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Energy Performance and Labelling Requirements for Specific Electrical Appliances and Equipment

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Energy Performance and Labelling Requirements for Specific Electrical Appliances and Equipment TRADE AND INDUSTRY CHAMBER FUND FOR RESEARCH INTO INDUSTRIAL DEVELOPMENT, GROWTH AND EQUITY (FRIDGE) Energy Performance and Labelling Requirements for Specific Electrical Appliances and Equipment Date of submission 22 February, 2012 Consultant details Unlimited Energy Resources (pty) ltd Contact Details Unlimited Energy Contact Theo Covary Postal address The Green Desk, B2 House, 8 Tyrwhitt Avenue, Rosebank 2196 Physical address The Green Desk, B2 House, 8 Tyrwhitt Avenue, Rosebank 2196 Telephone (011) 447 1580 Facsimile (011) 447 1580 Cell phone 084 224 3000 E-mail [email protected] Energy Resource Optimizers Contact Lekoapa Lengoasa Postal address 740 Borzoi Street, Garsfontein X10 Pretoria Physical address 740 Borzoi Street, Garsfontein X10 Pretoria Telephone 082 859 5751 Facsimile Cell phone 082 859 5751 E-mail [email protected] Contents Introduction ................................................................................................... 6 Report Objectives .................................................................................... 6 Policy Objectives: Energy Efficiency ......................................................... 7 1 Literature Review ................................................................................ 8 1.1 Country Context: Energy and Climate Policy ................................. 8 1.2 Key Concepts and Definitions ...................................................... 10 1.3 Standards and Labelling (S&L) Programmes: Overview ................ 10 1.4 History of Appliance Labelling in SA ............................................ 12 1.5 Motivation for a Mandatory S&L Programme ................................ 15 1.5.1 Programme Advantages 16 1.5.2 Programme Benefits 16 1.5.3 Programme Disadvantages 19 1.5.4 Effectiveness of S&L Programmes 19 1.6 Harmonization ............................................................................. 21 1.7 Components of an S&L Programme ............................................. 22 1.8 Case Studies ................................................................................. 25 1.8.1 Developed Countries 25 1.8.2 Key Observations and Best Practise Recommendations 27 2 Consumer Response ......................................................................... 28 2.1 Contextual Background ................................................................ 29 2.1.1 International Experience 29 2.1.2 South African Experience to Date 31 2.2 Introduction ................................................................................. 32 2.3 Market Research and Focus Group Objectives ............................. 33 2.4 Approach / Methodology ............................................................. 33 2.4.1 Sample Profile and Size 34 2.4.2 Recruitment of Attendants 34 2.4.3 Discussion Guide for Focus Group Sessions 34 2.5 Findings ....................................................................................... 35 2.5.1 Understanding of Energy Efficiency 35 2.5.2 Energy Efficiency Behaviour 36 2.5.3 Attitude towards Labelling Concept 37 2.5.4 Understanding of Label 38 2.5.5 Supporting Communication Strategy 41 3 Broader Labelling Concerns .............................................................. 43 3.1 Rating Options to Support Improving Efficiencies ....................... 45 3.2 Options to Eliminate Defunct Energy Classes .............................. 46 3.3 Concluding Remarks regarding the Labelling Approach .............. 47 4 Database of Suppliers (Excel) ........................................................... 47 5 Current Energy Efficiency Levels of Local and Imported Appliances ........................................................................................................... 48 5.1 Objectives .................................................................................... 48 5.2 Approach...................................................................................... 49 5.2.1 Data Collection 49 5.2.2 Appliance Categories 50 5.3 Market Characteristics ................................................................. 51 5.3.1 Introduction 51 5.3.2 Market Breakdown and Local Manufacturing 51 5.3.3 Cooling 53 5.3.4 Cooking 57 5.3.5 Laundry 59 5.3.6 Dishwashers 62 5.3.7 Air Conditioners (A/C) 64 5.3.8 Electric Water Heaters (Geysers) 66 5.4 Collection of Data ........................................................................ 70 5.4.1 Energy Efficiency Levels of Models in the Market 70 5.4.2 Data Collection Shortcomings 72 5.4.3 Summary of Findings 73 6 Impact Assessment ........................................................................... 74 6.1 Sectors – Industry Supply Chain ................................................... 75 6.2 Role of Supply Chain Actors ......................................................... 77 6.2.1 Indirect Market Actors 77 6.2.2 Direct Market Actors 78 6.3 Cost Benefit Analysis .................................................................... 79 6.4 Why a Cost-Effectiveness Analysis ............................................... 79 6.4.1 Data Needs 80 6.4.2 Analysis Effort for this Study 82 6.5 Impacts and Benefits .................................................................... 83 6.5.1 Consumer 83 6.6 Local Manufacturing ..................................................................... 87 6.7 Importers and Retailers ................................................................ 90 6.8 Government and Society .............................................................. 91 6.9 Incentives ..................................................................................... 93 6.9.1 Manufacturer Incentive Programmes (Upstream) 94 6.9.2 Consumer Incentive Programmes (Downstream) 95 6.10 National Consumer Protection Act (CPA) ..................................... 96 6.10.1 Principles & Mechanisms of the CPA 96 6.10.2 Going Forward: Application of the CPA in Practice 98 6.11 Impacts and Benefits (International Experience) .......................... 99 6.12 Unintended Consequences and Project Risks ............................ 103 7 Recommendations ........................................................................... 106 7.1 Impact Assessment and Consultation Approach ........................ 106 7.1.1 Recommended MEPS for each appliance type 106 7.2 Bottom-Up Energy Analysis System (BUENAS) ............................ 108 7.2.1 Results and Conclusions 108 7.3 Comparison of Recommendations ............................................. 110 7.4 Recommended Energy Classes for each Appliance Type ........... 110 7.5 Recommended Labelling Requirements for each Appliance Type ................................................................................................... 110 7.6 Recommended Implementation Schedule .................................. 110 7.7 Recommended Focus Groups on Incentive Programmes ........... 111 7.8 Public Access to Test Results ..................................................... 111 8 Conclusion ....................................................................................... 111 9 Annexes ........................................................................................... 112 9.1 Case studies ............................................................................... 112 9.2 Summary of CLASP study / consumer survey findings ............... 125 9.3 Recruitment Questionnaire ........................................................ 126 9.4 Focus Group – Discussion Guide ................................................ 133 9.5 Extract from SANS 62552: Household Refrigerator Appliances – Label Design .............................................................................. 139 9.6 Appliance Categories ................................................................. 140 9.7 Consumer Protection Act ........................................................... 141 9.8 South Africa BUENAS Analysis .................................................... 144 9.9 FRIDGE Workshop - Comments and Responses ......................... 157 Table of Tables Table 1: Timeline of Appliance Labelling in SA ....................................................... 12 Table 2: Timeline of Key Policy and Regulatory Enactments to make Energy Performance and Labelling of Electrical Appliances Mandatory ........................... 13 Table 3: Selected Appliances – Annual Sales and Household Penetration Rates ........ 16 TABLE 4: Components of an S&L Programme ......................................................... 23 Table 5: Summary of results of case studies .......................................................... 26 Table 6: Focus group composition ........................................................................ 34 Table 7: Ecosystemic analysis by LSM, age and race .............................................. 36 Table 8: Current electricity saving activities (from most mentioned to least mentioned) .................................................................................................................... 37 Table 9: Questions relating to the labelling programme .......................................... 38 Table 10: Recommended structure of tailored messages ........................................ 42 Table 11: Media channels .................................................................................... 43 Table 12: Options for accommodating efficiency advancements .............................. 45 Table 13: Proposed transition of re-graded labels .................................................
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