Energy Efficiency Standards and Retrofits

Regulatory Support includes evaluation of market dynamics, regulatory costs and benefits, development of technical standards and stakeholder engagement.

Minimum Energy Performance Standards
Building Codes
ISO 50001 and Industry Subsector Energy Consumption Targets

Equipment Performance Standards

Minimum Energy Performance Standards

Energy efficiency regulations for equipment generally take the form of minimum energy performance standards (or MEPS). MEPS “raise the floor” of efficiency by prohibiting the manufacture or sale of products failing to meet a minimum level of performance according to technical specifications.

This is also known as a market push mechanism. Technical analysis supporting MEPS identifies the most fruitful options for regulation and helps ensure that the MEPS are sufficiently stringent to significantly increase the average efficiency of products available on the market.

In a new program or one that includes a range of possible equipment for regulation, a prioritization study is conducted in order to reveal the largest opportunities. The main criteria for prioritization are usually total energy savings and financial benefits, although commercial and political considerations are also taken into account. The technical analysis may include a market survey to assess key players, the size of the market and prevailing trends for product types, features, baseline energy efficiency levels and retail prices, which is then refined for a specific policy target once identified.

The second main component of analysis consists of detailed cost-benefit and impact analyses that compares the likely increase in consumer retail prices for equipment against long-term financial benefits across a range of target efficiency levels. The results of this analysis help determine the parameters of the final regulation and build credibility among stakeholders. Finally, development of a scheme for monitoring the post-regulation market facilitates analysis of its impact and supports programming integrity.

Energy Efficiency Labels

Labels help inform consumers on high efficiency products and help pull the market towards those products. Comparative labels are usually mandatory and In order to be effective, energy efficiency labels rely on many of the same technical underpinnings of MEPS programs, such as clear technical specifications defining performance and robust analysis of priorities, program performance and long-term impacts.

Brazilian Categorical (left) and Endorsement (right) Labels

Technical Assistance Toolkit

Mandatory energy efficiency regulations for equipment can have a big impact if done well. Technical assistance components such as the following help ensure that regulation is done right:

Prioritization study

Bottom-up analysis of potential energy savings for multiple appliances simultaneously in order to reveal the largest opportunities for a new program or one that includes a range of possible equipment for regulation. The main criteria for prioritization are usually total energy savings and financial benefits, although commercial and political considerations are also taken into account. The Bottom-Up Energy Analysis System (BUENAS) is a multi-appliance energy demand model with several efficiency policy scenarios. This tool can be used to model multiple types of residential, commercial and industrial equipment at the same time, allowing for comparison among efficiency policy scenarios according to energy savings by product and sector.

Data Collection

Database of appliance models sold on the local market which allows for baseline assessment, cost-benefit analysis and monitoring the post-regulation market, facilitating the analysis of its impact and supporting the regulatory program integrity. The International Database of Efficiency Appliances (IDEA) is a unique data resource for energy efficiency market analysis and policy development. It combines a sophisticated data framework with a suite of software tools for web crawling and data integration that allows data to be collected automatically and combined from various different retail sources, manufacturer websites, and government certification databases.

Market Assessment

Survey determining the availability, performance, and source of equipment currently on the market, as well as usage patterns in homes and businesses. The comprehensive data collection process includes existing sources (such as IDEA, market reports, household surveys, government databases, etc) and the development and dissemination of detailed questionnaires, outreach to manufacturers, retailers, and other key stakeholders. The market and technology research also covers the product efficiency, prices and potential for efficiency improvements found in the domestic market, which require retail store visits and online research.

Analysis of Financial Costs and Benefits

Calculation of the cost-effectiveness of investment in technologies required by regulations or programs for individual energy consumers. This analysis examines costs and benefits from the perspective of the individual household or commercial/industry user. The calculation from the consumer perspective is referred to as the Life-Cycle Cost calculation. The relationship between cost and savings is based on a rigorous engineering analysis which determines engineering changes that are needed to reach higher efficiency levels and efficiency improvement options that can be implemented at lowest cost.

National Energy, Economic, and Environmental Impacts

Calculation of scaled-up energy savings, greenhouse gas mitigation, and net present value of financial costs and savings over time. Policymakers consider not only financial impacts on individual users but the magnitude of efficiency impacts on the nation as a whole, which is where the sales and stock of the regulated product are taken into account. The National Impacts Analysis (NIA) projects the total national costs and benefits including both financial benefits, energy savings and environmental benefits. The national perspective calculations are referred to as the National Energy Savings, National CO₂ Emissions Reductions and the Net Present Value calculations.

Manufacturer Impacts

Calculation of investment costs to transition manufacturing lines and increased revenues at various efficiency level. The analysis evaluates how a market transformation program can impact local manufacturers in terms of investments, production costs per unit, and revenues resulting from changes in manufacturer selling prices. This analysis can support the design of bulk procurement, incentive programs, etc.

Utility Impacts Analysis