGY EFFICIENCY STANDARDS AND LABELING
PROJECT (BRESL)
FINAL REPORT
ON
ES&L MANUFACTURER SUPPORT PROGRAMME
The contact was awarded to MR. AMJAD ALI (INDEPENDENT CONSULTANT) on 23rd
July,
2010 to 31st
October, 2010 to carry out the study for BRESL project. The consultant under the
contract was required to do the following studies
Deliverables:
(i) Report on review and needed revision of existing Pakistan (Safety) standards of PSQCA of six
BRESL products in the country. Also develop minimum energy performance (MEPS) for the six
BRESL products for Pakistan
(ii) Report on evaluation of manufacturing processes, material usage and costs involved and
recommendations for improving energy efficiency and costs of Fans.
(iii) Educational workshop for the manufacturers of Fans for the improvement in the design, material
and costs to achieve energy efficiency.
(iv) Report on possible impact of ES & L on the business of manufacturers of BRESL products in
Pakistan and recommend benefits for the Manufacturers for adopting the ES & L regime.
(v) A report on review of international best practices (India and China) on energy efficiency standards
and methods of dissemination and adoption and its possible replication in Pakistan

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INTRODUCTION:
BRESL Pakistan is aimed the adoption and implementation of energy standards and labels (ES&L) in
Pakistan, and in so doing bring about energy savings from the use of energy efficient
appliances/equipment. The project also facilitates harmonization of test procedures, standards and
labels among developing countries in Asia
The project will largely focus on six products i-e: Refrigerators; Room air conditioners; Electric
motors; Ballasts for FLs; Electric fans and Compact fluorescent lamps for capacity building and
assisting government, manufacturing industry, distributing, retail, consumer and environmental
stakeholders in Pakistan to implement the most cost-effective energy efficiency measure available.
In first phase BRESL is focusing on ceiling fan because when Pakistan appeared on the world map,
there were only few industrial units in the country and the Fan Manufacturing Industry was one
amongst them. Back then, and some say still; it is considered as a cottage industry as most of its
manufacturing units are operating on a small-scale, but with the addition of some large-scale
manufacturing units the Fan Industry of Pakistan has become a major player in the engineering
products manufacturing sector of the country.
The fan industry is mainly clustered in the four urban centers of Pakistan including, Gujrat,
Gujranwala, Lahore and Karachi. The current production capacity of all the fan manufacturing units
reaches up to 5 to 6 million fans per annum. Out of the total production, approximately 30% fans are
of pedestal fans, 7% are bracket fans and the remaining 63% are ceiling fans. The fan industry of
Pakistan is considered to fall in the Light Engineering Industry Category.
Although most of the fan manufacturing units in this industry are small and medium-scale units, a
few units are quite large and they even include integrated system i.e. from motor winding to high-
pressure dies’ casting. These units are the main players in the export field. Sales are also fairly
concentrated with five large firms in Gujrat and two in Gujranwala, with collective sales reaching
upto a total of 40% of overall industry sales. Pakistan currently has 8 large-scale, 50 medium-scale
and around 450 small-scale fan manufacturing units.

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TABLE OF CONTENTS
Page
Chapter-1...............................................................................................................................................8
1 Manufacturing Process of Fan Industry of Pakistan.......................................................................9
1.1 Small size Manufacturers.........................................................................................................9
1.2 Medium size Manufacturers...................................................................................................11
1.3 Large size Manufacturers.......................................................................................................13
1.4 Raw Material used for fan manufacturing..............................................................................15
1.5 Manufacturing Process:..........................................................................................................16
1.6 Cost involved in fan manufacturing.......................................................................................18
1.7 Ceiling Fan Comparison with Test Results............................................................................19
1.8 Recommendations for improving energy efficiency..............................................................19
Chapter-2...............................................................................................................................................24
2 Educational workshop for the manufacturers of fans for the improvement of energy efficiency 25
Chapter-3...............................................................................................................................................27
3 Possible impact of ES&L on the business of manufacturers ........................................................28
3.1 Local and Export Market........................................................................................................28
3.2 Export.....................................................................................................................................29
3.3 Market Analysis .....................................................................................................................32
3.4 Current Situation ....................................................................................................................33
3.5 Manufacturing Sector and Energy Efficient Products in Pakistan.........................................35
3.6 International Experiences.......................................................................................................36
Chapter-4...............................................................................................................................................37
4 Review of International Experiences in ES&L.............................................................................38
4.1 India country program............................................................................................................38
4.1.1 Baseline and market assessment for S&L target products..............................................38
4.1.2 Assessment of testing capacity for priority products and expansion needs....................39
4.1.3 Development of at least one new minimum efficiency standard....................................39
4.1.4 Preparation of energy information labeling for one product ..........................................40
4.2 China Introduction..................................................................................................................41
4.2.1 Institutions involved in standards and labeling development in China ..........................43
4.2.2 Ascendance of standards and labeling in China energy conservation policies...............44
4.2.3 Minimum Energy Efficiency Standards..........................................................................46

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4.2.4 Voluntary Endorsement Label ........................................................................................46
4.2.5 Energy Information Label...............................................................................................47
4.2.6 Impact of China appliances standards and labeling program .........................................48
4.2.7 Refrigerator Standard......................................................................................................48
4.2.8 Fluorescent Lamp Ballast Standard ................................................................................49
4.2.9 Room Air-Conditioner Standard.....................................................................................50
4.2.10 Fluorescent Lamp Standard ............................................................................................51
4.2.11 CECP Endorsement Labels for Refrigerators and Room Air Conditioners ...................51
4.2.12 Outlook for the future .....................................................................................................53
4.3 Programs for Energy Efficiency Standards and Labeling in Pakistan ...................................54
4.4 Energy Efficiency Standards..................................................................................................54
4.5 Product Testing ......................................................................................................................55
4.6 Dissemination, adoption of ES&L and its possible replication in Pakistan...........................56
4.7 Organizational structure for adoption and replication of ES&L............................................56
4.8 Proposed Organizational Roles..............................................................................................59
KEY FINDINGS AND CONCLUSIONS………………………………………..………………….61
ANNEXES:
Annex-I Fan motor winding techniques
Annex-II Fan blade design
Annex-III Presentation of manufacturer support program
Annex-IV World MEPS list
Annex-V References

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ACRONYME
APLAC Pacific Laboratory accreditation Council
AQSIQ Administration for Quality Supervision, Inspection, and Quarantine
BEE Bureau of Energy Efficiency
BIS National Standards Body of India
BRESL Barrier Removal in Energy Standards and Labeling
CECP China Energy Conservation Program
cfm Cubic Feet per Meter
CLASP Collaborative Labeling and Appliance Standards Program (NGO)
CNC CNC (Computerized Numerical
CNIS China National Institute of Standardization
CRCP Consumer Rights Commission of Pakistan (NGO)
ECL Energy Conservation Law (China)
EDM Electric Discharge machine
EER Energy Efficiency Ratio
EF Energy Foundation
ENERCON National Energy Conservation Centre
ES&L Energy Standards and Labeling
ESCO Energy service company
ESS Electric Steel Sheet
FDI Fan Development Institute
FTA Free Trade Agreements
GHG Green House Gasses
ILAC International Laboratory Accreditation Cooperation
kWh Kilo Watt Hour
LBNL Lawrence Berkeley National Laboratory
MEES Minimum energy efficiency standards
MFN Most Favoured Nation
MoST Ministry of Science & Technology
MSTQ Metrology, Standards, Testing and Quality
NAFTA North American Free Trade Association
NCS National Conservation Strategy
NEAP National Environmental Action Plan (Pakistan)
NEP National Environment Policy
PCSIR Pakistan Council of Scientific and Industrial Research
PEFM Pakistan Electric Fan Manufacturing Association
PEPA Pakistan Environmental Protection Agency
PNAC Pakistan National Accreditation Council
PSI Pakistan Standard Institute’s
PSQCA Pakistan Standard Quality Control Authority
PVC polyvinyl chloride
SAARC South Asian Association for Regional Cooperation
SAPTA South Asia Preferential Trade Area
SARI/E South Asia Regional Initiative on Energy
SASO Saudi Arabian Standard Organization

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SBTS State Bureau of Technical Supervision (China)
SETC State Economic and Trade Commission
SETC State Economic and Trade Commission (China)
SITC Standard International Trade Classification
SME Small and Medium Enterprizes
TDAP Trade Development Authority of Pakistan
TWG Technical Working Group
TWh Terawatt Hour
UL Underwriters Laboratories
US.EPA U.S. Environmental Protection Agency
W Watt
Wh Watt Hour

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Chapter-1
Manufacturing Processes, Material Usage and Costs
Involved
And
Recommendations for Improving Energy Efficiency

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1 Manufacturing Process of Fan Industry of Pakistan
1.1 Small size Manufacturers
The core competence of small manufacturers is the ability to produce low cost fans at minimal
prices. The low costs are achieved as a result of 1) hiring only seasonal employees, 2) using
simple, traditional production techniques & machines mostly (second-hand), and 3) by catering
to far-flung rural markets through wholesalers. Raw material generally used is of inferior
quality.
 Machinery used
The small manufacturers are using rather older production techniques and machinery in their
production process. The quantity of each machine varied from 2 to 6 for each type, the following
machines are mostly used:
 Lathe Machine (Belt type)
 Drill machine (Bench type)
 Automatic winding machine for ceiling fans (Locally made)
 Hand coil machine for pedestal fans
 Die for blade bending
 Air compressor & gun for painting
 Oven for backing Paint (natural gas operated)
 Electrical devices for fan checking
The following electrical devices are usually applied for the checking of fans:
 Watt meter
 RPM meter
 Manufacturing process
The Production process of the small manufacturer is very simple (here we will discuss the
example of the ―Ceiling fan‖ manufacturing process). The manufacturers just used to buy the
main parts of fans and assemble the parts using:
 Turning or Tooling the parts (B)
 Winding the rotor stator (A)
 Assembling
 Painting
 Checking (C)
 Packing

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Manufacturing Process of Small Manufacturers
(Source: Diagnostic Study Fan Cluster Gujarat ―UNIDO)
Aluminum
Blades
Pressing By
Dies
Fitting of
Blade Carrier
Painting
Fitting &
Assembling
Packing &
Checking
Store
C

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1.2 Medium size Manufacturers
The manufacturing firms used to manufacture relatively limited range of medium priced
economy fans through 1) employing less capital intensive processes, 2) utilizing medium
quality material, and 3) selectively outsourcing components to low cost vendors.
Generally, like the larger manufacturers, the medium-sized manufacturers also used to perform
coil winding process in-house (a critical process with huge impact on the quality of the end-
product) only for the ceiling fans, using the locally made automatic winding machines. Some of
the medium sized firms also used rotary die casting machines to die cast the main body plate of
the fan and a few are also using the automatic press for developing rotor stator in-house.
 Machinery used
 Lathe Machine (Belt type)
 Drill Machine (Bench type)
 Automatic winding machine for ceiling fans (Locally made)
 Hand coil machine for pedestal fans
 Die for blade bending
 Rotary die casting machine
 Dies for body casting
 Semi-automatic press for rotor stator
 Oven for backing Paint (natural gas operated)
 Electrical devices for fan checking
The following electrical devices are used for checking of fans:
 Watt meter
 RPM meter
 Test chamber with anemometer to check the air delivery
 Manufacturing process
The Production process of the medium manufacturer is somewhat different from the small
manufacturers as they use the in-house installed rotor stator facility by manual stampation
press & molding facilities on rotary die casting machines.

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Manufacturing Process of Medium Sized Manufacturers (Ceiling Fan)
(Source: Diagnostic Study Fan Cluster Gujrat ―UNIDO)
Aluminum
Blades
Pressing by
Dies
Fitting of
Blade Carrier
Painting
Fitting &
Assembling
Packing &
Checking
Checking Store
Aluminum Die
Casting
Body Plate of
Aluminum
Tooling &
Turning
Drilling
Fitting
Painting
Steel sheet
Stampation (Manual
Press) Blades
Assembling of
Rotor Stator
Tooling &
Grinding
Axle Fitting
Winding
A
B
C

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1.3 Large size Manufacturers
Large manufacturers are distinguished by their ability to acquire new machinery and production
techniques, and to invest in equipment, employees, brand equity, and distribution channels
development. Their products are more expensive, composed of higher quality raw material,
used modern machinery during production processes and the product range is also quite
diversified. Generally, the manufacturers use to introduce at least one new design every year.
Other than the common metal-made fans, they have also introduced plastic bodied fans
―Decorative‖ fans and ―fans with fancy lights‖ are their most recent improvements.
Estimation indicated that about 80-90% of fans from the Gujarat cluster are exported only by
the large manufacturers for the last many years. The reasons figured out for this large share in
the total exports could be linked to the
1) Brand establishment in the international markets
2) Financial sources
3) Marketing techniques
4) Skilled and trained management staff
5) Better communication/negotiation skills
6) Modern technology
7) Maintenance of separate funds for R&D
 Machinery used
 Capstan lathe machine (Belt type)
 Lathe machine (Notched Gear type)
 Drill machine (Bench type)
 Oven for backing paint (natural gas operated)
 Automatic winding machine ceiling fans (Imported & Locally made)
 Automatic coil winding machine (pedestal fan)
 Automatic paper insertion machine (pedestal fan)
 Coil & wedge inserting machine (pedestal fan)
 Coil shaping machine (pedestal fan)
 Lacing machine (pedestal fan)
 Automatic progressive die Stamping power press
 High pressure die casting machine
 Enameled copper wire plant
 CNC wire cut machine (for die making)

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Aluminum
Blade
Blade Wash
Blade Dry
Pressing/angle
Fitting of carrier
Painting
Checking
Aluminum die-
casting
Barring sizing
Buffering
Drilling
Painting
Checking
Sheet cutting
Sheet press
Assembling of rotor
&stator
Pin fixing
Tooling & grinding
Stator fixing
Axil fixing
Winding
Fitting
Copper rod
Wire
manufacturing
Chemical
coating
Wire testing
Checking
Packing
Store
Manufacturing Process of Large Sized Manufacturers (Ceiling Fan)

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 Electrical Devices for fan checking
The following electrical devices were used for fan checking:
 Watt meter
 RPM meter
 Test chamber with anemometer to check the air delivery
 In-house lab for testing the performance of fans
1.4 Raw Material used for fan manufacturing
Most of the raw materials used by the fan industry are directly or indirectly imported from
different countries. Irregular and constrained supplies of some basic inputs are the main
bottlenecks. Some of the raw materials used in the manufacturing of a fan are: electric steel
sheets, aluminum, enameled copper wire, ball bearing, steel rod and PVC2
.
 The main constraints hindering the growth of industry as well as export are
Ball bearing is an important part that ensures smooth running and noiseless working of an
electric fan. Fan manufacturers are now importing this item because of smuggled ball bearings
local units are not producing quality products. Thus, anti-smuggling measures should be taken
to save the local industry, which in turn would ensure regular supply of ball bearing to fan
industry at reasonable prices. In the meantime, the import duty on ball bearings should be
rationalized.
Like ball bearings, Electric Steel Sheet (ESS) is also a major item in fan manufacturing. It
determines the quality, performance, durability and electric power consumptions of a fan.
However, due to ESS shortage and high prices, fan manufacturers are using Mild Steel Sheet
(MSS). The motors manufactured from this material are not good quality and use more
electricity.
Prices of raw material are a major constraint in export. For instance, in some cases C & F
prices of raw material in Pakistan are greater than C & F price of fans from India. Therefore,
if the government really wants to increases export of fan, custom duties on raw material
should lowered to a reasonable level.
There is an urgent need to establish a research department for innovation and to improve
designs of fans according to the requirements of international buyers. Procedure should be
simplified and the latest technical laboratory should be set-up to test the fans as per
international standards. The PSQCA should establish its testing laboratory in the area where
industry exists and test fans on two standards i.e., at local and international2
.

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1.5 Manufacturing Process:
It includes all the processes from procuring raw material to the delivery of final and finished
product to the customer.
 Procurement/Production and storage
Production process of a fan starts with following basic elements.
• Fan body
• Rotor
• Copper wire
• Unbent blades
• Miscellaneous parts
All of these things are available in local as well as foreign markets and are purchased on
competitive rates. Fan Body and rotor are also produced in factory by using Roller Die Casting
method. Billets are purchased from local market to be used as raw material in this process.
Now, Fan body and rotor are not stored and are sent directly to production facility for further
processing. Copper wire, blades, and other miscellaneous parts are stored in a store room.
 Threading and Finishing
This process can be further split into two sub-processes.
• Internal threading and finishing
• External threading and finishing
 External threading and finishing
In this process fan body is fitted on a lath machine by a worker. This machine rotates the body
at high speed. While rotation, a tool is touched with this body, which not only ensures that it
comes into right shape but also finishes it. It caters only the external part of body.
 Internal threading and finishing
This is similar to external threading. The difference is only that in this process the internal part
of the fan body is threaded and finished.
 Drilling and Tapping
In this process, holes are made in the fan body as desire by using latest drill machines. Both
single and punch drilling is used for this process. Then after checking, this body is taken to the
fitting department.
 Rotor turning
In this process, Rotors are threaded and finished to make sure that they will be easily fit in the
fan body.

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 Rotor Grinding
This process is concerned with grinding any undesired parts of rotor. It means it is done to fit it
in the fan body and to ensure efficient winding on it
 Winding
The rotor, which is finalized after grinding and checking, is then brought for winding. In this
process copper wire is issued from store room and is wound on the rotor by using machines.
Insulators are also paced between the winded wire and the router surface to avoid short-circuits.
Two machines are used for complete winding of the rotor. This winded rotor is then taken to
fitting department to be placed in the fan body.
 Fitting
In this process, the winded rotor, stator, barring and other miscellaneous parts are fitted in the
fan body to complete it. Fan body is also balanced in this process. After fitting and balancing,
this body is again checked finally. Defected pieces are sent to concerned departments for
rectification.
 Blade Bending
Unbent-blades are issued form store and are bended on machines. This process takes place
parallel to threading, grinding, winding etc.
 100% testing before packing and paint
When fan is complete, it is sent for 100% final testing. In this process blades are fitted for
some time to check the rpm and other variables. Slight changes in the shapes of blades
are made on spot for rectification. When finally passed, blades are removed and are sent
separately along with the body to for paint and packing.
 Paint and packing
When finally passed in testing, body and blades are sent for paint. After paint, these are
again sent for packing. Blades are packed separately from body.

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1.6 Cost involved in fan manufacturing
Value Chain Analysis of “Ceiling Fan4
”
S. No. Material Unit Cost Cost
1 Aluminum blades 104
2 Axle Ceiling 30
3 Ball bearing 6202 40
4 Main body 120
5 Copper wire 200
6 Dimmer 40
7 Nakka 50
8 Paint 50
9 Rotor stator 150
10 Capacitor 25
Miscellaneous 51
Total 860
Material
Cost- Rs 860
Body
Turning Rs. 6
Body
Drilling Rs. 6
Body
Drilling Rs. 6
Checker &
Packer-Rs 6
Painter
Wages-Rs 6
Fitter
Wages-Rs. 6
Winder
Wages-Rs. 8
Over heads -
Rs 80
Gross profit @
15%-Rs 148
Rs. 860 Rs. 866 Rs. 872 Rs. 878
Rs. 886Rs. 892Rs. 898Rs. 904
Rs. 984 Rs. 1132

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1.7 Ceiling Fan Comparison with Test Results
The data reveals that out of the total production, approximately 67% are ceiling fan, 25%
pedestal and 8% are bracket fan. The estimated no. of ceiling fan manufactured in 2009 was
around 3,490,000. The ceiling fans were grouped by the consultant (IN CONSULT (Pvt.) Ltd.)
arbitrarily on the basis of their power requirements to assess the market share as under:
Group Power Requirement Market %age
share
No. of units
Group A Between 60-90 watts 25.0% 872,500
Group B Between 90-110 watts 35.0% 1,221,500
Group C Between 111-130 watts 35.0% 1,221,500
Group D 131 watts and above 5.0% 174,500
Total 100% 3,490,000
Some of the manufacturers are manufacture only one category fans whereas other
manufacturing more than one category fans. Pak Fan, GFC Fan, Youns Fan, Royal Fan and
Climax Fan are generally manufacturing ceiling fans under category A. for detailed report of
testing results on measured electric power consumption of ceiling fan please ―Ref: GTZ report
on development of energy efficiency standards and labeling program.”
1.8 Recommendations for improving energy efficiency
 Product Description
A ceiling fan is defined as a hard-wired, non-oscillating fan that is suspended from the ceiling
for circulating air via the rotation of horizontal fan blades. Electric motor powered ceiling fans
have been used for cooling building occupants since the 1880's with little change in the basic
configuration of the fan. They consist of three; four or five flat blades attached to an electric
motor, which is usually suspended from the ceiling by a down rod (see Figures1).
(Figure-1)

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Two factors must be taken into account in assessing the benefits of fans: their actual energy
use and the added internal heat gains produced by the fans during operation. The measured
electrical demand of ceiling fans varies between 60 and 140 Watts depending on model and
speed selection. A power demand of 60 W at medium speed is probably typical.
 Design Objectives
An improved ceiling fan design which would provide better air moving efficiency while
reducing energy consumption. The BRESL project goals of improving three areas of current
ceiling fan design are the ceiling fan blades, controls, and motor. Our design objectives for the
improved ceiling fan blade design were as follows:
1. Maximum air flow (cfm) per input watt
2. Air flow distribution (uniform air movement throughout the room)
3. Quietness of operation
 Particulars
1. Fan blade angle
2. Operational speed rpm
3. Geometry of adjacent surfaces: top surface (ceiling). Lower surface (floor)
In lieu of a more efficient motor (which is still an objective for the project) our goal is to see if
a smaller, less expensive motor could be used with superior fan propeller blades to create
performance equivalent to the best ceiling fans using larger motors, providing both improved
energy efficiency, potentially lower cost, and superior comfort.
 Efficiency Measures
The three principal factors affecting ceiling fan efficacy are motor size, motor quality and
blade design. The relationships between these factors and ceiling fan efficiency are:
 Motor Size
Fan motors are typically sized for quiet operation and long life, not for high efficiency. Motor
efficiency generally increases with increasing motor load relative to motor size. If the motor is
oversized, the fan operates less efficiently.

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Figure-2
 Motor Quality
There is considerable variation between the performance of standard and energy-efficient
motors. Improved design, materials, and manufacturing techniques enable energy-efficient
motors to accomplish more work per unit of electricity consumed. Most ceiling fans motors
are shaded pole induction motors less than 1/8 hp, the least efficient motor type used in
household appliances. But even within this motor class there are many design decisions that
can significantly affect motor efficiency.
For production of good quality and energy efficient motor please go through Annex-I
Figure-3

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Figure-4
 Fan Blade Design
The weight and aerodynamic drag of the fan blades affect the load on the fan motor. Most
fans use flat (angled) fan blades, and simply setting the angle of the blades correctly can result
in higher operating efficiencies.
A flat blade has two major drawbacks: a nearly even chord length over its entire span and a
fixed pitch angle. Because the tip of a blade moves at a higher rotational speed than its root,
air flow over a conventional fan blade is lowest near the hub and highest at the tip. Smoothing
this distribution would allow the entire blade to contribute equally to moving air.
For production of good quality and energy efficient motor please go through Annex-II
Note: The references in annexure I and II are only for information with the formal
approval of US patent. If ceiling fan manufacturers want to adopt or implement the annex-I
and II for fan manufacturing process, they have to contact with US patent for their legal
approval and other formalities.

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Figure-5
Figure-6

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Chapter-2
Educational workshop for the manufacturers of fans for
the improvement
Of
Energy efficiency

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2 Educational workshop for the manufacturers of fans for the
improvement of energy efficiency
An educational workshop was organized on ―fans efficiency improvement by modifying in the design
and material to achieve energy efficiency‖. As per scope of BRESL project how to produce energy
efficient fan using manufacturers own manpower and equipment by making small changes in
their fan design and material used and to explore international market to compete with world
leading manufacturers by manufacturing energy efficient fans.
Workshop focused was on materials which are used by Pakistan local fan manufacturers like:
• Electric steel sheets
• Aluminum
• Enameled copper wire
• Ball bearing
• Steel rod
• PVC
During workshop it was explained to manufacturers if they will use 99.9% pure copper instead of
silver/aluminum their fan efficiency will be improved without doing and design amendment but
some of the manufacturer responded that 1st
of all 99.9% pure copper is not available in market
but if they will import it, it will be very costly for them and the cost of fan will be doubled.
Because of purchasing capacity of consumer they will not afford it and their business will be
stopped. As well it was discussed if manufacturer will use 90% pure copper instead of 99.9%
pure copper it will almost do the same purpose with less cost effect.
Secondly it was also discussed with local fan manufacturer if they will use pure Electric Steel
Sheet (ESS) instead of Mild Steel Sheet (MSS) and drum sheet for motor manufacturing it will
also improve the efficiency of their fan.
Finally discussion was on, if manufacturer are not agree to change the material of their fan but
they can also improve their fan efficiency by making small changes in fan blade design. As well
some world success stories were share with them like America and India how they improve the
efficiencies of their local manufactured fan by modifying the fan blade. Firstly it was discussed
with fan manufacturer about their fan blade angle and its chord line which is directly involved in

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air flow of the fan and there are no any mathematical calculation and designs available with
majority of the SME’s that how to make the angle on fan blade so that they are not able to
produce good quality of fan as per international standards.
As well it was also explain to the audience with picture diagrams and mathematical
calculation formulas (for detail please check presentation copy attached Annex-III) that
how to design fan blade with good line of chord and how to make an angle on blade to
maximize the air flow, because air flow of the fan is directly proportional with fan efficiency.
Finally explained about the thickness of the fan blade which should be 5 to 5.5 mm on rotor
end and 3.5 on tip end not less than 3.5 mm on tip end because it is not allowed by WHO and
also some time environment and health hazard. If fan blade thickness with be as per standard
it will reduce the resistance on fan motor if fan motor rmp will be increased it means fan
efficiency is improved.

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Chapter-3
Possible impact of ES&L on the business
of
Manufacturers

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3 Possible impact of ES&L on the business of manufacturers
3.1 Local and Export Market
Fan is a daily use item. Its utility increases, especially in the summer season. The industry is
producing about 5 to 6 million fans per annum and meeting successfully the local as well as
export demand. Out of the total production, approximately 30 percent fans consist of pedestals,
7 percent consist of brackets and remaining 63 percent are ceiling fans. The industry belongs to
light engineering industry category, and is one of the industries that existed at the time of
independence. In the early 1950s it was declared as cottage industry and its more than 50
percent units still fall in this category1
.
Fan industry is mainly confined to Gujranwala and Gujrat, cities of Punjab province of
Pakistan. The reason for its remaining a cottage industry is that majority of the units does not
have full facilities of production under one roof. They usually give offers to the units having
machines for different parts like fan guard, blade castings, core lamination etc. These units have
lathes, shapers, milling machines, and power pressers, die casting machines and electroplating
equipment. Therefore, most of the units are simply assembling units. Thus, they do not give
brand names to their products.
Besides small and medium units, a few units are quite large and have integrated system i.e.
from motor winding to high-pressure dies castings. These companies have reputed brands
names and the qualities of their products are of international level. The units are the main
players in export field.
The industry is producing a variety of products in different sizes and designs. The major
products are: Ceiling, Pedestals, Table, Table-Cum-Pedestal Fans, Circumatic Fans, Wall
Bracket, Exhaust Fans and Propellers.
The industry supplies quality products to the local markets, whether branded or unbranded, at
competitive prices. About 450 units have a production capacity of 5 to 6 million fans, on single
shift basis. The production is equal to demand, including a nominal quantity of exports. The
actual production has remained about 2.5 million fans per annum, showing a 50 percent idle
capacity. The demand for fan is continuously increasing due to increase in population and
speedy migration towards a big cities, and exports. The other factor is that during the last few
years, local demand for quality products is increasing fast as compared to low price goods. This
means people are becoming quality conscious2
.

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3.2 Export
Although fans exports have great potential, their exports are negligible. In 1992-93, only two
hundred thousand fans were exported to only two countries, Iraq and Yemen. But now the
industry is exporting fans to more than countries.
The figures given in table-I indicate that although the exports of ceiling fan increased from Rs
134 to 209 thousand million rupees, the trade is fluctuating a great deal. As against ceiling fans,
the increase is pedestal fan export is quite stable i.e., continuously rising.
Pakistan has also started exporting parts of fans. During the four years, as shown in table II, the
amount earned from export rose from Rs 4.2 million to Rs 107 million in 1998-01, but
decreased to about fifty percent the very next year, 2001-02. However, in spite of big
fluctuations, it is believed that if some bottlenecks are removed there is a big scope for
enhancing the exports of fans.
The situation is that from very beginning, the government has not given any incentives to
encourage fan industries. Whatever progress the industry made, it has made on its own
resources, and is due to its dedicated and hardworking manufacturers and laborers. In spite of
lack of proper training the industry has innovated and uplifted the standard to the level where
its products can compete in the world markets.
Table –I: Export of fans 2
Years Ceiling Pedestal (000 Rs)
1998-99 1341289
1999-00 817621826
2000-2001 1863615137
2001-2002 255232432
2002-2003 1568966370
2003-2004 5925161554
2004-2005 208963183613

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Table –II: Parts of Fans Exported2
Table –III: Fans Exporters by Type2
Years
Millions
2001-2002 4.2
2002-2003 16.6
2003-2004 109.7
2004-2005 67.9
(Millions RS)
Fans Type 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006
Ceiling Fans 2.6 15.7 59.3 208.9 90.3
Pedestal Fans 32.4 66.4 161.6 183.6 150.8
Table Fans 1.1 -- -- 0.9 0.8
Exhaust Fans 0.1 0.1 0.1 -- --
Other Fans 2.9 6.9 5.1 27.2 --20.1
Fan Blowers 24.0 13.2 0.7 -- --
Other Fans
N.S
3 9.7 5.3 2 --
Total 45 42 232.1 422.6 362

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COUNTRY- WISE EXPORT SHARES OF OTHER FAN (INDUSTRIAL FAN) 1
COUNTRY SHARES
PAKISTAN 0.02%
FRANCE 2%
NETHERLAND 3%
SWEEDEN 3%
KOREA 1%
CANADA 5%
UK 4%
ITALY 9%
USA 14%
JAPAN 19%
GERMANY 33%
TAIWAN 7%

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COUNTRY- WISE EXPORT SHARES OF FAN UNDER 125 WATT (DOMESTIC FAN)1
FAN UNDER 125 WATT (Domestic Fan)
COUNTRY SHARES
PAKISTAN 0.1%
SINGAPORE 1%
UK 1%
TAIWAN 20%
CHINA 44%
THAILAND 6%
GERMANY 5%
USA 3%
ITALY 2%
SPAIN 2%
JAPAN 2%
OTHER 13%
3.3 Market Analysis
There are no exact figures available as to what is the total number of units, how many are
operational, what is the total installed capacity is, and what the operational capacity is.
According to the industry sources (including manufacturers and vendors) there is a substantial
demand for quality fans on a large scale. Also, there is room for new entrants who want to
manufacture the quality products, using the latest technology1
.
Fan industry contributes Rs 1.5 billion to the GDP of the country. The total capital investment
in this sector is Rs 3-3.5 billion. The industry has an installed capacity of 5-6 million fans per
year. The current capacity utilization is around 50%. At present, total fan production stood at
2.5-3 million fans per year. The volume of exports has reached around $4 million US in recent

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years. The industry generates annual employment for around 25,000 workers. Pakistan is also
one of the major exporters of fans to international market8
.
Global fan trade is classified on the basis of energy consumption. The fans that consume less
than 125 watts of energy (SITC 74341) are generally referred to as domestic fans and the fans
that that consume over 125 watts (SITC 74343) are classified as industrial fans. Pakistan has
earned $ 3.896 million from exports of domestic fans whereas it has earned $ 0.104 million
from exports of industrial fans. In the local market as well as in the international trade of
Pakistan domestic fans are larger component so it is reasonable to assume that whatever
happens to this particular category after MFN or Free Trade with India is applicable to whole of
the fan industry. Pakistan exports fans to Bangladesh, Saudi Arabia, United Arab Emirates
(UAE) and some EU countries. About 80% of Pakistan domestic fans exports are concentrated
in these countries. While some companies are also exploring the possibilities of exports to US
but main restriction of quality standard of UL is creating problems but some firms are preparing
to enter into that market. Compared with the trade of the rest of the world, Pakistan neither
exports fans to India nor import this product from India. One reason for this no- trade situation
is that both Pakistan and India are self-sufficient in fan and compete in the international market
rather than exploring for prospects of trade creation within each other. On the other hand, India
exports fans to other countries with the bulk of the share now going to European Markets1
.
Free Trade Agreements (FTAs) constitute an important dimension of this fast changing
globalizing world. Both the developed and the developing countries are entering or are in the
process of entering into regional and bilateral free trade agreements in order to promote trade
and economic growth. The experience of the European Union (EU), North American Free Trade
Association (NAFTA), clearly indicates that there is a strong correlation between regional trade
and economic growth. Encouraged by the success of this global trend, Pakistan and India have
also started exploring the possibility of promoting free trade in the region and are working
closely toward establishing a South Asia Preferential Trade Area (SAPTA) aimed at reviving
regional trade and growth in the region. If that happened the low cost fan will provide the
Pakistan more revenues and ultimate bright chances for the industry. The current situation of
industry is as under:
3.4 Current Situation
Currently there are nearly 450 fan manufacturing companies situated in Gujarat and Gujranwala
fan cluster. From this cluster there are 2 major companies G.F.C. and Pak Fan. The first
company was export award winner during last 8 years, and the second one is current export
award winner of 2009 with a 690 million profit (Ref: FPCCI notification for annual export
winner award). The demand of fan is increasing 20% annually in export and 15% in domestic
sales. According to the final report of TDA the export of fan increase by $ 782000 in 2007-
2008 from $191000 to $ 973000.

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The government of Pakistan is providing facilities to this industry. The following steps are
recently taken by Govt.:
 Government establishes FDI (Fan Development Institute) to promote the new technology
to this sector.
 Government is financing FDI to produce skilled labor.
 TDAP & Ministry of Science is also taking steps to promote the fan industry.
From the sector have increased by about 120% to around US$30 million. This number is
expected to rise further. The sector currently faces several issues such as low levels of
productivity due to small scale of enterprises and lack of mechanization as a consequence of
years of little or no investment in the sector. There is difficulty in getting adequately trained
manpower due to seasonal demand for fans and absence of training programs. Lack of R&D
and design innovation and the inability to meet changed market demand, e.g., for energy
efficient fans, has greatly impeded the extent of current penetration in high income markets.
Finally, the inconsistent quality has made it difficult for the sector to comply with international
quality standards, resulting in an inability to export to high-income markets. (Ref: Pakistan
National Industrial Policy 2010)
There is no proper data available with government and other private organization which will
show the financial survey and annual production of home appliances manufacturer in Pakistan,
even though still there is no data available that which standards are being used by manufacturer
for production.
It has also been cleared by Pakistan Standard Quality Control Authority (PSQCA) that still they
don’t have any minimum energy efficiency performance standards for BRESL targeted product
and there are no testing facilities available in Pakistan for refrigerator, air conditioner, for
motor, CFL, blast and ceiling fan Pakistan Council of Industrial Research (PCSIR) has testing
facility available at their Lahore center but only fan testing facility is accredited by PNAC as
per ISO-17025, accreditation of other testing facilities in process.
So it is very difficult to analyze the impact of energy standards on the business of home
appliances manufacturers, until and unless there will be proper infrastructure by government of
Pakistan like development and implementation of minimum energy performance standards
(MEPS) and development of testing laboratories for targeted products as per international
standards.

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3.5 Manufacturing Sector and Energy Efficient Products in Pakistan
The manufacturing sector is an integral part of the industrial sector in any economy. The major
policies and measures applied to promote their development and the strategies and the policy
reforms needed to accelerate the pace of industrialization with emphasis on the capacity and
industrial utilization of the manufacturing industries.
Industrial sector uses more than 40 percent of the energy consumed in the Pakistan and even
more when product transportation is factored in. The escalating costs for natural gas and oil
clearly have a major impact for manufacturers in Pakistan that, left unaddressed, could hurt
their competitiveness in world markets. Moreover, energy experts predict that global market
pressures on oil and gas markets will ensure that high prices will be with us for some time.
Energy efficient products are able to function on less energy and thus assist in saving the
energy resources of the users. This proves to be cost effective as saving power also implies
saving money. Energy efficient products have gained in importance in the last few years as it
has been concluded, through studies, that a number of households have been using up more
energy than they need.
There are several companies which are producing different types of products at present and
there are several categories in which they are selling the products. The broad categories in
which the products are available are – Appliances, Office Equipment, Heating and Cooling,
Lighting, Home Envelope, Home Electronics and Additional Commercial Products.
Manufacturing companies said the price of energy-saving products in the market are high,
many people would have thought that energy-saving products and high profit margins, does not.
Because the cost of production of energy-saving products is far higher than the product.
Enterprises are faced with the problem is to rapidly upgrade their technology and reduce
production costs which seems to be impossible for them in these situations in Pakistan when
electricity and raw material prices are increasing day by day. Some manufacturers complained
that the energy-efficient products will not guaranteed to the growth of corporate profits, and
sales of energy-saving appliances, production of energy-saving products can produce effective
business.
The prices of energy-saving products are high and still there is no mechanism in Pakistan to
promote the energy efficient appliances, also there are no minimum energy performance
standards, testing facilities and energy efficient labels available with government of Pakistan.
However manufacturer cannot produce energy-saving products until and unless there will be
proper mechanism developed by government and its implementation.

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Production less profitable on energy-saving appliances, the problem first lies in the price war.
Such as inverter air conditioner, the production cost is much higher than non-inverter air
conditioner, air conditioner manufacturer, however, to vigorously promote inverter air
conditioner, market share and continue to lower the sales price of inverter air conditioner.
This inevitably makes profits lower.
Although the increase in material to enable businesses to improve energy efficiency level of
an immediate, but that is not a permanent solution. The refrigerator, for example, increased
insulation layer is not unlimited, to some extent had little effect; also increase the material will
increase the cost of raw materials.
3.6 International Experiences
According to reports, the Japanese took 10 years to energy-saving air conditioning costs will be
reduced by 30%. At present, China’s energy-saving technologies at an early stage, in order to
substantially upgrade their skills, lower costs, not only need strong government support, but
also a long way to go.
It has been analyzed that the current from the business point of view, there are difficulties in
promoting energy-saving appliances, the consumer is not easy to acknowledge it; declining
prices, increased prices of raw materials for enterprises, it is too awkward.
One of the major findings of this report is that the rising costs for energy also offer
opportunities for manufacturers. By strategically building energy efficiency decision-making
into production, manufacturers will identify new ways to cut costs, raise productivity, and
improve shareholder value • improve managerial performance • meet environmental standards •
create energy efficient products and market opportunities • improve their competitive position
and • ensure better community relations.
Energy efficiency is not just about reducing utility bills. It’s also about boosting revenue
through greater productivity. Energy efficiency is an indispensable component of any effort to
improve productivity. Ultimately, energy efficiency contributes to wealth.

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Chapter-4
Review of International Experience in Standards and
Labeling Programs for
Energy Efficiency

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4 Review of International Experiences in ES&L
4.1 India country program
In 2002, the Indian Government passed a landmark Energy Conservation Act creating the
Bureau of Energy Efficiency (BEE), a department of the Ministry of Power (MOP), and
directing it to collaborate with the Bureau of Indian Standards (BIS) in energy efficiency
standards and labeling development. CLASP international experts conducted several missions
to India in order to meet with BEE and other officials and develop the project plan.
Concurrent with this planning process, the International Institute for Energy Conservation
(IIEC) (one of the CLASP implementing partners) established and staffed offices in India and
signed a memorandum of understanding (MOU) with BEE. The MOU established a public-
private partnership between IIEC and BEE and called for IIEC to provide national and
international experts to advise BEE in the implementation of energy conservation programmes
in seven target areas: demand-side management, transmission and distribution, standards and
labeling, special projects, building codes, ESCO finance, and water/energy efficiency.
Standards and labeling is identified as one of the priority activities for implementation of the
Energy Conservation (EC) Act and the MOU. IIEC’s India office has therefore acted as the
in-country partner for the CLASP project.
4.1.1 Baseline and market assessment for S&L target products
Based upon preliminary discussions with stakeholders, India identified refrigerators, air
conditioners, water heaters and motors as the priority products for initial S&L development.
Work under this task was conducted to verify the validity of at initial prioritization through
analysis of data on the energy efficiency of existing products in the marketplace,
comparative analysis of Indian product efficiency with international levels, and projections of
GHG reduction potentials for the selected products.
During the work, it was discovered that efficiency data for air conditioners were not available
because no testing labs were capable of performing the required testing in accordance with the
selected International Standards Organization (ISO) testing procedure. As a result, the data
analysis focused on refrigerators (a partial baseline analysis of air conditioners was
completed). Collection of baseline refrigerator data from manufacturers was a significant
achievement, since manufacturer associations in India do not generally share this information.

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4.1.2 Assessment of testing capacity for priority products and expansion needs
CLASP subsequently worked with BEE to evaluate existing testing facilities, the number of
new testing laboratories required, and options for upgrading current facilities. The most
appropriate test procedures for the climate and use conditions in India were also evaluated and
determined. Finally, training was conducted on procedures for certification and licensing.
A total of five refrigerator and air conditioner test facilities were evaluated. Draft test
procedures for refrigerators and air conditioners were developed, along with an international
comparison of local, ISO and Australian test procedures. A training workshop was conducted
in May 2004 to provide an overview of international experience with refrigerator testing and
hands-on experience with test procedures, methodology and reporting. Modified and
improved test procedures were developed and submitted to the Ministry of Power for
approval. All deliverables have been completed. Technical support to independent and
manufacturers’ test facilities is ongoing.
4.1.3 Development of at least one new minimum efficiency standard
Refrigerators were selected by the Government to be the first product to receive a revised
standard. The project supported the work of committees in BEE and BIS charged with
proposing, reviewing and setting a time frame for finalizing minimum efficiency standards. It
also provided technical assistance in the dialogue among consumers, manufacturers and other
stakeholders to review the draft, revised and final standards and labeling criteria for target
products. Support was then provided in the drafting and finalization of the standard prior to
approval.
In October 2004, CLASP organized a training workshop for standard-setting analysis with the
help of experts from LBNL and the Indian Institute of Technology (IIT). The refrigerator
technical committee members from BEE, BIS, independent test labs, industry and consumer
organizations attended the workshop. The purpose of organizing the training workshop was to
build capacity within the refrigerator technical committee in conducting energy efficiency
analysis for refrigerators using state-of-the-art software. As per standards and labeling
program implementation procedures, the technical committee will be engaged in future energy
efficiency labeling and standard-setting activities. Providing hands-on training to the
committee members was very beneficial for program development and implementation.
In July 2005, MOP advanced a new draft refrigerator standard, representing a significant
success for the project. Previously, MOP had proposed a single set of 5-star rating categories
for frost-free refrigerators only. In the revised draft, four increasingly stringent sets of draft 5-
star label thresholds have been proposed for both frost-free and direct cool refrigerators and a
draft minimum energy performance standards (MEPS) level corresponding to the 1-star
minimum threshold applies. The draft standard has been distributed to manufacturers for

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comment. If adopted, the new standard would lead to improvement of almost 50 per cent for a
typical no-frost 250-litre refrigerator (722 kWh/ year in 2005 to 370 kWh/year in 2012). In
addition, a new draft standard has been completed for air conditioners, exceeding the work
plan requirement of one revised standard.
4.1.4 Preparation of energy information labeling for one product
Refrigerators were selected by BEE as the initial target for energy-efficient labeling.
Technical support from the project assisted in (a) analyzing the current market and technical
options, (b) training BEE in the development of a criteria-setting model, and (c)
establishing new efficiency criteria for labeling the selected product. Support was given to
stakeholder meetings for the promotion of labels (consumer groups, manufacturers, BIS,
BEE), as well as for consensus-building around their roles in implementation. BEE was also
assisted in designing a process to test the proposed labels in various regions in India, with help
from a consumer marketing organization in India. After preparation of a media campaign, the
new energy information label was launched.

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4.2 China Introduction
China currently has one of the most comprehensive appliance standards and labeling
programs in the developing world. The program includes minimum energy efficiency
standards (MEES), a voluntary endorsement label, and a proposed information label. The
minimum energy efficiency standards are mandatory and have been issued for 9 types of
appliance and lighting products. The voluntary endorsement label has been issued for 13 types
of appliances, lighting, and industrial products.
Although quite comprehensive, the programs were initiated fairly recently. The first set of
Chinese standards was published in 1989. This is not surprising, given that appliance
production and ownership in China was miniscule in the early 1980s when China started its
economic reform.
In 1980, the total output of household refrigerators in China was less than 50,000 units per
year. Annual production of color television sets, clothes washers, and air conditioners was
approximately 300,000, 250,000, and 13,000 units, respectively (Figure 1). Very few
households had modern electric appliances except radio receivers.
The next decade witnessed tremendous growth in China’s economy, rising personal incomes,
and a rapidly expanding domestic appliance industry that was eager to serve the growing
demand for modern appliances. Many international and Chinese manufacturers set up
production facilities in the 1980s, and production increased rapidly to meet the needs of the
large Chinese market.
By 1989, the production of color television sets was approaching 10 million units, and
production of clothes washers and refrigerators had reached 8.3 and 6.7 million units,
respectively, which represented a growth of 33-fold and 136-fold over one decade. The
increases in appliance ownership led to rapid growth in household energy consumption—16%
annually since 1980 (Figure 2); this energy use placed an ever-increasing burden on China’s
electric supply systems, which have been forced to add an average of 15 GW of new capacity
each year.
It was against this backdrop of supply/demand imbalance and fast-growing appliance
ownership that China started to consider the adoption of energy efficiency standards for
appliances. In 1989, China’s State Bureau of Technical Supervision (SBTS) issued the first set
of standards related to energy efficiency. They included minimum efficiency standards for
eight types of products: refrigerators, room air conditioners, clothes washers, television sets,
automatic rice cookers, radio receivers, electric fans, and electric irons.

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4.2.1 Institutions involved in standards and labeling development in China
China’s State Economic and Trade Commission (SETC) are responsible for the overall
management of China’s economy. The SETC’s Department of Resource Conservation and
Comprehensive Utilization is charged with setting national energy conservation policy and
implementing China’s Energy Conservation Law (ECL), and it has been responsible for
supervising the development of energy efficiency standards and labels in China.
China’s State Bureau of Technical Supervision (SBTS) is the government agency authorized
to issue all standards except for those related to environmental safety and selected petroleum
products. Minimum energy efficiency standards (MEES) are only a small part of SBTS’s total
project portfolio. The agency has recently been restructured and renamed the State General
Administration for Quality Supervision, Inspection, and Quarantine (AQSIQ), which reflects
its elevated ranking within the Chinese bureaucracy.
The China National Institute of Standardization (CNIS) is a research institution under the
supervision of AQSIQ. CNIS provides technical support to AQSIQ in the development of
mandatory minimum energy efficiency standards including data collection and analysis. CNIS
is also responsible for the development of China’s energy information labeling program under
the supervision of SETC and AQSIQ.
The China National Technical Committee for Energy Basics and Management Standards,
under CNIS, is responsible for the coordination of technical research and the review of

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standards. The committee is comprised of researchers, academics, and policy makers, as well
as representatives from manufacturing companies.
The China Certification Center for Energy Conservation Products (CECP) is an independent
certification agency that was established in 1998 to administer a voluntary endorsement
energy labeling program. CECP follows policy guidance from the State Economic and Trade
Commission (SETC) and AQSIQ and is affiliated administratively with CNIS.
Despite the multiple program components—including MEES, information, and endorsement
labels—the management of China’s appliance standards and labeling programs remains fairly
centralized: SETC and AQSIQ set the national agenda, while CNIS and CECP develop and
implement relevant program components. Given that CECP is still administratively under
CNIS’s supervision, there have been healthy exchanges among the technical staff and good
collaborations between CNIS (MEES) and CECP for endorsement labels. Over the last few
years, CNIS and CECP have synchronized the development and introduction of the MEES
and the endorsement label performance requirement for common products. Such close
coordination, which is highly recommended, has been mutually beneficial. However, the
proposed energy information label has introduced new complexities in the coordination of
China’s standards and labeling programs.
4.2.2 Ascendance of standards and labeling in China energy conservation policies
The publication of China’s first set of standards had only a modest impact on the energy
efficiency of Chinese appliances due to lax enforcement and easy-to meet performance
requirements. However, establishing these standards helped to define clear roles and
responsibilities for the institutions involved and set in motion a procedure for creating and
revising energy efficiency standards for an expanding list of products in the future.
In the 1990s, the appliance market in China experienced a dramatic transformation,
characterized by soaring appliance sales, industry consolidation, and an extremely competitive
appliance market. Appliance sales and ownership both skyrocketed. By 1999, the production
of refrigerators, room air conditioners, and clothes washers had each reached approximately
13 million units, and the production of color television sets had topped 40 million units
(Figure 1), which made China the largest appliance producer in the world.
In 1980, few Chinese families owned a major appliance. However, by 1999 ownership of
major appliances in urban Chinese households had risen to 112% for color television sets,
91% for clothes washers, 78% for refrigerators, and 24% for room air conditioners (Figure 3).
Such a rapid rise in appliance ownership drove residential electricity usage to grow at an
average annual rate of 16% beginning in 1980, which was double the rate for total electricity
usage growth during this time period in China.

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The rapid growth in appliance ownership and the resultant residential electricity consumption
helped highlight the critical role that appliance efficiency standards and labels could play in
China’s overall energy conservation policies. Meanwhile, the fierce competition in the
appliance industry had helped to spur technical innovations that demonstrated the potential of
energy savings in household appliances. All of these factors helped to put energy efficiency
standards and labels at the forefront of China’s effort at reshaping its energy conservation
policy portfolio for a more market-oriented economy.
China has had a very successful energy conservation program under its traditional centrally
planned economy. Ever since China started its transition toward a more market-based
economy, many of the traditional mechanisms of promoting energy conservation began losing
their relevance. In 1997, China passed the Energy Conservation Law (ECL), which focused
renewed attention on end-use energy efficiency, standards, and labeling programs. As a result,
the development of energy efficiency standards and labels has been accelerated.
The development of China’s energy efficiency standards and labeling program has also
benefitted from active collaborations with several foreign and international institutions,
including the U.S. Environmental Protection Agency (U.S. EPA), Lawrence Berkeley
National Laboratory (LBNL), the Energy Foundation (EF), and the Collaborative Labeling
and Appliance Standards Program (CLASP). Today, China has developed an active and
comprehensive energy efficiency standard and labeling program that includes minimum
energy efficiency standards, a voluntary energy label, and a proposed energy information
label.

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4.2.3 Minimum Energy Efficiency Standards
The minimum energy efficiency standards (MEES) program is one of the most mature of
China’s standard and labeling programs. In addition to the first set of standards that was
issued for eight types of products in 1989, China has since enacted three more new product
standards or revisions of existing standards, with several more under review and development.
In 1995, SBTS sought technical assistance from LBNL as it started to consider the revision of
its first refrigerator standard. In the summer of 1996, LBNL hosted a training seminar on the
use of the U.S. EPA’s Refrigerator Analysis software (ERA) for three researchers from SBTS,
CNIS, and the Beijing Energy Efficiency Center (Becon). ERA is an engineering simulation
tool used to evaluate technical options and their impacts on refrigerator energy use. This
exercise allowed the Chinese researchers to gain greater understanding of the technical path to
improving refrigerator energy efficiency and facilitated the revision of China’s refrigerator
standard, which was finalized in 1999.
The success of the initial collaboration between SBTS and LBNL led to a series of
collaborative projects that helped build the foundation for China’s current standards program.
In 1999, SBTS issued an efficiency standard for fluorescent lamp ballasts and in 2000 issued
the revised efficiency standard for room air conditioners, both after extensive collaboration
with LBNL and the U.S. EPA.
Since the passage of the Energy Conservation Law in China in 1997, the pace of standard
development has accelerated. Currently, minimum efficiency standards for linear and compact
fluorescent lamps and small and medium motors have been drafted and are undergoing a
stakeholder review. Work on a standard for clothes washers has begun. The development of
standards for televisions, central air conditioners, water heaters, cooking and other gas
appliances, and the revision of the existing refrigerator standards are planned over the next
two years.
4.2.4 Voluntary Endorsement Label
Following its establishment in 1998, CECP formalized a comprehensive system of
certification requirements and procedures, under which an endorsement label would be
granted to products that meet both the quality assurance and energy performance
specifications. In 1999, CECP granted its energy conservation label to 103 models of
refrigerators from 9 major manufacturers. At the end of 2000, there were a total of 203
different models of labeled refrigerators from 20 manufacturers. According to a CECP
analysis, labeled refrigerators consume an average of 18% less electricity than non labeled
products.

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In 2000, CECP granted its energy conservation label to 67 models of air conditioners from 10
manufacturers. According to CECP estimates, labeled air conditioners consume 10% less
electricity on average than non-labeled products.
The CECP voluntary certification program has achieved considerable success during a
relatively brief period through aggressive engagement of the manufacturers and a publicity
campaign in both broadcast and print media. Considerable collaborative marketing has
occurred between CECP and the manufacturers at the launching of the certification program
for each product. Not surprisingly, many manufacturers wanted the exclusive right to obtain
the CECP label first, which CECP rightfully declined to offer. However, such overtures from
manufacturers indirectly validate the value of CECP’s labeling program.
In addition to those for refrigerators and air conditioners, CECP has recently developed
certification specifications for 11 other products including fluorescent lamp ballasts, electric
water heaters, microwave ovens, and small and medium electric motors. Similar technical
specifications are under development for linear and compact fluorescent lamps.
Most recently, CECP has been closely following international developments in reducing
standby power losses. CECP is currently undertaking the first analysis of standby power
losses in China with LBNL, and it is in the process of evaluating various policy options for
reducing standby power consumption. Among the policy options being considered is the
initial curtailment of standby power losses in televisions and other consumer electronics
through the CECP labeling program.
Despite its initial success, CECP faces considerable challenges in keeping up with a rapidly
evolving appliance market in China. A market assessment mission, conducted jointly by
CECP, U.S. EPA, ICF, and LBNL through interviews with leading refrigerator manufacturers
and retailers in China, finds that consumer and sale staff awareness of the CECP label remains
insufficient. The efficiency requirement for label qualification needs to be raised as the
average refrigerator efficiency improves, and the label design needs to provide more
information to consumers. CECP is currently working with the U.S. EPA to design a more
focused promotion effort for labeled refrigerators.
4.2.5 Energy Information Label
Starting in 2000, SETC authorized CNIS to undertake a feasibility study of establishing a
mandatory energy information labeling program with assistance from the Energy Foundation
and CLASP. CNIS has developed a draft regulator. Framework for the proposed information
labeling program and is considering a pilot project that would apply the proposed information
label to refrigerators.

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4.2.6 Impact of China appliances standards and labeling program
Although China’s appliance standard and labeling programs were started in the late 1980s,
their impacts have not been well documented. Various reports on China’s appliance standard
and labeling programs have been written, but few have been prepared for scholarly
publications. In this section, a preliminary assessment of the impact of China’s standards and
labeling programs is offered, based on the efficiency standards and labels that have been
developed since the mid-1990s. This assessment relies extensively on internal technical
reports produced by CNIS, CECP, and their collaborators. Due to the lack of historical
appliance efficiency data, it is difficult to estimate the impact of the first appliance standards
that were issued in 1989. In addition, there have been significant changes in the product mix
and in appliance technologies since the late 1980s; therefore these first standards are less
relevant today.
4.2.7 Refrigerator Standard
The most significant feature of the revised 1999 Chinese refrigerator standard is the inclusion
of adjusted volume in the calculation of the energy consumption of the allowed daily
maximum. The adjusted volume takes into account the fact that freezers consume more energy
than refrigerators of the same volume. In contrast, the 1989 refrigerator standard set daily
maximum for energy consumption by the actual volume of the refrigerator.
Given that China and Europe use the same testing procedure and their refrigerator products
are similar in size, CNIS adopted the formula used in the European labeling scheme for
refrigerators. However, there is a significant difference: Although the formula is used in
Europe as a benchmark to determine the relative ranking of a refrigerator (A–F categories), it
is used in China to set the maximum allowable energy consumption. Details of China’s 1999
refrigerator standard are summarized below:
Daily electricity consumption limit is calculated according to the formula
in which Emax is the daily electricity consumption limit, kW¢ h/24h; M and N are coefficients
(see the values listed in Table 1); and Vadj is the adjusted volume in liters.
The difference in the calculation of the daily maximum electricity consumption between
China’s 1989 and 1999 refrigerator standards makes it difficult to measure the relative
efficiency gains of the new standard. A rough estimate, based on the two popular models (222
and 268 liters), indicates that the revised 1999

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standard reduced the maximum daily allowance for the most popular refrigerator products by
10% to 15%. The impact of this revision on national energy savings has not been fully
documented. However, a recent estimate from CNIS suggests that the refrigerator standard
assuming further revisions in the coming decade could reduce China’s electricity consumption
by 87 billion kWh over the next 10 years.
4.2.8 Fluorescent Lamp Ballast Standard
In the development of a ballast efficiency standard, CNIS adopted the ballast efficacy factor
(BEF) as the measurement of energy efficiency. BEF is defined as the ratio of ballast factor
(BF) over input power to the ballast, and it has been used in the U.S. Department of Energy
(U.S.DOE) standard for fluorescent ballasts. BEF is a more accurate measurement of ballast
efficiency than ballast power loss because it measures the relative light output per unit of
power input. Minimum energy efficiency requirements for Chinese ballasts are summarized in
Table 2.
The Chinese standard set efficiency requirements for magnetic and electronic ballasts
separately. The current requirements would eliminate the most inefficient magnetic and
electronic ballasts but would allow energy-efficient magnetic ballasts to be sold. For the most

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widely used ballasts—those in the 40-watt category—the Chinese standard is slightly more
stringent than the current U.S. standard. However, the U.S. DOE has announced a newly
revised standard for fluorescent ballasts (effective in 2005), which would phase out magnetic
ballasts in most applications.
Despite the modest efficiency requirements in the Chinese ballast standard, once
implemented, it is likely to lead to a reduction in Chinese lighting electricity consumption of 5
to 12 billion kWh over ten years. The corresponding reduction in CO2 emissions is likely to
be 1.35 to 3.2 million metric tons of carbon.
4.2.9 Room Air-Conditioner Standard
The revised Chinese minimum energy efficiency standard for room air conditioners became
effective in 2001. Table 3 summarizes the efficiency requirements by product categories.
For the most popular product category with a cooling capacity between 2500 to 4500 watts,
the revised standard raised the minimum EER from 2.26 to 2.45, a gain of 8%. This is a very
modest improvement. An analysis conducted jointly by CNIS and LBNL indicated that if a
combination of available technical options, such as more efficient compressors and improved
fin and tube design for the heat exchangers, had been adopted, a minimum EER of 2.9 could
have been justified on both technical and economic grounds. The results of the CNIS and
LBNL joint analysis, based on the engineering simulation and life-cycle cost analysis, are
summarized in Table 4 below.
If an EER of 2.9 is adopted as the revised Chinese minimum efficiency standard for air
conditioners, it is estimated that China could reduce its air-conditioning energy consumption
by 16.7 billion kWh from 2001 to 2010, with a corresponding

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reduction in CO2 emissions of 4.5 million tons of carbon over the same period. However, the
study assumed constant domestic sales of these products in China after 1999, which is likely
to underestimate the impact of the standard (with a minimum EER at 2.9). On the other hand,
because China adopted a less stringent standard based on other social and political factors, the
savings due to this revision of the air-conditioner standard could be lower than indicated
above.
4.2.10 Fluorescent Lamp Standard
The proposed MEES for fluorescent lamps is currently undergoing a stakeholder review.
However, a draft report from CNIS indicates that the cumulative savings from the
implementation of the fluorescent lamp standard could reduce Chinese lighting consumption
by almost 80 billion kWh over the next 10 years, by accelerating the switch from T12 lamps
to more efficient T8 lamps. A closer look at the analysis indicates that the savings estimate is
based on the assumption that a given space will need fewer T8 lamps than T12 lamps because
T8 lamps are slightly brighter on average. Whether such an assumption would hold true in the
coming decade remains debatable, given that lighting levels in China are typically lower than
those observed in the developed nations and could rise as income level rises in China. If
people choose to increase lighting levels by maintaining the number of lamps per room, then
the savings from the standard would be lower than indicated above.
4.2.11 CECP Endorsement Labels for Refrigerators and Room Air Conditioners
No study to date has attempted to evaluate the market penetration of CECP’s endorsement
label among various appliance products in China. Findings from a CECP study indicate that
labeled refrigerators and air conditioners consume on average 18% and 10% less electricity,

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respectively, than their non-labeled counterparts, and a great majority of refrigerator and air-
conditioner manufacturers have at least one labeled model on the market. However, the study
offered no data
on the sales-weighted market share of labeled refrigerators and air conditioners. Interviews
with several top refrigerator manufacturers in China by CECP, LBNL, and ICF indicated that
most of their products met the CECP label specifications. An assessment of the potential
impact of the labeling program in China finds that if CECP’s labeling program achieved a
market penetration similar to that of the U.S. Energy Star program, refrigerator and air-
conditioner labels could reduce China’s electricity consumption by 23.5 and 12.8 billion kWh,
respectively, over the next 10 years. And the corresponding reduction in CO2 emissions
would be 7.9 and 4.3 million tons of carbon.
These numbers suggest that existing Chinese standards and labeling requirements for
refrigerators and room air conditioners are already having a substantial impact on slowing the
growth of residential electricity demand. As China accelerates the development of standards
and labels for an expanding list of consumer appliances (including clothes washers and
televisions for which standards are currently planned), energy savings due to these programs
are likely to increase as well.
However, the energy savings estimates reviewed above are hard to evaluate and aggregate
owing to inconsistent methodologies and incomplete data. In order to assess the aggregate
impact of appliance standard and labeling programs on China’s residential electricity
consumption, a simplified model based on future appliance sales and unit energy savings was
developed to calculate electricity savings for refrigerators, room air conditioners, clothes
washers, and color televisions (see Appendix A for a detailed description of assumptions
used). The estimated aggregate savings are summarized below (Figure 4) in the context of
future residential electricity consumption in China.
These estimates indicate that, by the end of this decade, existing standards and labels in China
for the most common appliances are likely to reduce residential electricity consumption by
33.5 TWh annually or by approximately 9% of the forecasted residential electricity usage in
2010. Such a savings would also result in a CO2 emissions reduction of 11.3 million tons of
carbon in China. Also by 2010, the cumulative electricity savings would add up to 164 TWh,
equivalent to a reduction of China’s CO2 emissions by 56 million tons of carbon.

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These savings estimates, if they materialize, represent a remarkable achievement for the
Chinese programs. The American appliance standards program, which started much earlier,
covers more products, and is the most successful in the world to date, projects an annual
reduction of 13.6 million tons of carbon by 2010— roughly 5.4% of the total CO2 emissions
in the U.S. residential sector (27). Therefore, China in a few years has put into effect a
program that will catch up—in terms of greenhouse gas (GHG) emission reductions–with the
world’s best program by 2010. As China expands its program to cover more products, this
may happen even earlier.
4.2.12 Outlook for the future
China’s appliance standards and labeling programs have made tremendous progress in recent
years. The Chinese government has developed a well-coordinated management program for
various standards and labeling programs in support of its Energy Conservation Law. The
standards development process is fairly open, with active participation from industry and
academy. Chinese policy makers and technical professionals have built a strong domestic
analytical capacity in support of standards research. And the standards and labels that have
been enacted or that will be issued in the next years could lead to substantial reductions in
residential electricity consumption and in China’s CO2 emissions.

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4.3 Programs for Energy Efficiency Standards and Labeling in Pakistan
Past initiatives in Pakistan which have incorporated product labeling schemes include the
National Conservation Strategy (NCS) in 1992, which focused mainly on energy
conservation, and the follow-up National Environmental Action Plan (NEAP), which touched
upon labeling in its recommendations for end-use. Both NCS and NEAP dealt with household
equipment and appliances. The Pakistan Standards and Quality Control Authority Act was
passed in 1996, and with it was created the national Authority (PSQCA) for establishing
quality labeling specifications, including ingredients, performance, et cetera. PSQCA remains
the controlling body for label regulations, among other things.
The enforcement of PSQCA’s product labeling policies, however, was found by USAID’s
South Asia Regional Initiative on Energy (SARI/E) to be ineffective especially in certain
categories and sectors. Labeling standards had yet to be established in some cases, and were
unenforced in others. Of the five product categories surveyed during the survey conducted in
2006 with the Consumer Rights Commission of Pakistan (CRCP), only CFLs complied with
all labeling specifications. The SARI/E project has been working in Pakistan since 2004, to
conduct trainings, increase stakeholder awareness, and improved testing and labeling
harmonization between South Asian neighbor countries in energy efficiency standards and
labeling (ES&L).
The National Environment Policy (NEP) of 2005 included a call for the establishment of
labeling standards; however, the (National Energy Policy was formulates and approved in
2005) The proposed legislation will have provision for developing energy efficiency codes
and standards; energy reporting and energy audits; labeling of equipment and appliances;
and other such provision as necessary to create a culture for rational energy use.
Consequently, no mandatory energy efficiency-specific labeling policies have been
established in Pakistan to date. This can be partially explained by the decrease in funding and
activity of the National Energy Conservation Center (ENERCON) in recent years. The end of
a USAID-funded project in 1990 caused the Center’s sharp decrease in resources and
staff, and as a result the progress in ES&L policies through ENERCON has been slow. To
address this problem, the UNDP’s Barrier Removal to the Cost-Effective Development and
Implementation of Energy Efficiency Standards and Labeling Project (BRESL), which began
in 2009, is a four-year program which will focus on energy efficiency, labeling, and EE issues
for consumers. BRESL will provide comprehensive, multi-sector technical assistance,
capacity building, and legislation development, implementation, and enforcement advice for
energy-efficiency standards, labeling, and testing.
4.4 Energy Efficiency Standards
Pakistan’s Environmental Protection Act (PEPA), implemented in 1997, is the most
comprehensive environmental policy in Pakistan, and involves incentives for efficient

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equipment, particularly in industry. The 1993 National Environmental Quality Standards
(revised in 2000) regulate industrial and other large-scale air polluters and waste producers’
emissions, with a mandatory, but poorly-enforced Self-Monitoring and Reporting System.
Air pollution is understandably a focus of many recent policies in Pakistan. Air quality has
been worsening in Pakistan, partially as a result of the sharp jump in the number of motor
vehicles in recent decades—increasing by more than 650% between 1980 and 2004.
Among the stipulations of NEP are energy efficiency standards, some of which are still in the
planning stages. ES&L provisions in NEP include audit standards, building codes, and tax
preferences for domestic and imported energy-efficiency products. Once the policies are in
place and properly enforced, concerns about energy-efficiency standards that have emerged
around imports and building materials and codes, especially in the private sector, will begin to
be addressed. The lack of standards for specific industries, the import of inefficient materials
and equipment that are banned in other countries, and the poor enforcement of existing
standards are all issues which have yet to be resolved because no mandatory energy-efficiency
or GHG emissions policy yet exists in Pakistan.
The BRESL project will address the enforcement issue, along with the development and
adoption of ES&L legislation. During its three-year term, the program is charted to perform
analysis of the capacity gap for developing and enforcing efficiency standards, conduct
trainings and pilot projects on enforcement measures, and organize study visits of successful
ES&L programs in other countries. One of the main implementing partners will be the
PSQCA, which is responsible for ES&L formulation, publishing, promotion, and sometime
enforcement. PSQCA also registers inspection agencies and determines the specifications for
product sizing, materials, energy consumption, et cetera. The MFF-Energy Efficiency
Investment Program will also increase the coverage and enforcement of PSQCA’s quality and
performance standards to include all main product types, industries, and sizes.4
4.5 Product Testing
Pakistan National Accreditation Council (PNAC) was established in 1968 to provide
certification for manufacturers, service providers and businesses which satisfy national or
international standards, and to accredit testing and calibration labs. PNAC is member of Asia
Pacific Laboratory accreditation Council (APLAC) and International Laboratory
Accreditation Cooperation http://www.aplac.org/aplac_mra.html (ILAC)
http://www.ilac.org/members_contact_details.html , which gives international reorganization
to PNAC in testing and calibration of laboratories as per international standards. There are
many PNAC-accredited testing and calibration labs in Pakistan, those laboratories have
international acceptance for their test reports.

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Pakistan Council of Scientific and Industrial Research (PCSIR) is working under the
supervision of Ministry of Science and Technology (MoST) is responsible for establishing
research laboratories throughout the country, in addition to providing its own testing and
quality control services for products and raw materials. The collection of testing and
calibration facilities in Pakistan is large and offers varied capabilities in a range of product
categories and industries most of the testing facilities of PCSIR are accredited by PNAC
according to ISO-17025 standard and are acceptable in the world, PCSIR is written into the
project activities of ADB’s MFF-Energy Efficiency Investment Program for research into the
development of standardized testing legislation, the provision of testing services, and market
assessments. The role of ENERCON in the determination of testing standards, organizing
procedure for manufacturers and importers to follow in obtaining certifications, and
establishing a testing methodology, are stipulated in the Energy Conservation Bill of 2009.
4.6 Dissemination, adoption of ES&L and its possible replication in Pakistan
 Testing standards available in Pakistan
Pakistan Standards Quality Control Authority (PSQCA) is working as quality assurance and
quality management institute in Pakistan, PSQCA is responsible for development of
Standards, Testing and Quality infrastructure, therefore, are necessary for industrial progress
and prosperity of a country or a region, as well developing national standards and adopting
international standards as per their quality policy is Pakistan. PSQCA does not have any
national or international MEPS for testing of home appliances manufactured or imported in
Pakistan.
 Reference Standards for BRESL targeted products testing
As decided in Technical Working Group Meeting (TWG) in Bangkok that for the
harmonization of testing procedures and protocols all the BRESL member countries should
have to adopt or replicate the same standards which are followed by product leading countries,
but other member countries can give their inputs to change the testing procedure as per their
country environment.
For harmonization of testing procedures BRESL should provide the assistance to PSQCA as
per BRESL TWG meeting agenda to adopt and follow the ISO, IEC, Chinese and or any other
country standards as national standards.
4.7 Organizational structure for adoption and replication of ES&L
 Pakistan Standard Quality Control Authority (PSQCA)
The mission of PSQCA is to set standards for the safety and performance of products used in
Pakistan in order to protect consumers and users of such products and equipment. Under the
PSQCA Act, PSQCA has the mandate to:

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 Prepare standards on a national and international basis.
 Make arrangements or provide facilities for the testing and calibration … so as to comply
with the required standards.
 Operate a certification marks scheme in accordance with the relevant provisions of this
act.
PSQCA manages standards for all products produced and imported into Pakistan
 Pakistan Council for Scientifics and Industrial Research (PCSIR)
PCSIR oversee the Electrical and Electronics Laboratory (EEL), The EEL was established in
order to provide a service to electrical product manufacturers and importers to improve the
quality of their products, and to safeguard consumer interests in safety and reliability of
electrical products. The lab measures safety and performance of switches, plugs, sockets,
electrical equipment, and some lighting equipment. It also performs lifetime testing of
incandescent lamps.
 Energy Conservation Fund (ECF)
There should be some dedicated energy conservation funds available with ENERCON, PCSIR
and PSQCA to:
 Identify available technologies for improving efficiency.
 Identify policy measures that can be enforced.
 Promote a program on energy efficiency demand management and conservation and
provide funds for the development and promotion of energy conservation program
initiated by any institution.
 Assist public and private sector institutions to embark on energy efficiency demand
management or conservation programs.

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Proposed Organizational Responsibilities
Schematic of the Appliance Testing and Labeling Program
Task Lead Agency Assisting Agency
Administer labeling program PSQCA/ENERCON PCSIR
Select products PCSIR
Select test procedures PSQCA PCSIR/ENERCON
Establish and operate test
facility
PCSIR PSQCA
Accredit test facility PNAC
Conduct public awareness
campaign
ENERCON
Establish minimum efficiency
standards
PSQCA PCSIR/ENERCON
Enforce labeling and standards PSQCA/ENERCON
Monitor & evaluate program PSQCA/ENERCON
Imported
Products
Customs
Importers
Distributers/
Retailers
Customers
Test Lab
PCSIR
Manufactured
Products
PSQCA/ENERCON
PSQCA/ENERCON
Testing
Testing
Enforcement
Promotion, Monitoring

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4.8 Proposed Organizational Roles
Based on our assessment of the organizational missions and mandates, in combination with
individual meetings with each of the major stakeholders, we propose leading and supporting
roles for each of the major tasks associated with the Testing and Labeling Program (see Table
given above). In addition, since it is envision that this program will lead to the development of
minimum energy performance standards, we also propose roles for the development of such
standards. Figure above is a schematic diagram of the concept for the operation of the
Appliance Testing and Labeling Program in Pakistan.
 Administer Labeling Program
Since the likely source of funding for the testing laboratories and labeling program will come
to PCSIR, and then PCSIR should bear the major primary responsibility for overall
implementation. At the same time, ENERCON has a legal mandate to ―promote a program on
energy efficiency demand management and conservation‖ and to ―assist public and private
sector institutions to embark on energy efficiency demand management or conservation
program.‖
 Select Products
The selection of products for the testing and labeling program should be managed by PCSIR
in consultation with the BRESL Steering Committee.
 Select Test Procedures
PSQCA has responsibility for selecting test procedures for measuring the safety and
performance of consumer products. However, the Ministry of Science and Technology has the
technical expertise to assess the implication of choosing different testing protocols for
measuring product energy performance. We recommend that the selection of test procedures
to be used for certifying energy performance should be the joint responsibility of PSQCA and
PCSIR, in coordination with the BRESL Steering Committee.
 Establish Test Facility
The establishment of the test facility should be the responsibility of the agency with the
budget to construct it. In this case, PCSIR plans to use some of its own funds from PSDP, in
addition USAID/UNDP/WORLD bank should provide the additional funds to establish a test
facility.
 Conduct Public Awareness Campaign
ENERCON has the capability to implement a large-scale public awareness campaign and has
a built-in information distribution system through its customers. At the same time,
ENERCON has experience and a strong mandate to develop energy conservation promotion
programs and its independent status can provide it with credibility in program promotion. We
recommend that ENERCON have primary responsibility for program promotion.

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 Establish Minimum Efficiency Standards
Adoption or replication of minimum efficiency performance standards (MEPS) for electrical
equipment such as Fan, Washing machines, CFL etc should be based upon a benefit cost
analysis and weigh the costs to manufacturers and society against the benefits in terms of
reduced consumer energy bills and deferred electrical generating capacity. Such an action may
well require the passage of new legislation called ―framework legislation,‖ which would
provide the legal basis for the establishment of minimum efficiency standards. It appears that
the Ministry of Science and Technology is the best placed to develop such standards.
 Enforce Labeling and Standards
The responsibility for enforcement will vary depending on whether it is a labeling or
standards program and whether the program is voluntary or mandatory. We are
recommending that the labeling program begin as a voluntary initiative and then become
mandatory after a period of one to two years. For this program, we recommend that PSQCA
be responsible for enforcement of the labeling program through its contacts with the
participating manufacturers and importers and through its role in the Steering Committee. In
the longer term, enforcement responsibility for a mandatory labeling program and for
minimum efficiency standards could be the responsibility of PSQCA, ENERCON and PCSIR.
 Monitor and Evaluate Program
Monitoring and evaluation is an essential element for program success and is often
overlooked. The scheme for monitoring the impact of the labeling program, collecting market
data on an ongoing basis, and evaluating program effectiveness should be built into the initial
implementation plan. Given its status as an independent government agency charged with
promoting energy conservation programs, we recommend that ENERCON play the lead role
in program monitoring and evaluation. PSQCA could also assist in program monitoring and
evaluation.

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KEY FINDINGS AND CONCLUSIONS:
 Fan manufactured in Pakistan are about to 5 to 6 million per annum. Out of the total production,
approximately 30% fans are of pedestal fans, 7% are bracket fans and the remaining 63% are
ceiling fans. The fan which are manufactured in Pakistan are not as per Pakistan Standard Control
Authority (PSQCA) standards and are inefficient as compare to fan manufactured in India, there
is an urgent need to establish a research departments for innovation and to improve designs of
fans according to the national standards and international requirements of buyers.
 The main constraints in energy efficient fan manufacturing are the availability of raw materials
and their quality like ball bearings, Electric Steel Sheet (ESS) is a major item in fan
manufacturing. It determines the quality, performance, durability and electric power
consumptions of a fan.
 The fan industry is very eager to improve their business activities, so far more improvement
of quality assurance is needed and government support is required to develop the energy efficient
fans as per international standards. In near future manufacturers are interested in increasing their
business and wants to capture the international market that is already has but not fully captured.
 Industrial sector uses more than 40 percent of the energy consumed in the Pakistan and even more
when product transportation is factored in. Energy efficient products are able to function on less
energy and thus assist in saving the energy resources of the users. The prices of energy-saving
products are high and still there is no mechanism in Pakistan to promote the energy efficient
appliances, also there are no minimum energy performance standards, testing facilities as per
international standards and energy efficient labels available with government of Pakistan.
However manufacturer cannot produce energy-saving products until and unless there will be
proper mechanism developed by government and its implementation.

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