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IEA 2019. All rights reserved. Toolkit Insights into Energy Labels Session 8 Kevin Lane and Emily McQualter, IEA - Bangkok, 2 April 2019 #energyefficientworld

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Page 1: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

IEA 2019. All rights reserved.

ToolkitInsights into Energy Labels

Session 8

Kevin Lane and Emily McQualter, IEA - Bangkok, 2 April 2019

#energyefficientworld

Page 2: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

2IEA 2019. All rights reserved.

Overview of the appliance training sessions

# Session

0 Introduction and roundtable

1 Planning energy efficiency programmes

2 Selecting products for MEPS and Labelling programmes

3 Assessing efficiency performance and setting MEPS

4 Industry transformation

5 Stakeholder involvement and communication

6 The relationship between product efficiency and price

7 Modernising energy efficiency through digitalisation

8 Insights into energy labels

9 Monitoring and evaluating policies and programmes

10 Monitoring, verification and enforcement

11 Roundtable discussion, review and report back

Page 3: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

3IEA 2019. All rights reserved.

• When people buy appliances they buy an energy service in two parts

• They can see the appliance, and its cost

• They cannot see the energy consumed, or its running costs

• Energy labels provide consumers with information on the energy efficiency of a

product

• There are two main types of labels:

• Comparison

• Endorsement

What are energy labels?

Page 4: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

4IEA 2019. All rights reserved.

• When people buy appliances they buy an energy service in two parts

• They can see the appliance, and its cost

• They cannot see the energy consumed, or its running costs

• The label helps consumers to understand which products have the lowest total cost

• Energy label is attached to an appliance when it is displayed for sale: tells people

about energy use before they buy

• Comparative labels may be voluntary, but mandatory is more common.

• Comparative labels usually communicates in two ways:

• Quick visual rating

• Data e.g. actual kilowatt-hours (kWh), Running costs, capacity/size

Comparative labels

Page 5: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

5IEA 2019. All rights reserved.

Common Comparative Labels

Vietnam Thailand

BrazilSouth Africa

South Korea

China

Indonesia Malaysia

Tunisia EU

Dial

Bar

Singapore

Page 6: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

6IEA 2019. All rights reserved.

Continuous Comparative Labels

Continuous

United States CanadaPhilippines

Comparative labels allow consumers to compare performance among similar

products using either discrete categories of performance or a continuous scale.

Page 7: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

7IEA 2019. All rights reserved.

Comparative labels

Comparative labels allow consumers to compare performance among similar

products using either discrete categories of performance or a continuous scale.

Categories

Page 8: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

8IEA 2019. All rights reserved.

What information can be included? US example

What do

consumers

care about?

Page 9: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

9IEA 2019. All rights reserved.

What information can be included? Philippines example

What do

consumers

care about?

Page 10: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

10IEA 2019. All rights reserved.

What information can be included? EU example

Water consumption

Kg laundry per wash

Noise levels

• Energy consumption

• Programme time

• Water consumption

• Power consumption in

‘off-mode’

• Power consumption in

‘left-on mode’

• ‘left-on mode’

duration

• Remaining moisture

content

• Airborne acoustic

noise emissions

• Maximum spin speeds.

Remaining water content

What do

consumers

care about?

Programme time

Page 11: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

11IEA 2019. All rights reserved.

Some products may need different information

India - pumps

India – ceiling fans and induction motors

Star Rating Motor Efficiency Class

1 Star ≥ IE2 & < IE2(+)

2 Star ≥ IE2(+) & < IE3

3 Star ≥ IE3 & < IE3(+)

4 Star ≥ IE3(+) & < IE3(++)

5 Star ≥ IE3(++)

What do

consumers

care about?

Take into

account

international

standards

Page 12: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

12IEA 2019. All rights reserved.

What to do when you run out of space?

• Reconfigure label e.g. EU from

A+++ to A

• Help consumers access more

information e.g. via QR codes

and or apps

Page 13: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

13IEA 2019. All rights reserved.

China Energy Label QR Code

QR codes can provide resources on “choose, use, repair and replace”,

enhance the interaction between manufacturers and consumers, help

manufacturers to promote energy-saving products and help consumers

to obtain value-added services.

QR codes can lead consumers to large quantities of product and service

information, improve the transparency, openness and availability of

product quality information, improve the consumption experience, enrich

the consumption service contents, and better guide energy efficient and

sustainable consumption.

2

1

3

QR codes makes it possible to obtain the comprehensive product

information in real time with smartphone only, which significantly

improves the convenience and timeliness of supervision, enriches the

type of law enforcement, and provides important guarantee for

combating false labels and improving product quality.

价格雷达大众点评

性能对比

产品介绍

电子质保卡

说明书

原厂配件

电费计算

故障维修

售后服务

清洁保养

以旧换新

在线预约

上门取件

诚信联盟

Page 14: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

14IEA 2019. All rights reserved.

Endorsement labels

• Identify the most energy efficient models, i.e. not all products labelled

• Generally endorsement labelling schemes show little product specific information for each model

• Endorsement labels are voluntary

• Can be updated more rapidly than a comparative energy label

• Usually paid for by manufacturers, third party tested

• Often linked to other policies - incentives

Page 15: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

15IEA 2019. All rights reserved.

Market Transformation: impact of different policies

Leading Edge: establishing new

technologies in the

market

Mid Market: spreading good

practice

Laggards:discouraging

bad practice

Innovation

• R&D*

• Demonstration

• Technology transfer

• Endorsement labels

Reduce barriers

• Access to information /

finance

• Comparative labels

Remove worst

• Performance standards

Market

mechanisms

increase

incentives

for higher

energy

efficiency

across the

whole

distribution

* Research and Development

NOW Where want to be

Page 16: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

16IEA 2019. All rights reserved.

Changes in air conditioner market in India

20102015

Source: BEE

When do you need

to upgrade your

labels?

Page 17: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

17IEA 2019. All rights reserved.

Having an upgrading plan gives clear signals to manufacturers

2006-2011

Star 1

Star 2

Star 3

Star 4

Star 5

2012-2013

Star 1

Star 2

Star 3

Star 4

Star 5

2014-2015

Star 1

Star 2

Star 3

Star 4

Star 5

2016-2018

Star 1

Star 2

Star 3

Star 4

Star 5

India Star Label Up-gradation (frost free fridge)

How to take into

consideration unexpected

changes in the market?

Page 18: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

18IEA 2019. All rights reserved.

How to promote super efficient products?

Page 19: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

19IEA 2019. All rights reserved.

Energy labels are not just relevant for appliances

EU fuel consumption label

for tires (November 2012)

What other

products could

have energy labels?

Page 20: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

20IEA 2019. All rights reserved.

Label Design

• The most effective labels are visually intuitive- Need to be clear, easy to understand and communicated.

• Do not put too much information on the label – ‘over crowding’ will likely lessen consumer response and impact

• But different labels work in different ways to reflect cultures & different perceptions

- Letters vs number vs symbols

- Language, script, left to right ranking

- Positional indicator – how does this model rank on absolute scale and in relation to other models?

- Is high number or low number better?

• Need to select one label format and stick to it.- Takes years for buyers to become familiar with labels.

Page 21: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

21IEA 2019. All rights reserved.

Label placement

• Clear instructions for retailers

• Training for retailers

• Information on labels should also appear on electronic formats such as websites

where consumers may purchase products online

Source: Amazon UK

Source: REI

Page 22: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

22IEA 2019. All rights reserved.

Label placement

Page 23: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

23IEA 2019. All rights reserved.

Label placement (2)

Page 24: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

24IEA 2019. All rights reserved.

Label placement (3)

Page 25: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

25IEA 2019. All rights reserved.

Label placement (4)

Page 26: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

26IEA 2019. All rights reserved.

Label placement (5)

• The best of both types of label?

Page 27: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

27IEA 2019. All rights reserved.

Awareness-raising

• Effective labels require buyer awareness-raising campaigns.

• Buyer purchasing decisions that favor energy-efficient and high quality products

ultimately provide a “pulling” force in the market.

• Encouraging consumers and others to buy products at the high end of efficiency

and quality creates market demand (and drives down prices)

Page 28: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

28IEA 2019. All rights reserved.

Energy Labels – key considerations

• MEPS and labelling often work closely together

- Lowest rank of comparative label begin at MEPS level

- Endorsement labels align with higher ranks

• Consumer awareness is crucial

• Checking compliance is important

• Ongoing evaluation of energy labels (and their S&L programme) is needed to

measure how well it is working and if it can be improved

Page 29: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

29IEA 2019. All rights reserved.

Exercise

Divide into three groups

Examine the labels

Each group to discuss and report back about the effectiveness (pros and cons) of

one comparative label

Page 30: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

30IEA 2019. All rights reserved.

Exercise

Australia EU

2. Bar1. Dial 3. Continuous

US

Page 31: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

31IEA 2019. All rights reserved.

Scenario

A newspaper article has questioned the validity of energy labels on

refrigerators, saying that the label does not reflect real usage. Your

manager has asked you to outline a response.

What do you say?

Page 32: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

32IEA 2019. All rights reserved.

Understanding the issue

• Results on label based on ‘standard’ laboratory test

- E.g. International, regional or local technical standard

- Plus any guidelines for conducting test

• Laboratory test gives energy performance under strict conditions

• Average usage patterns, energy costs, calculated to give other indicators

• You would not expect each refrigerator to provide the exactly same performance in the home as in the laboratory

What information is included on the label, how is

it sourced?

What do we think might be the explanation?

Page 33: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

33IEA 2019. All rights reserved.

• Why may real use of a refrigerator vary from the test results?

• Possible variations

- Climate – ambient conditions

- Door opening frequency

- Loading - foodstuff

Case study

Page 34: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

34IEA 2019. All rights reserved.

Summer and winter same model: impact of ambient temperature

0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Aver

age

pow

er W

Unit (all same model)

Summer

Winter

Page 35: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

35IEA 2019. All rights reserved.

Same model, different households: impact of users

0

2

4

6

8

10

12

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Slop

e of

mon

thly

ave

rage

tem

pera

ture

and

pow

er W

/deg

ree

C

Unit number (all same model)

VIC

SYD

BRIS

FNQ

Page 36: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

36IEA 2019. All rights reserved.

What are fraudulent products?

• Products designed to perform differently under test to outside the laboratory.

• Include mechanisms to sense and circumvent the test procedures.

• Sometimes referred to as ‘defeat’ devices.

• Not strictly an issue of ‘non-compliance’, since they meet requirements under test

conditions

• Products performing significantly worse outside the lab. leads to an adverse

impact on energy consumption, consumer benefit, the environment and

competition.

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37IEA 2019. All rights reserved.

Test procedures: Representative, fraudulent

Standard

Laboratory

Test

Non-compliant product

✗FAIL

PASS

Does it perform

similarly under

normal

conditions?

Compliant product

YESPossible

fraudulent

product

Unrealistic

test method

NO

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38IEA 2019. All rights reserved.

Summary

• So:

- You would not expect each refrigerator to provide the

exactly same performance in the home as in the

laboratory

• But problems arise if they are too different (not sufficiently

representative):

- Consumer complaints

- Unrealistic savings estimates & cost-benefit

- Poor signal to product designers

- Products sense that they are under test

Page 39: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

39IEA 2019. All rights reserved.

Summary

• Performing differently under test from general use is not conclusive evidence of a fraudulent product

• Why? Because the test procedure may not be reflective of ‘normal’ circumstances

• The better tests try to mimic either a range or an average set of conditions reflective of the ‘real world’

• However, a single test cannot replicate the many differing ambient and usage conditions found

• So some divergence is inevitable

• Detailed observation of product behaviour under different conditions may be required for conclusive proof

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40IEA 2019. All rights reserved.

Resources

Anticcs

https://www.anti-circumvention.eu/about-project/project-introduction

Thailand

https://www.youtube.com/watch?v=INWxQ_6P4Iw

https://www.youtube.com/watch?v=IwsnqT68B0o

Australia

https://www.youtube.com/watch?v=G5KPNYcHCNg

Page 41: Toolkit · QR codes can provide resources on “choose,use, repair and replace”, enhance the interaction between manufacturers and consumers, help manufacturers to promote energy-saving

41IEA 2019. All rights reserved.

www.iea.org

IEA #energyefficientworld