JULY 2011

BY Collaborative Labeling and Appliance Standards Program (CLASP) in Partnership with the Lawrence Berkeley National Laboratory (LBNL) on behalf of The Ministry of Energy, Chile

The National Energy Efficiency Standards and Labeling Program of Chile

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This report was prepared by the Collaborative Labeling and Appliance Standards Program (CLASP), in cooperation with Lawrence Berkeley National Laboratory (LBNL), in the framework of the Memorandum of Understanding between the Ministry of Energy and CLASP, signed on September 30th, 2010. July 2011 Authors Wolfgang Lutz & Christopher Stone, CLASP Virginie Letschert & Dr. Michael McNeil, LBNL

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Table of Contents LIST OF ABBREVIATIONS .................................................................................................................... 6

EXECUTIVE SUMMARY ....................................................................................................................... 8

1. INTRODUCTION .................................................................................................................. 12

2. THE CHILEAN ENERGY EFFICIENCY STANDARDS AND LABELING PROGRAM ........................ 13

3. LEGAL AND REGULATORY FRAMEWORK FOR ENERGY EFFICIENCY STANDARDS AND LABELING ........................................................................................................................... 16

3.1 REGULATORY FRAMEWORK OF A SYSTEM OF CERTIFICATION OF ENERGY EFFICIENCY OF DOMESTIC APPLIANCES ................................................................................................................. 16

3.2 LAW NO 20.402 MODIFYING DECREE NO 2.224 ................................................................... 17 3.3 DRAFT REGULATION TO IMPLEMENT MINIMUM ENERGY EFFICIENCY STANDARDS ............................ 18 3.4 RECOMMENDATIONS ..................................................................................................... 19

4. MANDATES AND ROLES OF ORGANIZATIONS INVOLVED IN THE EE S&L PROGRAM ........... 19

5. PROCEDURES ..................................................................................................................... 21

5.1 PROCEDURES FOLLOWED IN THE NATIONAL ENERGY EFFICIENCY STANDARDS AND LABELING PROGRAM21 5.1.1 Development of Chilean Test Procedure and Energy Labeling Standards ....... 22 5.1.2 Definition of Baselines and Development of MEPS ........................................ 24 5.1.3 Market Surveillance, Monitoring and Evaluation........................................... 24

5.2 RECOMMENDATIONS ..................................................................................................... 25 5.2.1 Development of Test Procedure and Energy Labeling Standards.................... 25 5.2.2 Development of MEPS .................................................................................. 25 5.2.3 Market Surveillance, Monitoring and Evaluation........................................... 26

6. TESTING AND CERTIFICATION............................................................................................. 27

6.1 REGULATORY FRAMEWORK FOR TESTING AND CERTIFICATION AND PROPOSED CHANGES IN REGULATION27 6.2 ACCREDITATION OF TEST LABORATORIES AND PROFICIENCY TESTING ........................................... 28 6.3 ASSESSMENT OF CHILEAN TEST LABORATORIES ...................................................................... 29

6.3.1 CTI/CESMEC ................................................................................................. 30 6.3.2 INGCER ........................................................................................................ 31 6.3.3 SILAB ........................................................................................................... 32

6.4 RECOMMENDATIONS ..................................................................................................... 32

7. COMPLEMENTARY PROGRAMS TO FOSTER MARKET TRANSFORMATION .......................... 33

7.1 CONSUMER AWARENESS AND INFORMATION ........................................................................ 33 7.2 EDUCATION OF CONSUMERS, GOVERNMENT OFFICIALS AND SALES PERSONNEL .............................. 35 7.3 REPLACEMENT PROGRAM FOR HOUSEHOLD LAMPS ................................................................ 36 7.4 INCENTIVE PROGRAMS .................................................................................................... 36 7.5 RECOMMENDATIONS ..................................................................................................... 38

7.5.1 Label design and consumer comprehension .................................................. 38 7.5.2 Education of consumers, government officials and sales personnel ............... 38 7.5.3 Replacement and incentive programs ........................................................... 38 7.5.4 Public procurement programs ...................................................................... 39

8. MINIMUM ENERGY PERFORMANCE STANDARDS (MEPS) .................................................. 39

8.1 PRODUCT PRIORITIZATION ............................................................................................... 39 8.2 BUENAS MODEL ......................................................................................................... 39 8.3 SAVINGS RESULTS ......................................................................................................... 40

9. CASE STUDY REFRIGERATORS............................................................................................. 43

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9.1 SCENARIO DESCRIPTION: BASE CASE AND POLICY SCENARIO .................................................... 43 9.2 COST-BENEFIT ANALYSIS ................................................................................................. 44 9.3 NATIONAL IMPACT ANALYSIS ........................................................................................... 44

REFERENCES ..................................................................................................................................... 47

WEBSITES......................................................................................................................................... 48

ANNEX 1: MEMORANDUM OF UNDERSTANDING (MOU) ................................................................. 49

ANNEX 2: SCHEDULE OF MEETINGS ................................................................................................. 58

ANNEX 3: MANUAL ETIQUETADO ENERGÉTICO (ENERGY LABELING GUIDE) – EXTRACTS ................. 61

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List of tables and figures Tables Table 1: Existing energy labeling standards ..................................................................................................... 15 Table 2: Energy labeling standards under preparation ..................................................................................... 16 Table 3: Laboratories accredited for energy performance tests in Chile ........................................................... 29 Table 4: Assessment of refrigerator test laboratories of CTI/CESMEC .............................................................. 30 Table 5: Assessment of refrigerator test laboratories of INGCER ..................................................................... 31 Table 6: Assessment of refrigerator test laboratories of SILAB......................................................................... 32 Table 7: Incentives for Efficient Refrigerators – Benefits and Cost ................................................................... 37 Table 8: Life Cycle Cost results and Payback Period ......................................................................................... 44 Table 9: Summary Results ............................................................................................................................... 46 Figures Figure 1: Initial product selection .................................................................................................................... 14 Figure 2: Procedures followed in the National Energy Efficiency Standards and Labeling ................................. 21 Figure 3: Procedure to prepare and issue a Chilean Standard (Norma Chilena – NCh) ...................................... 23 Figure 4: Posters used in the Campaign "Únete a la buena energía de Chile" ................................................... 34 Figure 5: BUENAS Modular Analysis Structure ................................................................................................. 40 Figure 6: BUENAS Results ............................................................................................................................... 42 Figure 7: Sales Weighted EEI in Different Policy Scenarios ............................................................................... 43 Figure 8: National Energy Savings form Labeling and MEPS Program (level A+) ................................................ 45 Figure 9: Cost and Energy Savings from Labeling and MEPS (level A+) ............................................................. 45

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List of Abbreviations AChEE Agencia Chilena de Eficiencia Energética (Chilean Agency for Energy Efficiency)

APC Avoided Plant Capacity

APLAC Asia Pacific Laboratory Accreditation Cooperation

BUENAS Bottom-up Energy Analysis System

CASCO Committee on Conformity Assessment of the International Organization for Standardization (ISO)

CB Certification Body

CESMEC Centro de Medición y Certificación de Calidad S.A.

Ch$ Pesos Chilenos (Chilean Pesos)

CFL Compact Fluorescent Lamp

CLASP Collaborative Labeling and Appliance Standards Program

CNE Comisión Nacional de Energía (National Energy Commission)

CTI Compañía Techno Industrial S.A.

COPANT Comisión Panamericana de Normas Técnicas (Pan American Standards Commission)

CORFO Corporación de Fomento de la Producción

DL Decreto Ley

D.S. Decreto Supremo

EA European Co-operation for Accreditation

EEI Energy Efficiency Index

EE S&L Energy Efficiency Standards and Labeling

EU European Union

FC Fundación Chile

GDP Gross Domestic Product

IAAC Inter-American Accreditation Cooperation

IAF International Accreditation Forum

IEA International Energy Agency

IEC International Electrotechnical Commission

ILAC International Laboratory Accreditation Corporation

INE Instituto Nacional de Estadísticas (National Statistical Institute)

INGCER INGCER Certificación de Productos Eléctricos y Combustibles

INN Instituto Nacional de Normalización (National Standardization Institute) INMETRO Instituto Nacional de Metrologia, Normalização e Qualidade Industrial, Brazil

ISO International Organization for Standardization

LBNL Lawrence Berkeley National Laboratory

LCC Life Cycle Cost

MEPS Minimum Energy Performance Standard

MINVU Ministerio de Vivienda y Urbanismo (Minsitry of Housing and Town-planning)

MoE Ministry of Energy

MoU Memorandum of Understanding

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NCh Norma Chilena (Chilean Standard)

NGO Nongovernmental Organization

NPV Net Present Value

PAC Pacific Accreditation Corporation

PAMS Policy Analysis Modeling System

PBP Payback Period

PNEEE Programa de Normas y Etiquetado de Eficiencia Energética en Chile (Chilean Energy Efficiency Standards and Labeling Program)

PNRA Programa Nacional de Recambio de Ampolletas (National Replacement Program of Light Bulbs)

PPEE Programa País de Eficiencia Energética (National Energy Efficiency Program)

SEC Superintendencia de Electricidad y Combustibles (Superintendency for Electricity and Fuels)

SERNAC Servicio Nacional del Consumidor (National Consumer Service)

SIC Sistema Interconectado Central (Central Interconnected System)

SICAL SICAL Ingenieros S.A.

SILAB SILAB Ingenieros S.A.

STB Set-top box

VAT Value added tax

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Executive Summary The Government of the Republic of Chile initiated, in December 2005, the National Energy Efficiency Program (Programa País de Eficiencia Energética – PPEE). PPEE was designed as a program with various lines of action, emphasizing a participatory approach involving state entities, the private sector, local government and civil society. The Chilean Energy Efficiency Standards and Labeling Program (Programa de Normas y Etiquetado de Eficiencia Energética en Chile – PNEEE) was created as a strategic activity within the framework of PPEE. The main activities and achievements of the PNEEE to date can be summarized as follows:

A regulatory framework has been implemented, which defines: (i) the requirements for development, adoption and application of technical regulations and procedures for conformity evaluation, (ii) the certification systems and procedures for electrical products, and (iii) the authority of the Superintendency for Electricity and Fuels (Superintendencia de Electricidad y Combustibles – SEC) to authorize and supervise the certification and inspection bodies, test laboratories and certification procedures;

International energy efficiency test procedures have been adopted as Chilean Standards (Normas

Chilenas – NCh) for a range of appliances and equipment, and Chilean Energy Labeling Standards have been issued, which include the energy efficiency categories for each product;

Mandatory energy efficiency labeling has been implemented for incandescent lamps; self-ballasted

compact fluorescent lamps (CFLs); single-capped and double-capped fluorescent lamps; refrigerators, freezers and refrigerator-freezers; three-phase electric motors; and microwave ovens (standby);

Labeling standards have been published and will enter into force in 2011 for room air conditioners

(window and split types), and standby power for TVs and set top boxes. Mandatory labeling is under consideration for household clothes washers;

Minimum Energy Performance Standards (MEPS) for CFLs and incandescent lamps are under study.

In accordance with a non-binding Memorandum of Understanding, signed on September 30th, 2010, the Ministry of Energy (MoE) requested the Collaborative Labeling and Appliance Standards Program (CLASP) to review the Chilean Energy Efficiency Standards and Labeling Program. CLASP provides several recommendations throughout the review of the Chilean Energy Efficiency Standards and Labeling Program components described in the following sections. These recommendations include the following:

Law No 20.402 and the draft regulation, reviewed by CLASP at the request by MoE, adequately define the requirements and procedures of a MEPS program and should be enacted as soon as possible.

The procedures to develop test procedures and energy labeling standards are in general well-defined,

purposeful and adequate. However, to reduce the adoption timeframe and foster stakeholder participation, CLASP recommends (i) to allow a direct reference to international test procedures in the Chilean Energy Labeling standards and (ii) to invite consumer associations and environmental NGOs to participate in the work of the Technical Committees, which develop the Energy Labeling Standards.

The methodology applied in the techno-economic analysis for household lamps and refrigerators

should be applied as the standard methodology to assess the economic and environmental impact of MEPS in Chile, using the PAMS model developed by LBNL for CLASP. Products to be included in the MEPS program should be prioritized in accordance with the methodology presented in Section 8, using the BUENAS model.

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Other suggestions are:

To enhance the capacity of MoE / AChEE to monitor the performance of the Energy Efficiency Standards and Labeling Program and to perform ex-post verification of the savings achieved.

To implement an inter-laboratory ("round-robin") test program for refrigerators and freezers, in order

to verify the quality of test results obtained by accredited test laboratories. The main results of the review are summarized below: Legal and regulatory framework for energy efficiency standards and labeling (EE S&L) In order to implement the Chilean Energy Efficiency Standards and Labeling Program, the "Regulatory Framework of a System of Certification of Energy Efficiency of Domestic Appliances" was created in 2005. This regulatory framework is based on the mandate of the Superintendency for Electricity and Fuels (SEC), defined in Law No 18.410 of 1985, to authorize and control certification bodies, test laboratories and inspection bodies, and the mandatory requirement of certification and energy labeling of products commercialized in the country. These mandates and requirements have subsequently been defined in detail in Government Decrees of 2004 and 2007 and in test protocols and labeling standards for individual products. Law No 20.402, which created the Ministry of Energy (MoE), was published on November 25th, 2009. In addition to creating the MoE, the Law redefines the mandate of the National Energy Commission (CNE) and assigns specific mandates and tasks to the newly created Ministry, including the mandate to establish, through a resolution, mandatory minimum energy efficiency standards. MoE has prepared a draft regulation which establishes the procedure for setting minimum energy efficiency standards. Law No 20.402 and the draft regulation, which has been reviewed by CLASP at the request by MoE, adequately define the requirements and procedures of a MEPS program and should be enacted as soon as possible. Mandates and roles of organizations involved in the EE S&L Program Mandates and roles of organizations involved in the EE S&L Program are in general well defined. Overall, the Ministry of Energy has responsibility for the Program, in accordance with its legal mandate "to propose, dictate and oversee the enforcement of standards for the energy sector with regard to energy efficiency, safety and its adequate functioning and development". The operational responsibility is delegated to the Chilean Agency for Energy Efficiency (AChEE), which was established in November 2010, while the Superintendency of Electricity and Fuels (SEC) is in charge of developing technical regulations, in particular in the area of product testing and certification, the verification of compliance and the authorization and control of certification bodies. The Standards Division of the National Standardization Institute (INN) is in charge of developing the Chilean Energy Labeling Standards (which are issued as Official Chilean Standards (NCh)), at the request of SEC, while the Certification Division of INN acts as accreditation body for certification bodies and test laboratories. The National Consumer Service (SERNAC) has been entrusted by PPEE to promote the energy label among consumers and retailers. Procedures The procedures to develop test procedures and energy labeling standards are in general well-defined, purposeful and adequate. One exception is the long timeframe of 10 – 12 months required to approve international test procedures as Official Chilean Standards (NCh) by INN. Another limitation is a lack of stakeholder participation. As a solution to these problems, CLASP recommends (i) to allow a direct reference to international test procedures in the Chilean Energy Labeling standards and (ii) to invite consumer associations and environmental NGOs to participate in the work of the Technical Committees, which develop the Energy Labeling Standards.

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The development of Minimum Energy Performance Standards (MEPS) is a recent activity in the framework of the National Energy Efficiency Standards and Labeling Program. CLASP recommends adopting the methodology applied in the techno-economic analysis for household lamps and refrigerators as standard methodology to assess the economic and environmental impact of MEPS in Chile, using the PAMS model developed by LBNL for CLASP. Products to be included in the MEPS program should be prioritized in accordance with the methodology presented in Section 8, using the BUENAS model. Both models are adequate tools available to Chilean analysts and decision makers. In order to successfully apply these tools, the necessary expertise should be embodied in a permanent group of professionals that report to the Ministry of Energy, such as a department of AChEE or a permanent group at another associated entity. The limited availability of market data is a major concern, and data collection efforts should therefore be a focus of the working group proposed. Another concern is market surveillance, monitoring and evaluation, which should include verification testing as a complementary instrument in order to enhance the rigor of the market surveillance system already put in place by SEC. CLASP also recommends enhancing the capacity of MoE / AChEE to monitor the performance of the Energy Efficiency Standards and Labeling Program and to perform ex-post verification of the savings achieved. Testing and certification While the regulatory and organizational frameworks for testing and certification are well defined, SEC has proposed a new Regulation for the Certification of Electrical Products and Fuels, which includes an update of the eligible certification systems according to ISO/CASCO, and more flexible rules for certification. Under this new regulation, tests may be carried out by foreign laboratories accredited by an accreditation body with international or regional Multilateral or Mutual Recognition Agreement, and certified by domestic or foreign certification bodies accredited by an accreditation body with Multilateral Recognition Agreement, authorized by SEC. Part of the accreditation of test laboratories is a proficiency testing program according to ISO 17043 and competency verification as part of the accreditation requirements described in ISO 17025. As site visits to three Chilean test laboratories revealed, CLASP has concerns regarding the quality and comparability of test results among these laboratories, notably with regard to energy efficiency tests of refrigerators. In one of the three laboratories visited, major shortcomings regarding the conformity of the design of the test facilities and the observance of test specifications were noticed, which may result in considerable or even intolerable deviations of test results from values which would be obtained under correct circumstances. Among other recommendations, CLASP suggests to implement an inter-laboratory ("round-robin") test program for refrigerators and freezers, in order to verify the quality of test results obtained by accredited test laboratories. Complementary programs to foster market transformation Since 2007, the Chilean Government has implemented, through PPEE, a series of public energy conservation campaigns. By changing consumer behavior, these campaigns reduced electricity demand of the Central Interconnected System from March to June 2008 by 4.2% compared to the previous year. Energy efficiency standards and labeling were addressed in the campaigns in a rather generic way, with the exception of a booklet with specific information and guidance to consumers regarding the energy labeling of lamps and appliances, which was disseminated by the National Consumer Service (SERNAC). On behalf of PPEE, SERNAC commissioned a study to investigate the real conditions under which energy labeling of domestic refrigerators and lamps is used by sales agents and consumers. As the results of this survey indicate, consumers usually don't pay attention to the label on lamps (while perceiving CFLs as a preferred product category of "energy saving lamps"). On the other hand, the energy label on refrigerators is perceived as an element of trustworthiness, while its content is difficult for consumers to "decode." As these

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findings suggest, additional efforts should be made to explain the label design and the underlying concepts to consumers. Efforts should also focus on improving understanding of the label by appliance sales personnel as well as civil servants, in particular those of the Direction ChileCompra of the Ministry of Finance. Consumer education should continue as a collaborative effort, involving state entities, manufacturers, retailers, electricity companies, consumer associations and NGOs, under the coordination of MoE/AChEE. In 2008 and 2009 respectively, PPEE implemented the National Replacement Program of Light Bulbs (replacing 1.5 million incandescent lamps with CFLs) and an incentive program for importers of efficient electric motors. More recently, PPEE commissioned studies to investigate the costs and benefits of incentives and the most appropriate incentive mechanisms for purchasing or replacing household refrigerators and other appliances. It appears that early replacement and/or incentive programs are adequate measures which should be implemented as complementary programs to minimum energy performance standards (MEPS). Additional options include public procurement programs for energy efficient equipment. Minimum Energy Performance Standards (MEPS) In accordance with a prioritization of target appliances carried out with the Bottom-Up Energy Analysis System (BUENAS) model developed by LBNL for CLASP, the highest electricity end uses in 2030 in Chile will be electric motors, residential refrigeration, residential lighting and commercial lighting. Residential lighting has the highest energy savings potential of 2.37 TWh in 2030, reflecting a 60% efficiency improvement per unit achieved by replacing incandescent lamps with CFLs. This clearly supports the emphasis placed by the Chilean government on establishing a phase-out of incandescent lamps. Standby power has the next highest potential energy savings of 1.20 TWh, a value that assumes an 80% efficiency improvement per unit by reducing the average standby power drawn from devices from 5 watts to 1 watt. Finally, residential refrigeration and commercial lighting also show high savings potentials of 1.15 TWh from residential refrigeration, based on efficiency improvement per unit of 43%, and 1.14 TWh from commercial lighting. Taken together, the savings potential is found to be 5.93 TWh in the residential sector and 2.05 TWh in the commercial sector. Industrial motors show a potential of 0.63 TWh. CO2 emissions reductions are calculated from energy savings according to a conversion factor reported by the International Energy Agency and are found to be 3.25 million tons in 2030. Case Study: Refrigerators LBNL has prepared a separate Regulatory Impact Analysis Report for Energy Efficiency Standards and Labeling Programs for Refrigerator-Freezers in Chile, which is summarized in Section 9 of this Review. The analysis was carried out with the Policy Analysis Modeling System (PAMS), developed by LBNL for CLASP. PAMS allows for evaluation of costs and benefits of Standards and Labeling programs at the consumer level and for a wide range of impacts at the national level, such as energy savings, net present value of savings, CO2 emission reductions and avoided generation capacity. Taking into consideration that the Chilean energy labeling program follows the EU labeling scheme, as well as the actual and forecast distribution of energy efficiency categories in the Chilean market, one of the candidate levels for MEPS in 2014 is the level set by the European Union's Ecodesign Directive No 643/2009 (A+ level). As the cost-benefit analysis indicates, a MEPS at this level will provide maximum consumer benefits. As the national impact analysis shows, a MEPS at the A+ level in 2014 would be cost effective in Chile. The A+ level matches the EU Ecodesign MEPS that will come into effect in 2012 and is the best available MEPS in the world based on the test procedure followed in Chile. The overall impacts of harmonization with the Ecodesign target would save consumers 29.6 billion Ch$ over the next 20 years. Combined with an extension of the labeling program, it would save over 5 TWh and avoid 2.7 Mt of CO2 emissions during the same period of time.

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1. Introduction The Government of the Republic of Chile initiated, in December 2005, the National Energy Efficiency Program (Programa País de Eficiencia Energética - PPEE). Starting with a modest budget of US$ 1 million in 2006, the annual budget allocated in 2009 had grown to US$ 34 million. The mission of PPEE is "to consolidate energy efficiency as a source of energy that contributes to Chile's sustainable development" (González, 2009; IEA, 2009). From its very beginning, PPEE was designed as a program with various lines of action, emphasizing a participatory approach involving state entities, the private sector, local government and civil society. From 2008 to 2010, PPEE was part of the National Energy Commission (Comisión Nacional de Energía - CNE). In 2010, in accordance to Law 20.402 of December 2009, PPEE was transferred to the newly created Ministry of Energy. Since November 2010, the Chilean Agency for Energy Efficiency (Agencia Chilena de Eficiencia Energética – AChEE) has been continuing the activities of PPEE. In December 2009, former Minister-President of CNE Marcelo Tokman published the New Energy Policy Guidelines (Política Energética: Nuevos Lineamientos), (CNE, 2008). The Guidelines confirm energy efficiency as a strategic objective for the country's sustainable development (CNE, 2008). In the framework of PPEE, the Chilean Energy Efficiency Standards and Labeling Program (Programa de Normas y Etiquetado de Eficiencia Energética en Chile – PNEEE) was created in 2005 as a strategic activity entitled "Regulatory Framework of a System of Certification of Energy Efficiency of Domestic Appliances" (Marco regulatorio de un Sistema de Certificación de Eficiencia Energética de Artefactos Domésticos). The main activities and achievements of the PNEEE to date can be summarized as follows:

A regulatory framework has been implemented, which defines: (i) the requirements for development, adoption and application of technical regulations and procedures for conformity evaluation, (ii) the certification systems and procedures for electrical products, and (iii) the authority of the Superintendency for Electricity and Fuels (Superintendencia de Electricidad y Combustibles – SEC) to authorize and supervise the certification and inspection bodies, test laboratories and certification procedures;

International energy efficiency test procedures have been adopted as Chilean Standards (Normas

Chilenas – NCh) for a range of appliances and equipment, and Chilean Energy Labeling Standards have been issued, which include the energy efficiency categories for each product;

Mandatory energy efficiency labeling has been implemented for incandescent lamps; self-ballasted

compact fluorescent lamps (CFLs); single-capped and double-capped fluorescent lamps; refrigerators, freezers and refrigerator-freezers; three-phase electric motors; and microwave ovens (standby);

Labeling standards have been published and will enter into force in 2011 for room air conditioners

(window and split types), and standby power for TVs and set top boxes. Mandatory labeling is under consideration for household clothes washers;

Minimum Energy Performance Standards (MEPS) for CFLs and incandescent lamps are under study.

CLASP has been collaborating with PPEE since 2009. The collaboration has included: (i) support to Fundación Chile in the determination of baselines for household refrigerators and lamps (October 2009) and ii) a Regulatory Impact Analysis of MEPS for household lamps. On September 16th, 2009, CNE and PPEE issued a Letter of Intent requesting CLASP's support in various activities related to the PNEEE, including a review of the Program and its various components. The Ministry of

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Energy (MoE) and CLASP signed a non-binding Memorandum of Understanding (MoU), in which the tasks for the present study were defined (see Annex 1).1 In the framework of this study, the following visits to Chile were undertaken by experts of CLASP and LBNL:

A first visit by CLASP's Director of Latin American Programs and coordinator of this study, Wolfgang F. Lutz, from April 26th to May 6th, 2010;

A second visit by Wolfgang F. Lutz and Virginie Letschert, Senior Research Associate of the

Environmental Energy Technologies Division of LBNL (from October 12th to 15th, 2010) and Christopher Stone of CLASP, Director of US Programs and Chief Technical Expert Testing (from October 18th to 22nd, 2010).

The agenda of each visit, list of organizations visited and persons interviewed are included in Annex 2.

2. The Chilean Energy Efficiency Standards and Labeling Program The Chilean Energy Efficiency Standards and Labeling Program (PNEEE) has the following objectives (González, 2009):

To provide the consumer clear information regarding the energy consumption of products, which allows the comparison between different products, informing the consumer's purchasing decision;

To provide an incentive to manufacturers to improve the energy efficiency of their products;

To stimulate technology transfer.

In its development and implementation, the program follows the guiding principles mentioned below:

Test procedures refer to international standards, in particular these of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC);

Energy labeling follows the model of the European Union (EU) and the Pan American Standards

Commission (COPANT);

The program’s early emphasis is on labeling and consumer information, with MEPS foreseen as an additional option once the labeling program has reached maturity;

Test laboratories and certification bodies involved in the program must be accredited;

Certification of test results in foreign countries, e.g. products’ countries of origin, is an option.

Products are selected according to the following criteria:

Energy consumption Ownership National energy saving potential Capacity of test laboratories Existence of an international reference standard

1 Dated April 9th, 2010, the MoU was signed by the Minister of Energy on September 30th, 2010. The case study for electrical motors, mentioned in work item 7 was replaced – in mutual agreement – by a regulatory impact assessment for refrigerators.

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Safety certification of the product Figure 1 shows the energy consumption corresponding to the products initially included in the labeling program.

Figure 1: Initial product selection Source: SEC/CNE

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Table 1 provides an overview of the existing energy labeling standards in Chile:

Table 1: Existing energy labeling standards Source: SEC

Product Date of implementation

Energy efficiency and

safety standard

Labeling Standard

Energy Label

Refrigerator-Freezer January 10, 2008 ISO 15502 IEC 60335-2-24

NCh 3000

Refrigerator January 31, 2008 Freezer August 14, 2008

Incandescent lamp April 30, 2007 IEC 60064 IEC 60432

NCh 3010

Self-ballasted compact fluorescent lamp

October 31, 2007

IEC 60969 IEC 60968

NCh 3020

Double-capped fluorescent lamp

July31, 2009 IEC 60081 IEC 61195

NCh 3020

Single-capped fluorescent lamp

July 31, 2009 IEC 60901 IEC 61199

Three phase squirrel cage induction motor

January 4, 2010 IEC-60034-2-1 IEC 60034-2-1 (1-

5-8)

NCh 3086

Microwave ovens (standby)

2010 IEC 62031 IEC 60335-2-25

NCh 3107

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As table 2 shows, energy labeling standards have been published and will enter into force in 2011 for room air conditioners (window and split types) and for standby power for TVs and set top boxes. A labeling standard for clothes washers is currently in public consultation.

Table 2: Energy labeling standards under preparation Source: SEC

Product Date of implementation

Energy efficiency and

safety standard

Labeling Standard

Energy Label

Room air conditioners (window and split types)

2011 ISO 5151 IEC 60335-2-

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NCh 3081

Standby power for TVs and set top boxes

2011 IEC 62301 IEC 60065

NCh 3107

Clothes washers 2012 IEC 60456 NCh 2582

3. Legal and regulatory framework for energy efficiency standards and labeling

3.1 Regulatory Framework of a System of Certification of Energy Efficiency of Domestic Appliances Energy efficiency standards and labeling activities in Chile originally started in 2000, with the development of technical standards (test procedures) for a wide range of appliances and equipment by CNE, in cooperation with the National Standardization Institute (Instituto Nacional de Normalización – INN), including: electrical household appliances, lighting, air conditioning and heating equipment, electrical motors and pumps, transformers and power cables. Most of these standards are adopted based on international standards like ISO, IEC and EN, or, in a few cases, based on national standards, particularly Mexico. The selected standards were promulgated as official Chilean standards (NCh) via a Decree of the Ministry of Economic Affairs. The Chilean Energy Efficiency Standards and Labeling Program (PNEEE) was established with the creation of the "Regulatory Framework of a System of Certification of Energy Efficiency of Domestic Appliances" in 2005 as a strategic activity of PPEE.

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This "Regulatory Framework" is based on the following legal dispositions:

Law No 18.410 of 1985, which creates the Superintendency for Electricity and Fuels. Article 3 item 14 of Law No 18.410 defines the mandate of SEC with regard to the authorization and control of certification bodies, test laboratories and inspection bodies, and the mandatory requirement of certification and energy labeling2 of products commercialized in the country.

Government Decree No 77 of 2004, which defines the requirements for development, adoption and

application of technical procedures for conformity evaluation, including labeling dispositions3.

Supreme Decree D.S. No 298 of 2005, which defines certification systems and general procedure for certification of products, and authorization of certification bodies, inspection bodies and testing laboratories.

Testing protocols for various products have been published by SEC, which include the labeling

requirement for each product, referring to the respective labeling standard published by INN. The Decrees No 77/2004 and 298/2005, as well as the testing protocols, are discussed in more detail in Section 6 of this report. This "Regulatory Framework" has proven to be rather effective with regard to product certification and mandatory energy labeling of products.4 However, it does not foresee the implementation of minimum energy performance standards (MEPS)5. The introduction of MEPS has been contemplated by recent legislation, as will be discussed in the following subsections 3.2 and 3.3.

3.2 Law No 20.402 modifying Decree No 2.224 Law No 20.402, which created the Ministry of Energy, was published on November 25th, 2009.6 The Law redefines the mandate of the National Energy Commission (CNE) and assigns specific mandates and tasks to the newly created Ministry of Energy. Due to this Law, the Ministry of Energy has become the principle authority of the Chilean energy sector. Its predecessor, the National Energy Commission, now reports to the MoE and continues to be in charge of "analyzing prices, tariffs and technical standards to be observed by energy production, transmission and distribution enterprises" (Art. 7 of the revised DL No 2.224). Among the mandates of MoE are (Art. 4 of DL No 2.224):

To prepare energy sector plans and policies (Art. 4a); To prepare national energy demand and supply forecasts (Art. 4b); To propose, dictate and oversee the enforcement of standards for the energy sector with regard to

energy efficiency, safety and its adequate functioning and development (Art. 4d).

2 According to the last modification of Law No 18.410 of December 3rd, 2009, referring to Article 4 of the revised Decreto Ley (DL) No 2.224 (see section 2.2). 3 Government Decree No 77/2004 stipulates that technical regulations and procedures should include the "conditions of labeling" of products (Art. 10d). 4 For a discussion of potential improvements of this framework, see Sections 5 and 6. 5 The terminology for "Minimum Energy Performance Standards (MEPS)" used in Chilean legal documents is "Minimum Energy Efficiency Standards" ("Estándares mínimos de eficiencia energética"). In this report, we use both terms interchangeably. 6 Ley No 20.402 Crea el Ministerio de Energía, estableciendo modificaciones al DL No 2.224, de 1978 y a otros cuerpos legales. Decreto Ley (DL) No 2.224 of June 1978 created the National Energy Commission (CNE). As a matter of fact Law No 20.402 modifies DL No 2.224 (which created the National Energy Commission), which continues in force, with these modifications incorporated.

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The following stipulations are of particular relevance for the Energy Efficiency Standards and Labeling Program: Article 4 item h) stipulates the mandate of MoE "to establish, through a resolution, mandatory minimum energy efficiency standards of products, machines, instruments, equipment, appliances, apparatus and materials commercialized in the country, which use any energy source." Importers, manufacturers and distributors of such equipment are obliged to certify the compliance with the standard by authorized entities and to label the products with regard to their energy consumption. Article 4 item h) also stipulates that the procedures required for the application of the rules mentioned above will be established by a regulation issued by MoE, which will include: (i) the basic aspects to consider during the design phase of the minimum energy efficiency standard, including the method of consultation and coordination of the State entities involved; (ii) how to verify the adaption of the minimum energy efficiency standard with international reference standards; (iii) the mechanisms of public participation in the determination of the standard, taking into consideration the dimensions of information, consultation and resolution, and (iv) how to make the implementation program public. Article 4 item i) stipulates the mandate of MoE "to establish, through a resolution, the products, machines, instruments, equipment, appliances, apparatus and materials, which use electricity, gas, liquid fuels or any other energy source, which need for their commercialization a certificate of approval or the respective energy label", in accordance with Article 3 item 14 of Law No 18.410 of 1985 creating the Superintendency of Electricity and Fuels.7 The procedures, the labeling system and other norms required for the application of these rules will be established by a regulation issued by MoE. The revised DL No 2.224 thus enables the Government to implement MEPS and – at the same time – confirms the stipulations of Law No 18.410 with regard to the certification and labeling of energy consuming products.

3.3 Draft regulation to implement minimum energy efficiency standards In accordance with the stipulations of DL No 2.224, MoE has prepared a draft regulation which establishes the procedure for setting minimum energy efficiency standards.8 In particular, the draft regulation responds to the stipulations of Article 4 item h) of DL No 2.224, as mentioned above, and defines the following activities and steps:

The criteria for the selection of products for which minimum energy efficiency standards shall be implemented (Art. 3 of the draft regulation);

The selection of test procedures, following the information and recommendations provided by SEC

(Art. 4);

The development of a technical document, which includes the proposal of a minimum energy efficiency standard for a selected product and its implementation plan. The technical document has to include: (i) international reference standards, with the objective to adapt the proposed standard to international standards; (ii) specifications and technical characteristics of the product; (iii) analysis of the market of the product; (iv) estimation of the energy, economic and environmental impact of the standard, and (v) the implementation plan (Art. 5);

Consultation and coordination with other State entities (Art. 6);

7 Article 3 item 14 of Law No 18.410 defines the mandate of SEC with regard to the authorization and control of certification bodies, test laboratories and inspection bodies, and the mandatory requirement of certification and energy labeling of products commercialized in the country (last modified by Law 20.402 Art. 10 No 2). 8 Decreto Reglamento que establece el procedimiento para la fijación de estándares mínimos de eficiencia energética y normar para su aplicación. We refer to the final draft of this regulation received from MoE on March 21st, 2011. CLASP had provided comments on a previous version of this draft regulation on November 11th and 12th, 2010.

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Public consultation, taking into consideration existing regulation, like Government Decrees No 77 of 2004 and No 298 of 2005 (see section 5). The public consultation includes the publication of the proposed standard on MoE's website, allowing comments by all persons (Art. 7);

Establishment of a Technical Committee, which will include organizations directly involved in the

development of the standards, as well as state entities and other actors invited by MoE. The Technical Committee, which acts as an advisory body, will review and analyze the comments received in the public consultation (Art. 8);

Following the public consultation and the deliberations of the Technical Committee, MoE will enact

the minimum energy efficiency standard by Ministerial Resolution, which will enter into force six months following its enactment (Art. 9);

Following the enactment of the Ministerial Resolution, SEC is obliged to adapt its technical regulations

with regard to product certification. Only products with certified compliance with the minimum energy efficiency standard may be commercialized (Art. 10 and 11).

The draft regulation has been submitted by MoE to the General Comptroller Office of the Ministry of Finance.

3.4 Recommendations An adequate legal framework for the implementation of minimum energy efficiency standards in Chile is defined by the Decreto Ley No 2.224, modified by Law No 20.402 of November 25th, 2009, and the draft regulation which establishes the procedure for setting minimum energy efficiency standards. In order to enable the implementation of the first Chilean MEPS (for household lamps and household refrigerators – see Section 8), the draft regulation should be enacted as soon as possible.

4. Mandates and roles of organizations involved in the EE S&L Program In accordance with its mandate stipulated by Law No 20.402/2009, modifying DL No 2.224, the Ministry of Energy (MoE) is the principle authority of the Chilean energy sector and, according to Article 4d of the Law, has the mandate "to propose, dictate and oversee the enforcement of standards for the energy sector with regard to energy efficiency, safety and its adequate functioning and development." In accordance with this mandate, MoE decides the general policies of the Energy Efficiency Standards and Labeling Program, the selection of products to be included in the program and other strategic issues (see Section 5). The executive agency to implement the Government's energy efficiency policy is the Chilean Agency for Energy Efficiency (AChEE), which is in charge of implementing the Energy Efficiency Standards and Labeling Program. AChEE was established in November 2010 as a non-profit foundation under private law, with a mission to promote, strengthen and consolidate the efficient use of energy, joining the relevant actors at the national and international level, and implementing public-private initiatives in the different sectors of energy consumption, contributing to the competitive and sustainable development of the country" (www.ppee.cl, last visited May 25th, 2011). The Board of Directors of AChEE is presided over by a representative of MoE and includes representatives of the Ministry of Finance, industrial associations and universities. AChEE is in charge of coordinating, promoting, disseminating and evaluating the Energy Efficiency Standards and Labeling Program. The Superintendency for Electricity and Fuels (Superintendencia de Electricidad y Combustibles - SEC) is a decentralized state entity related to the Ministry of Energy, originally established in 1904 as "Technical Inspection of Enterprises and Electricity Services", and created in its present statute by Law No 18.410 of May 1985. The mission of SEC is "to guarantee the quality of the services provided to the users and the safety of persons and things" (González, 2009). According to Article 2 of Law No 18.410, the objective of SEC is "to

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control, inspect and supervise the observance of legal and regulatory stipulations, and technical standards regarding the generation, production, storage, transport and distribution of liquid fuels, gas and electricity, in order to verify the quality of services provided to the users corresponds to these stipulations and technical standards, and that the operations mentioned and the use of the energy resources do not constitute any danger to persons and things." In accordance with this general mandate (and with further stipulations of Law No 18.410, which will be referred to in Section 6), SEC is in charge of developing technical regulations to implement the Energy Efficiency Standards and Labeling Program, in particular in the area of product testing and certification. In its role as control and inspection entity, SEC is also in charge of verifying compliance of certified and labeled products with the respective specifications and regulations. SEC also authorizes and controls the certification bodies which participate in the program. Instituto Nacional de Normalización (INN) is Chile's National Standardization Institute, which is responsible for the development and publication of all Official Chilean Standards. INN is a member of the international standardization body, ISO. INN has various divisions, including the Division of Standards and the Division of Certification. INN's Standards Division participates in the Energy Efficiency Standards and Labeling Program by developing the Chilean Energy Labeling Standards, at the request of SEC (see Section 5). INN also develops and issues Official Chilean Standards (NCh) for energy efficiency test procedures, adopting international reference standards. The Certification Division acts as an accreditation body for certification bodies and test laboratories. SEC requires the accreditation of certification bodies and test laboratories in order to participate in the Energy Efficiency Standards and Labeling Program. Test laboratories are legally authorized by SEC to measure, examine and test products in installations authorized for such purpose. Chile has relatively few test laboratories, which are authorized to carry out energy performance tests for household appliances, lamps and industrial equipment (see Section 6). Certification bodies are legal private entities, authorized by SEC, which issue certificates of approval based on the test reports issued by the authorized test laboratories. In 2009, thirteen domestic certification bodies were authorized by SEC (González, 2009). The National Consumer Service (Servicio Nacional del Consumidor – SERNAC) has been entrusted by PPEE to promote the energy label among social organizations and consumers, including overseeing training programs for salespersons and supervisors of distributors and retailers of labeled products (see Section 7 for detailed information). Mention should be made of Fundación Chile (FC), a non-profit organization created in 1976. FC supports Chilean businesses and industry by facilitating technological innovation and technology transfer. The Energy Program of Fundación Chile has participated in the initial phase of the National Energy Efficiency Standards and Labeling Program, providing technical support to SEC. FC also realized a project of inter-laboratory tests in cooperation with INMETRO of Brazil (testing refrigerators in Brazil and in the Chilean laboratories of SICAL and CESMEC-CTI – see Section 6.2). FC advocates a more active involvement in the Standards and Labeling Program; yet, the Ministry of Energy does not consider FC to have a structural role in the program. Recently, FC has contributed to the program in a consultant capacity.

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5. Procedures

5.1 Procedures followed in the National Energy Efficiency Standards and Labeling Program Figure 2 shows the procedures followed in the National Energy Efficiency Standards and Labeling Program.

Figure 2: Procedures followed in the National Energy Efficiency Standards and Labeling Source: SEC

As a first step, products to be included in the program are selected, taking into consideration variables including international experience, energy consumption and savings potential, ownership, and capacity of test laboratories. The selection is made by the Ministry of Energy, in coordination with stakeholders. The Ministry of Energy also establishes a baseline for the selected product. For the selected product, SEC identifies available international test procedures, in particular ISO-IEC standards or – as an alternative – regional COPANT standards or standards from other Latin American countries. SEC also verifies the existence and applicability of a European labeling directive for the selected product. In parallel to the selection of the test procedure and the reference labeling standard, SEC verifies the national capacity to carry out certification tests in the country, and evaluates the possibility to carry out testing in foreign countries and the recognition of test certificates issued abroad (see Section 6). Having finalized these tasks, SEC requests INN to develop a Test Procedure Standard (Norma de Ensayo) and a Labeling Standard (Norma de Etiquetado) for the selected product. In accordance with this request, INN initiates its standard procedures for the development of an Official Chilean Standard (see below). The Labeling Standard includes: the characteristics of the label, including data and indicators to support the consumer's purchasing decision; the reference to the test procedure; and the metrics for the definition of the energy efficiency categories exhibited on the label. Following the development of the Labeling Standard and its approval by the Council of INN, SEC establishes a Technical Committee, which develops the mandatory test protocols for certification testing by authorized laboratories in accordance with pertaining Government regulations (see Section 6). In accordance with these regulations, SEC assumes the role of supervisor of the Labeling Program, which involves the authorization of test laboratories, certification bodies and the recognition of certifications abroad.

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The dissemination of the labeling program is under the responsibility of the Ministry of Energy, specifically AChEE (formerly PPEE), and usually involves the National Consumer Service (Servicio Nacional del Consumidor – SERNAC). Activities fostering consumer awareness and training of sales personnel are described in Section 7. Another responsibility of MoE, specifically AChEE, is the monitoring and evaluation of the energy savings and economic benefits achieved by the program, as well as control of the operations of the program. The following sub-sections, 5.1.1 – 5.1.3, discuss the current procedures for (i) the development of Chilean Test Procedure and Energy Labeling Standards, (ii) the definition of baselines and the development of MEPS and (iii) market surveillance, monitoring and evaluation. The procedures for testing and certification are discussed in Section 6.

5.1.1 Development of Chilean Test Procedure and Energy Labeling Standards Figure 3 shows the procedure to prepare and issue a Chilean Standard (Norma Chilena – NCh). This procedure, which is mandatory for all Chilean standards – and as such follows standard ISO procedures – is characterized by a consultative process, involving all stakeholders.

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Figure 3: Procedure to prepare and issue a Chilean Standard (Norma Chilena – NCh) Source: INN

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In the case of test procedure and energy labeling standards, the Superintendency for Electricity and Fuels (SEC) usually requests INN to develop a new product standard. In accordance with INN's policy preference to base Chilean standards on international standards, energy labeling standards refer to international ISO/IEC test procedures, which are adopted as Official Chilean Standards (NCh). With regard to the labeling requirements, the corresponding European Directives are adopted. Energy efficiency categories on the Chilean energy label are identical to the categories A – G of the respective European label. Following the development of the draft standard ("Anteproyecto de Norma") and its approval by the respective Technical Committee ("Comité Técnico Estudio Anteproyecto"), the draft standard is submitted to public consultation. The comments received from the public are taken into consideration by the Technical Committee ("Comité Técnico Estudio Proyecto"), which is composed of stakeholders including manufacturers, government entities, consumers and scientific and technical experts. Following the decision of the Technical Committee to ratify the standard and approval from the Council of INN, the Ministry of Energy enacts the standard as an Official Chilean Standard (Norma Oficial Chilena). By April 2010, INN had developed 52 standards covering energy efficiency test methods or energy labels. Given the high number of standards developed and the considerable timeframe of 10 – 12 months required to develop and enact a new Chilean Standard, concerns have arisen regarding the suitability of this process. Since Chilean test procedure and energy labeling standards are usually direct translations of the corresponding international and European standards, a direct reference to international test procedures may be more appropriate, resulting in shorter timeframes.

5.1.2 Definition of Baselines and Development of MEPS Both the definition of the baseline energy consumption of products and the development of Minimum Energy Performance Standards (MEPS) are recent activities initiated by PPEE, specifically the Ministry of Energy. In 2009, PPEE and SEC commissioned Fundación Chile (FC) to develop a methodology to determine the baseline energy consumption of domestic appliances and the impact of energy labeling programs (Fundación Chile, 2009)9. The report includes the establishment of the baselines for household lamps and refrigerators, based on a "stock model", which takes into consideration the existing stock of products, annual sales and retirements. Also in 2009, LBNL initiated its cooperation with PPEE, providing assistance with regard to the application of the PAMS model to carry out techno-economic analysis in order to define cost-effective levels of MEPS for household lamps.10 Part of the present cooperation is the techno-economic analysis for refrigerators (see Section 9 and the parallel report "Regulatory Impact Analysis for Energy Efficiency Standards and Labeling Programs for Refrigerator-Freezers in Chile").

5.1.3 Market Surveillance, Monitoring and Evaluation The supervisory role of the Superintendency for Electricity and Fuels (SEC) is focused on the authorization and control of test laboratories, certification bodies and the recognition of certifications, in accordance with the ISO-CASCO certification systems eligible according to Supreme Decree D.S. No 298 of 2005 and its proposed amendment. The certification includes verification testing of samples taken from the factory. The products that are part of the labeling program are generally tested every year. The results of these tests are compared with the information provided on the label. Due to the mandatory certification within the Energy Labeling Program, SEC maintains databases of the actual efficiencies of products entering the Chilean market.

9 Following the request of PPEE, CLASP provided guidance to FC in the finalization of this report. 10 This cooperation was carried out with funds provided by the ClimateWorks Foundation, under an agreement with CLASP.

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In addition, SEC performs market surveillance through random controls to verify whether the products offered for sale are properly labeled. A different check is done through customs information to check which products have been imported but are not going through the certification program. If products are being sold without certification, SEC carries out a comprehensive review of the whole distribution chain, imposing sanctions on the party that did not adhere to the regulation. In the case of an infringement, charges are filed and imposed in accordance with the stipulations of Law 18.410.11 The Chilean market control system does not include verification testing of samples taken from the market. There is also no control of the conformity of imported products by the National Customs Service. SEC is confident that the existing market surveillance system, which mainly relies on the certification of products and laboratories, is sufficient to guarantee the compliance of national and imported products with regulation. As stated in the 2009 IEA Chile Energy Policy Review, the Chilean Energy Efficiency Program still lacks and "urgently needs to develop systems and capacity for independent monitoring of on-going program performance and ex-post verification of energy savings" (IEA, 2009).

5.2 Recommendations

5.2.1 Development of Test Procedure and Energy Labeling Standards In general, the procedures followed in the National Energy Efficiency Standards and Labeling Program appear to be well-defined, purposeful and adequate. During the interviews held, concerns were expressed with regard to:

The long timeframe of 10 – 12 months required to adopt international test procedures as Official Chilean Standards (NCh) by INN. The long lead times for this process have resulted in the obsolescence of some Chilean Test Procedure Standards (NCh), because of revisions to international reference test procedures;

The lack of stakeholder participation in the process.

As a solution to these problems, CLASP recommends:

To allow a direct reference to international test procedures in the Chilean Energy Labeling Standards;

To invite consumer associations and environmental NGOs to participate in the work of the Technical Committees, which develop the Energy Labeling Standards.

5.2.2 Development of MEPS The development of MEPS is a recent activity in the framework of the National Energy Efficiency Standards and Labeling Program, which is facilitated by Law No 20.402 (modifying Decree No 2.224) and by the technical assistance received from CLASP and LBNL.

11 According to the information provided by SEC to the Survey of Energy Efficiency Compliance Activities, commissioned by CLASP to Mark Ellis & Associates (Mark Ellis & Associates, 2010a).

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CLASP recommends adopting the methodology applied in the techno-economic analysis for household lamps and refrigerators as standard methodology to assess the economic and environmental impact of Minimum Energy Performance Standards in Chile. Prioritization of products to be included in the MEPS program should be realized in accordance with the methodology presented in Section 8. The BUENAS and PAMS models used for product prioritization and techno-economic analysis on the product level are adequate tools available to Chilean analysts and decision makers. In order to successfully apply these tools, the necessary expertise should be embodied in a permanent group of professionals that report to the Ministry of Energy, such as a department of AChEE or a permanent group at another associated entity. For products not covered by the current labeling program, the limited availability of market data required for technical and economic analysis is a major concern. Data collection efforts should therefore be a focus of the working group proposed.12 Needs for improved data availability include the following areas:13

Historical sales data

Unit energy consumption data and efficiency data

Retail price and cost curves (cost vs. efficiency relationship based on an engineering analysis). For products already covered by the labeling program, market data are readily available. Nevertheless, further data collection should focus on retail price data and the development of cost curves. Data collection should be enhanced by actively involving manufacturers and organizations with a strong relation with Chilean businesses, such as Fundación Chile.

5.2.3 Market Surveillance, Monitoring and Evaluation It appears that the Superintendency for Electricity and Fuels (SEC) has put in place an adequate system of market surveillance, although with some bias on the procedures defined in Decree D.S. No 298 of 2005 and its proposed amendment. Noticeably, the Chilean system of market surveillance does not include verification testing. Verification testing aims to confirm the accuracy of energy label claims or minimum energy performance levels (Mark Ellis & Associates, 2010b), and is usually undertaken in accredited test facilities under Government supervision. CLASP recommends considering verification testing as a complementary instrument in order to enhance the rigor of the market surveillance system in place. Following the recommendations of the International Energy Agency (IEA, 2009), CLASP also recommends to enhance the capacity of MoE/AChEE to monitor the performance of the Energy Efficiency Standards and Labeling Program and to perform ex-post verification of the energy savings achieved by the different components of the Program (Energy labeling, MEPS and complementary programs to foster market transformation – see Section 7). As in the case of MEPS, the necessary expertise should be embodied in a permanent group of professionals that report to the Ministry of Energy, such as a department of AChEE or a permanent group at another associated entity.

12 Lack of demand-side data and limited capacities for data collection are a general concern, already expressed in the 2009 IEA Energy Policy Review Chile (IEA, 2009: 101). 13 A concomitant advantage of the Energy Labeling Program is the availability of data from mandatory product certifications.

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6. Testing and certification

6.1 Regulatory framework for testing and certification and proposed changes in regulation The Superintendency for Electricity and Fuels (SEC) is the decentralized entity of the Chilean government in charge of "controlling and overseeing the fulfillment of legal and regulatory provisions, as well as technical standards on the generation, production, storage, transportation, and distribution of liquid and gaseous fuels and electricity, to verify that the quality of the services provided to users is the same as indicated by said resolutions and technical standards, and that the aforementioned operations and the use of energy resources do not constitute a danger to persons or things" (Article 2 of Law No 18.410 of 1985 creating the Superintendency of Electricity of Fuels). Among the tasks of SEC are the authorization and supervision of certification and inspection bodies, test laboratories and certification procedures, in accordance with several regulations. Government Decree No 77 of 2004 defines the requirements for the development, adoption and application of technical regulations and procedures for conformity evaluation. According to Article 10 of the Decree, the technical regulations and procedures for conformity evaluation should include the methods for conformity evaluation and labeling requirements. The Decree also stipulates that technical regulations and procedures of conformity evaluation should be based on international standards, and that products of national origin and imported products shall be treated in an indiscriminate manner. The certification of electrical products and fuels is regulated by Supreme Decree D.S. No 298 of 2005, which defines certification systems and general procedure for certification of products, and authorization of certification bodies, inspection bodies and testing laboratories. In accordance with D.S. 298/2005, SEC establishes and approves testing protocols for the certification of electrical products. In accordance with D.S. 298/2005, product certification must be performed applying one of the systems laid out in Table I of the Decree, based on the ISO/CASCO Guide "Assessment and verification of conformity to standards and technical specifications", in accordance with the testing protocols established by SEC. Testing protocols have been published by SEC for various products, including refrigerators and freezers, electric three-phase motors, incandescent lamps, self-ballasted compact fluorescent lamps, single and dual cap fluorescent lamps, microwave ovens and room air conditioners. The test protocols include the applicable international test standards as well as the applicable certification system(s). The certification systems are "Type testing followed by regular control of the products", which refers to testing products from manufacturers’ factories, and the "Special system", which acknowledges certification from the country of origin. The testing protocols also include the labeling requirements of each product, referring to the labeling standard published by INN. According to D.S. 298/2005, tests must be carried out by test laboratories authorized by SEC. In the case of foreign test laboratories, these must be accredited by an Accreditation Body which is a signatory of ILAC (International Laboratory Accreditation Corporation). Domestic certification bodies must be authorized by SEC. In the case of recognition of foreign certificates, the accreditation body must be signatory of the multilateral agreement of the IAF (International Accreditation Forum). SEC has proposed a new Regulation for the Certification of Electrical Products and Fuels, replacing D.S. 298/2005. The new regulation includes an update of the eligible certification systems according to ISO/CASCO, and modifications to the rules for certification. According to the new regulation, certification bodies have to be authorized by SEC and may certify tests carried out by foreign laboratories accredited by an accreditation body with international or regional Multilateral Recognition Agreement or Mutual Recognition Agreement,

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recognized by ILAC, such as ILAC, IAAC, EA or APLAC.14 Authorized certification bodies in foreign countries have to be accredited by an accreditation body with Multilateral Recognition Agreement granted by an international or regional body such as IAF, IAAC, EA or PAC.15 It is expected that the new regulation will result in a more flexible and nimble certification process, in line with other programs such as those in the United States16, Canada and Europe.

6.2 Accreditation of test laboratories and proficiency testing The National Standardization Institute (Instituto Nacional de Normalización, INN) is the national accreditation body. All Chilean test laboratories carrying our energy efficiency tests under the National Energy Efficiency Standards and Labeling Program must be accredited by INN. As mentioned in section 6.1, the new regulation proposed by SEC will allow more certifications to be carried out by test laboratories abroad under more flexible accreditation requirements. Certification reports will be accepted by SEC from any certification body (CB) accredited by an international accreditation body. During the October 2010 CLASP and LBNL experts’ visit to Chile, the new accreditation scheme spurred discussions with national test laboratories, in particular SILAB (see Section 6.3.3.). Since test laboratories and certification bodies involved in energy efficiency testing previously had to be accredited by INN17, there are concerns that allowing a much broader range of potential laboratories and certification bodies may result in less revenue for national laboratories seeking capital investments to expand their capability to meet the needs of the national program. Adding to the impact on the revenue of national laboratories, allowing more testing abroad will result in less direct control over testing results, as well as more difficulty in proving correlation between laboratories. Inter-laboratory testing could therefore be a valuable additional requirement that would address the concerns of domestic laboratories about this change in regulation allowing laboratory testing abroad (see recommendations in Section 6.4). Part of the accreditation of test laboratories is a proficiency testing program according to ISO 17043 (Conformity assessment - General requirements for proficiency testing).18 The accreditation requirements described in ISO 17025 (General requirements for the competence of testing and calibration laboratories)19 require a specific detailed method of competency verification along with the laboratory accreditation. Unfortunately the implementation of this requirement is not always uniform, in part due to different interpretations of the ISO 17025 guidelines, complexity of energy efficiency testing and lack of adequate reference equipment, procedures and samples. This situation is not unique to Chile. Lack of specific competency programs is an issue with many energy efficiency laboratory accreditations. In Chile, INN has not previously confirmed this requirement with any product or laboratory specific implementation program. However, in the discussions held, it was mentioned that INN was looking at adding this requirement to new accreditations and accreditation renewals. In order to effectively verify the quality of the test facilities, inter-laboratory (“round-robin”) testing should be applied. “Round-robin” testing means to test the same appliance in several facilities and compare the results, ideally to those obtained in a government facility or some other third party laboratory with demonstrated experience and competency serving as reference.

14 IAAC (Inter-American Accreditation Cooperation), EA (European Co-operation for Accreditation), APLAC (Asia Pacific Laboratory Accreditation Cooperation). 15 IAF (International Accreditation Forum), PAC (Pacific Accreditation Cooperation). 16 The US Department of Energy has recently released a Final Rule of March 7, 2011 for Certification, Compliance, and Enforcement for Consumer Products and Commercial and Industrial Equipment. 17 With the exception of test laboratories abroad accredited by ILAC. 18 ISO 17043:2010 specifies general requirements for the competence of providers of proficiency testing schemes. 19 ISO 17025:2005 specifies the general requirements for the competence to carry out tests and calibrations.

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Under the coordination of Fundación Chile (FC), inter-laboratory testing of refrigerators was carried out several years ago. Under the supervision of INMETRO, Brazil, products were tested in one Brazilian test laboratory, a manufacturer's laboratory, and in the laboratories of CTI/CESMEC and SILAB. According to the information received from FC, the variation of test results was approximately +/- 10%.20

6.3 Assessment of Chilean test laboratories Chile has relatively few test laboratories that are qualified to carry out energy performance tests for household appliances, lamps and industrial equipment like electric motors. Table 3 provides an overview of accredited test laboratories.

Table 3: Laboratories accredited for energy performance tests in Chile Name of company Accredited test facilities Remarks CESMEC Lamps Third Party Laboratory Compañía Techno Industrial (CTI) S.A.

Refrigerators Clothes Washers Stoves

Manufacturer Laboratory, managed by CESMEC

INGCER Refrigerators Household lamps Standby consumption of Microwave Oven

Third Party Laboratory

SILAB Ingenieros S.A. Refrigerators Standby consumption of Microwave Oven

Third Party Laboratory

While certification testing is best performed in an independent third party laboratory, the lack of competent private laboratories can make this approach unfeasible, making the utilization of manufacturer facilities the next best solution. When manufacturer laboratories are utilized additional administrative measures, such as laboratory qualification, third party oversight or scheduled auditing must be incorporated to ensure testing is performed correctly and without bias. The test facilities at the factory of Compañía Techno Industrial (CTI) S.A. are an example for such a situation. CTI’s test facilities are independently managed by CESMEC (Centro de Estudios de Medición y Certificación de Calidad) S.A. for the energy efficiency labeling program for refrigerators (see Section 6.3.1.). It appears that CTI performs all facility operation and testing. On October 20th and 21st, 2010, CLASP's Chief Technical Advisor Testing visited the laboratories of CTI/CESMEC, INGCER and SILAB.21 The visits focused on the following issues:

Visual inspections of the testing facilities and procedures, including laboratory design, measuring and data-collection equipment and practices, with a focus on compliance with internationally accepted rules and standards;

Discussion of technical and administrative issues and practices with laboratory management and

personnel;

Informal suggestions for improvements to laboratory management ;

Discussion of concerns regarding proposed regulations as they relate to laboratory accreditation.

20 In a round robin testing exercise, a maximum difference of 10% in test results is considered an acceptable result. 21 Also present were representatives of the Ministry of Energy and of SEC, as well as CLASP's Director of Latin American Programs.

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The main focus of the visits was on test facilities and procedures for refrigerators and freezers, although existing test facilities for other appliances were covered and specific questions regarding further expansions of the program were addressed, in particular: lighting, clothes washers, room air conditioners and standby energy consumption of microwave ovens, televisions and set-top boxes (STB). The major findings of the visits are presented by laboratory in sections 6.3.1 – 6.3.3.

6.3.1 CTI/CESMEC CTI is the major manufacturer of household appliances in Chile. The company produces refrigerators, stoves, clothes washers and room heaters. Market shares in Chile for these appliances are 35% (clothes washers), 45% (refrigerators) and 60% (stoves). CTI's products are marketed under various brands, in particular Fensa and Mademsa. 30% of CTI's production is for export, including refrigerators exported under the brand Electrolux to Peru, Ecuador and Venezuela. CTI owns the Argentinean appliance manufacturer FRIMETAL S.A. where it sells appliances under the brand name GAFA. CTI has performed energy efficiency testing since 2000. The refrigerator test laboratories at the CTI manufacturing plant in Maipú, Metropolitan Region, are independently managed by CESMEC, a testing and certification company established in 1968 (with the support of CORFO), which is currently part of Bureau Veritas (BV).22 CESMEC oversees and certifies the tests carried out by CTI staff. The degree of independence is difficult to assess although it appears, based on the interviews held, that CESMEC is significantly engaged in the testing and evaluation of refrigerators at CTI. CESMEC certifies a wide range of products. In the field of testing of electricity and fuel consuming products, tests are carried out under agreements with private laboratories; in the case of refrigerators/freezers, tests are carried out by the laboratory of CTI (for products manufactured by CTI and products of other manufacturers). For the near future, testing of clothes washers and other products is foreseen under similar schemes. For testing of lamps, CESMEC has an in-house laboratory. The main focus of CLASP’s site visit to the premises of CTI was to assess the two refrigerator test laboratories operated by CESMEC. In addition, CLASP visited the test laboratory for clothes washers and the in-house metrology laboratory and the production facilities for refrigerators. The findings of the assessment of the refrigerator laboratories of CTI/CESMEC are listed in Table 4.

Table 4: Assessment of refrigerator test laboratories of CTI/CESMEC The refrigerator test laboratories #1 and #2 are generally operated as per the standard; however, some observations and concerns are noted below:

Notable Concerns: i. Lab #1 design may have some issues related to velocity and uniformity of air and temperature. Lab #2

air discharge and return are much more in line with typical refrigerator room designs. ii. Ambient temperature location and sensor appear not to meet ISO 15502 requirements. iii. Distance between samples and configuration of platform may not meet spec 100%. iv. Using ISO type filler packages for freezer and M packages for both freezer and refrigerator.

Refrigerator compartment should utilize brass sensors as described in the test standard. v. Ambient sensor is single bare thermocouple sensor top front of sample. This should be utilizing brass

sensors on each side of the sample as described in the test standard. vi. Measurement equipment for temperatures T-TYPE thermocouples with older Yokogawa scanners (3

22 Bureau Veritas is a global leader in conformity assessment and certification services.

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generations old). vii. Power measurement using handheld power meter with USB/RS232 interface adapter. Accuracy of

this meter is questionable. viii. No formal round-robin testing although CTI/CESMEC claims to have done this 3 years ago with Lab

from Brazil.

Notable Positive Observations: i. In-house metrology labs for incoming and production inspections. ii. Overall a very organized, clean and well managed laboratory. iii. The Clothes Washer test laboratory at CTI was quickly reviewed and it appeared to be complete and

covers the requirements for the IEC 60456 test method. This includes procurement and onsite availability of the Wascator FOM 71 reference washing machine.

6.3.2 INGCER INGCER is a private company, founded in 1997, specializing in the certification and testing of electrical products and fuels. The company is accredited by INN and authorized by SEC. INGCER operates test facilities for refrigerators and freezers, lamps and standby-consumption for household electronics. The overall impression of the visit to INGCER was positive, in particular with regard to the conformity of laboratory design, testing equipment and the observance of test specifications. Some relatively minor observations are summarized in table 5. INGCER is providing training via INGCER Capacitación Ltda., and is interested in receiving training by international experts.

Table 5: Assessment of refrigerator test laboratories of INGCER

The refrigerator test laboratory is generally operated as per the standard; however, some observations and concerns are noted below: Notable Concerns:

i. Relatively small operation with limited space and personnel. ii. Refrigerator room looks like 5 station – INGCER claims to only test 3 at a time (size of chamber is

adequate for 3 samples only). iii. No indication that volume is being verified.

Notable Positive Observations: i. Using T-Type Brass Sensors for ambient and refrigerator as specified in the test standard.

ii. ISO filler packages and M packages used for Freezer sections as specified in the test standard. iii. Personnel appeared very knowledgeable during the discussions.

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6.3.3 SILAB SILAB Ingenieros S.A. (SILAB) is an accredited test laboratory, with operational test laboratories for refrigerators/freezers and standby. The installation of test laboratories for solar-thermal panels, room air conditioners, lamps and room heaters (gas and firewood) is planned and underway. SILAB carries out conformity tests for clients with the objective to improve their products. A sister company of SILAB is the accredited certification body SICAL Ingenieros S.A. (SICAL). In the framework of the National Energy Efficiency Standards and Labeling Program, SILAB/SICAL perform tests and certifications of refrigerators/freezers, lamps and standby for microwave ovens. In the case of refrigerators, about 70% of all energy efficiency conformity testing and certification in Chile is carried out by SILAB/SICAL, which intends to further extend their testing facilities for additional products. Taking into consideration these plans, the representatives of SICAL have expressed their concern regarding the plans of SEC to allow more certifications abroad under more flexible accreditation requirements. According to company representatives, implementation of the new regulation might result in the cancellation of plans to invest in test laboratories of clothes washers and standby for television and set-top boxes (STB). The visit of to the premises of SICAL/SILAB revealed major shortcomings with regard to the conformity of the design of the test facilities and the observance of test specifications. In our judgment, deviations of test results from values which would be obtained under correct circumstances are considerable and might be intolerable. Table 6 lists some of the major observations.

Table 6: Assessment of refrigerator test laboratories of SILAB Notable Concerns:

i. Present facilities are questionable for many reasons, particularly number of samples within a very small space, direction and design of airflow within the chamber.

ii. The new test facility is a considerable investment; however, it appears to be sourced by a local industrial equipment supplier. Based on design and presentation delivered during the visit it would seem the supplier picked up on some key issues related to refrigerator testing, such as need to control air velocity, but failed to meet basic design criteria. There was considerable emphasis on automated testing during the discussion which, although interesting, is generally not practical as test results require careful scrutiny from a test engineer.

iii. Design of new test facility not in accordance with typical design parameters for refrigerator test rooms. Airflow direction is opposite (from floor to ceiling). Most test rooms are designed to discharge air from the ceiling and return at the floor or perimeter of the floor.

iv. No intra-laboratory testing has been performed to date. The metric that SICAL/SILAB used would not be considered suitable to determine competence of the laboratory as the value has not been confirmed and attributed to that specific sample.

v. No indication they verify volume of refrigerators.

Notable Positive Observations: The setup, testing and reporting for microwave standby power assessment looks very well thought out and meets or exceeds all requirements. This was demonstrated clearly during the visit.

6.4 Recommendations Based on the review of documentation; the conversations held with the Chilean authorities, representatives of test laboratories and other relevant actors; as well as the visits to the laboratories of CTI/CESMEC, INGCER and SILAB/SICAL, CLASP recommends:

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To implement the new regulation for the certification of electrical appliances and equipment under the National Energy Efficiency Standards and Labeling Program, which will allow more flexibility in testing and certification while observing internationally accepted accreditation rules;

To realize an inter-laboratory ("round-robin") test program for refrigerators and freezers to verify the

quality of test results obtained by accredited test laboratories;

To include refrigerator volume verification with the certification process, as no evidence of this procedure could be found during any of the laboratory visits;

To consider a technical assistance program to accredited test laboratories in order to improve their

test facilities and procedures and to guarantee compliance with internationally accepted rules and standards.

Implementing these recommendations will improve the integrity of the Chilean energy efficiency testing and certification scheme by:

(i) Providing authorities with evidence of variations in test results and underlying shortcomings of accredited test laboratories;

(ii) Guiding the laboratories in improving their facilities and operations; (iii) Increasing the scope and availability of testing and certification bodies, resulting in more

competitive pressure and thus lowering the cost of the scheme overall.

7. Complementary programs to foster market transformation

7.1 Consumer awareness and information Since 2007, CNE has completed a series of public energy conservation campaigns through PPEE. These campaigns were directed to the general public and specific segments of Chilean society, in particular the middle- and low-income socio-economic segments C2, C3 and D, which represent 70% of the population. The main motivations for these campaigns were current and expected energy supply shortages. Important characteristics of the campaigns were that (i) each was completed over a period of 5 – 9 weeks, during which consistent and recognizable messages were transmitted to the target groups by various media: television, radio, internet, newspapers and posters, and (ii) follow-up campaigns were carried out about half a year later. The first campaign, "Usa bien la energía. Sigue la corriente" (Use energy wisely. Follow the current), was realized during July and August 2007, focusing mainly on energy conservation measures in households such as turning off unnecessary lighting, using CFLs and energy saving hints for household appliances. Specific information was also provided on energy saving for the industrial, services and public sector. The second campaign, "Ahorra ahora" (Save now), which was completed in March and April 2008, focused in particular on housewives and teenagers, while the third campaign "Gracias por tu energía. Seguimos haciéndolo bien" (Thank you for your energy. We are doing well), completed in August and September 2008, expressed recognition to the population for the savings achieved and encouraged consumers to continue their efforts. Each of the campaigns used professional marketing tools (including humorous TV spots and radio messages reaching housewives during their daily routines: “Buenas días, es la hora de ahorrar” (Good morning, it is time to save) and provided practical tips for saving energy.

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The evaluation of the campaign "Gracias por tu energía. Sigamos haciéndolo bien" showed a high degree of willingness to save energy of the persons consulted (96%). 85% of the persons interviewed confirmed that they had taken measures to save energy during the past three months, in particular switching off unnecessary lighting and using energy saving lamps. The electricity demand of the Central Interconnected System (Sistema Interconectado Central – SIC) in the period March to June 2008 was 4.2% below the corresponding value from the previous year. CNE attributed this reduction to the changed consumer behavior. The fourth campaign, "Únete a la buena energía de Chile" (Join Chile’s good energy) was launched in October 2009. As the name of the campaign indicates, it was designed around the notion of "Good Energy", which was widely understood by the target group, households of people 20 – 40 years age. Those consumers who changed their behavior (79% out of the 39% who remembered the campaign) mainly took actions related to lighting: 98% switched off of lights not used and 81% used energy saving lamps. Only 6% reported having bought efficient electric appliances. Figure 4 shows the posters used in this campaign. Two of the six posters refer to energy efficient products (CFLs and refrigerators), while the rest refer to energy saving practices in households, offices, industry and individual transport.

Figure 4: Posters used in the Campaign "Únete a la buena energía de Chile" Source: CNE, Collect GfK (2009)

Energy efficiency standards and labeling were addressed in the campaigns in a rather generic way, by making consumers aware of the economic and environmental advantages of efficient appliances and by drawing their attention to the energy label, with category A as the key indicator for a preferred purchase. An exception is the informative booklet, "Manual Etiquetado Energético" (Energy Labeling Guide), with specific information and guidance to consumers regarding the energy labeling of lamps and appliances, which was prepared in the framework of the first campaign "Usa bien la energía. Sigue la corriente". Annex 3 shows some examples from this booklet, which was disseminated via SERNAC's regional offices and municipalities. The booklet was also distributed at promotional events and used for training and education (see Section 7.2). More than 100,000 copies of each booklet were distributed. In November 2010, the most recent campaign "Cambia el Switch – Cambia tu manera de usar la energía" (Turn off the light, change the way you use energy) was launched. The campaign is focused on practical tips regarding the purchase and use of appliances, lighting, consumer electronics and cars (see www.cambiaelswitch.cl). The cost of the various campaigns varied from "low cost" (unspecified) to approximately US$ 1.4 million ("Gracias por tu energía. Sigamos haciéndolo bien"). On behalf of PPEE, SERNAC commissioned a study (SERNAC, ICCOM, 2010) to investigate the real conditions under which energy efficiency labeling of domestic refrigerators and lamps is used by sales agents and consumers, and to inquire into their valuation and understanding of the labels.

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The main results of this market research, which was performed at several supermarkets and department stores in the Santiago Metropolitan Area, are as follows:

Consumers prefer CFLs to incandescent lamps. As CFLs are perceived as one product category, "energy saving lamps", which is confirmed by manufacturer information on the packaging by the indication of equivalence of Watts or the number of equivalent incandescent lamps, consumers don't pay attention to further distinctive elements, such as the energy label. Also, the energy label appears to be difficult for consumers to "decode" and is irrelevant for the purchasing decision, which is made by the consumer autonomously, i.e. without the intervention of sales personnel.

In the case of refrigerators, energy efficiency tends to be an additional purchase criterion if a

consumer decision is being made between different models with the same basic characteristics like size, distribution of internal compartments, no-frost, materials and design. As far as energy efficiency enters as a criterion, it is associated by the consumer with savings on the electricity bill (and only very rarely with environmental considerations). While the energy label creates consumer confidence, due to the comprehensive information it contains, consumers have difficulties "decoding" key information like monthly electricity consumption (kWh/month) and the scale A – G. In particular, the length of the arrows and the associated claim on energy efficiency seem inconsistent to many consumers. Also, the fact that a category A+ refrigerator could have a higher consumption in kWh/month compared to a category A refrigerator is usually not comprehended by consumers.

As the final purchase decision of refrigerators is usually guided by sales personnel, these difficulties in

comprehension are mitigated by explanations and the calculation of monthly electricity cost by the personnel. In general, salesmen are confident of their own understanding of the energy label, although they have generally not received specific training on this subject. The higher price efficient refrigerators often carry is an incentive for personnel to sell this product. Salespersons stated that consumer knowledge of energy efficiency is limited, allowing them to explain the concept and the content of the energy label to the consumers.

In summary, in the case of refrigerators, the energy label is perceived by the consumers as an element of trustworthiness. However, the information presented in the label is difficult for consumers to "decode." The study commissioned by SERNAC includes some suggestions for how to improve the comprehensibility of the label, in particular to correlate the length of the arrows to more or less consumption, instead of the notion of efficiency, which is not a common concept for the consumer and seems to be counterintuitive when correlated with the scale A – G and the length of the arrows. The study also concluded that few promotional materials regarding energy efficiency were found in the supermarkets and department stores surveyed, except material provided by the refrigerator manufacturer LG, which carried out its campaign "A++, más ahorro, más ayuda" (A++, more savings, more help) (a similar campaign was done by Bosch).

7.2 Education of consumers, government officials and sales personnel PPEE has performed various educational campaigns and trainings for consumers, government officials and sales personnel:

An educational campaign "Brigada Energética Diego y Glot" (Diego and Glot’s energy brigade), which included a movie with energy saving tips for children of 8 – 13 years of age, presented by the well-known comic figures "Diego y Glot". The movie was shown on TV, on an interactive website and in a bus, which toured about 1,000 schools throughout the country;

Promotional events in supermarkets and department stores, in cooperation with the private sector;

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Training courses for sales personnel in department stores and home centers, with a typical duration of half a day. These courses were carried out over a period of one year, in cooperation between PPEE, SEC and SERNAC, using learning material developed for this purpose (booklets and CD). At the time of conducting the interview (April 29, 2010), PPEE's Coordinator of Education and Training reported an agreement with ChileValora (Comisión Sistema Nacional de Certificación de Competencias Laborales) in order to provide further training to sales personnel.

Training courses for officials of the Direction ChileCompra of the Ministry of Finance.23

Training courses for NGOs, who work with local communities.

In the area of training, PPEE cooperated frequently with the National Consumer Service (SERNAC) due to its experience in consumer education and training and its high visibility to and trust by consumers. The electricity supplier of the Santiago Metropolitan Area, Chilectra S.A. is providing energy efficiency tips via its website to households, enterprises, municipalities and real estate companies, and it also offers workshops and presentations on energy efficiency to neighborhood committees ("juntas de vecinos") and schools. Chilectra sells efficient electric appliances and lamps via its own distribution channels (including a web shop) and to registered clients.

7.3 Replacement program for household lamps In 2008, PPEE implemented the National Replacement Program of Light Bulbs (Programa Nacional de Recambio de Ampolletas – PNRA). Within this program, 750,000 packs of two CFLs each were given to 40% of the most vulnerable households of the country in exchange for two incandescent lamps. The CFLs were purchased by the State via ChileCompra (see previous Section 7.2), in accordance with pre-established efficiency and quality specifications. The expected savings of the program were as follows (González, 2009):

On the household level: o Savings of US$ 40 per year, which corresponds to 8% of the annual electricity bill

On the national level:

o Annual electricity savings: 138 GWh o Total electricity savings: 690 GWh o Total CO2 emission reductions 2008 – 2013: 343,000 tCO2

The total cost of the program was approximately US$ 4.5 million. It was expected that part of the cost would be recovered by selling the emission reductions in the voluntary carbon market (Mellado, 2008; González, 2009). In March 2009, the program was re-launched in the framework of the Program "Quiero mi barrio" by the Ministry of Housing and Town-planning (Ministerio de Vivienda y Urbanismo – MINVU).

7.4 Incentive programs In 2009, PPEE created an incentive for importers of efficient electric motors. Following a public call for tenders, PPEE granted a subsidy to the successful bidders, thus reducing the retail price of the motor. The total budget allocated was approximately US$ 2.5 million.

23 "ChileCompra" is in charge of public purchases in Chile. Its mission is to "create value in the public marketplace, in order to enable the State buyers to do their work every day in a more transparent and efficiency way and that the suppliers have easier access" (www.chilecompra.cl).

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In a study commissioned by PPEE, Fundación Chile (FC) evaluated several options to provide incentives to consumers for purchasing or replacing household refrigerators and refrigerator-freezers (Fundación Chile, Programa de Energía Sustentable, 2010). The main options investigated in the study are:

Early replacement programs for refrigerators: FC evaluated various options for early replacement programs, taking into consideration (i) various timeframes and levels of efficiency and (ii) two alternative financing models: a direct subsidy to the consumer by the state or by the electricity distribution company. The subsidy could be provided via a VAT exemption or a 1% rebate on the electricity bill.

Programs to promote the first purchase of efficient refrigerators:

FC evaluated the following options: (i) Direct consumer incentive for purchase of an efficient refrigerator or (ii) equipping of new dwellings with efficient refrigerators. Option (i) would include the provision of the subsidy via a rebate on the electricity bill, while option (ii) would finance the additional cost via the mortgage or, in the case of social housing, by a direct contribution from the Ministry of Housing and Town-planning (MINVU).

Table 7 shows the results of the study for selected, most cost effective options.24

Table 7: Incentives for Efficient Refrigerators – Benefits and Cost Source: Fundación Chile, Programa de Energía Sustentable, 2010

Benefits 2008 – 2017 Option Duration of

program Units replaced Electricity

savings Consumer benefits

Cost *

years units GWh Million US$ Million US$ Early replacement

4 400,000 496 82 175

First purchase 2 200,000 113 16 82.5 New dwellings 4 280,000 132 19 115.9

* Cost includes new refrigerators, program operation and recycling of old refrigerators. A study commissioned by CNE/MoE to Dalberg Global Development Advisors (Ministerio de Energía, PPEE, Dalberg Global Development Advisors, 2010) identified incentives for efficient appliances as the most effective, as compared to incentives programs directed to other areas, such as efficient housing, voluntary agreements with industry, the purchase of efficient vehicles and efficient technologies in industry. The study recommends a "hybrid" incentive mechanism (similar to the refrigerator replacement program in Mexico), providing a direct subsidy to low-income consumers and a credit to consumers with higher income.25 Dalberg estimates a total cost of the program of US$ 346 million, assuming the replacement of 50,000 units per year over a ten year period. The major part of the cost of the program (84%) would be assumed by the State.

24 See Fundación Chile, Programa de Energía Sustentable, 2010 for more options and a detailed discussion of results. 25 The criterion in the Mexican program for eligibility for a subsidy or credit (or a mix of both) is actually based on the level of electricity consumption (which is assumed to reflect the income level of the household).

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7.5 Recommendations

7.5.1 Label design and consumer comprehension According to the results of the study commissioned by SERNAC, the current label design, which is based on the European energy label, is not fully understood by consumers. In particular, the correlation between the length of the horizontal arrows, indicating the categories A – G, and the energy efficiency of the products appears to be counterintuitive. Although the results of this market research26 are alarming, it should be kept in mind that the market research by SERNAC/ICCOM was rather limited, suggesting that a broader survey regarding consumer comprehension may produce different results. In an early stage of the program, the Chilean government decided to base the Chilean Energy Label on the design of the internationally renowned EU Energy Label. As the label has already gained visibility and is apparently recognized by consumers, it is not recommended to fundamentally change the label design at this stage.27 The results of the study therefore suggest that additional efforts should be made to explain the label design (and the concept of energy efficiency vs. energy consumption) to consumers.

7.5.2 Education of consumers, government officials and sales personnel Consumer education in energy efficiency necessarily involves various aspects of energy saving behavior, including the purchase and use of household appliances, lighting and consumer electronics. During the interviews held, experts discussed to what extent awareness campaigns and educational efforts should include energy efficiency labeling in a generic or more specific way. As the study by SERNAC/ICCOM suggests, there is a need to educate consumers as to how to read and interpret the information provided on the energy label. Similar efforts should be made in educating civil servants and appliance sales personnel, although the last group– at least those interviewed in the SERNAC/ICCOM study – claims that they understand the label. Energy efficiency should also be part of the curricula of various levels of primary and secondary education, including specific training in understanding the energy label. In general, consumer education should continue as a collaborative effort, involving state entities, manufacturers, retailers, electricity companies, consumer associations and NGOs, all under the coordination of MoE/AChEE.

7.5.3 Replacement and incentive programs In addition to the ban of incandescent lamps, the Ministry of Energy should implement instruments to foster the accelerated market penetration of efficient appliances. Early replacement and/or incentive programs for targeted appliances are adequate measures and should be implemented complementary to MEPS and labels. The selection of the most suitable programs should be based on criteria including maximum energy savings, the cost effectiveness of the program and the cost of the program for the Government and for consumers. Important parameters of the program are the timing and the choice of the efficiency threshold (relative to the date of implementation and the efficiency threshold of the MEPS).

26 The market research included 14 days of observation in 14 supermarkets and department stores in the Santiago Metropolitan Area and 44 interviews with consumers. 27 An additional challenge for the Government is the imminent revision of the energy label, in order to reflect the evaluation of product efficiency towards label category A, which will require either a re-categorization of the label or the addition of additional efficiency categories like A+, A++ and A+++ (like in the European Union).

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7.5.4 Public procurement programs Notably, there appear to be no public procurement programs for energy efficient equipment, although "ChileCompra" the Direction of the Ministry of Finance in charge of public purchases would presumably be in the position to administer such programs or to apply minimum energy efficiency requirements as a general rule for Government purchases. CLASP recommends implementing programs for public procurement of energy efficient equipment.

8. Minimum Energy Performance Standards (MEPS)

8.1 Product Prioritization A key step in development of an appliance standards (MEPS) program is a prioritization of target appliances. The criteria of which appliances to regulate first are the amount of energy savings and greenhouse gas emissions that can be saved. These, in turn, are based on independent factors of total national demand and percentage improvement potential. For example, refrigeration is generally one of the bigger end uses in the residential sector, and therefore significant improvements in refrigerator technology can have large impacts in terms of national energy demand. On the other hand, standby power is not as large overall as refrigerators, but the potential for improvement in percentage terms is very large and applies to many devices. As a result, the savings potential of standby may be on the same order of magnitude as refrigerators. In a country with a rapidly developing economy like Chile, it is also important to look ahead to future energy demand, the components of which may differ significantly from the current situation.

8.2 BUENAS Model LBNL applied the Bottom-Up Energy Analysis System (BUENAS) model to estimate the potential for energy savings and greenhouse gas mitigation from appliance standards in Chile. BUENAS is a “bottom up” model that calculates energy demand for appliances based on input data for individual product types. It takes a basic activity/intensity approach, first calculating the quantity of a given appliance in each country in each year (Module 1), and then multiplying by unit energy consumption in each scenario (Module 2). A third module calculates the impact of energy efficiency standards (MEPS) on the energy use of the national stock of appliances by tracking sales and retirements.

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Figure 5 : BUENAS Modular Analysis Structure

BUENAS takes as inputs product ownership rates, product sales, annual unit energy consumption and per unit percentage improvement potential. Since forecasts of appliance sales were not available for Chile, the model forecasted appliance stock and sales through an econometric model based on household income, GDP and population. A description of BUENAS methodology and data sources are given in McNeil et.al, 2008. Revisions were made to the model according to data provided by PPEE. These are:

Household size from Chilean Census; Urbanization: Projections of urban population from 1990 to 2020, Instituto Nacional de Estadísticas

(INE), Chile; Electrification: Chilean Census 1982, 1992 and 2002, Instituto Nacional de Estadísticas (INE), Chile.

The results of the model for Chilean electricity end uses are presented in Section 8.3 and Figure 6.

8.3 Savings Results

Electricity Demand – The model indicates that the highest electricity end uses in 2030 in Chile will be electric motors, residential refrigeration, residential lighting and commercial lighting. Electric motors generally use over half of the electricity in the industrial sector. Industrial motors electricity demand in Chile in 2030 is estimated to be 34.7TWh, which is more than the electricity demand from buildings (both residential and commercial) estimated at 30.2TWh in the same year. While percentage gains in efficiency are fairly small for this already highly efficient end use, overall effects can therefore still be large. Residential refrigeration will account for 2.6TWH of the electricity demand in 2030, while that of residential and commercial lighting will be 3.9TWH and 3.8TWH respectively. Lighting is generally the highest demand end use in both residential and commercial buildings. It stands out in particular in Chile’s climate, which is characterized by a relatively low cooling load. In the residential sector, air conditioning is traditionally a negligible end use. However, the model

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suggests that as incomes rise, an increasing percentage of Chilean households will own an air conditioner, although usage may remain relatively low. Residential space cooling is predicted to rise from almost zero to about 1.2 TWh. Electricity Savings – Residential lighting has the highest energy savings potential of 2.37 TWh in 2030, reflecting a 60% efficiency improvement per unit achieved by replacing incandescent lamps with CFLs. This clearly supports the emphasis placed by the Chilean government on establishing a phase-out of incandescent lamps. Standby power has the next highest potential energy savings of 1.20 TWh, a value that assumes an 80% efficiency improvement per unit by reducing the average standby power drawn from devices from 5 watts to 1 watt. Finally, residential refrigeration and commercial lighting also show high savings potentials of 1.15 TWh from residential refrigeration, based on efficiency improvement per unit of 43%, and 1.14 TWh from commercial lighting. Taken together, the savings potential is found to be 5.93 TWh in the residential sector and 2.05 TWh in the commercial sector. Industrial motors show a potential of 0.63 TWh. Carbon Dioxide Emissions Mitigation – CO2 emissions reductions are calculated from energy savings according to a conversion factor reported by the International Energy Agency. Electricity production in Chile was reported to produce 0.318 kg CO2 per kWh produced in 200528. According to the IEA’s World Energy Outlook, this emissions factor will remain relatively constant, decreasing to 0.305 by 2030. Total CO2 mitigation potential in 2030 is found to be 3.25 million tons from all appliances in the residential, commercial and industrial sectors.

28 This carbon factor (0.318 CO2/kWh) is different from that one used in the Refrigerators report (0.480 CO2e/Kwh). The first is a factor reported by the IEA for the whole energy sector in Chile, while the latter corresponds to an estimate provided by the MoE specific to the residential sector. In addition, the CO2e/kWh includes other pollutants and is therefore higher than the CO2/kWh.

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Figure 6: BUENAS Results

Demand Share Demand Demand Share Growth Savings Savings % Savings Demand Share Growth Savings % SavingsTWh % mt CO2 TWh % % TWh % CO2 TWh % % TWh % CO2

Commercial\Lighting 1.54 0.1% 0.49 2.62 12.4% 3.6% 0.39 15% 0.12 3.80 12.6% 3.7% 1.14 30% 0.35Commercial\Office Equipment 0.52 0.0% 0.17 0.89 4.2% 3.6% 0.04 4% 0.01 1.29 4.3% 3.7% 0.16 13% 0.05Commercial\Refrigeration 0.34 0.0% 0.11 0.58 2.7% 3.6% 0.09 16% 0.03 0.84 2.8% 3.7% 0.21 25% 0.06Commercial\Space Cooling 0.56 0.0% 0.18 0.98 4.6% 3.8% 0.09 10% 0.03 1.44 4.8% 3.9% 0.36 25% 0.11Commercial\Ventilation 0.59 0.0% 0.19 1.01 4.8% 3.6% 0.04 4% 0.01 1.47 4.9% 3.7% 0.18 12% 0.05Total Commercial 3.55 0% 2.78 6.07 0% 3.6% 0.66 11% 4.44 8.83 0% 3.7% 2.05 23% 0.63Residential\Fan 0.66 11.4% 0.21 0.76 8.4% 0.9% 0.07 9% 0.02 0.81 6.4% 0.8% 0.24 30% 0.07Residential\Lighting 1.49 25.9% 0.47 2.65 29.4% 3.9% 1.59 60% 0.49 3.95 31.5% 4.0% 2.37 60% 0.72Residential\Refrigeration 2.02 35.0% 0.64 2.40 26.7% 1.2% 0.45 19% 0.14 2.65 21.1% 1.1% 1.15 43% 0.35Residential\Space Cooling 0.00 0.0% 0.00 0.28 3.1% 38.9% 0.03 11% 0.01 1.19 9.5% 29.1% 0.34 29% 0.10Residential\Standby 0.53 9.1% 0.17 0.97 10.8% 4.2% 0.32 33% 0.10 1.52 12.1% 4.3% 1.20 79% 0.36Residential\Television 0.73 12.6% 0.23 1.54 17.1% 5.1% 0.24 16% 0.07 1.98 15.8% 4.1% 0.52 26% 0.16Residential\Washing Machine 0.34 5.9% 0.11 0.41 4.5% 1.1% 0.04 9% 0.01 0.46 3.6% 1.2% 0.12 25% 0.04Total Residential 5.77 100% 1.83 8.99 100% 3.0% 2.73 30% 0.85 12.55 100% 3.2% 5.93 47% 1.81Total Buildings 9.32 72% 4.61 21.13 100% 5.6% 4.05 19% 11.66 30.22 100% 4.8% 10.04 33% 3.06Industrial Motors 14.74 100% 4.68 25.02 100% 3.6% 0.24 1.0% 7.75 34.73 100% 3.5% 0.63 1.8% 0.19

End Use

2005 2020 2030

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9. Case Study Refrigerators LBNL has prepared a Regulatory Impact Analysis Report for Energy Efficiency Standards and Labeling Programs for Refrigerators-Freezers in Chile, using PAMS, which provides policymakers with a robust and transparent cost-benefit analysis of future energy efficiency programs for refrigerators-freezers in Chile. Section 9 provides a summary of the Regulatory Impact Analysis which is presented to MoE in a separate report.

9.1 Scenario Description: Base Case and Policy Scenario Refrigerators are currently regulated by a mandatory labeling standard (NCh 3000), which was implemented in 2008. The labeling program follows the EU labeling scheme (Directive 2003/66/CE) with letter categories ranging from G (least efficient) to A++ (most efficient). The most recent data available (2009) show that the market is between the levels C and A+ in Chile, and 43% of the market is at level A or higher29. The refrigerator market is evolving very rapidly towards more efficient appliances. Based on historical trends and similarities with the European labeling program experience, it was found that, by 2014, all of the refrigerators sold will be at level A or higher, which means that the baseline is at the A level. In the base case, the efficiency keeps improving to reach an 80/20% split between the levels A+ and A++ in 203030. In the labeling program update scenario, the introduction of a category A+++ that would follow the recent extension of the European labeling program (Commission Delegated Regulation (EU) No 1060/2010) would push the market towards even more efficient categories. This program was analyzed alone and in combination with a MEPS that would come into effect in 2014. LBNL collaborated with MoE to produce a techno-economic analysis of future policy measures on refrigerator-freezers. The PAMS model was applied to the refrigerator-freezer case to evaluate the potential impact on the consumer and at the national level of two programs:

An extension/rescaling of the labeling program in 2012 A Minimum Efficiency Performance Standard (MEPS) in 2014

Figure 7 shows the Energy Efficiency Index (EEI) in the different scenarios analyzed:

Figure 7: Sales Weighted EEI in Different Policy Scenarios

0

10

20

30

40

50

60

2010 2020 2030

Sales Weighted EEI Base Case

Labelling Program Update

Labeling Program + MEPS

29 The analysis focuses on two-door refrigerators. Data for one-door refrigerators is scarce and the product is phasing out of the market. 30 A 5-year lag was assumed between the Chilean and the European market, according to historical data found in the Ecodesign preparatory study. Projections from the same study are used for the baseline and extension of labeling program scenarios, and the time lag is maintained constant throughout the projections.

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The MEPS cost-benefit analysis evaluates all appropriate levels above the baseline. One of the candidate levels analyzed is the same level set to be mandatory by 2012 by the European Union’s Ecodesign Directive No 643/2009. In this context, the report evaluates the impact of a potential harmonization of MEPS between Chile and the EU in terms of consumer financial impacts and national energy and financial impacts through 2030.

9.2 Cost-Benefit Analysis

Financial impacts are evaluated for the mandatory MEPS at the A+ or A++ level by comparing to the baseline efficiency level (level A) in the year the standard comes into effect. Because engineering data reflecting the refrigerators sold on the Chilean market was not available, retail prices were used to evaluate the incremental cost of more efficient appliances. The life cycle cost calculates the total cost of acquiring and operating the refrigerator over its lifetime. When comparing the life cycle cost of a product at the baseline level to a higher efficiency level, every level above level A is cost effective for the consumer. In other words, the incremental cost of the refrigerator is compensated or more over the lifetime of the appliance. The most favorable case for the consumer is at the A+ level with a 15,000 Ch$ saving over the lifetime of the appliance compared to a refrigerator rated A. Payback periods were found to be between 5 and 7 years, which is less than half the lifetime of the refrigerator. Table 8 summarizes the findings:

Table 8: Life Cycle Cost results and Payback Period

Purchase Price

Annual Electricity Bill LCC

LCC Savings PBP

Ch$ Ch$ Ch$ Ch$ Years

No MEPS 370,011 30,436 601,866 A+ MEPS 397,540 24,886 586,822 15,045 5.0

A++ MEPS 444,276 20,210 597,994 3,872 7.3 The cost-benefit analysis indicates that a MEPS at any analyzed level has a positive benefit on the average consumer.

9.3 National Impact Analysis At the national level, the main impacts calculated are the following:

National Site Energy Savings – Difference between energy demand in the base case scenario and the forecast constructed by assuming the program is extended due to the labeling program alone or in combination with a MEPS.

Net Present Value of Savings – Evaluates the impact of the MEPS on the net financial savings from reduced utility bills (in the stock) and incremental equipment investment (due to new sales every year).

Emissions Reduction (CO2e) – Difference in carbon dioxide emissions resulting from lower levels of electricity generation or direct fuel combustion due to the labeling program alone or in combination with a MEPS.

Avoided Plant Capacity (APC) – The avoided plant capacity is the instantaneous power saved through the program.

In order to scale the individual appliance level data to a national level, sales are generated in PAMS through a stock turnover analysis model and calibrated to national level data. The annual savings due to the extension of the labeling program and the MEPS are shown in the Figure 8:

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Figure 8: National Energy Savings form Labeling and MEPS Program (level A+)

The results clearly indicate the relative contribution of both programs. Overall, the labeling program has a higher impact. The effect of the MEPS is to bring the market more quickly to a higher efficiency level. In the long term, savings are driven by the labeling program. Note that the impacts from the labeling program are more speculative than the impacts from the MEPS, since the consumer still has the choice as to whether to buy an efficient appliance.

The annual cost and benefits from the MEPS are shown in the Figure 9:

Figure 9: Cost and Energy Savings from Labeling and MEPS (level A+)

In our scenario, the baseline reached the level A+ by 2018, which means that savings have to be gained with the units sold between 2014 and 2018 (that will keep providing savings after 2018 until they retire from the stock). Table 9 presents a summary of all the national impacts for the different scenarios analyzed.

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Table 9: Summary Results Site

Energy Savings in 2020

Site Energy Savings in 2030

Total Incremental Cost

Electricity Savings

Cost Benefit Ratio

NPV Avoided CO2e

Emissions through 2030*

Avoided Capacity

GWh GWh

Billions Ch$

Billions Ch$

Billions Ch$ Mt MW

Labeling Program Extension

172 477 $0 $0 NA $0 2.2 74

Labeling Program + A MEPS**

172 477 $0 $0 NA $0 2.2 74

Labeling Program + A+ MEPS

241 515 $29.60 $59.20 2 $29.60 2.7 80

Labeling Program + A++ MEPS

347 608 $128.50 $156.20 1.22 $27.70 3.5 94

*An emission factor of 480 gCO2e/kWh was used as provided by MoE **Because the baseline is at the A level, a MEPS set at this level has no additional impact compared to the extension of the labeling program. It would just provide certainty that these savings are achieved since it is a mandatory program. The results of the study allow for evaluation of the overall impacts of the various options for MEPS and labeling programs for Chilean refrigerators. In particular, we evaluate the possible impacts of setting a MEPS in 2014 that matches the EU Ecodesign MEPS that will come into effect in 2012 (Ecodesign Directive No 643/2009). This regulation, which mandates a MEPS at the A+ level by 2012, is the best available MEPS in the world based on the test procedure followed in Chile. The analysis shows that such a MEPS would be cost effective in Chile as well. The overall impacts of harmonization with the Ecodesign target would save consumers 29.6 billion Ch$ over the next 20 years. Combined with an extension of the labeling program, it would save over 5 TWh and avoid 2.7 Mt of CO2e emissions during the same period of time.

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References Comisión Nacional de Energía (2008), Política Energética: Nuevos Lineamientos – Transformando la crisis en una oportunidad. CNE, Santiago de Chile. Comisión Nacional de Energía, Collect GfK (2009), Estudio de Evaluación de Campaña Masiva Únete a la Buena Energía de Chile. Powerpoint presentation, December 2009. Comisión Nacional de Energía, Feedback (2008), Informe: Evaluación Campaña "Gracias por tu energía, sigamos haciéndolo bien". Powerpoint presentation, December 2008. Comisión Nacional de Energía, Feedback (2009), Evaluación Campaña de Ahorro Energético Gracias por tu energía, sigamos haciéndolo bien. Powerpoint presentation, January 2009. Feedback (2009), "Gracias por tu energía, sigamos haciéndolo bien", Evaluación Campaña de Ahorro Energético. Powerpoint presentation, January 2009. Fundación Chile (2009), Generación de metodología para la medición de línea base del consumo energético en artefactos domésticos – Propuesta de seguimiento y aplicación en artefactos domésticos etiquetados, Informe Final. Santiago de Chile, October 5th, 2009. Fundación Chile, Programa de Energía Sustentable (2010), Eficiencia Energética, Diseño de Incentivos Económicos a la Compra de Refrigeradores Energéticamente Eficientes. Informe Final, July 2010. González, J. (2009), El Programa de N&E de EE de Chile. Curso de Capacitación virtual: Normas y etiquetado de eficiencia energética – lecciones aprendidas en América Latina. OLADE – CLASP. International Energy Agency (2009), Chile Energy Policy Review. IEA, Paris. Mark Ellis & Associates (2010a), A Survey of Monitoring, Verification and Enforcement Regimes and Activities in selected countries. Final Report, June. In partnership with CLASP. Mark Ellis & Associates (2010b), Compliance Counts: A Practitioners Guidebook on Best Practice Monitoring, Verification, and Enforcement for Appliance Standards & Labeling. September. In partnership with CLASP. McNeil, M.A. et. al. (2007), Methodology Document for CLASP Policy Analysis Modeling System, CLASP, http://www.clasponline.org/files/PAMSMethodology.pdf McNeil, M.A., V.E. Letschert and S.A.De la Rue du Can (2008), Global Potential of Energy Efficiency Standards and Labeling Programs. LBNL 760E. Mellado, P., Programa País de Eficiencia Energética (2008): Componente de Carbono en Proyectos Públicos. Powerpoint Presentation, LatinCarbon Santiago, October 29th, 2008. Ministerio de Energía, PPEE, Dalberg Global Development Advisors (2010), Formulación de Instrumentos de Incentivo para la Eficiencia Energética en Chile. Informe Final, September 24th, 2010 Programa País Eficiencia Energética, Feedback (2007), Estudio de Evaluación Campaña "Use Bien la Energía, Sigue la Corriente. Powerpoint presentation, November 2007. Servicio Nacional del Consumidor, ICCOM Investigación de Mercado (2010), Informe Estudio Cualitativo "Etiquetado de Eficiencia Energética de Refrigeradores y Ampolletas: Percepción de su uso, valoración y compresión de la información por los agentes de venta y los consumidores". Santiago de Chile, February.

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Websites Agencia Chilean de Eficiencia Energética (AChEE)

www.ppee.cl/576/channel.html

Campaign "Cambia el Switch – Cambia tu manera de usar la energía"

www.cambiaelswitch.cl

CESMEC www.cesmec.cl

Comisión Sistema Nacional de Certificación de Competencias Laborales (ChileValora)

www.chilevalora.cl

Chilectra S.A. www.chilectra.cl/wps/wcm/connect/ngchl/ChilectraCl/Hogar/

Dirección ChileCompra, Ministerio de Hacienda

www.chilecompra.cl

Fundación Chile (FC) www.fundacionchile.com/

INGCER www.ingcer.cl

Instituto Nacional de Normalización (INN)

www.inn.cl

Ministerio de Energía, Chile www.minenergia.cl

Servicio Nacional del Consumidor (SERNAC)

www.sernac.cl

SICAL – SILAB www.sical.cl

Superintendencia de Electricidad y Combustibles (SEC)

www.sec.cl

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Annex 2: Schedule of Meetings

Schedule of meetings, April 26 – May 6, 2010

Day Date Organisation Interlocutors * Job title

Monday 26 Apr. Ministerio de Energía (MdE) Programa País de Eficiencia Energética (PPEE) Superintendencia de Electricidad y Combustibles (SEC)

Juan Franciso Galli Iván Jaques Stephen Hall Jaime González Paulina Silva

Encargado Área Desarrollo Institucional Deputy Director Public Policies Área Políticas Públicas Jefe Depto. Normas y Estudios Depto. Estudios y Normas

Tuesday 27 Apr. Fundación Chile (FC)

Ana María Ruz Franciso Leiva

Área Energía y Medio Ambiente Área Energía y Medio Ambiente

Wednesday 28 Apr. PPEE Carolina Muena Encargada Área de Comunicación

Thursday 29 Apr. Chile Sustentable Sara Larraín Directora Ejecutiva

PPEE Tamara Corales Encargada Área Educación y Capacitación

Chilectra Guillermo Pérez del Rio Rafael Caballero

Gerente de Regulación y Gestión de Energía

Friday 30 Apr. MdE PPEE SEC

Reunión cancelada

Instituto Nacional de Normalización (INN)

Claudia Cerda Eduardo Cevallos

División de Normas Jefe de División Acreditación

Monday 3 May SEC Jaime González Gerente General

Tuesday 4 May Chile Sustentable Sara Larraín Directora Ejecutiva

Wednesday 5 May Servicio Nacional del Consumidor (SERNAC)

Ana María Becerra María Cristina Leiva Miguel Valenzuela Álvaro Salas

Jefa Coordinación – Protección Económica y de la Seguridad de los Consumidores Depto. de Estudios Depto. de Estudios Comunicación Estratégica

Thursday 6 May MdE PPEE SEC

Alexis Michea Stephen Hall Jaime González Paulina Silva

Energy Efficiency Division Área Políticas Públicas Jefe Depto. Normas y Estudios Depto. Estudios y Normas

* The following representatives of the Ministry of Energy participated in various meetings:

Ricardo Vásquez Lobos - Jefe División Eficiencia Energética Mariana Pavón Beltrán - Economista División Eficiencia Energética Soledad Retamal Neira - Ing. División Eficiencia Energética Stephen Hall - Programa País de Eficiencia Energética

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Schedule of meetings, October 12 – 15, 2010

Day Date Organisation Interlocutors Job title

Tuesday – Friday

12 – 15 Oct.

Ministerio de Energía (MdE)

Ricardo Vásquez Lobos Mariana Pavón Beltrán Soledad Retamal

Jefe División Eficiencia Energética División Eficiencia Energética División Eficiencia Energética

Wednesday 13 Oct. PPEE Cristián Cárdenas Stephen Hall Ricardo Vásquez

Director Ejecutivo Áreas Políticas Públicas Jefe División Eficiencia Energética

Friday 15 Oct. Ministerio de Energía (MdE)

Jimena Bronfman María Paz Hermosilla Ricardo Vásquez

Subsecretaria de Energía Jefe de Gabinete Subsecretaria Jefe División Eficiencia Energética

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Schedule of meetings, October 18 – 22, 2010

Day Date Organisation Interlocutors * Job title

Monday 18 Oct. Ministerio de Energía (MdE) Superintendencia de Electricidad y Combustibles (SEC)

Mariana Pavón Beltrán Jaime González Fuezalida Paulina Silva Tapia Cecilia Moya Opazo

Economista División Eficiencia Energética Jefe Depto. Normas y Estudios Ing. Depto. Estudios y Normas Ingeniero de Estudios

Tuesday 19 Oct. Instituto Nacional de Normalización (INN) SEC

Eduardo Ceballos O. See above

Jefe División Acreditación

Wednesday 20 Oct CESMEC S.A. Mauricio Navia M. Cecilia Simon B.

Coordinador Comercial Depto. de Ingeniería General Gerente División Certificación

Campania Tecno Industrial S.A. (CTI)

Camilo Mendoza Adison Louzeiro Gustavo Caceres Mariana Gálvez Vargas

Cooking Appliances Division Manager Gerente División Refrigeración Gerente de Calidad Jefe División Laboratorios de Ensayos y Certificación

INGCER Sandra Rodriguez Lara Naldo Cabrera Araya Sergio Soto Cabezas

Gerente General Encargado de Laboratorio Área Eléctrica Gerente de Administración y Finanzas

Thursday 21 Oct SICAL Ingenieros S.A. / SILAB Ingenieros S.A.

Giacomo Biancardi Pastene (part-time) Patricio Urzua P. Bernardita Peña S. M. Cristina Osorio C.

Gerente General Coordinador de Calidad Gerente Administración y Finanzas Jefe Certificación Eléctrica Jefe Área Eléctrica

MDE SEC

see above see above

Friday 22 Oct. Superintendencia de Electricidad y Combustibles (SEC)

Jaime González Fuezalida Paulina Silva Tapia

Jefe Depto. Estudios y Normas Ing. Depto. Estudios y Normas

* The following representatives of the Ministry of Energy participated in various meetings:

Ricardo Vásquez Lobos - Jefe División Eficiencia Energética Mariana Pavón Beltrán - Economista División Eficiencia Energética Soledad Retamal Neira - Ing. División Eficiencia Energética Stephen Hall - Programa País de Eficiencia Energética

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Annex 3: Manual Etiquetado Energético (Energy Labeling Guide) – extracts

Source: CNE / PPEE

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