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© OECD/IEA 2016 © OECD/IEA 2015

IEA Energy Efficiency in Emerging Economies (E4) Training Week

Lighting Appliances & Equipment

Tuesday, 7th June 2016

#EnergyEfficientWorld

© OECD/IEA 2016

Introduction

Welcome Plan for the next few days

• Informal, interactive • Agenda & Scenarios explained • Follow-up

Logistics • Meals • Time keeping • Fire • Mobile phones

Who are we? • Roundtable

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#EnergyEfficientWorld

© OECD/IEA 2016 © OECD/IEA 2015

1. Planning Energy Efficiency Programs Mark Ellis

#EnergyEfficientWorld

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Scenario

There has been a change of government and the incoming government wants a range of options for interventions to rapidly increase residential energy efficiency for appliances, equipment and lighting. How do you identify, prioritise and

quantify these options?

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What do we need to consider?

List all kinds of government interventions we could consider?

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Policy Measures

MEPS/Labels • MEPS • Comparative labels • Endorsements labels

Mandatory obligations on utilities • Green certificates • White certificates

Financial incentives • To consumers/retailers/suppliers/third parties (architects, plumbers, etc) • Grants and subsidies • Loans • Tax relief • Taxes

Procurement by institutions/govt

© OECD/IEA 2016

Awareness raising campaigns Information

• Appliances labels • Retail and/or trade staff training • Advice Centres, hotlines, publications, etc.

Education • School programs • Professional training and qualification/accreditation

RD&D • Research • Demonstration • Commercialisation

© OECD/IEA 2016

Key Indicators

What factors should we consider when trying to assess and rank these? Identify assessment criteria

• Are they all equally effective? • What about timing? • Do they act on a small or large part of the

residential market? • Do they cost the same? • How difficult to organise?

© OECD/IEA 2016

Key Indicators Impact

• Average appliance consumption, overall energy reduction, peak load Costs

• On appliance prices, householders • To government

Employment Local industry, retailers, etc

Competition Speed & Ease of implementation

• Relevant capacity available (staff, institutions, etc) • Support from key stakeholders including other branches of Govt

Sustainability (after program) • Long term impacts

Potential side-effects • Good and bad

Political sensitivities to some policy options

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Evaluation process

Assess policy options against indicators

Policy Measure Options

Indicators

Evaluation process

Ranking of policy

measures

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Data availability Indicators Quantified

assessment Qualified

assessment Impact

Average appliance consumption v. approximate Overall energy reduction, peak load, ghg reduction, etc

v. approximate

Costs On appliance prices v. approximate v. approximate To householders

To government approximate On local industry v. approximate

Employment ✔ Competition ✔ Speed & Ease of implementation

Relevant capacity available (staff, institutions, etc)

Support from key stakeholders ✔ Sustainability Long term impacts ✔ Side-effects Good and bad ✔

© OECD/IEA 2016

Ranking scales

More negative

More positive

Larger scale = more sensitivity

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Evaluation Table

Options Indicator 1 (impact)

Indicator 2 (costs)

Indicator 3 (etc)

Indicator 4 Total

Option 1 Higher is better!!

Option 2 Higher is better!!

Option 3 Higher is better!!

Option 4 Higher is better!!

Option 5 Higher is better!!

Option 6 Higher is better!!

© OECD/IEA 2016

Evaluation Table - weighted

Options Indicator 1 Indicator 2 Indicator 3 Indicator 4 Total

GHG savings Lifecycle costs

Employment Competition

Option 1 4 2 2 3 11

Option 2 2 4 3 2 11

Weighting x1 x2 x2 x1

Option 1 (weighted) 4 4 4 3 15

Option 2 (weighted) 2 8 6 2 18

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If time, complete a simple evaluation table.

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Summary

This scenario not normal! • Don’t usually get a blank sheet

But you will probably need to know about the attributes of different program types: • Industry /consumers often ask why government is doing more or

focusing elsewhere • Many regulatory impact processes require analysis of other policy

options

An analytical approach is used throughout S&L program planning • Need to assess what level of information is sufficient • How to deal with a lack of information • Be aware of a range of concerns and particular sensitivities

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2. Selecting Products for Standards or Labels

David Morgado

#EnergyEfficientWorld

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QUESTION

You have been asked to expand the S&L programme to cover more products,

including those in the industrial sector

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Scenario

Existing S&L programme covers only CFLs (mandatory)

Took five years to implement the S&L programme for CFLs

Limited budget and staff for S&L implementation

Large heavy industry with high energy consumption but also fast growing residential electricity consumption

Limited local product manufacturing industry

Good data set on residential and industrial energy consumption but outdated

Testing facility available but would need investment to cover more products beyond lighting

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The 3-Phase Approach

1. Initial Scoping • Covering all potential products • Simple analysis

2. Highest Priority Products • More detailed analysis of the top 2-3 priorities • Detailed analysis with higher data requirements

3. Cost-Benefit Analysis of Selected Product(s) Detailed modelling of cost-effectiveness

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The 3-Phase Approach

1. Initial Scoping • Covering all potential products • Simple analysis

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What do we need to consider for the initial scoping phase?

Group Discussion

Based on the Scenario and indicating your assumptions:

Identify the key factors that would influence your prioritisation? Indicate your assumptions

Which 2-3 appliances would you select for the 2nd phase in this case?

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Key Factors for Initial Scoping

1. S&L Programme objectives and type

MEPS and/or labels

Mandatory or voluntary

2. Impact of the product on:

Greenhouse gas emissions

Total energy consumption*

Peak power demand*

3. Level of ownership and turnover

4. Potential for energy-efficiency improvement

5. Anticipated stakeholder impact*

6. Coverage by existing test procedures (international / regional)*

7. Existing programme in trading / neighbouring economy*

© OECD/IEA 2016

1. S&L Programme objectives & type

Energy Efficiency

Num

ber o

f Uni

ts S

old Before S&L

After Standards

After S&L

Standard Level

Wiel et al., Energy-Efficiency Labels and Standards: A Guidebook for Appliances, Equipment, and Lighting. 2nd Edition. 2005

© OECD/IEA 2016

2. Impact of the product

Linked to the objectives of the programme

Greenhouse gas emissions • Air Conditioners + Refrigerators – important to account for

refrigerant removal • Contribution to INDCs

Total energy consumption • Current and future (next slide) • >1% = should be considered for the 2nd phase

Peak power demand • Reducing demand for new electricity generation capacity • Cost of peak power to utilities

© OECD/IEA 2016

Share of total energy consumption today

Source: Energy Use in the Australian Residential Sector 1986-2020 – Part 1, 2008

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Share of total energy consumption future

Source: Energy Use in the Australian Residential Sector 1986-2020 – Part 1, 2008

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3. Level of ownership & turnover

Focus on products with high level market penetration today or rapidly increasing

Example of factors: Operation hours per day & lifetime Energy consumption / Energy performance Population, economic growth, household size

Typical appliances selected: Refrigerators Air Conditioners Motors Lighting

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India’s Prioritisation Exercise

All products and equipment possible = 81! Prescreening = 57 Prioritisation Criteria:

1. GHG abatement potential - 75% (surviving stock, annual energy consumption, energy savings potential & emission factor)

2. Market implementability index - 25% (test procedures and standards, number of stakeholders, % organised sector, implementing association / partner)

Top 25 appliances identified Motors and residential ACs had highest: annual energy demand and peak demand reduction energy savings and annual GHG abatement potential existing standards and test procedures

© OECD/IEA 2016

4. Potential for energy-efficiency improvement

Can product efficiency be improved? Bigger appliances have greater opportunities Use existing studies – e.g. IEA 4E, SEAD, LBNL, UNEP Most appliances efficiency potential are well

understood today

Description Annual kWh Energy Saving (%) Manufacturer Cost (USD) Retail Cost (%)

Base case (Refrigerator) 255 - - -

Add 1 cm insulation 234 8.2 1.0 1.5

Add 2 cm insulation 227 11.0 2.5 3.0

Wiel et al., Energy-Efficiency Labels and Standards: A Guidebook for Appliances, Equipment, and Lighting. 2nd Edition. 2005

© OECD/IEA 2016

5. Anticipated stakeholder impact

Understanding the winners and losers Impact will depend on the level of stringency Impact of economy and society (e.g. loss and creation

of local jobs) Important to have stakeholder input: Government agencies (first priority - first stage) Energy utilities (first stage) Private businesses (second stage) Major appliance importers, suppliers, wholesalers,

retailers, distributors (second stage) Major accommodation operators (second stage) Consumer and Environmental Groups (second stage)

© OECD/IEA 2016

Malaysia Approach to Stakeholder Involvement & Data

Energy Commission setup

and managed advisory boards

and working groups

Divided into: - Industry, - Buildings, - End-Use / Residential

Representatives from:

-Government - Industry

- Associations, - Companies, - Universities

- Consultancies

Industry groups aided in the

collection of data through market

surveys

Workgroup recommendations used as basis for

S&L program development

Wiel et al., Energy-Efficiency Labels and Standards: A Guidebook for Appliances, Equipment, and Lighting. 2nd Edition. 2005

© OECD/IEA 2016

6. Coverage by test procedures

Do not reinvent the wheel!

Refer to international standards and test protocols for MEPS such as:

International Electrotechnical Commission (IEC)

International Organisation for Standardisation (ISO)

Regional standards or in neighbouring countries

Explore synergies within the region

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7. Existing programme in trading partner / neighbouring economy

This can simplify market acceptance by domestic and international manufacturers

Can help simplify MEPS adoption

Pacific Islands Case Study

• Limited data on household energy use and appliance uptake

• Issues with customs classification for appliance

• Limited capacity and resources available

• Opted to adopt S&L based on main country of origin and focusing on highest consuming appliances

© OECD/IEA 2016

The 3-Phase Approach

2. Highest Priority Products • More detailed analysis of the top 2-3

priorities • Detailed analysis with higher data

requirements

3. Cost-Benefit Analysis of Selected Product(s) Detailed modelling of cost-effectiveness

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US Preliminary Analysis

Market & Technology

Screening Analysis

Engineering

Analysis

Markups for Equipment Price

Determination

Preliminary Manufacturer Impact

Analysis

Life-Cycle Cost and Payback

Period Analysis

Shipment Analysis

National Impact

Analysis

Energy Use & End Use Load Characterisation

#EnergyEfficientWorld

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EU Analysis (Preparatory Study)

Economics & Market

Consumer Analysis & Local Infrastructure

Technical Analysis Existing Products

Definition of Baseline

Improvement Potential Technical Analysis on Best Available Technology

#EnergyEfficientWorld

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Highest Priority Products Specific Data for Sectional Assessment (Examples)

•Energy consumption and demand •Investment in generation capacity •Electricity tariffs and sales •CO2 emissions

Energy Sector:

•Taxation on appliances and manufacturers •Resources and funding available Government:

•Attitude towards energy efficiency •Appliance ownership and operating expenses (E.g.

Census) •Equipment prices

Consumers (usage and behavioural data):

•Number of companies and employees, •Annual sales and profits, growth rate…

Manufacturers, Suppliers, Distributors,

Wholesalers and Retailers:

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Types of Assessment

1. Engineering Assessment:

• Performance of products

• Technical feasibility for improvement

• Economic feasibility for improvement (cost)

2. National Impact and Consumer Assessment:

• Cost-benefit for consumers and society

• Impact on utilities and government

• Environmental impacts

3. Manufacturing, Distributor and Retailer

Assessment:

• Impact of mandatory/voluntary standards and/or label scheme on:

• Sales, profitability and competitiveness,

• Productivity and growth,

• Employment

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Cost-Benefit Analysis

Or cost-effectiveness Cost-benefits to the: Country Consumers Utilities Manufacturers

Models and support available: Policy Analysis Modeling System for Minimum Energy

Performance Standards (PAMS-MEPS) Bottom-Up Energy Analysis System (BUENAS) Superefficient Equipment and Appliance Deployment

(SEAD) Initiative

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PAMS-MEPS

Source: LBNL, Policy Analysis Modeling System. Available for free! https://ies.lbl.gov/project/policy-analysis-modeling-system

© OECD/IEA 2016

BUENAS

Evaluate potential energy savings and emission reductions under different policy scenarios

Forecasting energy consumption based on macroeconomic parameters

Analysis available for specific countries including China, India, Indonesia, Mexico and South Africa

Helps policymakers: Forecast the energy saved and emissions reduced Identify policy goals that are achievable Prioritise policy actions to maximize impact Understand the economic potential

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Example of BUENAS model inputs

Population Household size Number of households GDP per capita and

growth rates GDP per household Electrification Urbanisation Appliance penetration

Floor space Employment Unit sales Unit stock Market shares Lifetimes Carbon factor Etc……

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Superefficient Equipment and Appliance Deployment (SEAD)

Initiative of the Clean Energy Ministerial (CEM)

Task within International Partnership for Energy Efficiency Cooperation (IPEEC)

Promote the manufacture, purchase, and use of energy-efficient appliances, lighting, and equipment worldwide

17 Participating Governments including Brazil, India, Indonesia, Mexico and South Africa (China is an observer)

Engages with government to provide technical support and conduct research including prioritisation

http://www.superefficient.org/

© OECD/IEA 2016

Summary

Do not reinvent the wheel!

Determine the key factors and work with key stakeholders to gather the data

Prioritise data needs using the 3-Phase approach

Explore synergies and opportunities with neighbouring countries and trade partners

Make use of existing studies, policies and standards

E.g. Use of existing framework for CFLs to expand to linear fluorescent and LEDs depending on market characteristics

Do not prioritise too many appliances (success will drive more support)

© OECD/IEA 2016 © OECD/IEA 2015

3. Assessing current performance of appliances and equipment

Melanie Slade

#EnergyEfficientWorld

© OECD/IEA 2016

QUESTION

A respected industry association claims that the MEPS levels for X are so out of date that

all the products on your market comply.

How do you go about testing this claim, and what do you do if this information is

correct?

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What do you think?

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What’s on the market?

Registration system data?

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Registration system data

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What’s on the market?

Registration system data? Manufacturers? Purchased sales data?

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Purchased sales data

Heightening demand for TVs and major home appliances in Myanmar in first quarter of 2016 - Sales of TVs, washing machines and refrigerators registered consecutive month-on month surges The economy of Myanmar has been witnessing strong growth in recent years following the country’s liberalization, leading to rapid adoption and penetration of modern technology in many households. Latest study commissioned by GfK Asia in the country’s Mandalay and Yangon regions reflected consecutive monthly growth in adoption of flat screen TVs, washing machines and air-conditioners in the first three months of 2016. The January to March period reported nearly 152,000 units of TVs being snapped up in

Yangon and Mandalay, generating sales totaling over USD 36 million. While nearly half of the total (49%) market demand was skewed towards 32 inch LED TV models in the first quarter, a rising take-up was seen in the latter months, where share of the 40-43 inch segment grew from 12 percent in January to reach 20 percent of the total monthly sales volume in March. A similar trend was also reflected for the for the full-HD and UHD segments—in a market which is largely made up of HD-ready-only models (55%).

“The Burmese new year—the most celebrated event in the country—takes place around mid-April and the months leading up to this day tend to witness robust purchasing activities by locals in preparation for the festivities,” highlighted Stanley Kee, Managing Director for Southeast Asia at GfK. “This is also an important period for local retailers as aggressive efforts to drive sales are in full force to stimulate consumer spending.”

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What’s on the market?

Registration system data? Manufacturers Purchased sales data? Data from catalogues and the internet?

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Data from catalogues and the internet

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Data from catalogues and the internet

Source: Big2Great http://www.iea.org/media/workshops/2015/productsdec15-16/3.2_KasperMogensen_WebcrawlingGatherDataOnlineMarketSurveillance.pdf

© OECD/IEA 2016

What’s on the market?

Registration system data Manufacturers Purchased sales data Data from catalogues and the internet Test data

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Test Data

© OECD/IEA 2016

What’s on the market?

Registration system data Manufacturers Purchased sales data Data from catalogues and the internet Test data Household surveys

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Household Surveys

Source: Vietnam Energy Efficiency Standards and Labelling Programme

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What’s on the market?

Registration system data Manufacturers Purchased sales data Data from catalogues and the internet Test data Household surveys

© OECD/IEA 2016

If the information is correct?

What would you do next?

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If the information is correct?

Group exercise on how to define new MEPS

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If the information is correct?

Define new MEPS Consider specifications in similar markets Consider global or regional harmonisation

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Defining new MEPS

Source: http://mappingandbenchmarking.iea-4e.org/shared_files/509/download

© OECD/IEA 2016

Defining new MEPS

http://mappingandbenchmarking.iea-4e.org/shared_files/555/download

© OECD/IEA 2016 © OECD/IEA 2015

4. Monitoring, Verification and Enforcement (MV&E) of standards and

labelling programmes

Mark Ellis

© OECD/IEA 2016

Question

You’ve been given $1m to improve compliance rates in your S&L program.

How do you go about deciding on the most

effective ways to spend this?

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Everyone write down your first response now & keep it safe (No wrong answers)

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Group exercise

What are your options? Compile a list of everything you might think

of doing….......

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To know what are cost-effective options, we need to know: • What is a compliance system? • What are we trying to achieve? • How does a compliance system work?

The following is based on ‘best practice’ across energy efficiency and other programs…......

© OECD/IEA 2016

In all regulated markets…....

20% of the regulated population will automatically comply with any regulation

5% will attempt to evade it

and the remaining 75% will comply as long as they think that the 5% will be caught and

punished.

© OECD/IEA 2016

Compliance Best Practice

Based on simple deterrence theory:

There must be a credible likelihood of detecting violations

Swift, certain, and appropriate sanctions upon detection

A perception among the regulated firms that these detection and sanction elements are present

Same principles apply to ‘Best Practice’ compliance regimes in

many sectors

© OECD/IEA 2016

Which is the best deterrent?

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Steps to encourage compliance

1. Make sure all stakeholders understand their obligations

2. Make it simple to demonstrate compliance

3. Increase the risk that instances of non-compliance will be discovered

4. Take corrective action quickly to minimise damage (to all)

5. Make penalties proportional to the extent of transgression but sufficient to be an effective deterrent

6. Ensure corrective action is visible - to deter others

© OECD/IEA 2016

Key elements of compliance regimes

Mechanism to facilitate compliance Market surveillance Verification testing Enforcement Communication, reporting, feedback Legal and administrative framework Budget and resource allocation Evaluation processes

Effective compliance regimes include all of these related elements

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Revisit options list Is there anything we should add?

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Options

Test more products Build a better laboratory Better educate product suppliers Publish list of offenders & actions taken Inspect more labels in stores Improved powers to act (legislation) Improve the range of sanctions available Publish rules / enforcement policy document Make it easier for suppliers to demonstrate/report compliance Improve targeting of testing Develop in-house manual for staff Publish testing targets in advance Ensure that enforcement action is taken swiftly Add requirements for retailers

© OECD/IEA 2016

Cost-effectiveness assessment

Likely impact • How will this option lead to better compliance rates? • What sort of scale of impact? • Anything we can do to increase impact?

Costs • Staff, capital & other? • Can we reduce costs?

Sustainability? • Are cost on-going? How to fund?

Time to implement Other important issues?

• Reaction of stakeholders/partners

© OECD/IEA 2016

Dependent on: • what countries already have in place & what is

missing • National cost structure

The following are general comments on costs and effectiveness

Cost-effectiveness

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Post-market verification

Third-party certification

System costs

Total costs ≈ same

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Lower cost options

Largely administrative arrangements Often forgotten But highly effective

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Aim: All requirements should be clear and accessible to all Make it easy to comply Avoid time-consuming questions

Raise the perceived risks of non-compliance by publishing information on the activities taken to monitor, verify and enforce compliance

Ask yourself: Are the requirements for suppliers and retailers clear? Are all the relevant documents relating to MV&E clearly identified

on the website? Are all documents up-to-date and consistent? Are enforcement procedures and sanctions obvious?

Facilitating Compliance

© OECD/IEA 2016

Aim: MV&E is a system – all staff, should know what are the

rules and what their role is This avoids ambiguities, time wasting, unresolved

issues Ask yourself: Are all procedures clear – does everyone know their job? Are there any bottlenecks? Is there a staff ‘operations manual’ covering procedures, tasks

and responsibilities relating to the MV&E process.

Clarify Internal Procedures

© OECD/IEA 2016

Elevate the Risk of Detection Should be highly public, targeting all participants (not just relevant industry)

Publish targets of compliance program to give advance warning

Report overall results to all participants

Where proven, publicly identify offending parties (e.g. suppliers, stores, labs)

Report enforcement actions (e.g. fines, etc)

Reporting

Encourage Corrective Action Mixture of public and private communication with offenders

Publish targets of compliance program to give advance warning

Privately communicate their result details to each party individually (e.g. stores & suppliers)

Privately provide benchmarking information (e.g. by region, size, average performance, etc)

Publicly identify best and worst performers

© OECD/IEA 2016

Reporting targets

© OECD/IEA 2016

Communication with individual parties needs to be timely • To reduce lost savings opportunities • To encourage corrective action

Public reporting needs to be regular and sustained • To maintain the perception of risk • To reach new participants

When to report

© OECD/IEA 2016

18/05/2016 Air conditioner SolAir World SWW(R)-7.2GW 04/01/2016 Incandescent lamp Olsent A55 28W

04/01/2016 Incandescent lamp Olsent 28W Halogen Globe Dimmable Clear Fancy Round P45 28W

14/12/2015 Incandescent lamp Olsent Q35 MR16/CG/36 12V-35W F12T GU5.3 ELV Reflector

12/11/2015 Incandescent lamp GE Lighting Halogen GLS Lamp 100W 240V D0

05/11/2015 Incandescent lamp Fozz U5.3 12V 25W 60* tungsten halogen ELV Reflector

05/11/2015 Air conditioner Pioneer International GTIO-100A6/GTE-100A6 22/09/2015 Incandescent lamp Osram 64543 A ECO 42W 240V B22D 22/09/2015 Incandescent lamp Osram 64544 A FR ECO 53W E27 11/09/2015 Self-ballasted compact fluorescent lamp Olsent 3P414-ES-40K, 17/08/2015 Self-ballasted compact fluorescent lamp Envirolux XEU48-15R80 E27 2700K 13/08/2015 Self-ballasted compact fluorescent lamp Envirolux XEU48-15R80 E27 4000K 30/07/2015 Self-ballasted compact fluorescent lamp Olsent FE-IISB-18W 2700K 30/07/2015 Self-ballasted compact fluorescent lamp Olsent FE-AU-15W 2700K

09/07/2015 Self-ballasted compact fluorescent lamp E-Star ESSP9W27E27 8w Mini Twist warm white 6500K

26/06/2015 Self-ballasted compact fluorescent lamp Arlec FT24 26/06/2015 Self-ballasted compact fluorescent lamp Osram Mini Twist 13W/827 E27 11/06/2015 Self-ballasted compact fluorescent lamp Philips Ambiance A55 11W WW 18/05/2015 Computer monitor Philips 284E5Q

05/01/2015 Double-capped fluorescent lamp NEC FL30SSEX-N-HG-36 : 30W T8 Tri-Phosphor Natural 5000K

© OECD/IEA 2016

Aim: Testing expensive and the capacity of registered test

laboratories limited Not all registered products can realistically be tested - especially as the

program grows to include more registered models.

Random selection represents an inefficient allocation of resources.

Assessment: Develop and publish a set of criteria for determining how products will be

selected for verification testing

Identify ‘risk factors’ for products most likely to be non-compliant.

Targeting of testing

© OECD/IEA 2016

Most programs make model selection based on the credibility of company claims. E.g.

At brand level: • Does the brand have a good record of compliance? • Here and/or in other economies?

At a model level: • What is the quality of evidence for claims – is the test lab known

and credible? • Have competitors provided evidence of non-compliance? • Are the claims of performance excessively high - unbelievable?

These criteria help to target likely non-compliance

Selecting models for testing

© OECD/IEA 2016

Aim: Ensure a robust, streamlined testing system Remove opportunities for delays that allow potentially non-

compliant products to be sold Assessment: Opportunities to reduce cost and complexity: Select and contract labs well ahead of time Labs to source & transport models from retail Provide options if particular models can’t be sourced from market Avoid suppliers delaying verification tests by not providing a witness

Product Testing process

© OECD/IEA 2016

Develop & publish an Enforcement policy

Aim: Clear public statement of fair & reasonable procedures to deal with

non-compliance

© OECD/IEA 2016

Legislative options

Cost mainly in time May need to be opportunistic

• Store up changes until the right time when changes being made for a number of reasons

© OECD/IEA 2016

Aim: Remove any ambiguities on the role of retailers Remove any loopholes to enforcement E.g. responsibility for faults for incorrect labels

Retailers are the interface with consumers They are often easier to deal with than overseas suppliers

Ask yourself: Are the roles, responsibilities and enforcement options relevant

to retailers clear? Should there be outreach activities that bring these issues to the

attention of product retailers?

Requirements for retailers

© OECD/IEA 2016

Aim: To pose a credible threat, enforcement needs to be seen to occur A range of sanctions available - scaled appropriate to transgression

e.g. Advice, warnings, public identification, administrative proceedings,

financial penalties

Ask yourself: Is it clear what the range of enforcement options are? E.g. Is there a public enforcement policy that explains the ramificiations

of non-compliance to suppliers and retailers?. Are there enforcement guidelines for staff so they know what to

do, what records to keep, etc?

Enforcement

© OECD/IEA 2016

Enforcement policy

© OECD/IEA 2016

Enforcement costs

Programmes need a range of enforcement tools

so they can act appropriately to suspected transgressions

and quickly to minimise damage

Cos

ts

© OECD/IEA 2016

Medium cost options

© OECD/IEA 2016

Aim: Periodically monitor products within a sample of stores to check that: All required products are correctly labelled, All labels conform to requirements, Fake labels are not being used Products on the market are registered (where required)

Demonstrates that government is being vigilant

Ask yourself: Who could undertake market surveillance?

Govt staff? Consumer groups? Contractors?

How do we respond to any observed instances of non-compliance?

Labelling display and registration monitoring

© OECD/IEA 2016

Aim: To ensure results are repeatable and reproducible between labs Large variations mean that non-compliance is difficult to prove Destroys credibility of the program

Ask yourself: Do we know how the results of labs compare? Can we reduce variations between laboratories? Can we implement a program for inter-laboratory comparison and

witness testing for registered laboratories?

Improve laboratories performance

© OECD/IEA 2016

Now write down what you would do? Is it the same as at the beginning?

© OECD/IEA 2016

Summary

Keep focused on objective! • Creating an effective deterrence system • Tell everyone what you are doing!

It’s a system – don’t focus only on one element Make sure everyone knows what they should

be doing • Cheapest way to improve compliance

© OECD/IEA 2016 © OECD/IEA 2015

Sources of further assistance

Melanie Slade & Mark Ellis

© OECD/IEA 2016

IEA Technology Collaboration Program for Energy Efficient

End-Use Equipment (4E)

January 2016

4E at a glance

4E provides an international forum for governments and other stakeholders to:

• Share expertise and develop understanding of electrical end-use equipment and policies

• Facilitate co-ordination of international approaches in the area of efficient electrical end-use equipment

Many policy makers are seeking answers to similar questions: • How do appliances compare in different countries? • What have been the most effective policies? • What targets could we use?

Launched in March 2008, 4E now has 12 member countries actively participating in collaborative projects.

105

Participating Countries

106

MEMBERS Australia Austria Canada Denmark France Japan Korea The Netherlands Switzerland Sweden UK USA

CONSIDERING MEMBERSHIP

ExCo participants comprise senior representatives of government energy efficiency policy departments, ministries or agencies

Structure of 4E

107

Changing policy measures to encourage tougher efficiency requirements for larger refrigerators is one way to manage the increasing fridge size problem.

INTERNATIONAL BENCHMARKING

Evidence from appliances in the Japanese market shows that there is still significant room for improvement

4E analysis has shown conclusively and for the first time that the 1 Watt target for standby power, adopted by G8 ministers in 2005 has been effective.

Six years on, the majority of devices are well on course to meet this target.

Tracking Standby Power

Analysis of regulations to in 10 countries gives policy makers insight into the effects on the market during the implementation phase.

Collapse in sales of traditional incandescent lamps.

Migration to halogen lamps has reduced expected efficiency gains.

TRACKING PHASE-OUT INEFFICIENT LIGHTING

World’s largest interlaboratory comparison for LED lamp with 110 labs in 16 different countries.

To increase capacity to test LEDs accurately & ensure that new LED products sold are of high quality and meet the claimed performance.

Run by four Nucleus Labs in Europe, USA, Japan & China.

New round starting in 2016 – open to most labs

2013 SSL INTERLABORATORY COMPARISON

NIST (USA)

NLTC (China)

VSL (NL)

Asia 1

AIST (Japan) Asia 2 USA

Europe

Task 2: IC 2013 Comparison Testing

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LM-79

Manufacturers & Testing labs

PT for LM-79

Manufacturers & Testing labs Manufacturers

& Testing labs

EN Test Method 13032-4

JIS Test Methods

NVLAP and other SSL testing acc.

PT for EN T.M.

PT for JIS T.M.

Acc. Prog. for SSL testing

IA-JAPAN SSL testing acc.

CIE S 025: International Test Method for harmonized SSL testing & accreditation world-wide (to support regulations)

Chinese CQC and GB stds

Chinese regulations

Manufacturers & Testing labs

PT for Chinese T.M.

CNAS SSL testing acc.

Eco-design

Eco mark

Energy Label

International Test Method =

CIE S 025

114

Policy Briefs Summary of key

publications

Clear, concise guidance for policy makers

Available in English, French, German, Korean & Japanese

115

The energy efficiency of major appliances have increased at more than 3x the underlying rate of technology improvement in countries with EESL programs.

One-off improvements of more than 30% have been observed.

The most mature national EESL programs covering a broad range of products are estimated to save between 10% and 25% of national or relevant sectoral energy consumption.

Achievements of EESL programs

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Interacting with 4E

Become a member of 4E Min. €20,000 /yr + in-kind Observer status

Access publications Join workshops Participate in SSL interlaboratory

testing Subscribe to newsletter ‘Bright Spark’

http://www.iea-4e.org

117

G20 Energy Efficiency Action Plan Nov 2014: Australia launch of Energy Efficiency Action

Plan – 6 Task Groups – Transport, Finance, Buildings, Products, Industry, Electricity

Generation 2015 Turkey

– Output of all TGs welcomed – Further work encouraged

2016 China – Energy Efficiency Leaders Programme – All existing TGs plus new ones

Roles and Responsibilities Coordination:

– UK (Dept of Energy & Climate Change) – International Energy Agency

Resources being harnessed: – Secretariat: IEA-4E – IEA-4E Electronic Devices and Networks Annex (EDNA) – Super Efficient Equipment and Appliance Deployment initiative

(SEAD)

4E Members Australia Austria Canada

Denmark France Japan Korea

Netherlands Sweden

Switzerland UK US

G20 Countries Argentina Australia

Brazil Canada China

EU France

Germany Korea India

Indonesia Italy

Japan Mexico Russia

Saudi Arabia South Africa

Turkey UK US

G20 Network Devices Task Group

“Participating countries will work together to accelerate the development of new ways to improve

the energy efficiency of networked devices”

“In 2015, this work will include consideration of options for goals for reducing the global standby mode energy consumption of networked devices”

G20 Networked Devices TG

Why Networked Devices?

Networked device energy increasing at 2x rate of total electricity.

Greater than Canada’s total electricity in 2011. Forecast to use 6% of current global electricity by 2030. AMOST ALL appliances and equipment will become

connected to the internet. Major opportunity to reduce direct energy consumption. Also connectivity a gateway to energy management

through “intelligent efficiency”.

Short Video explaining the Connected Devices Alliance Also viewed at: https://www.youtube.com/watch?v=H9grCy3bltc

Connected Devices Alliance Formed in mid 2015 Platform for Governments + Industry to

– track developments & policies, share info & develop new initiatives

Growing network of 350+ – including Govt. technical agencies, relevant

industry, experts and academics

Support and government liaison via IEA, 4E, SEAD, IPEEC

Connected Devices Alliance The Connected Devices Alliances (CDA) is an umbrella

organisation comprising industry and governments representatives that recognise the need to take globally co-ordinated action to: – Realise a world where devices and networks optimise energy

management while delivering increased energy productivity across all sectors.

– Maximise network-enabled energy savings and minimise the energy consumption from all networks and networked devices.

Centre of Excellence

To provide on-going single source of authoritative information to governments

Publish papers which increase understanding of connected device energy use & inform policy development

http://cda.iea-4e.org

CDA Design & Policy Principles 2 sets of Principles:

– Guide to efficient design & operation of networks and devices – Provide guidance for policy development towards a common

global framework

CDA seeking broad endorsement in 2016 – Endorsed by the Information Technology Industry Council (ITI)

CDA encourages governments to: – Endorse and implement the CDA Policy Principles – Encourage product manufacturers, designers and standards

bodies to endorse and implement the CDA Design Principles

Design & Policy Principles DESIGN AND OPERATION PRINCIPLES

1. Networked device design should follow standards-based communication and power management protocols to ensure compatibility and interoperability, and should take advantage of standards and protocols that actively support energy efficiency.

2. Networked devices should not impede the efficient operation of a network (for example by injecting bottlenecks or faults, or impeding power management activities in other devices).

3. Network-wide energy efficiency optimization should be a primary development consideration. Network power management should coordinate with individual device power management techniques to achieve this.

4. Connection to a network should not impede a device from implementing its internal power management activities.

5. Networks should be designed such that legacy or incompatible devices do not prevent other networked devices on the network from effective power management activities.

6. Networks and networked devices should have the ability to scale power levels in response to the amount of the service (level of functionality) required by the system.

7. Edge devices without networking functionality should enter network standby, if appropriate, after a reasonable period of time when not being used. Edge devices with networking functionality should provide power management capabilities for each function consistent with that function’s role in the network.

DESIGN AND OPERATION PRINCIPLES (continued)

8. Networking and networked infrastructure devices should not autonomously go to network standby mode. These devices should support power scaling.

9. Consumers should be informed about and have control over device power management, when applicable, including networked device low power modes that may affect the user experience.

10. The design and operation of networked devices should be compatible with, and promote the positive effects of, using consumer electronics and information and communication technology (ICT) to enable energy to be used more efficiently, often referred to as “Intelligent Efficiency.”

POLICY PRINCIPLES

1. Government and industry should seek harmonized policy approaches that benefit the global marketplace for consumer and commercial technology products and services, and that enhance the productivity and efficiencies achieved via networks.

2. Policy, including government procurement and best-practice sharing, should support continued device, network and intelligent efficiency innovation.

3. Energy efficiency requirements should be performance-based and technology neutral. Policy should account for the different capabilities of networked devices.

4. Policy should neither impede the functionality of networked devices or efficiency of the network nor impair the implementation of standards for enabling device or network security.

Join in The CDA is jointly led by the UK Department of the Energy and Climate Change and the International Energy Agency. Organisations may participate in the CDA without obligation, as there is no formal membership of the CDA. Annual workshops Newsletter Working groups

Background info

Further Information

Come to the next workshop – 19/20 May 2016, Paris

Visit CDA website: http://cda.iea-4e.org

Contact:

– Sam Thomas, IEA: samuel.thomas@iea.org – Mark Ellis: mark@energyellis.com

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