A Top10 China market report launched today reveals the Chinese energy efficient standards and labeling system is good, but could be better. The report suggests what is needed to improve the system, and thereby save 1,000 terawatt hours of electricity by 2030 - corresponding to 400 coal-fired power plants.

China could save 1,057 terawatt hours of electricity by 2030 simply by raising the energy efficiency of nine appliances to that of the most efficient model currently available on the market. This reveals the research report “Market Analysis of China’s Energy Efficient Products (MACEEP)” by the Swiss energy efficiency NGO Top10 China, and the US-based research organization CLASP.

As the world’s second largest consumer of electricity, China used 4,959 terawatt hours in 2012. By raising the energy efficiency of all of the products of the appliances listed in the report to the efficiency of the most efficient model currently available, an electric energy saving of 187 terawatt hours per year accumulates to a total of 1,057 terawatt hours by 2030. This equals to the annual production of 403 mid-sized (500 megawatts) coal-fired power plants. This means China’s economy, which to 70 per cent is run on coal, could make massive energy savings with already existing technologies.

“This report is ground-breaking in that it combines market research and policy recommendations. By using efficient appliances, China can save the energy of what 400 coal fired power plants, or twice the energy ‘Three Gorges’ hydropower plant generates annually. Policy makers should grab this opportunity,” said Steven Zeng, the China Representative of CLASP.

6,000 products within the following nine categories: refrigerators, fix and variable speed air conditioners, panel TVs, washing machines, rice cookers, induction cookers, copiers and monitors were analysed.

The MACEEP report also shows, that energy efficiency standards need an update. The analysis of the 6,000 products concludes that for products out of five categories (copiers, refrigerators, flat panel TVs, clothes washers, and PC monitors) class 1 counts for more than half of the total market.

“There are 5 classes on most energy labels. If there are 100 products in total, most people think only the best 20 products are class 1, and the worst 20 are class 5. However, for certain products, almost all are class 1,” Mr Hu Bo, Technical Manager of Top10 China said. “This means there is a need to update the energy efficiency standards to better reflect the real market development.”

Key market findings and policy recommendations:

• An electric energy saving of 1,057 TWh by 2030 can be achieved by raising the energy efficiency of all of the products of the appliances listed above to the efficiency of the most efficient model currently available.

• A cumulative electric energy saving of 269 TWh by 2030 can be achieved by implementing policy options immediately feasible, which are recommended in this study.

• For some of the product categories, a dominating share of the product models are in the highest efficiency class 1 in energy efficiency standards. This results in the lack of market differentiation of the most efficient products, as well as the lack of incentive for higher efficiency product development.

Policy Recommendations:

• Raise the threshold of energy efficiency standards so that only 10 per cent of all products meet class 2 standards, and only selected products enter class 1.

• Energy efficiency standards should automatically revise itself, when 10 per cent of all products enter class 1, or when 25 per cent enter class 2.

• In addition to refrigerators and copiers, include energy consumption (an estimation of electric energy used per day/month/year) on energy labelling for all other appliances as well.

• Limit the energy efficiency promotion subsidy to only class 1 products, and restrict subsidies to efficient yet highly energy-consuming products like large televisions. This will further promote the market for high efficiency products.

• Require suppliers to register and report annual sales figures to the China National Institute of Standardization. This will contribute to more accurate future energy consumption projection and energy savings potential.

Further information:

The full report is available here:

http://www.top10.cn/uploads/Reports/MACEEP-Part1.pdf

http://www.top10.cn/uploads/Reports/MACEEP-Part2.pdf

http://www.top10.cn/uploads/Reports/MACEEP-Part3.pdf

Graphs are available here:

http://www.top10.cn/uploads/images/market%20share.jpg

http://www.top10.cn/uploads/images/Energy%20label%20&%20market.jpg