Archana Walia Vienna July 9, 2018 Overview of India’s Energy Efficiency Policy for Cooling appliances and it’s impact Archana Walia Vienna July 9, 2018

Contents AGENDA Electricity and Cooling demand Indian Electricity Scenario Electricity and Cooling demand Standard and Labeling program Labeling program for Room Air Conditioners Evolution of the labeling program for RAC Market growth of RAC Policy impact on energy efficiency improvements HVAC Chiller and VRF Next Steps Contents

What We Do CLASP improves the energy and environmental performance of the appliances & equipment we use every day, accelerating our transition to a more sustainable world 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

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 200 GW (80% of current connected load) by 2030. This may increase further with increasing AC penetration Total installed AC capacity is 80 million TR expected to increase to ~ 250 million TR by 2030. Room AC sales projected to increase significantly by 2030 leading to an installed stock of approx. 124 million room AC (55million in 2017)

Standards and Labeling Program 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 iSEER metric *21 appliances under labeling, of which 10 under mandatory phase

Labeling Program for Room Air Conditioners (RAC) Mandatory Appliance Split AC Fixed and inverter speed split and window AC upto 11kW Standard: IS 1391 (Part 1 & 2) and ISO 16358-1 https://beestarlabel.com/ Window AC Star Labeling Parameter Energy Efficiency Ratio Higher is Better

Evolution of Labeling Program for RACs Since its launch, EE threshold for 1 Star has increased by 35% and that of 5 Star by 41% by 2018.

Market Growth of RACs Since 2007, Room Air Conditioner (Fixed Speed & window) market has seen an increase from 0.3 to 6.4 Million in 2016 Variable speed AC market transformed from 5-6% in 2014 to 11% in 2016 (as per BEE) to the current market of approx. 30%

Policy Impact on Energy Efficiency Improvements Total no of models -156 Total no of models -156

Cooling Policies and Market Transformation Room AC AC Challenge Efficiency degradation Market tracking for efficiency improvement Incremental cost and supply chain analysis Refrigerants and Ecolabel?? Chiller VRF

HVAC Chiller VRF- A similar effort is underway for VRFs Market Assessment Techno-economic Assessment Development of National Standard International Comparison Implementation plan Launch of labeling program VRF- A similar effort is underway for VRFs

Way Forward HFC phase down schedule- 2028 freeze year (India Group 2 country) BIS to develop safety standards for AC with flammable refrigerants –study and ongoing discussions Linkage between refrigerant and efficiency needs to be studied and established Relevant information on refrigerant should be integrated into the star label. Study to understand impact on the performance of RACs due to adverse environmental conditions over its life time Ecolabel-? to integrate the energy and environmental impacts

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