1. Potential Benefits for Market Transformation to Inverter A/C
Viraj Vithoontien
Lead Environment Specialist
The World Bank Group
Washington DC

2. Temperature Control
Source: Panasonic

3. 12,000 BTU Fixed Speed R32 AC has starting current at 28.2 A
Average running current 4.2 A

4. Average running current 3.1 A
12,000 BTU Inverter R32 AC has soft start function in order to reduce high starting current
Average running current 3.1 A

5. Inverter Product Ratio
Source: Figures for market demand from report on estimates of worldwide air conditioner demand, published by Japan Refrigeration and Air Conditioning Industry Association; figures for inverter products as percentage of entire market, from Daikin Industries, Ltd.

6. Challenges and Opportunities
Inverter A/C technology presents opportunities for further energy savings and climate benefits;
Because of slow start-up for inverter A/C, electrical surge during start-up could be avoided. This could reduce electricity demand significantly during start-up;
Consumers’ demand for high energy efficiency a/c exists in developing countries;
Higher price of inverter A/Cs is one of the barriers from higher market penetration. Quick estimate from A/Cs in the Thai market suggests that inverter A/Cs cost US$ /BTU more than single speed A/Cs;
Access to inverter technology seems to be a major challenge for local manufacturers, except China;

7. Business Opportunities for Transforming A/C Market to Inverter Technology 
Inverter A/C provides superior energy performance: more energy efficient and no electrical surge during compressor start-up;
Market survey in Thailand indicates that EER of Mark 5 A/C is while SEER (average EER) for inverter A/C in the same market is representing 43% improvement (reported savings by consumers and from limited tests suggest 30% savings);
While Thai consumers prefer the most energy efficient A/C based on the sales of Mark 5 single speed A/C, inverter A/C only has a market share of 10%;
Market penetration of inverter A/C, for example in China and the Philippines, is about 60% and 30% respectively.

8. A/C Markets in India and China
Domestic A/C markets:
China: 38 million units a year;
India: 4.5 million units a year with an annual growth rate of 7.9%.
Source: JARN

9. Case Study: I INDIA Cooling Capacity 5.2 kW (18,000 BTU)
EER of Single Speed A/C
3.5
EER of Inverter A/C (Comm. Avail.)
5.0
Power Input
1.486 kW
Electrical Surge during Start-up
100%
No. of A/C Units Sold per year
4,500,000
Additional Demand for power supply
2,162 MW
Unit Cost of power plant
US$ 1.24/W
Unit Cost of Single Speed A/C
4.65 Cents/BTU
Unit Cost of Inverter A/C
5.98 Cents/BTU
Additional Cost of Inverter A/C
US$
Transformation Costs
US$ 1,030 Million
Avoided Costs of Power Plant
US$ 2,671 Million
*3% of total units sold are inverter type; only 1/3 of the units sold per year running at the same time.

10. Case Study: II CHINA Cooling Capacity 5.2 kW (18,000 BTU)
EER of Single Speed A/C
3.5
EER of Inverter A/C (Comm. Avail.)
5.0
Power Input
1.486 kW
Electrical Surge during Start-up
100%
No. of A/C Units Sold per year
38 million*
Additional Demand for power supply
7,529 MW
Unit Cost of power plant
US$ 1.24/W
Unit Cost of Single Speed A/C
4.65 Cents/BTU
Unit Cost of Inverter A/C
5.98 Cents/BTU
Additional Cost of Inverter A/C
US$
Transformation Costs
US$ 3,587 Million
Avoided Costs of Power Plant
US$ 9,301 Million
*60% of the total units sold are inverter type; only 1/3 of the units sold per year running at the same time.

11. Results Country China India Indonesia Vietnam Thailand Argentina
A/C Sales per year (unit)
Penetration rate of Inverter (%)
Additional Demand (unit)
Additional Electricity Demand (MW)
Avoided Cost of Power Plant (US$ Million)
Transformation Cost (US$ Million)
Electricity Tariff (US$/kWh)
Annual Energy Cost Saving (US$ Million)
China
38,000,000
60%
15,200,000
7,529.07
9,301
3,587
0.10
433.67
India
4,500,000 3%
4,365,000
2,162.13
2,671
1,030
0.07
211.40
Indonesia
2,600,000
17%
2,158,000
1,068.93
1,320
509
0.11
140.53
Vietnam
1,740,000
1,444,200
715.36
884
341
85.59
Thailand
1,520,000
10%
1,368,000
677.62
837
323
0.13
114.16
Argentina
1,500,000
12%
1,320,000
653.84
808
311
0.03
25.68
Mexico
1,000,000
11%
890,000
440.85
545
210
0.19
108.93
Philippines
690,000
572,700
283.68
350
135
0.18
61.78
Others includes Malaysia, Philippines, Thailand, Vietnam, Iran, Argentina, Mexico, Pakistan, UAE, South Africa, Algeria, Nigeria, Egypt

12. Cooling Capacity (BTU/hr)
Thailand A/C Market
Cooling Capacity (BTU/hr)
Units/Year
Fixed R EER
Inv R-410A SEER
Inv R SEER
9,000
180,000
12.22
17.37
20.91
12,000
600,000
12.57
18.63
20.1
18,000
300,000
12.29
16.62
20.65
24,000
120,000
12.24
15.3
18.94
9,000 BTU/h

13. 9,000 BTU/h Thailand A/C Market Cooling Capacity (BTU/hr) Units/Year
Energy Consumption (kWhr)
Fixed R-32
Inv R-410A
Inv R-32
9,000 1
1,178
829
689
12,000
1,571
1,105
918
18,000
2,357
1,658
1,377
24,000
3,142.39
2,211
1,836
9,000 BTU/h

14. 9,000 BTU/h Thailand A/C Market Cooling Capacity (BTU/hr) Units/Year
Energy Cost (US$/Year)
Fixed R-32
Inv R-410A
Inv R-32
9,000 1
130 91 76
12,000
173
122
101
18,000
259
182
152
24,000
346
243
202
9,000 BTU/h

15. 9,000 BTU/h Thailand A/C Market Cooling Capacity (BTU/hr) Units/Year
Cost Savings (US$/Year) Fixed --> Inv
Inv R-410A
Inv R-32
9,000
180,000
6,917,734
9,696,661
12,000
600,000
30,745,486
43,096,272
18,000
300,000
23,059,115
32,322,204
24,000
120,000
12,298,195
17,238,509
Total
1,200,000
73,020,530
102,353,646
9,000 BTU/h

16. Incremental Capital Costs on Conversion from Fixed Speed R32 to Inverter R32
Analysis of ICC for product development, production& after-sale service conversion

17. From Fixed Speed R32 to Inverter R32
ICC for Inverter R32 Air conditioner
Category
Topic
Product Development
Improvement of Calorie-meter room for testing part load on small capacity AC (It’s very hard for conventional testing room to maintain stable stage during 4,000 – 5,000 BTU/h. Basically, testing room can not control Wet Bulb temperature during low load.)
Product Design & Performance Optimization Cost
Require Torque Testing Machine to tune Inverter Driver with Compressor Motor Parameter
Require EMC testing facilities to pass CISPR14-1, CISPR14-2 requirement.
Require PCB Life Test, Accelerated Test to ensure quality of Inverter Control Box
Require field test air conditioner to run at least 1 year before start selling
Require Safety certificate to sell the product into the market
Production Development
Inverter Control Box Assembly Line
Improvement of Functional test on Inverter system in Condensing Unit Assembly Line (Test Part Load Condition of AC)
Indoor Unit Assembly Line is the same
Service
Training
Inverter Control Box Tester
ICC
From Fixed Speed R32 to Inverter R32

18. Analysis of IOC from conversion of Fixed speed R32 to Inverter R32
Incremental Operating Costs on Conversion from Fixed Speed R32 to Inverter R32
Analysis of IOC from conversion of Fixed speed R32 to Inverter R32

19. From Fixed Speed R32 to Inverter R32
IOC for Inverter R32 Air conditioner
Category
Topic
Compressor Cost
Slightly higher due to higher price of Inverter Compressor
Refrigerant Cost
Slightly lower due to lower charge size of Inverter air conditioner
PCB Cost
- Indoor PCB Cost
Slightly higher with additional communication module from Indoor PCB to Outdoor PCB (Inverter AC require complex communication between Indoor & Outdoor PCB)
- Outdoor PCB Cost
Significantly higher cost
Fixed Speed AC: require no Outdoor PCB
Inverter AC: require Inverter Driver to drive variable speed compressor
Compressor Capacitor Cost
Fixed Speed AC: require Compressor Capacitor to run compressor
Inverter AC: Not Require
Outdoor Fan Motor Cost
Fixed Speed AC: basically use 1 speed AC motor
Inverter AC: require variable speed DC motor for better efficiency especially during part load
Refrigerant Control Device Cost
Fixed Speed AC: Capillary Tube
Inverter AC: Electronic Expansion Valve to match refrigerant flow speed with variable speed compressor
IOC
From Fixed Speed R32 to Inverter R32

20. Thank You.