Guidebook on Promotion of Sustainable Energy Consumption: Consumer Organizations and Efficient Energy Use in the Residential Sector
Cover of the Guidebook on Promotion of Sustainable Energy Consumption: Consumer Organizations and Efficient Energy Use in the Residential Sector  


Contents of the Guidebook on Promotion of Sustainable Energy Consumption: Consumer Organizations and Efficient Energy Use in the Residential Sector
Foreword of the Guidebook on Promotion of Sustainable Energy Consumption: Consumer Organizations and Efficient Energy Use in the Residential Sector
Part One of the Guidebook on Promotion of Sustainable Energy Consumption: Consumer Organizations and Efficient Energy Use in the Residential Sector

Part Two of the Guidebook on Promotion of Sustainable Energy Consumption: Consumer Organizations and Efficient Energy Use in the Residential Sector

Part Three of the Guidebook on Promotion of Sustainable Energy Consumption: Consumer Organizations and Efficient Energy Use in the Residential Sector
Contact information for the authors of the Guidebook on Promotion of Sustainable Energy Consumption: Consumer Organizations and Efficient Energy Use in the Residential Sector

2.4 Perspectives for Reduction of Standby Power Consumption in Electrical Appliances
by Brahmanand Mohanty, Visiting Associate Professor, Asian Institute of Technology, Pathumthani, Thailand

2.4.1 Introduction

Imagine you have ordered a glass of cool carbonated drink in a bar. What would your reaction be if the waiter returned with a glass filled mostly with frothy bubbles and very little liquid at the bottom? You will certainly feel cheated. Why should you pay for a practically empty glass? And yet this is what happens to most of us in our day-to-day life and we continue to pay for “the drink that we never really got to drink”.

A video cassette recorder (VCR) is used in homes around the world for playing and recording cassettes for only about 5 per cent of the time while it remains in standby state during the remaining 95 per cent of the day. Little do we realize that only 15 per cent of the power it uses is consumed during its operation and 85 per cent of the power it uses is consumed when the machine is in standby state. We cannot even blame the “waiter” in this case.

Standby electricity is the energy consumed by appliances when they are not performing their main functions or when they are switched off. The energy wasted in this manner is commonly referred to as “standby loss” or “leaking electricity”. Most people are not aware of the fact that modern electrical and electronic appliances, even those having on/off switches, consume power for standby functions that include features such as powering of the built-in clock or memory, displaying information, responding to remote controls or programming, charging of batteries, etc.

A study conducted by the Australian Greenhouse Office concluded that up to 80 per cent of the electricity used by VCRs was consumed in standby mode. In New Zealand, 40 per cent of the electricity used by microwave ovens is consumed as standby energy, mainly to run digital clocks. Field surveys in office buildings of Thailand concluded that standby energy consumed 53 per cent of the power consumed by personal computers (PCs), and more than 90 per cent of that consumed by copiers, printers and fax machines.

The number of products with standby power consumption is growing rapidly in both quantity and diversity. Several products commercialized in the market today do not have any hard “off” switches. Many appliances have no standby features but are equipped with external power supplies (commonly known as wall-packs). Even when they are not performing any operation or are switched off, a small amount of energy is lost in low voltage power supplies, mainly due to the cheap transformers with high core losses. Household appliances and office equipment such as televisions (TVs), video recorders, audio players, telephone answering and facsimile machines, computers, printers and copiers contribute to this standby loss which is relatively low, with typical loss per appliance ranging from less than 1 W to as much as 25 W.

As more and more such appliances are being used in households and offices, their energy consumption during standby periods represents a significant share of the total energy used. Recent field studies show that standby power accounts for 9.4 per cent of household energy use in Japan, whereas the figure rises to 11.6 per cent in Australia. The standby losses amount to about 20.5 billion kilowatt hours (kWh) for Germany. Standby power in the residential and commercial sectors in Organisation for Economic Development and Cooperation (OECD) may account for 188 tera watt hours (TWh)/year, or 2.2 per cent of the total OECD electricity consumption. Much of this consumption can be avoided, as proven by the introduction of power-saving standby modes in several appliances that are permanently plugged in.

Figure 2.4.1 Why should you pay for what you have not really consumed?
- standby power of a VCR

In developing countries, there is lower penetration of electronic products in homes and offices and one would normally expect much lower standby power consumption of households as compared with their counterparts in the industrialized world. However, the appliances that are available in the market are often not the state-of-art products sold in developed countries. No detailed field surveys are currently available for developing countries in the Asia and Pacific region. A survey of 51 households in Japan showed that if the appliances in use were replaced by the latest models sold in the market, the standby energy use per household would reduce from 398 to 228 kWh/year, representing savings of almost 43 per cent. Industry has proven that savings as high as 90 per cent can be achieved in many appliances without any reduction in services and at low or no cost.

Another aspect that merits attention is the awareness and the attitude of consumers towards standby power use. Standby power loss does not attract the attention of consumers. Surveys conducted on households in the United Kingdom of Great Britain and Northern Ireland conclude that raising the awareness of end-users can reduce standby power consumption as much as 25 per cent.
This shows that technical solutions can play an important role by assuring that the settings are maintained in the appliance or that the “wake-up” time of the appliance is reduced considerably. Reasons for emphasizing the need to minimize standby power losses include: the commercial availability of technical options; the relatively short replacement period of appliances concerned; and the considerably high and unnecessary energy consumption due to inefficient technology.

2.4.2 Estimation of Standby Power Losses

Various national studies have been conducted to estimate the standby power losses at homes and offices. Some of these studies are based on field measurements and others are “bottom-up” estimates. In the absence of actual measurements, calculations are based on standby power measurements of appliances reported in consumer magazines.

The types of appliances taken into consideration for evaluating the total standby power loss are mostly the common ones found in many countries. The different categories of appliances include:
- audio and video equipment such TVs, VCRs, tape cassettes, compact disc (CD) and DVD players, speakers and sound systems;
- telephony equipment such as cordless telephones, answering machines, intercoms;
- kitchen appliances such as microwave ovens, conventional electrical ovens, table top ovens, rice cookers, bread makers;
- set-top boxes such as analog and digital cable TV boxes, TV decoders, internet terminals, satellite TV systems;
- office appliances such as PCs and monitors, modems, ink jet and laser printers, scanners, photocopy machines, typewriters;
- battery operated devices that require charging such as notebook computers, laptop computers, personal digital assistants (palmtops), hand-held power tools including vacuum cleaners and shavers; and
- miscellaneous home appliances such as security systems, water treatment units, door openers, timers, low-voltage halogen lamps, motion sensors.

The findings of some recent studies to assess the standby power losses in selected countries around the world are summarized below.


2.4.2.1 Australia

The average standby and miscellaneous consumption was found to be 86.8 W or 760 kWh per year per household in Australia. This amounts to 11.6 per cent of Australian residential electricity use in the year 2000. This equals about US$ 200 million worth of electricity each year, generating 4 million tonnes of carbon dioxide. Results imply that the miscellaneous and standby electricity consumption has grown by 8 per cent per annum from 1994 to 2000 (i.e.; doubling every nine years).

Only about 15 per cent of the appliances were found “unplugged” during the survey. A large proportion of appliances consumed power in both standby and off modes. Many products were found to have no hard "off" switches. These included: VCRs, computer peripherals such as speakers, modems, fax machines, scanners and printers; audio-visual equipment such as integrated stereos and DVDs; and an increasing number of white goods that incorporated “soft touch” electronic controls. White goods refer to household appliances such as refrigerators, washing machines, microwave ovens and table top ovens. Entertainment equipment and office equipment are referred to as brown and gray goods, respectively.

Computer peripherals such as scanners, modems and speakers were found to consume energy in off mode. An emerging concern is audio-visual equipment (not including TVs and VCRs) whose standby consumption is high, averaging 9.5 W, and is expected to grow.

There has been a noticeable decrease in standby power consumption of brown goods, with the average value for TVs dropping from 16 W in 1991 to just over 5 W in 2001. The average standby consumption of VCRs has come down from 10 W in 1990 to 4 W in 2001.


2.4.2.2 China

During the past 20 years, the average annual growth rate in appliance production of China has been 32.1 per cent per annum. The demand for these appliances continues to increase in the domestic market -- 30 million colour TV were sold in 2000. Based on a preliminary survey in a limited number of households in China, the mean standby power consumption is estimated as 29 W. Main contributors to this standby power are identified as the TV, video CD (VCD) player and audio systems. Depending on the model of TV, the standby power varies 2.4-21.1 W, with an average of 9.6W. For VCDs, the standby losses range 3.4-21.8 W, and the average is 12.9 W.

The time period during which the appliances remain in standby mode is uncertain. Assuming the equipment to be in standby mode during 10 hours per day, the total standby losses for the country are estimated to be 13 billion kWh per year.


2.4.2.3 France

Field measurements were carried out in France during 1998-99 to assess the standby energy use of more than 70 categories of equipment in 178 households representing the entire housing stock in terms of average penetration of specific types of electrical equipment and average electricity consumption. The household standby power use was estimated to range from 29 to 38 W. The annual household standby electricity consumption was calculated as 235 kWh per year, which represented 7 per cent of the total residential electricity consumption in 1999. Some types of equipment with high standby power use are summarized in Figure 2.4.2.


Figure 2.4.2 Typical standby power losses from electrical appliances in France


2.4.2.4 Japan

The standby power consumption of a typical household is estimated as 398 kWh per annum; considering that a household consumes 4,227 kWh per annum on an average, the standby power accounts for 9.4 per cent of household electricity use. The main culprit for this high share is identified as the VCR, which alone accounts for almost a quarter of the total standby power use. The gas water heaters and audio combinations account for another quarter of standby energy. Standby power losses measured in some typical appliances are shown in Figure 2.4.3. Standby power losses can be reduced by almost 43 per cent if the households replaced their existing appliances with the latest ones available in the market.


Figure 2.4.3 Typical standby power losses from electrical appliances in Japan


2.4.2.5 Thailand

In Thailand, although the office equipment is turned off at night and during weekends, it is left switched on unnecessarily during the day. The idle periods for machines were found to be 53 per cent for computers, 94 per cent for copiers, 96 per cent for dot-matrix and ink-jet printers, 98 per cent for laser printers, and 98 per cent for fax machines. The power consumption of appliances in active and standby modes is summarized in Figure 2.4.4.


Figure 2.4.4 Standby power losses of office appliances in Thailand


Most users were unaware of the built-in power management features of the equipment. If the power management features were enabled, from 15 to 26 per cent of annual electricity consumption could be reduced without additional costs.


2.4.2.6 United Kingdom

Based on field measurements and surveys, the average standby electricity demand per household was found to be 32 W. This led to an average annual electricity consumption of 277 kWh per year per household (i.e.; 8 per cent of the total electricity use of the residential sector). An analysis of the product categories showed that audio-visual products accounted for 68.6 per cent of standby power use. VCRs and hi-fidelity audio equipment dominated with a high share of 65 per cent.

More than half of the users interviewed said they were willing to switch off appliances if the equipment could still retain the programme settings. It is estimated that a proper awareness campaign among the users could reduce average standby power consumption from 32 to 24 W and from 277 to 209 kWh per year per household.


2.4.2.7 United States of America

A typical home in the United States requires an average of 50 W of standby power. This amounts to 440 kWh per year per household (i.e.; 5 per cent of total residential electricity use). Considering that there are more than 100 million homes in the United States, the standby consumption represents 5 GW of power.

The range of standby power consumed by a single type of appliance can be wide due to differences in features, design, and choice of components. For example, the standby power of a compact audio system can vary 1.3-28.6 W. Certain appliances consume nearly as much power when they are switched on or switched off. For example, there is practically no change in power consumption of most digital TV decoders and many VCR and compact audio equipment.

A more recent investigation of standby power use of 190 appliances in 10 Californian homes showed that the total standby power in the homes ranged 14-169 W, with an average of 67 W. Standby power accounted for 5 to 26 per cent of total annual electricity use, with an average of 9 per cent. The large variation in standby power of appliances providing the same services demonstrates the scope for manufacturers to reduce standby losses without degrading performance.


2.4.2.8 Member Countries of the Organisation for Economic Development and Cooperation

An estimate of the residential standby power consumption in nine industrialized countries done by the International Energy Agency (IEA) shows that the average value varies from 19 W for Switzerland to 100 W for New Zealand. Consumption of standby power in member countries of the Organisation for Economic Development and Cooperation (OECD) has been estimated by assuming the use of similar appliances and their penetration levels. Results are presented in Table 2.5.1. Note that the total standby power demand of the OECD residential sector amounts to 15 GW (i.e.; 1.5 per cent of total electricity consumption). The standby energy consumption of OECD countries is as high as 128 TWh per year.

Due to the lack of data, it is difficult to estimate the standby power use in developing countries. However, with the current trend of high growth in demand for home and office electronic appliances, this will become substantially higher if no steps are taken to create greater awareness among users and influence manufacturers to incorporate advanced energy-saving features for equipment in standby mode.

2.4.3 Methods to reduce standby power consumption

There are basically two methods to reduce the standby power consumption: behavioural and technical. The first one involves better consumer awareness and education on standby energy consumption. In some countries, local power utilities conduct information and motivation campaigns to raise consumers awareness and encourage the purchase of equipment with reduced standby consumption.

This approach has its share of merits and drawbacks. It is not easy to convince the end-user of the economic and environmental benefits of adopting energy efficiency practices, particularly when savings are not high at the individual level. Reaching out to each and every household in a country requires considerable human and financial resources. This may be perceived as not the most cost-effective option for public authorities. Moreover, manufacturers are incorporating programmable clocks and timers in more and more appliances that require continuous flow of electricity, even when the equipment is not in operation. PCs connected to a network are required to be in standby mode to avoid communication problem with peripheral devices or with the network manager. So it may sometimes be impractical to ask people to unplug appliances that are not in use.

Table 2.4.1 Assessment of standby power in the residential sector of OECD countries

The second method of reducing standby power consumption in many appliances is the adoption of technological innovations. It is estimated that redesigning appliance circuits can reduce standby power consumption up to 90 per cent.

Manufacturers have introduced many power-saving features in the past decade, particularly for products that are plugged in all the time. These features are typically the standby or sleep modes, when an appliance performs fewer functions or it is waiting for a signal to be fully operational. It is designed to go into standby mode in which much less power is consumed. Some parts of the appliance remain on standby till the power switch is activated or input received from a remote control device.
Sleep modes are incorporated into appliances that are frequently left on by the consumers when not in use. Some devices have a programming option for switching off selected components when not in use for a stipulated time period. This is the case with portable, laptop, and notebook computers that go into sleep mode when the keyboard or the mouse is not used for a time period that can be set by the user. Most computers in the market today have two power-saving modes incorporated in the product design. This allows the machine to switch off some components after a predefined time period. If the computer remains unused for a longer predefined time period, it then enters into a deep sleep mode by switching off several key features.

Unfortunately, these appliances are often delivered to the customer with the power management features switched off. Generally, neither the distributor nor the customer is aware of the possibility of enabling the power management feature. Sometimes, users who do not accept long wake up time for recovery, disable the standby mode. In a survey conducted in office buildings in Thailand, users had not enabled the power management features in 90 per cent of computers.

One of the areas where substantial energy is consumed when the appliance is on standby or switched off is the power supply system. With the recent innovations, it is possible to reduce the no-load losses while providing high conversion efficiencies. New generation power transformers adopting electronic components are capable of reducing the standby power consumption from 5 W to 0.1 W. These transformers are also far more energy efficient, providing 70 to 75 per cent efficiency compared to the 40 to 45 per cent of traditional models they replace.

Some pieces of equipment having bigger and brighter displays tend to consume more power in standby mode. Liquid crystal displays are a good alternative but the quality and colour of display is often compromised. Thanks to the advances made in light emitting diodes (LEDs), it is now possible to have low-power displays without sacrificing the brightness and colours.

Concerned with the huge monetary losses and environmental impacts of standby power consumption at the national level, Governments in several countries have initiated programmes to address the issue. The “Energy Star” label of the United States Environmental Protection Agency (EPA) for consumer electronic products takes standby power use into consideration. A number of similar approaches have been adopted in other parts of world, particularly in Europe, Australia, and Japan.

The IEA has promoted international action to reduce standby power consumption of products to 1 W. These initiatives have, to a large extent, accelerated the design and development of new consumer electronic products with low standby power use.

In order to lower standby power losses, a variety of technological solutions are being offered by manufacturers in electric switches, integrated circuits, power management software, and advanced power supplies and charging devices. Some of these are described below.

2.4.3.1 The on-off product

The simplest solution to obtain zero watt loss is to place the on-off switch on the primary side of the power supply or simply pull out the plug from the socket. However, this may not always be a practical solution.

In most appliances, the on-off switch is placed between the power supply and the appliance. To minimize the no-load power loss of the transformer, one can opt for more efficient power supplies. The traditional wall adapter design using a linear supply has low efficiency and high no-load dissipation. Technical solutions exist to reduce the no-load power consumption to around 0.1 W, at least for small power supplies.

For example, a new switching-architecture design from Power Integrations Inc. employs much fewer and smaller components and an integrated circuit as a core to develop power supplies featuring 70 to 75 per cent full-load efficiency and 0.1 W no-load consumption. This new power supply costs less, occupies less volume and weighs one quarter that of a conventional unit.


2.4.3.2 The standby product

In this category, several products have on-off switches and a number of others have external power supplies. As the standby option is a desired feature in this product, the appliance cannot be switched off completely. The power loss can be reduced either by decreasing the standby power consumption or by using an alternative source such as a photovoltaic cell or battery to power the standby mode. The former can be achieved by considering ways at the designing stage of the appliance in order to: decrease the number of components to be powered in the standby mode; and increase the efficiency of components that are essential for the standby function. Alternatively, a special standby component may also be added, such as a smaller power supply only for maintaining the standby function.

In a simple operation, user intervention, manual or remote, is necessary to put the appliance into standby. In complex systems, the product itself can decide to go into standby on the basis of the period of inactivity. Thanks to the progresses made in microelectronics, appliances designed with a power management feature can ensure that the appliance is always in a state with the lowest power consumption while satisfying the required functionality. For this, microprocessors are programmed to monitor activity levels of several parts of the appliance and follow certain decision rules to enter different states (e.g.; standby or sleep mode). Power management can minimize not only the standby consumption, but also the power consumption of the appliance in operating mode.


2.4.3.3 The networked product

Remotely manageable network products are required to provide permanent access to the network; therefore products cannot switch into standby without notification. This is the case of small PCs and digital TV decoders. Such networked products rely on sophisticated chips to control their operation and have a fairly complex power management system that responds well to both external and internal requests. Currently, such products are left to work all the time.

A timer-controlled standby function that can be programmed through the network to work during a predefined time period can help reduce power wastage. However, this may not always be acceptable, especially when the service of the appliance may be required at any moment. Industry's focus now is to develop better power management systems with very low power levels for networked appliances that will never be switched off. “Instantly Available” <http://developer.intel.com/> is an Intel technology initiative that enables PCs to retain connections and still be aggressively power managed. End-users’ benefits include connectivity in the “off” state with low power consumption, silent operation, and the possibility of resuming fast instead of rebooting. While the full power demand is 80 W, the PC requires only around 5 W in sleep mode.


2.4.3.4 Improving efficiency of components

Improving the efficiency of some components will help to reduce the standby power as well as the overall energy consumption of an appliance. In addition to power supplies, the efficiency of voltage regulators, integrated circuits and visual displays can be improved.

Some appliances require various voltage levels to operate different circuits. Depending on the efficiency of the voltage regulator, some amount of power is dissipated as heat. So the power losses increase with greater numbers of such regulators. Ideally, the appliance should be designed to have fewer voltage levels to reduce the number of voltage regulators. Moreover, efficient voltage regulators such as the low-dropout types may be adopted to reduce the power loss effectively. Efficient integrated circuits have been designed to economize energy use in battery-operated products. Similar circuits could be adopted in appliances to limit standby power consumption.


2.4.3.5 Cost implications of adopting technologies to reduce standby power

Though there have been substantial technological innovations to deal with standby power consumption, it is difficult to assess the cost implications of bringing about such changes in the final products. Costs involved in the redesigning, procurement of alternative components and manufacturing may affect the final price the customer has to pay. Thanks to the technological progresses made, incremental costs to reduce the standby power of many appliances are quite low. In some cases, the outcome has been cost savings and additional benefits.

Following the proposal of the EPA to limit standby power of audio and DVD products to 2 W by January 2003 and 1 W after that date, a study was undertaken to analyze different technology options and their added costs. It concluded that manufacturers can meet EPA 2-watt standby power limit without loss of product performance and at estimated incremental costs ranging from minus US$2.00 to less than US$ 0.50 per product unit.

Given the pace of innovation and market trends, manufacturers should meet the EPA 1-watt specification without loss of product performance at no incremental cost per product unit. In some cases, cost savings are possible with the adoption of high-end switches or shifting from vacuum fluorescent displays to liquid crystal displays that can reduce the standby load and allow the manufacturers to select less expensive power supplies.

Even when technological improvements have minimal impacts on pricing, the incremental costs are multiplied several-fold in the retail market. Manufacturers are therefore reluctant to add any cost to their products for fear that price-conscious customers may opt for a competing model that costs less.

2.4.4 Policies to curtail standby power

With the technological advances and falling prices in the electronic sector, one can expect greater proliferation of home and office electrical products in developing and industrialized countries. Standby power use can be expected to account for an even greater share of electricity in the future. Eliminating unnecessary electricity losses from standby consumption certainly provides an attractive option for Governments struggling to find financial resources to cope with rapid growth in power demand and those looking for alternatives to reduce carbon dioxide emissions in a cost-effective manner.

Several policy instruments addressing different stakeholders and different levels of action can be used to tackle the problem of standby power losses. Traditional policy instruments at the disposal of Governments can be classified into four categories:
- administrative instruments intervening in direct regulatory restriction of market activities and dictating to various groups of stakeholders certain product-related action (e.g.; setting minimum standards or rules as well as the duty to label products);
- economic instruments creating a general setting for free market activities (e.g.; taxes and charges, licenses, subsidies and incentives) and influencing the purchasing patterns of public organizations or large institutions so their actions impact on the market;
- negotiating solutions, agreements and co-operative deals, voluntary self-obligations, and general voluntary agreements between business community and Government by which both parties hope for benefits; and
- information instruments such as general customer awareness campaigns and product information by independent testing organizations.

The instruments actually selected by public authorities are much influenced by the specific socio-economic conditions prevailing in the country. Lately, businesses and industry are showing due concern and interest regarding the environmental impact of their economic activities and have taken proactive steps to address national and global concerns. This has resulted in better co-operation between industry and Government to eliminate the least efficient products from the market and introduce new technologies that assure low power consumption. The policy tools adopted by various Governments are elaborated below.


2.4.4.1 Standards

Energy efficiency standards are procedures and regulations that are widely used around the world to define the energy performance of products that are important energy consumers. Most users of home appliances are not concerned about energy efficiency and make purchasing decisions by taking into consideration features other than energy, such as size, shape, colour, overall performance, price, etc. Manufacturers naturally focus on those parameters during the designing and production process and do not generally make adequate efforts to improve the energy efficiency of their products. Standards ensure that efficiency is incorporated into product design. In some instances, the sale of products not adhering to the minimum standard is prohibited.

While aiming to eliminate less energy efficient products from the market, standards take into consideration the cost-effective feature to achieve the target set. This assures good acceptance and effective implementation of the regulation by the industry and results in large energy savings.

Standards change the behaviour of a limited number of manufacturers instead of aiming at changing the behaviour of all end-users. The energy savings achieved in practice are generally assured and can be easily quantified. While implementing standards, all manufacturers, distributors and retailers are treated equally.

Energy efficiency standards exist in many parts of the world for household appliances and office equipment that consume high amounts of energy in active mode. But only a few of them include criteria for measuring the standby power used. The only existing standard for standby power that is purely regulatory is the “Top Runner” programme in Japan.

Under the Swiss energy regulations, the first phase of regulation consists of voluntary agreements. If voluntary agreements do not meet their objectives, ordinances are put in place to enforce energy efficiency standards.

Regarding standby power consumption, the Government of Switzerland has established voluntary agreements with two industrial associations. Target values related to standby and "off" mode energy consumption of 12 different categories of products were put in place between 1993 and 1995 with target dates from 1995 to 1999. From 1 January 1999, the new energy law has superceded the energy consumption regulations while it still retains the target value instrument.

At the end of the defined period, 53 per cent of household appliances and 97 per cent of office equipment had met the targets. The average standby power consumption of new printers fell from 17 W in 1994 to 7 W in 1999. Although 40 per cent of the printers had reduced their standby power use below 4 W, none of them had attained the target of 2 W.

The effectiveness and acceptability of standards depend a lot on the time allocated between the development of standards and their implementation. This is particularly relevant in the context of standby power because the technology is evolving rapidly which can change the achievable standard within a very short span of time.

If the standard enforcement period is long, there is risk of the standard becoming obsolete before it is implemented. On the other hand, if there is compulsion to implement standards too rapidly, industry would find it difficult to cope with the required technological changes and the unacceptable costs associated with it.

2.4.4.2 Voluntary approaches

Voluntary agreements between industry and Government enable industry to negotiate goals that are achievable and cost-effective within a proposed time frame. If targets are too strict, industry will not be attracted towards a voluntary programme. On the other hand, lenient targets will not achieve significant savings. Experiences show that voluntary agreements have become very effective and flexible instruments in many parts of the world, particularly in minimizing the compliance costs to the industry. In some cases, the targets have not only been met but exceeded within the agreed time period.

Monitoring and reporting are the two key elements in voluntary agreements as they can be effective in creating greater awareness. Some voluntary agreements require mandatory monitoring and reporting while others depend on the self-assessment of industries themselves. Another example is the contracting of a third party organization to monitor compliance with set targets.

As more and more products are being sold internationally, industry is evolving voluntary standards for their universal acceptance and to facilitate global trade. Industry trade associations have been instrumental in setting voluntary standards and developing and adopting test methods for products. They take into account the needs of consumers as well as acceptability by public regulators. Typical examples of such associations actively involved in evolving industrial standards are the American Association of Mechanical Engineers, the British Standards Institution and the Japanese Industrial Standards.

The Japanese industry associations are very active in launching voluntary activities to reduce standby power consumption. The Japan Electronics and Information Technology Industries Association, the Japan Electrical Manufacturers’ Association, and the Japan Refrigeration and Air Conditioning Industry Association have pledged to reduce the standby power consumption of TVs, air conditioners, audio systems, and other household electrical appliances. For example, the standby power use of products in which standby power is integral to design will be reduced to 1 W or lower by the end of 2003 (for air conditioners the target is end of 2004). For other major household electrical appliances, the aim is to attain values as close to zero as possible by the end of 2003.


2.4.4.3 Labelling

Appliance labelling is a convenient tool for providing required information to the consumer for making purchase decisions and selecting efficient models. Energy-efficiency labels are affixed to manufactured products to describe their energy performances. The effectiveness of energy labels depends on how information is presented to the consumer. Most appliances sold in the market should be labelled instead of only a few products. If consumers do not make an effort to distinguish between efficient and inefficient appliances, increased awareness and labelling may not have much effect.

Appliance labelling can provide an effective way to monitor the market and compile information on market transformation. Public authorities and power utilities can use labels as energy efficiency benchmarks to offer incentives for buying energy efficient products.

Product labelling can carry different types of information. It can be related to only the energy performance of the equipment or to its many other attributes. Some labels include environmental criteria, such as the environmental impact of using a specific product, and are known as eco-labels. Mostly popular in Europe, these eco-labels often include the electrical power consumption of the device during operating and in standby modes. Examples of such voluntary eco-labels include the one promoted by the European Union, the Baluer Engel (or the Blue Angel) in Germany, and the Nordic Swan scheme in Finland, Norway and Sweden.

The most widely recognized labelling programme in the world is the Energy Star program in the United States. Operated jointly by the EPA and Department of Energy, the programme establishes partnerships to promote products that meet certain energy efficiency and performance criteria cost-effectively.

According to the EPA, more than 100 million Energy Star compliant products were sold in the United States in 1999 alone. As many Energy Star compliant products are designed and manufactured by global multinational corporations and sold worldwide, consumers in almost all parts of the world recognize the Energy Star logo. In fact, the EPA has licensed the Energy Star trademark to several countries, including Australia, Japan, New Zealand and Taiwan Province of China. Negotiations are underway with the European Union and Canada.

In Europe, the Group for Energy Appliances (GEA) was initially started as a voluntary programme in 1996 (now established as a foundation since May 2001) in order to improve the efficiency of mainly home electric and electronic appliances. With a membership of energy agencies from eight European countries and the European Energy Network, GEA aims at uniform communication and co-operation between European public and private energy agencies or organizations and relevant parties, such as manufacturers, importers and the European Commission.

Each GEA member undertakes information campaigns that suit the national consumer market. The GEA scheme is dynamic as criteria are revised regularly in close cooperation with the industry involved. GEA works in good partnership with industry and industrial associations. The GEA label is voluntary in nature, which indicates that appliances have energy performances that are within 25 per cent of the most efficient products sold in the market.


2.4.4.4 Other complementing policies

Other policies complementing the ones described above include market transformation initiatives, technology procurement programmes, introduction of economic instruments, awareness campaigns, database development, etc. For example, the IEA is developing an initiative on International Collaboration on Market Transformation, with the main objective of increasing the market share of energy-saving products and accelerating the use of the most efficient technologies. The focus is on energy rating, labelling, quality marks, and procurement of energy-efficiency products. The initiative will include information exchange and research and cooperative market transformation projects that will allow interested countries to jointly participate in accelerating market transformation.

Technology procurement programmes encourage innovation by guaranteeing the purchase of very efficient products by large institutions and private companies. Due to the size of bulk purchase contracts the cost of the product can be lowered considerably. Moreover, the publicity gained by the technology supplier through the procurement programme helps to enhance the visibility and marketability of the product. Since technology procurement is aimed at bringing in significant innovations in the design of the product, the time period between the launching of a procurement contract and delivery of product can be lengthy. This can lead to some uncertainties in the mind of the buyer about when the product will actually be delivered and whether it will meet the defined energy efficiency criteria.

Economic instruments can provide incentive to the consumer for saving energy through the purchase of more efficient appliances. Typical instruments include energy taxes, tax credits, fees and rebates, etc.

Energy taxes increase the cost of energy and the energy bill of the consumer. Their effectiveness depends on the response of the consumer in adopting energy cost saving alternatives. If demand for energy efficient appliances increases and the manufacturer makes efforts to meet this demand, then energy tax becomes an effective tool.

Experience shows that energy taxes alone do not have a significant impact on the energy efficiency of a product. Tax credit or tax exemption measures are found to be more effective in influencing the decision-making of consumers by providing them direct financial incentives and increasing the demand for energy efficiency products.

Fees raise the cost of energy efficient products and rebates reward consumers for buying more efficient products. When the two instruments are combined, the fees collected from the sale of inefficient products can be channeled to finance rebates for efficient products. Rebates have been offered by power utilities in several countries to encourage the use of efficient electrical appliances and avoid the construction of expensive power plants that would have been required to meet the high demand during utility peak periods.


2.4.5 Future directions and need for international collaboration

Experiences gained around the globe show that voluntary labelling seems to be the most widely accepted measure for addressing the issue of standby power losses. Positive interaction and partnership between Government and industry have led to substantial, innovative technological progress. Targets have been set realistically and met cost-effectively.

Despite the success of various initiatives reported, much needs to be done to include all devices that consume standby power and to push the majority of these products to reach the 1-watt goal in standby mode. Most initiatives thus far do not separately deal with the issue of standby power use. They are generally considered as an added feature to the energy efficiency standards and labels of the appliances concerned.

The electronic industry is evolving swiftly and standby power consumption is expected to rise further with the proliferation of new electronic products and development of networked homes and offices. There is a consensus among policy makers and stakeholders that it should be possible to decrease the standby power consumption for considerably less than it would take to build power plants to provide that standby power. An added advantage of such electricity savings will be the cost-effective reduction of carbon dioxide emissions.

There are several global players involved in manufacturing and distributing home and office electrical/electronic products. Differences in standards and their implementation criteria laid out in different countries can create hurdles for these players who have to spend more time and resources to comply with the specific requirements of each country. With present market conditions, products manufactured in one country are often distributed in many others; producers have to plan their production schedule for manufacturing several versions of the same appliance according to the demand. Due to the fierce competition in the market, any increase in production costs for complying with standby power regulations cannot be easily passed on to consumers.

The problem is further complicated by the fact the electronic industry changes rapidly and introduce to the market an ever increasing number of new products. It will be difficult for individual countries to cope with the rapid changes taking place in the market.

These drawbacks call for co-ordinated efforts among countries for developing universally accepted solutions that can transform the market and encourage manufacturers to employ low-loss designs and components. Such international co-operation can reduce and streamline regulations and policies that vary from one country to another, thereby also reducing the administrative burdens and associated costs on government programmes. In addition, they will help manufacturers to reach economies of scale for adopting advanced standby technologies and management features into their products. By undertaking in-depth analysis of the current situation at the global level in terms of the dynamics of the market, major players, main barriers, and other factors, we can forecast future market trends, technological innovations, introduction of new products and market volume.

Instead of duplicating efforts, existing regional and international forums and programmes can be used as platforms for addressing standby power loss issues. For example, the Asia Pacific Economic Cooperation has an action programme for energy that is working towards common action on standards and protocols. The objectives are to harmonize the energy standards of products and appliances to reduce costs to both governments and businesses. Similarly, IEA, which primarily deals with energy issues for developed countries, can provide legal frameworks for international cooperation and facilitate the evolution of an international approach to standby power.

International collaboration should aim to establish an international voluntary programme that takes into account the views and achievements of industries as well as governments and harmonizes the existing regulatory schemes. It will help to avoid the proliferation of labels and labelling schemes launched by individual countries and reduce the confusion created for the industry. Considering the adoption of the Energy Star programme by several countries and and on-going negotiations with other governments to also adopt the programme, it seems to be achieving global acceptance. An international Energy Star programme would define the limits of standby power use and harmonize existing regulatory schemes, such as the Top Runner Programme.

Countries in the Asia and Pacific region who have just realized the magnitude of the problem and/or have not yet set up policies and programmes to deal with standby power losses can actively support and participate in such an international voluntary programme that could:
- develop guidelines for lowering standby power consumption of existing as well as new appliances and products;
- enhance voluntary agreements with the industry;
- initiate research and development activities with industry participation to explore new techno-economic solutions to reduce standby power use; and
- help revise the existing energy labels of appliances to include information on standby power use. (No need is perceived for evolving a separate label for indicating the standby power use of appliances).

This will allow the countries of the region to concentrate their efforts on educating and informing consumers about the issue of standby power, thus accelerating the demand for energy efficient products and appliances.

Reference

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