Future Air Conditioning Energy Consumption in Developing Countriesand what can be done about it: The Potential of Efficiency in theResidential Sector

The dynamics of air conditioning are of particular interestto energy analysts, both because of the high energy consumption of thisproduct, but also its disproportionate impact on peak load. This paperaddresses the special role of this end use as a driver of residentialelectricity consumption in rapidly developing economies. Recent historyhas shown that air conditioner ownership can grow grows more rapidly thaneconomic growth in warm-climate countries. In 1990, less than a percentof urban Chinese households owned an air conditioner; by 2003 this numberrose to 62 percent. The evidence suggests a similar explosion of airconditioner use in many other countries is not far behind. Room airconditioner purchases in India are currently growing at 20 percent peryear, with about half of these purchases attributed to the residentialsector. This paper draws on two distinct methodological elements toassess future residential air conditioner 'business as usual' electricityconsumption by country/region and to consider specific alternative 'highefficiency' scenarios. The first component is an econometric ownershipand use model based on household income, climate and demographicparameters. The second combines ownership forecasts and stock accountingwith geographically specific efficiency scenarios within a uniqueanalysis framework (BUENAS) developed by LBNL. The efficiency scenariomodule considers current efficiency baselines, available technologies,and achievable timelines for development of market transformationprograms, such as minimum efficiency performance standards (MEPS) andlabeling programs. The result is a detailed set of consumption andemissions scenarios for residential air conditioning

Business Case for Energy Efficiency in Support of Climate Change Mitigation, Economic and Societal Benefits in India

This study seeks to provide policymakers and other stakeholders with actionable information towards a road map for reducing energy consumption cost-effectively. We focus on individual end use equipment types (hereafter referred to as appliance groups) that might be the subject of policies - such as labels, energy performance standards, and incentives - to affect market transformation in the short term, and on high-efficiency technology options that are available today. the high efficiency or Business Case scenario is constructed around a model of cost-effective efficiency improvement. Our analysis demonstrates that a significant reduction in energy consumption and emissions is achievable at net negative cost, that is, as a profitable investment for consumers. Net savings are calculated assuming no additional costs to energy consumption such as carbon taxes. Savings relative to the base case as calculated in this way is often referred to as “economic savings potential”. So far, the Indian market has responded favorably to government efficiency initiatives, with Indian manufacturers producing a higher fraction of high-efficiency equipment than before program implementation. This study highlights both the financial benefit and the scope of potential impact for adopting this equipment, all of which is already readily available on the market. The approach of the study is to assess the impact of short-term actions on long-term impacts. “Short-term” market transformation is assumed to occur by 2015, while “long-term” energy demand reduction impacts are assessed in 2030. In the intervening years, most but not all of the equipment studied will turn over completely. The Business Case concentrates on technologies for which cost-effectiveness can be clearly demonstrated

Business Case for Energy Efficiency in Support of Climate Change Mitigation, Economic and Societal Benefits in the United States

This study seeks to provide policymakers and other stakeholders with actionable information towards a road map for reducing energy consumption in the most cost-effective way. A major difference between the current study and some others is that we focus on individual equipment types that might be the subject of policies - such as labels, energy performance standards, and incentives - to affect market transformation in the short term, and on high-efficiency technology options that are available today. The approach of the study is to assess the impact of short-term actions on long-term impacts. “Short term” market transformation is assumed to occur by 2015, while “long-term” energy demand reduction impacts are assessed in 2030. In the intervening years, most but not all of the equipment studied will turn over completely. The 15-year time frame is significant for many products however, indicating that delay of implementation postpones impacts such as net economic savings and mitigation of emissions of carbon dioxide. Such delays would result in putting in place energy-wasting technologies, postponing improvement until the end of their service life, or potentially resulting in expensive investment either in additional energy supplies or in early replacement to achieve future energy or emissions reduction targets

Business Case for Energy Efficiency in Support of Climate Change Mitigation, Economic and Societal Benefits in India

This study seeks to provide policymakers and other stakeholders with actionable information towards a road map for reducing energy consumption cost-effectively. We focus on individual end use equipment types (hereafter referred to as appliance groups) that might be the subject of policies - such as labels, energy performance standards, and incentives - to affect market transformation in the short term, and on high-efficiency technology options that are available today. the high efficiency or Business Case scenario is constructed around a model of cost-effective efficiency improvement. Our analysis demonstrates that a significant reduction in energy consumption and emissions is achievable at net negative cost, that is, as a profitable investment for consumers. Net savings are calculated assuming no additional costs to energy consumption such as carbon taxes. Savings relative to the base case as calculated in this way is often referred to as “economic savings potential”. So far, the Indian market has responded favorably to government efficiency initiatives, with Indian manufacturers producing a higher fraction of high-efficiency equipment than before program implementation. This study highlights both the financial benefit and the scope of potential impact for adopting this equipment, all of which is already readily available on the market. The approach of the study is to assess the impact of short-term actions on long-term impacts. “Short-term” market transformation is assumed to occur by 2015, while “long-term” energy demand reduction impacts are assessed in 2030. In the intervening years, most but not all of the equipment studied will turn over completely. The Business Case concentrates on technologies for which cost-effectiveness can be clearly demonstrated

Business Case for Energy Efficiency in Support of Climate Change Mitigation, Economic and Societal Benefits in China

This study seeks to provide policymakers and other stakeholders with actionable information towards a road map for reducing energy consumption cost-effectively. We focus on individual end use equipment types (hereafter referred to as appliance groups) that might be the subject of policies - such as labels, energy performance standards, and incentives - to affect market transformation in the short term, and on high-efficiency technology options that are available today. As the study title suggests, the high efficiency or Business Case scenario is constructed around a model of cost-effective efficiency improvement. Our analysis demonstrates that a significant reduction in energy consumption and emissions is achievable at net negative cost, that is, as a profitable investment for consumers. Net savings are calculated assuming no additional costs to energy consumption such as carbon taxes. Savings relative to the base case as calculated in this way is often referred to as 'economic savings potential'. Chinese energy demand has grown dramatically over the last few decades. While heavy industry still plays a dominant role in greenhouse gas emissions, demand from residential and commercial buildings has also seen rapid growth in percentage terms. In the residential sector this growth is driven by internal migration from the countryside to cities. Meanwhile, income in both urban and rural subsectors allows ownership of major appliances. While residences are still relatively small by U.S. or European standards, nearly all households own a refrigerator, a television and an air conditioner. In the future, ownership rates are not expected to grow as much as in other developing countries, because they are already close to saturation. However, the gradual turnover of equipment in the world's largest consumer market provides a huge opportunity for greenhouse gas mitigation. In addition to residences, commercial floor space has expanded rapidly in recent years, and construction continues at a rapid pace. Growth in this sector means that commercial lighting and HVAC will play an increasingly important role in energy demand in China. The outlook for efficiency improvement in China is encouraging, since the Chinese national and local governments have implemented significant policies to contain energy intensity and announced their intention to continue and accelerate these. In particular, the Chinese appliance standards program, first established in 1989, was significantly strengthened and modernized after the passage of the Energy Conservation Law of 1997. Since then, the program has expanded to encompass over 30 equipment types (including motor vehicles). The current study suggests that, in spite of these efforts, there is significant savings to be captured through wide adoption of technologies already available on the Chinese market. The approach of the study is to assess the impact of short-term actions on long-term impacts. 'Short-term' market transformation is assumed to occur by 2015, while 'long-term' energy demand reduction impacts are assessed in 2030. In the intervening years, most but not all of the equipment studied will turn over completely. Early in 2011, the Chinese government announced a plan to reduce carbon dioxide emissions intensity (per unit GDP) by 16% by 2015 as part of the 12th five year plan. These targets are consistent with longer term goals to reduce emissions intensity 40-45% relative to 2005 levels by 2020. The efforts of the 12th FYP focus on short-term gains to meet the four-year targets, and concentrate mainly in industry. Implementation of cost-effective technologies for all new equipment in the buildings sector thus is largely complementary to the 12th FYP goals, and would provide a mechanism to sustain intensity reductions in the medium and long term. The 15-year time frame is significant for many products, in the sense that delay of implementation postpones economic benefits and mitigation of emissions of carbon dioxide. Such delays would result in putting in place energy-wasting technologies, postponing improvement until the end of their service life, or potentially resulting in expensive investment either in additional energy supplies or in early replacement to achieve future energy or emissions reduction targets

Acting Globally: Potential Carbon Emissions Mitigation Impacts from an International Standards and Labelling Program

This paper presents an analysis of the potential impacts of an international initiative designed to support and promote the development and implementation of appliances standards and labelling programs throughout the world. As part of previous research efforts, LBNL developed the Bottom Up Energy Analysis System (BUENAS), an analysis framework that estimates impact potentials of energy efficiency policies on a global scale. In this paper, we apply this framework to an initiative that would result in the successful implementation of programs focused on high priority regions and product types, thus evaluating the potential impacts of such an initiative in terms of electricity savings and carbon mitigation in 2030. In order to model the likely parameters of such a program, we limit impacts to a five year period starting in 2009, but assume that the first 5 years of a program will result in implementation of 'best practice' minimum efficiency performance standards by 2014. The 'high priority' regions considered are: Brazil, China, the European Union, India, Mexico and the United States. The products considered are: refrigerators, air conditioners, lighting (both fluorescent and incandescent), standby power (for consumer electronics) and televisions in the residential sector, and air conditioning and lighting in commercial buildings. In 2020, these regions and enduses account for about 37percent of global residential electricity and 29percent of electricity in commercial buildings. We find that 850Mt of CO2 could be saved in buildings by 2030 compared to the baseline forecast