1. A joint initiative of Australian, State and Territory and New Zealand Governments. The E3 Program and Small Fan Units Ian McNicol, Sustainability Victoria On behalf of the E3 Committee

2. Presentation Outline 1.E3 Program Overview Small Fan Units 2.Introduction to the Workshop 3.Overview of Product Profile Discussion Points An Industry Perspective - FMAANZ 4.Where to From Here 2

3. Workshop Agenda – Afternoon Session 1:00 pmOverview of E3 Program 1:15 pmOverview of Small Fan Profile 2:15 pmAn Industry Perspective - FMAANZ 2:25 pmWhere to from Here 2:45 pmMeeting end, tea/coffee 3

4. 1 a. E3 Program - Overview E3 = Equipment Energy Efficiency Jointly run by Aust federal, state & territory governments & NZ – Currently relies on state & territory laws in Aust, and NZ legislation Mandatory measures: MEPS & Energy Labelling Voluntary measures: voluntary or endorsement labelling, training & support to promote best available products 10 year strategies: draft strategy - In From the Cold, Standby Power, Greenlight Australia, Switch on Gas, HVAC HESS 4

5. MEPS & Labelling in Australia LabellingMEPS Refrigerators & Freezers Clothes Washers Clothes Dryers Dishwashers Air Conditioners - Single Phase Televisions Electric Water Heaters Refrigerators & Freezers Three-Phase Electric Motors Three Phase Air Conditioners Fluorescent Lamp Ballasts Refrigeration Display Cabinets Linear Fluorescent Lamps Distribution Transformers Single Phase Air Conditioners External Power Supplies Set-Top Boxes Commercial Building Chillers Computer Room Air Conditioners Televisions Lighting – CFL & incandescent Gas water heaters* * Approved but not yet implemented in all jurisdictions 5

6. E3 Program – Whos Responsible in Australia Select Council on Climate Change (SCCC) (Australian, State and Territory and New Zealand Climate Change Ministers) Senior Officials Management Group (SOMG) (Australian, State and Territory and New Zealand Senior Officials) Energy Efficiency Working Group (E2WG) (Australian, State and Territory Senior Officials) Equipment Energy Efficiency Committee (E3) (Australian, State and Territory, & NZ Govt officials – Chaired by DCCEE) 6

7. E3 Process to Develop Regulations 1. Product Profile 2. MEPS Proposal 3. RIS 4. SCCC Approval MEPS Commence 7

8. 1 b. E3 Program & Small Fan Units This stakeholder workshop opens up discussion with government agencies and industry around possible policy options for improving the energy efficiency of small fan units – E3 is a regulatory program, so MEPS and labelling are included in the options considered 8

9. Draft strategy for Non-domestic Refrigeration – In From The Cold Report: In From the Cold - Strategies to Increase Energy Efficiency of Non- domestic Refrigeration in Australia and New Zealand recommends that: – Minimum energy performance standards (MEPS) are introduced for fan motors used in non-domestic refrigeration applications, with an output power rating of between 5 Watts and 2,000 Watts 9

10. European Union: energy efficiency regulations for fans EU regulations will place energy efficiency requirements on fans with motor input power 125W - 500kW, aimed at inefficient ventilation fans used in non-residential buildings. – First tier: from 1 January 2013 - targets least efficient 10% of the market – Second tier: from 1 January 2015 - targets least efficient 30% of the market More detail on the European Eco-design Directive in Product Profile: Non-domestic Fans 10

11. Current E3 Motor and Fan Work Streams 11 Small Fan Units Product Profile covers fan units with input power 5 W – <125 W. Small Fan Units Product Profile covers fan units with input power 5 W – <125 W. Electric Motors Product Profile MEPS currently cover three-phase electric motors with output power 0.73 kW to 185 kW This forthcoming paper considers increasing MEPS levels and extending MEPS to include motors of larger and smaller sizes Non-Domestic Fans Product Profile Covers fan-units with input power 125 W to 500 kW.

12. 2. Introduction to Small Fan Workshop Product Profiles are discussion papers which consider options for driving improvements to the efficiency of certain products: – Market assessment – Efficiency of products currently sold – Local and international standards – Possible policy options to increase efficiency 12

13. 3. Overview of Small Fan Product Profile Scope of Product Profile Market characteristics Energy consumption, energy efficiency improvement and GHG emissions Policy options Standards Regulatory considerations 13

14. Scope of the Product Profile Scope of Product Profile is motor-driven fan units with input power 5 to <125 W Fan unit = fan and motor combination also includes integral fan-motor assemblies which are constructed such that it is not possible to separate the fan blade from the motor without losing the function of the fan 14

15. Applications of Small Fans Some small fan units are a stand-alone product: fans for human comfort cooling extractor and extractor/heater combination fans Some small fan units are embedded in appliances: computers refrigerators freezers room heaters with a fan clothes dryers hair dryers dishwashers room air conditioners ovens microwaves rangehoods 15

16. Discussion Points – Scope of Small Fans 1 Input power range 5 to <125W – is this appropriate? 2 Input power versus output power for defining the scope for small fan units? 3 Efficiency of fan-motor assembly (fan unit) versus efficiency of fan as a stand-alone item. What should we focus on? 4 Should the scope cover all fan units in this size range or should it exclude some types of fan units? 5 Additional applications of small fan units not listed in the Profile? 6 Market breakdown by small fans by application – is data available on installed stock and annual sales? 7 Feedback on terminology used when discussing small fan unit 16

17. Types of Motors Driving Small Fans Motor TypeMotor Characteristics Shaded-pole, single-phase Common motor, cheap to purchase and reliable but very inefficient – 5 to 70 Watt output. Are type of AC single-phase induction motor. Has a low starting torque so best used for fans that are easy to start. External rotor fan assembly: single & three phase Another common type of motor used with small fans. Version of AC induction motor where rotor rotates around the stator. Rotor is integrated into the fan blade. Has improved efficiency. Permanent split capacitor Mainly used in residential aircons and household appliances. Usually more efficient than same size shaded pole motors, but often operate below full load. Electronically commutated Synchronous electric motor which uses permanent magnets which rotate around a static armature. Require speed controllers and these are often integrated into small units. High efficiency, low noise and long life. Universal Commonly used in hand tools, hair dryers, and vacuum cleaners. High starting torque, generally run at high speed and are noisy. Have short life and best suited to intermittent uses.

18. Discussion points – Types of Motors 8 Proportions of small fan units driven by each type of motor? 9 Market for small fan motors, broken down by application? 10 Cost differences between types of small fan motors? 18

19. Fan Power and Efficiency Table 1: Typical shaft efficiency ranges for fan motor types, single phase power *Shaft power efficiency rating without blade Discussion point: 11 Typical energy efficiency and expected life-time of small fan units driven by particular motors? 19 Fan Motor Type Output Capacity Range (Watts)Efficiency (%)* Shaded-pole (SP)5 to 7020% to 30% Electronically commutated (EC): small5 to 7060% to 70% Permanent split capacitor (PSC)3 to 10040% to 60% Electronically commutated (EC): medium70 to 77090% to 95% External rotor (ER)70 to 77040% to 60% Universal motor5 to 200060% to 70%

20. Market Characteristics – Est. Sales (Table 2) ApplianceEst. Annual Sales Motor TypeTypical Motor Input Power (W) No of Fans Est Fan Sales Clothes dryer294,866Split Phase Induction 3131May be out of scope Res. Fan Heater340,000Shaded Pole301340,000 Res. Fridge / Freezer1,098,644Shaded Pole611,098,644 Refrigerated Disp. Cabinet97,000Shaded Pole / PSC 302194,000 Room Refrig. A/C - cond1,209,629Split phase / PSC / EC 8411,209,629 Room Refrig. A/C - evap1,209,629Split phase / PSC / EC 4011,209,629 Cooling fans401,6481971Some may be out of scope Dishwasher360,090 Computer Total*4,051,902 * Where we have data. Excludes gas room heaters, extractor fans, rangehoods, oven, microwave, hair dryers

21. Estimated Stock of Motors – Non-Domestic Refrigeration Fans (Aust 2008) Motor TypeEstimate from MEA, 2009 Estimate from AREMA, 2009 Installed stock % of TotalInstalled stock % of Total Shaded-pole, single phase2,446,20037%2,500,00082% External rotor, single phase2,002,30030%350,00011% External rotor, three-phase*2,190,88033%200,0007% Total6,639,380100%3,050,000100% * External rotor, 3-phase likely to be larger than 125 W input, so would be outside the scope of small fans. Around 67% of non-domestic refrigeration fan-units are likely to have an input power < 125 W.

22. Discussion points – Market Profile 12Australia market characteristics and trends for small fan units – existing stock – annual sales – industry sector breakdowns 13Estimated sales and stock numbers for: – Small fan units imported for integration into products, or as replacement parts – Small fan units imported as components already integrated into appliances – Small fan units manufactured within Australia/New Zealand 14 Main countries for importing small fan units 22

23. Barriers to Energy Efficiency Improvement Split incentives - the fan unit is often chosen by the appliance designer/manufacturer yet the energy bill is paid by the end- user. Information failures - the end-consumer is unlikely to take account of the energy efficiency of small fan units. Bounded rationality - incomplete consideration of the costs and benefits of efficient small fan unit technologies Discussion point: 15 Market failures affecting uptake of high efficiency small fan units?

24. Estimated Energy Use of Small Fans ApplianceEst. Annual Sales Est. Annual Operation (Hrs/Yr) Est. Unit Energy Use (kWh/Yr) Est Total Energy Use (MWh/Yr) Clothes dryer294,86615648.814,389 Res. Fan Heater340,0001,12033.611,424 Res. Fridge / Freezer1,098,6448,73652.958,118 Refrigerated Disp. Cabinet97,0008,736529.551,362 Room Refrig. A/C - cond1,209,6291,400117.6142,252 Room Refrig. A/C - evap1,209,6291,40056.067,739 Cooling fans401,6481,400275.8Some may be out of scope Dishwasher360,090 Computer Total*345,282 * Where we have data. Excludes gas room heaters, extractor fans, rangehoods, oven, microwave, hair dryers Note that this is est. energy use of new stock sold each year.

25. Est. Energy Use of Motors – Non-Domestic Refrigeration Fans Fan Motor TypeEst. Installed Stock Est. Energy Use (GWh/Yr) % of Energy Use Shaded-pole, single phase2,446,2003859% External rotor, single phase2,002,3002,18550% External rotor, three-phase2,190,8801,79041% Total6,639,3804,360100% * External rotor, 3-phase likely to be larger than 125 W input, so would be outside the scope of small fans. Around 67% of non-domestic refrigeration fan-units are likely to have an input power < 125 W.

26. Discussion points – Energy Consumption Greenhouse Emissions 16 Energy use and greenhouse gas emissions from existing stock of small fan units, including: - total stock by end-use applications and size - typical power consumption and annual operating hours of small fan units 26

27. Opportunities to Improve Efficiency Efficiency improvements for small fan units from improvements to: – Fan motor – Motor – fan coupling – Fan The different types of motors used to drive small fans have different efficiency characteristics Existing Motor Type Output (W)EfficiencyNew Motor Type (1-ph) EfficiencyAv. Energy Saving Shaded-pole5 – 7020 – 30%Elec commutated 60 – 70%58% External Rotor 70 - 77040 – 60%Elec commutated 90 – 95%58%

28. Discussion Points – Efficiency Opportunity 17 What opportunities for improving energy efficiency of small fan units? 28

29. International Situation US Energy Star certification – Ventilating fans (2001) – Ceiling fans (2002) European Union – EuP Lot 30 study which includes small motors has just started – Have been considering regulating ventilation hoods

30. Possible Policy Options Mandatory minimum energy performance standards (MEPS) High efficiency performance standards (HEPS) Ban the least efficient types of motors that drive small fan units Labelling or certification schemes Training and education Codes of best practice, benchmarking programs 30

31. Discussion Points – Policy Options 18 Greatest potential for improvements in energy efficiency: - Focus on the motor, the fan, or both? 19 Suitability of different policy measures to achieve improvements in energy efficiency of small fan units: - potential for savings in economic costs, energy, and greenhouse gas emissions 31

32. Standards – Test Method AS ISO 5801 sets out methods for determining performance of industrial fans of all sizes and types, except those designed for air circulation (ceiling and table fans). It may be possible to apply this method to products in the 5 to <125 W size range. There is an Energy Star specification for ceiling fans - this suggests a test method exists for these products. 32

33. Standards – Efficiency Levels ISO 12759 sets out Fan Motor Efficiency Grade curves, which specify minimum required efficiency at best efficiency point and can be used as the basis for setting MEPS levels for fan units of input power 125 W to 500 kW. Introducing MEPS for small fan units in Aust and NZ would require developing efficiency level classifications for products below 125 W input power. 33

34. Discussion Points - Standards 20 Appropriate efficiency levels for small fan units? 21Testing facilities capable of AS ISO 5801, and appropriateness of this standard for small fans? 22 Other standards issues? 34

35. Regulatory Considerations If regulatory action was deemed appropriate - a consultation Regulatory Impact Statement (RIS) for small fan units would be released for consultation. MEPS regulations in the EU will be applied to the fan+motor combination. While this approach has some drawbacks, it would allow Aust and NZ to align - and EU is a major source of fan imports. It may be practical to introduce regulations for certain sectors (such as fan units used in non-domestic refrigeration) – although MEPS normally apply to generic equipment categories. 35

36. Regulatory Considerations Key challenges for regulating small fan units: 1. Most enter Australia and New Zealand as a part integrated into another product: - Potentially difficult to identify products which are subject to regulation, and to enforce compliance. 2. Many small fan units are components within a product that is already regulated for energy efficiency: - Regulatory options include regulating the small fan unit separately, or increasing the MEPS levels for the whole appliance to drive improvements in fan efficiency. 36

37. Discussion points – Regulatory Considerations 23 Regulations targeting the fan only vs regulating the fan-motor combination? 24 Voluntary/non-regulatory approaches to improve small fan unit efficiency, complimentary to, or in absence of, MEPS/HEPS 25 MEPS for small fan embedded inside larger appliances that already have MEPS? 26 Situations where the lower efficiency produces a useful by- product such as heat? 27 Certain appliances incorporating small fans where regulations would not be effective at improving efficiency 28Possibly consider domestic and industrial small fan units separately? 37

38. Discussion Points – Regulatory Considerations 29Extra costs for manufacturers and users to measure the efficiencies of small fan blades and motors 30Impact of regulations on different suppliers e.g. appliance manufacturer, fan blade manufacturer? 31Impact of requiring more efficient small fan blades and motors on the appliance cost? Effect on product competition? 32Compliance and enforcement issues of MEPS for small fan units 33Categories of small fan unit applications that offer more potential for MEPS

39. An Industry Perspective - FMAANZ

40. Where to From Here? Written submissions on Product Profile close Friday 6 July, 2012 – Feedback from industry stakeholders welcome – Feedback will be compiled and presented to E3 Committee – E3 Committee will decide whether or not to proceed to prepare a Regulatory Impact Statement to test feasibility, cost effectiveness, and benefit to society of implementing proposed policy options – May require some standards development work 40

41. Information We Need to Take Further Better understanding of installed stock and sales – by main applications and type of fan-unit Better understanding of the energy and efficiency characteristics of small fan-units – Av elec input and annual operating hours – Av efficiency and spread of efficiencies – Typical lifetime of products Whether there are market barriers and failures which lead to a less than optimal outcome Opinions on the feasibility of regulating small fan units Typical cost differential for installing more efficient fan- units in key applications

42. Submissions Please email submissions on the Product Profile with the subject line Product Profile: Small Fan Units to: energyrating@climatechange.gov.au Submissions close Friday 6 July, 2012. Call to discuss – Bonn Maguire, DCCEE, Ph 02 6159-6875 – Ian McNicol, Sustainability Victoria, Ph 03 8626-8772 42