Labelling program of Room Air Conditioners and Market

transformation trends in India

Archana Walia

Katowice, Poland

COP 24, December 10, 2018

What We Do

• Energy & Quality Standards to keep inefficient, cheap products off the market

• Policy Compliance, Testing & Quality Assurance to ensure products perform & markets are fair to all

• Product Labeling & Consumer Education to attract consumers to good products & inspire demand

• Awards & Prizes to recognize and reward early-movers & accelerate markets

• Procurement & Incentives to spur on innovative manufacturers, reduce risks for all & saturate markets

• Global Collaboration & Knowledge Sharing to leverage cutting edge & collective knowledge and forge productive partnerships

CLASP improves the energy and environmental performance of the appliances &

equipment we use every day, accelerating our transition to a more sustainable world

OUTLINE

• Electricity and Cooling demand

• Standard and Labeling program for Room Air Conditioners

• Evolution of the labeling program for RAC

• Market growth of RAC

• Policy impact and market transformation trends for RAC

• Way Forward

Electricity and Cooling Demand

• The share of space cooling in peak electricity load is projected to rise sharply from 10% today to 45% in 2050.

• The total connected load due to air conditioning will be 200GW (80% of current connected load) by 2030. This mayincrease further with increasing AC penetration

• Total installed AC capacity is 80 million TR expected toincrease to ~ 250 million TR by 2030.

• Room AC sales projected to increase significantly by 2030leading to an installed stock of approx. 124 million room AC(55million in 2017)

Standards and Labeling Program for RAC

• Indian Electricity Scenario

2001

• Energy Conservation Act Passed

2002

• Enactment of the Act

• Establishment of Bureau of Energy Efficiency (BEE)

2006

• First voluntary labeling program for RACs launched

2009-2016

• RACs made mandatory and revision in 2012, 2014 & 2016

• Voluntary variable split AC launched

2018

• Revision and Common rating plan for fixed and variable speed

• Transition from EER to iSEERmetric

*22 appliances under labeling, of which 10 under mandatory phase

Labeling Program for Room Air Conditioners (RAC)

Mandatory Appliance

Fixed and inverter speed split and window AC upto11kW

Standard: IS 1391 (Part 1 & 2) and ISO 16358-1

https://beestarlabel.com/

Star Labeling ParameterIndian Seasonal Energy Efficiency

RatioHigher is Better

Split AC

Window AC

Evolution of Labeling Program for RACs

2.3 2.3

2.5

2.7 2.7

3.13.1 3.1

3.3

3.5 3.5

4.5

2

2.5

3

3.5

4

4.5

5

2007-2008 2009-20011 2012 -2013 2014 -2015 2016- 2017 2018 - 2019

EER

/ISEER

Table periods (year)

EER/ISEER(1 star) EER/ISEER(5 Star)

Trend of Energy Performance Improvement of RAC

Since 2007, Star level of Room Air Conditioner (Split AC) of 1 Star has beenescalated by 35% and in case of 5 Star has been escalated by 45% compare to Starlevel of 2018.

9% 8% 7% 7% 6%

35%32%

30%

38%

45%

0%

10%

20%

30%

40%

50%

1 Star 2 Star 3 Star 4 Star 5 Star

Energ

y P

erf

orm

ance

Impro

vem

ent

(%)

Star Rating Level

Window AC(Fixed & Inverter) Split AC(Fixed & Inverter)

Market Trend of RACs under S&L Program

0.30.7

2.3

4.4

2.83.3 3.5

4.6 4.7

6.4

7.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Pro

ducti

on D

ata

(in

Million)

Year

Since 2007, Room Air Conditioner (Fixed Speed & window) market has escalated

from 0.3 to 7.6 Million.

Room AC (Fixed speed & Inverter) production

89%

11%

Percentage of Production Data (6.5 Million) in 2016-17

Room AC(Fixed speed) Inverter AC

70%

30%

Percentage of Production Data (7.3 Million) in 2017-18

Room AC(Fixed speed) Inverter AC

In 2017-18, the percentage share of Production registered for Inverter AC is increased from 11% to 30% compare to 2016 -17 level and production of RAC-Fixed speed got reduced from 89% to 70% for same period.

Inverter AC-ISEER values (2018)-5 Star models

4

4.5

5

5.5

6

0 10 20 30 40 50 60 70 80

ISEER

Number of Models

ISEER Models (1.5 Ton)

ISEER Star Rating (2018)- All tonnageBand No. of Models (all tonnages)

1 Star 3.1 3.29 02 Star 3.3 3.49 03 Star 3.5 3.99 356

4 Star 4 4.49 895 Star 4.5 4.99 176

ISEER- above 5 5 5.49 23ISEER- above 5.5 5.5 6.15 13

Key Findings of market trends for Room AC • Indian Electricity Scenario• Air Conditioner total production is 7.6 Millions in 2017-18 , 70% Fixed

Speed Split & WAC, 30% Inverter Spilt AC-showing a remarkablegrowth

• Share of 3 star (fixed- 58%, Inverter AC- 83% market share) followed by5 star

• No. of Manufacturers registered for Inverter Split AC- 52• For 5 Star rated category in Inverter AC, model of 6.15 ISEER has been

registered in Category of 1-ton & Model with 5.6 ISEER has beenregistered in category of 1.5 Ton, qualifying for the most energyefficient in Inverter AC category in India.

• Currently, no 5 Star rated model are registered in fixed speed ACcategory.

Cooling Initiatives for accelerated Market Transformation in India

Room AC

AC Challenge

(Super-efficient)

Efficiency degradation

Market tracking for efficiency

improvement

Incremental cost and

supply chain analysis

Chiller VRF

Process for Policy Development

Policy Development

Market Assessment

Techno-economic

Assessment

Development of National Standard

International Comparison

Implementation plan

Launch of labeling program

A robust policy provides an enabling environment for transforming the market towards higher efficiencies.

awalia@clasp.ngo

https://clasp.ngo/

THANK YOU