The demand for air conditioners that provide thermal comfort is steadily growing across the African continent as consumers seek to improve their quality of life in the face of urbanization and rising global temperatures. Since 2016, Africa’s market for new split room air conditioners has grown by approximately 5%, annually.

As manufacturing and industrialized economies place increasingly stringent standards on room ACs sold domestically, while allowing continued export of technology that cannot legally be sold in the country of export as a consequence of failure to meet environmental, safety, energy efficiency, or other product standards, importing countries risk becoming dumping grounds for inefficient, environmentally harmful products using obsolete refrigerants. Weak or non-existent energy performance standards and the lack of proactive anti-environmental dumping policies in many African countries have facilitated environmentally harmful dumping of inefficient, high-global warming potential cooling products into African markets.

“Environmentally Harmful Dumping of Inefficient and Obsolete Air Conditioners in Africa” details the extent of the problem across ten countries in North, West, East, and Southern Africa, ultimately providing policymakers with a set of solutions to encourage a transition toward highly-efficient, sustainable cooling technologies. CLASP researched and wrote the report in collaboration with the Institute for Governance & Sustainable Development (IGSD).

Find the full report, annexes, and executive summary in English and French, above.

On July 1, 2020, CLASP and IGSD hosted the “Environmentally Harmful Dumping of Inefficient and Obsolete Air Conditioners in Africa” webinar to discuss the findings of the report. Watch a recording of the webinar.

Room air conditioners (RAC) now account for up to 50% of off-grid peak load in major metropolitan areas of India. The growing RAC market in India corresponds to a rapid increase in commercial and residential electricity demand, but this expanded access to cooling also benefits human health, productivity and general quality of life. Cooling has become more important as India urbanizes, grows economically and experiences increasingly extreme weather conditions. It is therefore essential to regulate the performance of these products, as energy efficiency policy mitigates the risk that inefficient, environmentally harmful and poor quality RACs saturate the market.

India’s Bureau of Energy Efficiency (BEE) launched the labeling program for fixed-speed room air conditioners in 2006 with periodic revisions that substantially improved efficiency by 35%. Currently, the program covers both fixed and inverter units, assessing performance according to an Indian seasonal energy efficiency metric that accounts for temperature variance across different climatic zones. These RAC policies and subsequent revisions have resulted in significant market transformations towards higher efficiency products. In the last decade, annual sales of RACs in India have grown exponentially and avoided 38 million tons of carbon emissions per 2016-17 estimates. This paper analyses and discusses the trends in market growth, technology evolution and market transformation as a result of BEE’s policy program. The paper further explores possible efficiency improvements by 2030 and their climate impacts.

The AC market in India is largely dominated by room air conditioners (RAC), which comprised approximately 40% of total cooling energy consumption in 2017-2018. Though RAC penetration in households in India is currently only 8%, rising incomes, urbanization and increasing temperatures are expected to raise RAC ownership to 40% in 2037-38. While access to cooling remains an important issue, such an increase in ownership would correspond to a significant increase in power and peak load demand and greenhouse gas (GHG) emissions. It is therefore crucial to present efficiency policies that accurately improve the environmental performance of RACs to safeguard access while reducing environmental impact.

Energy efficiency policies for appliances are one of the most cost-effective methods to reduce electricity consumption and greenhouse gas emissions. India’s Bureau of Energy Efficiency (BEE) initiated a labeling program for RACs in 2006, and periodically revised the program to establish performance levels and increase efficiency in accordance with the Indian Seasonal Energy Efficiency Ratio (ISEER)—which accounts for temperature variance across the various climatic zones in India. In order to determine these performance levels, BEE tests RACs at standard-rated conditions. However, under actual operating conditions, the RAC is exposed to several adverse climatic conditions such as polluted ambient and saline conditions around coastal areas which can impact energy performance.

There is little information or data available in the public domain that explores how exposure to numerous environmental conditions impacts the efficiency of a RAC. This paper details a preliminary study on the short-term impact of salinity, dust, and humidity on the energy efficiency of an RAC. After testing a representative sample of products across brand, category and type, findings from a nationally accredited laboratory indicate that none of the conditions, individually or combined, had any significant effect on energy performance. This paper presents an overview of the methodology employed and discusses key findings, presenting options for future research in assessing the impact of external environmental conditions.

The demand for comfort cooling is growing in Sub-Saharan Africa as a result of increasing energy access, economic growth, and higher temperatures due to climate change. In Kenya, the room air conditioner (RAC) market has grown to an estimated 24,000 – 43,000 units annually. Currently, most RAC units are sold to commercial entities like office buildings and hotels as opposed to residential consumers. Fixed speed, single split RACs dominate the Kenyan market, with 64% market share, while inverter RACs make up the rest of the market. With respect to refrigerants, 27% of RACs still use the hydrochlorofluorocarbon (HCFC) R-22 as a refrigerant, but most RACs are using the hydrofluorocarbons (HFCs) R-410A (69%) and R-32 (4%). The energy efficiency levels of RACs in the Kenyan market are relatively low; however, the minimum energy performance standards (MEPS) and labelling categories for RACs were recently reviewed, and the Kenya Bureau of Standards increased the MEPS to an energy efficiency ratio (EER) of 3.1 W/W to promote a significant market transformation towards higher efficiency products. RAC units with much higher efficiency are currently available in the international market at comparable prices, and new MEPS levels would incentivize importers to introduce more efficient RAC units to the Kenyan market.

Kenya Room Air Conditioner Market Assessment and Policy Options Analysis provides the technical evidence to support the revision of Kenya’s MEPS for RACs.

CLASP, in collaboration with RenCon Associates, a local partner, conducted a comprehensive characterization of the RAC market in Kenya. RenCon collected product data for 103 models from 15 distributors/dealers and retail stores in four cities – Nairobi, Mombasa, Kisumu and Eldoret. To complement the field data, they conducted in-person interviews with supply chain actors and reviewed secondary literature to gather data on the energy sector, RAC market size, sales, and usage. CLASP analyzed the data and estimated potential energy savings and avoided emissions at the national level, and lifecycle cost savings for end-users under three MEPS scenarios: business-as-usual MEPS, the increased MEPS proposed by the Kenya Bureau of Standards, and MEPS set 20% above the proposed MEPS to represent the potential best available technology on the market.

The report assesses the key characteristics of the room AC market in Kenya, the Kenyan power sector, and the legal and regulatory framework for implementing energy efficiency policies. CLASP uses current market conditions and market forecasts to model the impacts of multiple policy revision scenarios and provide policy recommendations.

Kenya Room Air Conditioner Market Assessment and Policy Options Analysis is funded by the Kigali Cooling Efficiency Program (K-CEP). As a grantee of K-CEP, CLASP supports activities to raise efficiency standards, improve testing efforts, provide training and other capacity building activities targeted to local needs, and implement national market transformation initiatives in Kenya. K-CEP is a philanthropic initiative to support the Kigali Amendment of the Montreal Protocol by focusing on the energy efficiency of cooling to increase and accelerate the climate and development benefits of phasing down HFCs.

Want to learn more about this report? On July 18, 2019 CLASP hosted the Air Conditioner Markets & Energy Efficiency Policy Opportunities webinar. CLASP, K-CEP, and our partners discussed the findings of the Room Air Conditioner Market Assessment and Policy Options Analysis reports for Kenya, the Philippines, Thailand, and Vietnam. Additionally, the World Bank presented on their cooling technology transfer program in Southeast Asia. Watch a recording of the webinar.

Thailand is the world’s second largest manufacturer of room air conditioners (ACs), supplying 22% of world AC exports and 91% of the models sold domestically in the Thai market. The room AC market in Thailand has evolved rapidly over the last six years. Since 2013, the market share of inverter units has more than doubled, and AC manufacturers have transitioned away from R-22, a high global warming potential, ozone-depleting substance, to R-410A and R-32, which together account for 96% of available models. Thailand’s energy efficiency policies for ACs have been very successful – the vast majority of models on the market are labeled with the voluntary EGAT No. 5 label, and consumers cite energy efficiency as a critical factor when making purchasing decisions. However, the minimum energy performance standard (MEPS) for ACs and the EGAT No. 5 labeling schedule are in need of revision to better support Thailand’s transition to high-efficiency cooling technologies.

Thailand Room Air Conditioner Market Assessment and Policy Options Analysis provides the technical evidence to support revision of Thailand’s MEPS and labeling for ACs. Revising the MEPS and EGAT No. 5 label could reduce energy consumption from ACs by approximately 18% in 2030 and accelerate a market transformation to high-efficiency ACs.

CLASP, in collaboration with a local partner, Niwat Phansilpakom, conducted a comprehensive characterization of the room air conditioner market in Thailand and analyzed impacts from various policy scenarios. Niwat Phansilpakom collected product-level data during in-person visits to retail stores, conducted a review of government reports, and conducted interviews with relevant stakeholders. CLASP analyzed the data and estimated the potential energy savings and avoided emissions at the national level, and lifecycle cost savings for consumers from under three MEPS and labeling policy scenarios:

• Business-as-usual under current MEPS and labels
• A policy scenario where MEPS are increased by 20%, the EGAT No. 5 label is increased by 20% over the current level five criteria, and both policies are extended to apply to all units under 60,000 Btu/hr
• A market transition to the best available technology

The report assesses the key characteristics of the room AC market in Thailand, the Thai power sector, and the legal and regulatory framework for implementing energy efficiency policies. CLASP uses current market conditions and market forecasts to model the impacts of multiple policy scenarios and provide policy recommendations.

Thailand Room Air Conditioner Market Assessment and Policy Options Analysis is funded by the Kigali Cooling Efficiency Program (K-CEP). As a grantee of K-CEP, CLASP supports activities to raise efficiency standards, improve testing efforts, provide training and other capacity building activities targeted to local needs, and implement national market transformation initiatives in Southeast Asia. K-CEP is a philanthropic initiative to support the Kigali Amendment of the Montreal Protocol by focusing on the energy efficiency of cooling to increase and accelerate the climate and development benefits of phasing down HFCs.

Want to learn more about this report? On July 18, 2019 CLASP hosted the Air Conditioner Markets & Energy Efficiency Policy Opportunities webinar. CLASP, K-CEP, and our partners discussed the findings of the Room Air Conditioner Market Assessment and Policy Options Analysis reports for Thailand, the Philippines, Vietnam, and Kenya. Additionally, the World Bank presented on their cooling technology transfer program in Southeast Asia. Watch a recording of the webinar.

The room air conditioner (AC) market in Vietnam is experiencing a rapid shift towards more efficient air conditioners thanks in part to the introduction of a seasonal performance metric in 2015. However, as cooling related energy demand continues to grow and Vietnam scales up coal-fired power generation, there is need for more ambitious minimum energy performance standards (MEPS) for ACs. The best available technology is more than twice as efficient as the worst available AC on the market, and most ACs boast cooling seasonal performance factors (CSPF) far above the MEPS. 76% of models now meet the requirements to be labeled in the 4-5 star range. Vietnam’s room AC market is primed for a revision of the MEPS and star rating system.

Vietnam Room Air Conditioner Market Assessment and Policy Options Analysis provides the technical evidence to support a revision of Vietnam’s MEPS and energy labeling ratings for ACs.

CLASP, in collaboration with the Ecology and Environment Institute (EEI), conducted a comprehensive characterization of the room air conditioner market in Vietnam and analyzed impacts from various policy scenarios. EEI collected product data for 1,773 air conditioners sold across 20 retail stores and conducted interviews with relevant stakeholders. CLASP analyzed the data and estimated potential energy savings and avoided emissions at the national level, and lifecycle cost savings for consumers, under three MEPS policy scenarios: business-as-usual MEPS, a 20% increase in MEPS, and MEPS set according to the best available technology on the market.

The report assesses the key characteristics of the room AC market in Vietnam, the Vietnamese power sector, and the legal and regulatory framework for implementing energy efficiency policies. CLASP uses current market conditions and market forecasts to model the impacts of multiple policy scenarios and provide policy recommendations.

Vietnam Room Air Conditioner Market Assessment and Policy Options Analysis is funded by the Kigali Cooling Efficiency Program (K-CEP). As a grantee of K-CEP, CLASP supports activities to raise efficiency standards, improve testing efforts, provide training and other capacity building activities targeted to local needs, and implement national market transformation initiatives in Southeast Asia. K-CEP is a philanthropic initiative to support the Kigali Amendment of the Montreal Protocol by focusing on the energy efficiency of cooling to increase and accelerate the climate and development benefits of phasing down HFCs.

Want to learn more about this report? On July 18, 2019 CLASP hosted the Air Conditioner Markets & Energy Efficiency Policy Opportunities webinar. CLASP, K-CEP, and our partners discussed the findings of the Room Air Conditioner Market Assessment and Policy Options Analysis reports for Vietnam, the Philippines, Thailand, and Kenya. Additionally, the World Bank presented on their cooling technology transfer program in Southeast Asia. Watch a recording of the webinar.

Increasing the market share of inverter air conditioners is a key step towards improving the efficiency of residential cooling. Inverter air conditioners typically use 20% less energy than fixed speed air conditioners by operating at part load instead of turning on and off. However, the efficiency benefits from inverters are often not captured in energy efficiency standards and labeling programs because the metric used reflects only performance at full load.

In addition, economies that have implemented standards based on performance metrics that do capture the gains from inverters have often implemented these standards for inverter air conditioners only while continuing to rate fixed speed units under a different metric. Such policies prevent a fair, technology-neutral comparison between all types of air conditioners.

This paper examines the transition to a single test metric for room air conditioners and the resulting market transformation in India and Southeast Asia. In India, the convergence to a single metric and energy efficiency requirement for room air conditioners has accompanied an increase of inverter technologies from 5% in 2014 to about 30% in 2018.

In Vietnam, the introduction of a performance metric that captures the benefits from part load performance coincided with a near doubling of the penetration of inverter air conditioners in the market from 34% in 2013 to 65% in 2018. These case studies focus on the technical and institutional hurdles when shifting to a single test metric, and the impact on the room air conditioners market from the convergence of efficiency requirements. The lessons from these cases studies provide valuable insights for policymakers seeking to promote high efficiency cooling products in their markets.

This paper was originally published in the eceee 2019 Summer Study proceedings: Is efficient sufficient?

Energy labeling is a critical component of effective appliance energy efficiency policy. While minimum energy performance standards (MEPS) remove the least-efficient products from the market, energy labels drive product markets to higher efficiency by:

• Allowing consumers to make informed purchasing decisions by differentiating high efficiency products from average and low efficiency products;
• Incentivizing the production of more efficient products by helping manufactures market their high efficiency products, as labels provide unbiased evidence that products are more efficient; and
• Providing the foundation for market transformation programs by allowing policymakers to easily identify high efficiency products to target for bulk purchasing, financing, and incentives.

In Brazil, the efficiency levels of air conditioners (ACs) on the market have been noticeably shaped by two labels: the comparative label from the Brazilian Labeling Program and the Selo PROCEL endorsement label. Assessment of Brazil’s Labeling Program for Air Conditioners presents an in-depth analysis of the two labeling programs for ACs in Brazil. Building from the analysis, the report further identifies opportunities to advance energy efficiency in Brazil by integrating international best practices in appliance and product labeling programs. Best practices are drawn from case studies from the European Union, India, China, Vietnam and Thailand.

The Brazilian Labeling Program and Selo PROCEL are well placed to move the Brazilian AC market to high efficiency products; they are well-understood and recognized by consumers and they clearly influence AC manufacturers’ product design. Increasing the stringency of both labels’ requirements will realize this potential and meaningfully improve the efficiency of ACs sold in Brazil.

The report is available in English and Portuguese.