|
2.2
Promotion of Energy Efficiency: An Overview on Energy Labelling Programmes
by Jong-Duck Kim, Korea Energy Economics Institute, Kyonggi-Do, Republic of Korea
2.2.1 Introduction
There are many countries which have the energy labelling programme for some major products such as refrigerators, lighting equipments, air conditioners, etc. The labelling programme provides the consumers with a relative information about the energy use of equipments and appliances for decision making when they purchase the products. For the manufacturers, this programme can be contributed to produce energy efficient appliances. In Republic of Korea, the government implemented energy efficiency standards and labelling programme in 1992. The Ministry of Commerce, Industry and Energy is responsible for the setting and announcing of target energy standards and MEPS (Minimum Energy Performance Standards) levels, effective dates, and methods of the measurement of energy use. The labelling programme is applied to both domestic and imported products. Designated appliances are refrigerators and freezers, room air conditioners, fluorescent lamps, ballasts for fluorescent lamps, and incandescent lamps.
There is also the energy efficiency rating system to provide consumers better information with a relative ranking of the energy use of the designated appliances. Product models are classified into one of five different grades. The grades are shown on the label from the first, the highest, to the fifth, the lowest.
It is known that the energy efficiency labelling programme is working well in Republic of Korea and the market share of better grade appliances is increasing gradually. This trend will be continued since consumers can get better understanding about the labelling programme with a continuous public advertisements and try to buy more efficient appliances specially under the recent economy condition.
2.2.2 International experiences
Results of the consultation process with Asia-Pacific
Economic Cooperation (APEC) economies demonstrate
the similarities and differences between the regulatory
for energy in the 18 member economies.
Table 2.2.1 compares the responses of representatives
of APEC economies that responded to the consultation
guide in regard to whether the economy uses primarily
a regulator based approach, voluntary-based approach,
or a combination of these two approaches to ensure
compliance with energy efficiency performance standards.
Table
2.2.1 Comparison of compliance approaches for energy
efficiency performance standards in APEC economies
In terms of regulatory-based approaches, in Canada regulations call up third party verification by an agency accredited to the domestic standards authority and import documentation requirements are also regulated. Similarly, all the energy efficiency standards in Mexico are obligatory by federal law.
The Electricity Generating Authority of Thailand provides an example of how Thailand has been in the forefront of implementing voluntary labelling and voluntary MEPS programme as part of its DSM program. Indonesia has a voluntary standards-based compliance approach which is still being used as a demonstration project.
Australia’s combination system uses primarily a self-certification approach to compliance, with a comprehensive check testing programme using accredited, independent labs to verify manufacturer claims on the energy label. In the case of products to be non-compliant, either new labels have to be issued for the appliance or, in cases where compliance with the performance requirements in the standard is not possible, retail sales of the product are stopped. These processes will also apply to energy efficiency standards for refrigerators and water heaters once they come into force. Japan combines guidelines for the rationalization of energy use under the Energy Conservation Law with voluntary programs for private companies.
Most of the economies that have voluntary and combination systems for energy efficiency compliance, are using performance standards as the basis for comparison of energy performance among products.
For example, in Australia, Only clothes dryers and, in 1999, refrigerators and electric storage water heaters, have Australian Standards that contain references to minimum energy efficiency requirements. Canada has performance standards for 22 energy-using products, while the U.S. also has performance standards for a variety of products. Hong Kong has performance standards. Under voluntary labelling scheme for refrigerators and room coolers. Indonesia has been arranging performance standards for energy efficiency of consumer products that include testing condition requirements, but not minimum energy performance standards. The Philippines only has energy efficiency performance standards for room air-conditioners. The qualifying criteria developed for the voluntary-based Singapore Green Labelling Scheme are not energy efficiency performance standards, but other environmental aspects such as the presence of toxic substances are also considered. Thailand is in the process of developing minimum energy performance standards for various electrical products.
The implication of this extensive use of performance standards for energy is that such standards will be much easier to harmonize than more prescriptive design standards, due to the ability of performance standards to keep up with technological change. In addition to minimum energy efficiency performance standards, the majority of economies that responded to the consultation guide have labelling requirements for energy-using consumer products.
In Australia, when mandatory standards come into force for electric storage water heaters and refrigerators, there will be no specific label to indicate compliance with the minimum required energy efficiency level. However, in the case of refrigerators, meeting the efficiency standard will be a pre-requisite for obtaining an energy label, which is required for retail sale. In the case if electric storage water heaters, no energy label is proposed at this time, but conformity with the efficiency standard may be shown through another means, such as a multi-purpose conformity mark or through the electrical safety approval mark. In Canada, third-party verification accomplishes labelling requirements. In the China, the government will label some consumer products to indicate compliance with the efficiency standard may be shown through another means, such as a multi-purpose conformity mark or through the electrical safety approval mark.
Indonesia will start a voluntary labelling program, initially for refrigerators and then air-conditioners. The Philippines also has labelling requirements for room air conditioners. Mexico has labelling requirements for all of its energy efficiency performance standards. Japan has labelling requirements for air conditioners, lamps, copying machines, computers, magnetic disk drives and video tape recorders. Singapore’s Ministry of the Environment offers the Green Labelling Scheme for selected products, but participation is on a voluntary basis. Thailand has a voluntary labelling programme for fluorescent lamps, refrigerators, air conditioners, motors, and ballasts. In the United States of America, labelling requirements for home appliances are governed by the Federal Trade Commission and the Department of Energy is responsible for labelling of commercial products.
Table
2.2.2 illustrates the type of compliance system
that each of the economies that responded to the consultation
guide use to verify conformity to ensure that products
meet performance standards and labelling requirements.
Table 2.2.2 Type of compliance system to verify conformity
to energy performance standards
Compliance to regulatory performance standards and
labelling requirements applies to imported energy-using
products, as well as domestically-manufactured ones.
Table 2.2.4 illustrates which economies require
documentation for imported energy-using household
products.
Table
2.2.3 Requirements for documentation for imports of
consumer products
In Australia, all products which are regulated for the purposes of energy labelling (whether locally manufactured or imported) have to demonstrate compliance with the relevant domestic standard through the provision of a full test report and an application for an approved label which is submitted to the regulatory authority. In Canada, import documentation for those products that fall under the Energy Conservation Law. Mexico requires a Mexican certificate of compliance to Mexican energy efficiency performance standards for those products which have to fulfill them. The Philippines requires test certificates based on Philippine National Standards issued by the Bureau of Product Standards (BPS) counterpart standard body and recognized testing laboratories. Additionally, consumer products must be certified under the BPS certification mark scheme; however, BPS still retains the prerogative to undertake confirmation testing. Thailand requires a certification form and quality control documents for imported products. In the United States, certification reports must be submitted for all regulated products for sale in the United States, whether manufactured or imported.
2.2.3 Implementation in the Republic of Korea
Energy Efficiency Labelling is grouped into two categories: efficiency and rating labelling, and efficiency labelling. Efficiency levels and grade are required for appliances, i.e., refrigerators, air-conditioners, passenger cars, incandescent lamps, fluorescent lamps, and electric ballast. Labelling only energy efficiency is applied to boilers, air space heaters, and natural gas water heaters.
2.2.3.1 Institutional background
Energy efficiency standards
The minister of the Ministry of Commerce, Industry and Energy (MOCIE) may establish energy efficiency or consumption standards in a form of the ministerial announcement. It can be invoked when the appliance is widely used, and when use of energy needs to be rationalized through increased energy efficiency. It also, consists of energy standards, the time period for the fulfillment of the energy efficiency or consumption target, measurement methods, etc.
MOCIE monitors whether manufacturers or suppliers abide by energy standards, and the Minister of MOCIE is required to publicize information on the non-fulfillment of energy standards. In addition, the Minister may order manufactures or suppliers to correct non-fulfillment within six months. If this order is not observed without a defensible reason, the Minister may issue an order to stop manufacturing and marketing relevant appliances.
Energy efficiency rating
For the rational use of energy, the minister of MOCIE may decide appliances, which are labelled with energy efficiency or consumption levels, in a form of the ministerial announcement. In the announcement, there should be criteria and methods to measure energy efficiencies or consumption levels, and the rating method.
For the rational use of energy, the minister of MOCIE may require appliances to be labelled with rating. If manufacturers, importers, or sellers do not abide by rating, the minister may disclose relevant information.
Table
2.2.4 Refrigerators and freezers
Table 2.2.5 Constant speed type room air conditioners
Table 2.2.6 Variable speed type room air conditioners
Table 2.2.7 Incandescent lamps lighting equipments
Table 2.2.8 Fluorescent lamps lighting equipments
Table 2.2.9 Ballasts for fluorescent lamps
2.2.3.2 Implementation procedures
Energy efficiency standards
The implementation procedures for energy standards are briefly summarized below. Appliances, imported as well as domestic, are subject to the regulations of energy standards:
- official announcement of energy standards, target dates for energy
 efficiency
(or consumption) targets, effective dates for maximum
(or
minimum) standards, etc.;
- monitors of energy standards for subject appliances, and official
announcement
of the non-fulfillment of energy standards; and
- issue of instructions for the correction of non-fulfillment within six
month,
and prohibitions of relevant appliances from manufacturing
and
marketing
if orders are not observed.
For the programme of energy standards, KEMCO helps the government formulate directions of the programme with the provision of relevant data and information. It is also authorized to carry out the role of monitoring energy standards.
Energy efficiency rating
“The Ministerial Announcement of Regulations on Energy Efficiency Labelling” specifies all relevant procedures summarized as follows.
- Manufacturers and importers of boilers, air space heater, natural gas
water
heater, and lighting equipment are required to label
energy
efficiencies
on the products.
- Nine institutions authorized to test energy efficiencies of designated
appliances
are specified in the announcement. Measurement criteria
and
methods
of energy efficiencies are based on the Korean Industries
Standards.
- KEMCO is authorized to monitor the programme of energy efficiency
labelling.
Monitoring results are reported to the minister of
MOCIE. The
Ministerial
Announcements regulate how energy efficiency rating
labelling
is implemented, which is briefly summarized below.
- Manufacturers and importers of relevant appliances request tests of
energy
efficiencies to the authorized test institutions.
- Manufactures and importers report to KEMCO an official form of
efficiency
grades with test results attached. KEMCO is authorized
to
check
whether the reported efficiency grade is true.
- Manufacturers and importers under this programme should report to
KEMCO
statistics of the manufacture (import) and market
of their
appliances
every six months.
- KEMCO is authorized to monitor the programme of energy efficiency
rating
labelling. Monitoring results are reported to the
minister of
MOCIE.
Figure
2.2.1 Procedure of energy efficiency labeling
2.2.3.3 Effects of programme
Energy efficiency or consumption standards
Table 2.2.11 shows how many models, domestic and imported, met energy standards as of the end of 1996. Although most of target dates are just around the corner, energy efficiency target would be hard to meet for all considered appliances.) In addition, a significant number of models for refrigerators, incandescent lamps, and electric ballasts failed to satisfy the maximum energy consumption standard (of refrigerators) and minimum efficiency standards (of others).
Table
2.2.10 Distribution of appliance models with energy
standards observed
The number of models unsatisfactory for maximum efficiency standards were 187 models produced by 75 firms. Of the total failed models, 126 models of 49 firms were announced publicly, and it was ordered that they would be required to meet maximum or minimum efficiency standards by the end of 1997. In the KEMCO survey, the residual 61 models of 30 firms were found discontinued in their manufacture and import.
Table
2.2.11 Observed efficiencies and maximum or minimum
efficiencies of existing models
A KEMCO analysis shows that 107,106 MWh of electricity (16.8 billion won) would have saved annually if the failed models of 187 had satisfied maximum or minimum efficiency standards. This quantity of electricity amounts to 0.35 per cent of electricity consumption in the residential sector in 1995.
2.2.4 Conclusions
The labels, affixed to the designated appliances, allow consumers to compare energy efficiency levels in the market. Domestic manufacturers and importers are required to get designated appliances tested by the accredited test institutions and to specify the test results on the appliance when making it available for sale. One of the typical effects of the labelling programme is to induce the manufacturers to produce more energy efficient appliances and to encourage the consumers to purchase better grade appliances. The effect can be recognized by comparing trends of the market share of each grade.
In Republic of Korea, the market share of the better grade appliances has been increasing since the labelling programme was introduced. The government will add some more appliances such as clothes washers, microwave ovens, electric rice cookers, compact fluorescent lamps, electric radiant heaters, and electric-water heaters, etc. to the designated appliances for the labelling program.
To provide better information, an “Energy Cost Indication Scheme” can be considered in the future. Government organizations and public institutions are recommended by the minister of MOCIE to install or use certified energy efficient appliances, which can promote the use of energy efficient appliance.
The labelling programme should be monitored and adjusted depending on the results of assessment process periodically. Effective advertisement of the labelling programme and designated appliances is necessary to help consumers understand and consider energy efficiency of the purchasing appliances. It is also recommended to provide some incentives to consumers who purchase energy efficient appliances such as certified energy efficient appliances. It means that the certified energy efficient appliance can have a label showing the energy consumption level or energy cost savings.
Consumers’ attitude will become more important in the future market. Success or failure of the labelling programme will depend on the consumers who have choices in the market. The manufacturers will produce appliances which are popular to consumers. Therefore consumers should involve energy efficiency of a certain appliance as well as function, appearance, color and price in decision making for purchasing appliances.
References
Jong Duck Kim, “A Study on Establishing Energy Efficiency Standards”, Korea Energy Economics Institute, 1992
Korea Energy Forum, “Energy in Korea”, World Energy Council, 1995
Sun-Keun Lee, “Energy Efficiency standards and Labelling”, APEC, 1997
Ministry of Commerce, Industry and Energy, “Energy Efficiency and Conservation in Korea”, Ministry of Commerce, Industry and Energy, 1997
APEC, “Energy Efficiency Performance Testing and Conformity Assessment in APEC Member Economies”, Nordicity Group Ltd., 1997
Korea Energy Management Corporation, “Annual Report”, KEMCO, 1997
Sang Yul Shim, Anthony Pavone, “Energy Conservation Study for Korea”, SRI Consulting, 1998
return to
top |
