Study and Assessment of Electric Fan - UNEP Study

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

IIEC
International Institute for Energy Conservation

STUDY AND ASSESSMENT OF


ELECTRIC FAN MARKETS IN
SOUTH AND SOUTHEAST ASIA

Prepared for

UNITED NATIONS ENVIRONMENT PROGRAMME


UN Building, 2nd Floor, Rajdamnem Nok Avenue,
Bangkok 10200, THAILAND

By

International Institute for Energy Conservation - Asia


12th Floor, United Business Center II Building, 591, Sukhumvit Road Wattana,
Bangkok 10110, THAILAND

April 2014

Proprietary Data subject to Provisions contained in the Title Page of this Proposal

April 2012 1
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

C ONTENTS
1 EXECUTIVE SUMMARY ................................................................................. 1
2 INTRODUCTION ......................................................................................... 8
3 OVERVIEW OF ELECTRIC FAN MARKETS IN SOUTH AND SOUTHEAST ASIA .............. 9
3.1 Supply Side ............................................................................................... 14
3.2 Demand Side ............................................................................................. 14
4 MARKET CHARACTERISTICS ....................................................................... 17
4.1 Indonesia .................................................................................................. 17
4.2 India......................................................................................................... 17
4.3 Lao PDR .................................................................................................... 18
4.4 Malaysia .................................................................................................... 18
4.5 Pakistan .................................................................................................... 18
4.6 Philippines................................................................................................. 19
4.7 Thailand.................................................................................................... 19
4.8 Viet Nam ................................................................................................... 20
5 IMPORT AND EXPORT OF ELECTRIC FANS ...................................................... 21
6 POTENTIAL TECHNOLOGICAL IMPROVEMENTS FOR ELECTRIC FANS ..................... 22
6.1 Introduction .............................................................................................. 22
6.2 Motors ...................................................................................................... 23
6.3 Blades ...................................................................................................... 24
6.4 Others ...................................................................................................... 24
6.5 Barriers/Challenges .................................................................................... 24
7 ASSESSMENT OF ENERGY AND CO2 SAVINGS OF ENERGY EFFICIENT ELECTRIC FANS26
7.1 Scenarios .................................................................................................. 26
7.2 Summary of Baseline Data and Assumptions ................................................ 26
7.3 Calculation of Baseline ............................................................................... 29
7.4 Assessment of Energy and CO2 Savings ....................................................... 32
8 CONCLUSION .......................................................................................... 49
8.1 Ceiling Fans............................................................................................... 49
8.2 Table/Floor/Wall Fans ................................................................................ 49
9 BIBLIOGRAPHY ....................................................................................... 50
ANNEX I - PROFILE OF POWER INDUSTRIES IN SOUTH ASIA AND SOUTHEAST ASIA ............. 51
10 OVERVIEW OF ENERGY PROFILE ................................................................. 52
11 COUNTRY PROFILES ................................................................................. 54
11.1 Bangladesh ............................................................................................... 54
11.2 Brunei Darussalam ..................................................................................... 59

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

11.3 Cambodia.................................................................................................. 64
11.4 India......................................................................................................... 70
11.5 Indonesia .................................................................................................. 77
11.6 Lao People’s Democratic Republic ............................................................... 82
11.7 Malaysia .................................................................................................... 86
11.8 Myanmar................................................................................................... 91
11.9 Pakistan .................................................................................................... 95
11.10 Philippines............................................................................................... 101
11.11 Singapore ............................................................................................... 108
11.12 Sri Lanka................................................................................................. 113
11.13 Thailand.................................................................................................. 118
11.14 Viet Nam ................................................................................................. 124
11.15 Bibliography per County ........................................................................... 130
12 OVERVIEW OF STANDARDS AND REGULATORY FRAMEWORK FOR ELECTRIC FANS 137
12.1 Status in South Asia and Southeast Asia .................................................... 137
12.2 International Standards for Electric Fans .................................................... 143
12.3 Opportunities for Improvement in Standards and Regulatory Framework for
Electric Fans in South Asia and Southeast Asia .......................................................... 147
13 COUNTRY PROFILES ............................................................................... 148
13.1 Bangladesh ............................................................................................. 148
13.2 Brunei Darussalam ................................................................................... 151
13.3 Cambodia................................................................................................ 152
13.4 India....................................................................................................... 154
13.5 Indonesia ................................................................................................ 157
13.6 Lao People’s Democratic Republic ............................................................. 160
13.7 Malaysia .................................................................................................. 162
13.8 Myanmar................................................................................................. 165
13.9 Pakistan .................................................................................................. 166
13.10 Philippines............................................................................................... 168
13.11 Singapore ............................................................................................... 170
13.12 Sri Lanka................................................................................................. 172
13.13 Thailand.................................................................................................. 175
13.14 Viet Nam ................................................................................................. 181
13.15 Bibliography per County ........................................................................... 184
14 ANNEX III – SURVEY OF ELECTRIC FAN MARKET IN SOUTH ASIA AND SOUTHEAST
ASIA .......................................................................................................... 188
14.1 Survey Findings ....................................................................................... 188
14.2 Survey Participants .................................................................................. 195

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

15 ANNEX IV - SURVEY QUESTIONNAIRE ........................................................ 196


16 ANNEX V - SRI LANKA ENERGY EFFICIENCY RATING FOR ELECTRIC CEILING FANS
WITH REGULATORS – DETERMINATION OF PERFORMANCE GRADING ............................... 204

17 ANNEX VI - TYPES OF ELECTRIC FANS FOR THE RESIDENTIAL SECTOR .............. 207
18 ANNEX VII – COMPUTATION OF ELECTRIC FAN OWNERSHIP IN RESIDENTIAL
HOUSEHOLDS ...................................................................................................... 210

April 2014 iii


Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

L IST OF F IGURES
Figure 3-1: Electric Fan Market Sizes in South and Southeast Asia Countries ............................................ 15
Figure 3-2: Projection of Annual Electric Fan Market Size in South Asia from 2015 to 2030 ........................ 16
Figure 3-3: Projection of Annual Electric Fan Market Size in Southeast Asia from 2015 to 2030 .................. 16
Figure 4-1: Electric Fan Ownership in Electrified Households in Lao PDR (IIEC, 2010) ............................... 18
Figure 5-1: Export and Import flows of Electric Fans in South Asia and Southeast Asia
(average annual monetary values from 2008 – 2012) .......................................................... 21
Figure 6-1: Energy Efficiency Improvement Options for Ceiling Fans ........................................................ 22
Figure 7-1: Baseline Electricity Consumption by Electric Fans in South Asia (SA) and Southeast Asia (SEA)
from 2015 to 2030 ............................................................................................................ 30
Figure 7-2: Baseline Electricity Consumption by Electric Fans in South Asia by Country (2015 – 2030) ........ 31
Figure 7-3: Baseline Electricity Consumption by Electric Fans in Southeast Asia by Country (2015 – 2030) .. 31
Figure 7-4: Baseline CO2 Emission by Electric Fans in South Asia and Southeast Asia by Country (2015 –
2030) .............................................................................................................................. 32
Figure 7-5: Projected Electricity Consumption of BLDC & Efficient Blade Ceiling Fans and Electricity Savings
by Region (2015-2030) ..................................................................................................... 33
Figure 7-6: Projected Electricity Consumption of Improved AC Induction Motor & Efficient Blade Ceiling
Fans and Electricity Savings by Region (2015-2030) ............................................................ 35
Figure 7-7: Projected Electricity Consumption of Highest Energy Label Rating Ceiling Fans and Electricity
Savings by Region (2015-2030) ......................................................................................... 37
Figure 7-8: Projected Electricity Consumption of Switching to Ceiling Fans with Similar Air Flow in
Southeast Asia (2015-2030) – 25% Market Penetration ....................................................... 39
Figure 7-9: Projected Electricity Consumption of Switching to Ceiling Fans with Similar Air Flow in
Southeast Asia (2015-2030) – 50% Market Penetration ....................................................... 40
Figure 7-10: Projected Electricity Consumption of Switching to Ceiling Fans with Similar Air Flow in
Southeast Asia (2015-2030) – 75% Market Penetration ....................................................... 41
Figure 7-11: Projected Electricity Consumption of Best Available Technology for Table/Floor/Wall Fans
(2015-2030) ..................................................................................................................... 43
Figure 7-12: Projected Electricity Consumption of Table/Floor/Wall Fans with Highest Energy Label Rating
for each Country and Electricity Savings by Region (2015-2030) ........................................... 45
Figure 7-13: Projected Electricity Consumption of Harmonized Highest Energy Label Rating for
Table/Floor/Wall Fans and Electricity Savings by Region (2015-2030) .................................... 47
Figure 10-1: Map of Southeast Asian (blue) and South Asia (green) countries covered under this Study and
Assessment ...................................................................................................................... 52
Figure 11-1: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in Bangladesh (ADB,
2013) .............................................................................................................................. 54
Figure 11-2: Key Energy Policy Stakeholders in Bangladesh (Power Cell, 2013) ........................................ 56
Figure 11-3: Electricity Consumption by Sector in Bangladesh (2010 – 2011 Financial Year) (MPEMR, 2011)57
Figure 11-4: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in Brunei Darussalam
(ADB, 2013b) ................................................................................................................... 59
Figure 11-5: Hierarchical Map of Brunei Darussalam’s Ministry of Energy (EDPMO, 2013) ......................... 61
Figure 11-6: Electricity Consumption per Sector in Brunei Darussalam (2008) (AIPA, 2009) ....................... 62
Figure 11-7: Share of Electricity Generation Mix under Business as Usual Scenario (APEC, 2013) ............... 63
Figure 11-8: Electricity Generation, Installed Capacity and Gross Domestic Product from 2002 to 2012 in
Cambodia (ADB, 2013; EAC, 2013)..................................................................................... 64
Figure 11-9: Electricity Generation according to fuel source in Cambodia (2012) (EAC, 2013) .................... 67
Figure 11-10: Electricity Installed Capacity according to fuel source in Cambodia (2012) (EAC, 2013) ......... 67

April 2014 iv
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 11-11: Projected Energy Demand in Cambodia from 2009 to 2035 under Business as Usual (BAU),
Alternative Policy Scenario (APS) & New Energy Efficiency Policy (MIME, 2013) ..................... 68
Figure 11-12: Electricity Generation and Gross Domestic Product from 2005 to 2011 in India (ADB, 2013).. 70
Figure 11-13: Mapping for the Key Energy Stakeholders in India (adapted from IEA, 2012) ....................... 72
Figure 11-14: Electricity consumption per sector in India (2010-2011) (CEA, 2011)................................... 73
Figure 11-15: Residential electricity consumption share per electrical appliance in India (PWC, 2012)......... 74
Figure 11-16: Electricity Generation and Gross Domestic Product from 2002 to 2012 in Indonesia (ADB,
2013; PLN, 2012) ............................................................................................................. 77
Figure 11-17: Comparative Energy Label Scheme in Indonesia ................................................................ 78
Figure 11-18: Electricity Generation according to fuel type in Indonesia (2011) (MEMR, 2012)................... 80
Figure 11-19: Electricity Sales according to sector in Indonesia (2012) (PLN, 2012) .................................. 80
Figure 11-20: Energy Generation and Gross Domestic Product from 2002 to 2012 in Lao PDR (ADB, 2013b)82
Figure 11-21: Organizational Structure of the Ministry of Energy and Mines in Lao PDR............................. 83
Figure 11-22: Electricity Installed Capacity from 2003 to 2011 in Lao PDR (EDL, 2012) ............................. 84
Figure 11-23: Electricity Consumption per sector in Lao PDR (2012) (EDL, 2012) ...................................... 84
Figure 11-24: Energy Consumption and Gross Domestic Product from 2002 to 2012 in Malaysia (ADB,
2013) .............................................................................................................................. 86
Figure 11-25: Comparative Energy Label in Malaysia (UNEP, 2011) ......................................................... 87
Figure 11-26: Electricity Generation according to fuel type (2009) (APEC, 2011) ....................................... 88
Figure 11-27: Final Electricity Consumption per Sector in Malaysia (2011) (MEIH, 2013) ........................... 89
Figure 11-28: Share of Electricity Generation Mix under Business as Usual Scenario in Malaysia (APEC,
2013) .............................................................................................................................. 90
Figure 11-29: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in Myanmar (ADB,
2013) .............................................................................................................................. 91
Figure 11-30: Organizational Structure of the Ministry of Energy in Myanmar ........................................... 92
Figure 11-31: Electricity Installed Capacity according to fuel source in Myanmar (2011) (ADB, 2012) ......... 93
Figure 11-32: Electricity Consumption per sector in Myanmar (2011) (ADB, 2012) .................................... 94
Figure 11-33: Electricity Consumption, Electricity Generation and Gross Domestic Product from 2002 to
2012 in Pakistan (ADB, 2013) ............................................................................................ 95
Figure 11-34: Electricity Consumption per Sector in Pakistan (2011-12) (NEPRA, 2012a) ........................... 98
Figure 11-35: Residential Electricity Consumption according to electrical appliances in Pakistan (2008)
(SAARC, 2009) ................................................................................................................. 99
Figure 11-36: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in the Philippines
(ADB, 2013b) ................................................................................................................. 101
Figure 11-37: Structure of the Department of Energy (DOE, 2012) ........................................................ 102
Figure 11-38: Installed capacity according to fuel source in the Philippines (2011) (DOE, 2012) ............... 104
Figure 11-39: Electricity Generation according to fuel source in the Philippines (2011) (DOE, 2012) ......... 104
Figure 11-40: Electricity generation according to sector in the Philippines (2008) (APEC, 2012) ............... 105
Figure 11-41: Future Share of Electricity Generation according to fuel source in the Philippines by 2030
(DOE, 2012) ................................................................................................................... 106
Figure 11-42: Share of Electricity Generation Mix under Business as Usual Scenario in the Philippines by
2035 (APEC, 2013) ......................................................................................................... 106
Figure 11-43: Energy Intensity Index for Singapore since 1990 (NEA, 2013) .......................................... 110
Figure 11-44: Electricity Generation according to fuel source in Singapore (2012) (EMA, 2013) ................ 110
Figure 11-45: Share of Electricity Generation Mix under Business as Usual Scenario in Singapore by 2035
(APEC, 2013).................................................................................................................. 111

April 2014 v
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 11-46: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in Sri Lanka (ADB,
2013) ............................................................................................................................ 113
Figure 11-47: Energy Label for Compact Fluorescent Lamps in Sri Lanka................................................ 114
Figure 11-48: Electricity Consumption per Sector in Sri Lanka (2011) (SLSEA, 2011) ............................... 116
Figure 11-49: Energy Consumption, Electricity Demand and Gross Domestic Product from 2002 to 2011 in
Thailand (EPPO, 2012) .................................................................................................... 118
Figure 11-50: Electric Fan with Label No.5 in Thailand (IIEC, 2013) ....................................................... 119
Figure 11-51: Organizational Structure of the Ministry of Energy in Thailand .......................................... 120
Figure 11-52: Electricity Generation according to fuel type in Thailand (2011) (EPPO, 2012).................... 121
Figure 11-53: Electricity Consumption according to sector in Thailand (2011) (EPPO, 2012) .................... 121
Figure 11-54: Electricity Consumption according to sector in Thailand from 2002 to 2011 (EPPO, 2012) ... 122
Figure 11-55: Energy Production and Gross Domestic Product from 2002 to 2011 in Viet Nam (ADB, 2013)124
Figure 11-56: Electricity Generation by Fuel in Viet Nam from 1971 to 2010 (IEA, 2012) ......................... 126
Figure 11-57: Electricity Consumption according to sector in Viet Nam (2010) (ADB, 2012) ..................... 127
Figure 11-58: Household Electricity Consumption according to appliance based on household survey
conducted in Viet Nam (DCCEE, 2012).............................................................................. 127
Figure 11-59: Projected Share of Electricity Installed Capacity by fuel type by 2030 in Viet Nam (GoV,
2011) ............................................................................................................................ 129
Figure 11-60: Projected Share of Electricity Generation by fuel type by 2030 in Viet Nam (GoV, 2011) ..... 129
Figure 12-1: Summary of Standards and Regulatory Framework for Electric Fans in South Asia and
Southeast Asia................................................................................................................ 139
Figure 12-2: Energy Efficiency Ratios for MEPS for Ceiling Fans in South Asia and Southeast Asia ............ 142
Figure 12-3: Energy Efficiency Ratios for MEPS for Table/Pedestal/Wall Fans in South Asia and Southeast
Asia ............................................................................................................................... 142
Figure 12-4: Testing of Electric Fan Blade Protection using standard test finger (left) and impact test device
(right) (IIEC, 2014) ......................................................................................................... 144
Figure 12-5: Check for clearance and creepage distances (IIEC, 2014) .................................................. 144
Figure 12-6: Check for presence of thermal cut-out (fuse) (IIEC, 2014) ................................................. 144
Figure 12-7: Testing speed of pedestal fan using anemometer .............................................................. 145
Figure 12-8: Testing speed of table fan using anemometer ................................................................... 146
Figure 12-9: Test Chamber for Ceiling Fans ......................................................................................... 146
Figure 13-1: Proposed Energy Rating Label for Electric Fans in Bangladesh (BRESL, 2012) ...................... 149
Figure 13-2: Example of BIS Safety Standard Mark (BIS, 2013) ............................................................. 155
Figure 13-3: Voluntary Energy Label for Ceiling Fans in India (USAID, 2010) .......................................... 155
Figure 13-4: Examples of Testing Facilities for Ceiling Fans in India (CPRI, 2014) ................................... 156
Figure 13-5: Comparative Energy Label Scheme in Indonesia (BRESL, 2013a; 2013b) ............................. 158
Figure 13-6: Endorsement Label for Electric Fans in Malaysia (CLASP, 2014) .......................................... 163
Figure 13-7: Comparative Energy Label for Electric Fans in Malaysia (UNEP, 2011) ................................. 163
Figure 13-8: Marking for Safety and Performance Standards in Pakistan (PSQCA, 2014) .......................... 166
Figure 13-9: Testing facility for Electric Fans in Pakistan (UNIDO, 2012) ................................................ 167
Figure 13-10: Current (left) and Proposed (right) Informative Energy Label for Refrigerators and Freezers
in the Philippines (DOE, 2014) ......................................................................................... 168
Figure 13-11: Comparative Energy Label in Singapore – not applicable to fans (EMA, 2014) .................... 170
Figure 13-12: Proposed Star Label for Ceiling Fans in Sri Lanka (SLSI, 2011).......................................... 173
Figure 13-13: Public Awareness Campaign for Energy Conservation (SLSEA, 2013) ................................. 174

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 13-14: Voluntary and Mandatory Certification Mark for MEPS – not available for electric fans in
Thailand (DEDE, 2014) .................................................................................................... 176
Figure 13-15: Example of EGAT’s Label No.5 for Electric Fan in Thailand (EGAT, 2014) ........................... 177
Figure 13-16: Energy Efficiency Label Process for EGAT’s Label No.5 in Thailand (EGAT, 2014) ............... 177
Figure 13-17: Television Advertisement on EGAT’s Label No.5 (EGAT, 2014) .......................................... 178
Figure 13-18: DEDE’s High Efficiency Endorsement Label in Thailand - currently not applicable to electric
fans (DEDE, 2014) .......................................................................................................... 179
Figure 13-19: Thai Green Label Scheme (TEI, 2014) ............................................................................ 179
Figure 13-20: Testing of Electric Fans in Thailand (BRESL, 2012) .......................................................... 180
Figure 13-21: Comparative Energy Label with Star Rating in Viet Nam (VNEEP, 2014) ............................. 182
Figure 13-22: Testing of Electric Fans in Viet Nam (BRESL, 2012) ......................................................... 183
Figure 14-1: What types of electric fans are manufactured/supplied by your company? ........................... 188
Figure 14-2: What types of electric fans are manufactured/supplied by your company? – Weighted Average
based on Annual Production ............................................................................................ 188
Figure 14-3: Ranking of best-selling and lowest selling electric fan types ............................................... 189
Figure 14-4: Ranking of best-selling and lowest selling electric fan types - Weighted Average based on
Annual Production .......................................................................................................... 189
Figure 14-5: How do you distribute your electric fans to residential customers? ...................................... 190
Figure 14-6: How do you distribute your electric fans to residential customers? - Weighted Average based
on Annual Production ...................................................................................................... 190
Figure 14-7: How many electric fans does your company produce annually? .......................................... 191
Figure 14-8: What is the average expected lifetime (in years) for your electric fans? ............................... 192
Figure 14-9: What is the average expected lifetime (in years) for your electric fans? - Weighted Average
based on Annual Production ............................................................................................ 192
Figure 14-10: What is your view on the market barriers for energy efficient electric fans in your country? 193
Figure 14-11: What is your view on the future/key trends for electric fans that will impact your customer's
satisfaction? ................................................................................................................... 193
Figure 14-12: Which of these do you see as potential improvement on electric fan efficiency within your
company in the near future? ............................................................................................ 194
Figure 14-13: How do you rate your company's capability to design and manufacture of energy efficient
electric fans? .................................................................................................................. 194

April 2014 vii


Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

L IST OF T ABLES
Table 3-1: Summary of Electric Fan Markets in South Asia and Southeast Asia ......................................... 11
Table 3-2: Summary of Characteristics of Large Electric Fan Markets in South and Southeast Asia ............. 13
Table 3-3: Summary of Key Fan Manufacturers in South Asia and Southeast Asia ..................................... 14
Table 3-4: Estimated Electric Fan Market Sizes in South Asia and Southeast Asia ...................................... 15
Table 4-1: Key Fan Manufacturers in Thailand ....................................................................................... 19
Table 6-1: General Characteristics of Single Phase Induction Motors for Electric Fans (IEE, 1998) ...... 23
Table 6-2: Motor Efficiency for 75W motor types in the United States (LBNL, 2012) .................................. 24
Table 7-1: Stock of Electric Fans by Country calculated by the Bottom-Up Model in PAMS1 ........................ 26
Table 7-2: Estimated Annual Market Size (Sales) and Market Share of Electric Fan Type by Country ........... 27
Table 7-3: Lowest Minimum Energy Performance Standards (MEPS) and Highest Energy Efficiency Ratio
under a National Energy Labeling Scheme according to Country and Electric Fan Type ........... 28
Table 7-4: Average CO2 emissions per kWh from electricity generation for 2008 – 2010 according to
country (IEA, 2012) .......................................................................................................... 28
Table 7-5: Annual Unit Electricity Consumption for Electric Fans in South and Southeast Asia .................... 29
Table 7-6: Scenarios for Energy Efficient Electric Fans ............................................................................ 32
Table 7-7: Annual and Cumulative Electricity Savings Projections of BLDC & Efficient Blade Ceiling Fans
from 2020 to 2030 ............................................................................................................ 33
Table 7-8: Annual and Cumulative CO2 Emission Reduction Projections of BLDC & Efficient Blade Ceiling
Fans from 2020 to 2030 .................................................................................................... 34
Table 7-9: Annual and Cumulative Electricity Savings Projections of Improved AC Induction Motor &
Efficient Blade Ceiling Fans from 2020 to 2030 .................................................................... 35
Table 7-10: Annual and Cumulative CO2 Emission Reduction Projections of Improved AC Induction Motor &
Efficient Blade Ceiling Fans from 2020 to 2030 .................................................................... 36
Table 7-11: Annual and Cumulative Electricity Savings Projections of Highest Energy Rating for Each
Country from 2020 to 2030 ............................................................................................... 37
Table 7-12: Annual and Cumulative CO2 Emission Reduction Projections of Highest Energy Rating for Each
Country from 2020 to 2030 ............................................................................................... 38
Table 7-13: Annual and Cumulative Electricity Savings Projections of Switching to Ceiling Fans with Similar
Air Flow in Southeast Asia from 2020 to 2030 - 25% Market Penetration ............................... 39
Table 7-14: Annual and Cumulative CO2 Emission Reduction Projections of Switching to Ceiling Fans with
Similar Air Flow in Southeast Asia from 2020 to 2030 – 25% Market Penetration .................... 39
Table 7-15: Annual and Cumulative Electricity Savings Projections of Switching to Ceiling Fans with Similar
Air Flow in Southeast Asia from 2020 to 2030 - 50% Market Penetration ............................... 40
Table 7-16: Annual and Cumulative CO2 Emission Reduction Projections of Switching to Ceiling Fans with
Similar Air Flow in Southeast Asia from 2020 to 2030 – 50% Market Penetration .................... 41
Table 7-17: Annual and Cumulative Electricity Savings Projections of Switching to Ceiling Fans with Similar
Air Flow in Southeast Asia from 2020 to 2030 - 75% Market Penetration ............................... 42
Table 7-18: Annual and Cumulative CO2 Emission Reduction Projections of Switching to Ceiling Fans with
Similar Air Flow in Southeast Asia from 2020 to 2030 – 75% Market Penetration .................... 42
Table 7-19: Annual and Cumulative Electricity Savings Projections of Best Available Technology for
Table/Floor/Wall Fans from 2020 to 2030 ........................................................................... 43
Table 7-20: Annual and Cumulative CO2 Emission Reduction Projections of Best Available Technology for
Table/Floor/Wall Fans from 2020 to 2030 ........................................................................... 44
Table 7-21: Annual and Cumulative Electricity Savings Projections - Table/Floor/Wall Fans with Highest
Energy Label Rating for each Country from 2020 to 2030 ..................................................... 45
Table 7-22: Annual and Cumulative CO2 Emission Reduction Projections - Table/Floor/Wall Fans with
Highest Energy Label Rating for each Country from 2020 to 2030 ......................................... 46

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 7-23: Annual and Cumulative Electricity Savings Projections - Harmonized Highest Energy Label
Rating for Table/Floor/Wall Fans from 2020 to 2030 ............................................................ 47
Table 7-24: Annual and Cumulative CO2 Emission Reduction Projections - Harmonized Highest Energy
Label Rating for Table/Floor/Wall Fans from 2020 to 2030 ................................................... 48
Table 10-1: Key Energy Indicators per Country in Southeast Asia and South Asia (2010/2011/2012) .......... 53
Table 11-1: Key Energy Indicators from 2008 to 2012 in Bangladesh (ADB, 2013) .................................... 54
Table 11-2: Installed Generation Capacity in Bangladesh from 2010 to 2011 (MOF, 2011) ......................... 56
Table 11-3: Electricity Generation from 2002 to 2010 in Bangladesh (BPDB, 2011) ................................... 57
Table 11-4: Distribution and Transmission Losses from 2007 to 2013 (Power Cell, 2013)........................... 58
Table 11-5: Proposed Power Generation Plan (2012 – 2016) for Bangladesh (BPDB, 2011)........................ 58
Table 11-6: Key Energy Indicators from 2008 to 2012 in Brunei Darussalam (DEPD, 2011; ADB, 2013) ...... 59
Table 11-7: Key Energy Indicators from 2008 to 2012 in Cambodia (ADB, 2013; EAC, 2013) ..................... 64
Table 11-8: Electricity Generation and Installed Capacity in Cambodia from 2004 to 2012 (EAC, 2013) ....... 66
Table 11-9: Future Installed Capacity and Electricity Generation from 2008 to 2020 in Cambodia (EDC,
2007) .............................................................................................................................. 68
Table 11-10: Key Energy Indicators from 2008 to 2011 in India (ADB, 2013) ........................................... 70
Table 11-11: Peak demand supply shortage in India (GW) (CEA, 2011) ................................................... 73
Table 11-12: Estimated Energy Consumption and Potential Energy Savings across selected sectors in India
in 2007-08 (thousand GWh) (NPC, 2009) ............................................................................ 74
Table 11-13: Electricity Demand Forecast during the 12th Five Year Plan in India (PCI, 2012) .................... 75
Table 11-14: Planned Additional Capacity during 12th Five Year Plan according to the Power Development
Plan in India (PCI, 2012) ................................................................................................... 75
Table 11-15: Key Energy Indicators from 2008 to 2012 in Indonesia (ADB, 2013; PLN, 2012) .................... 77
Table 11-16: Key Energy Indicators from 2008 to 2012 in Lao PDR (ADB, 2013b) ..................................... 82
Table 11-17: Summary of Added Capacity during 2012 – 2020 per area according to the PDP 2010-2020 in
Lao PDR (EDL, 2010) ........................................................................................................ 85
Table 11-18: Key Energy Indicators from 2008 to 2012 in Malaysia (ADB, 2013)....................................... 86
Table 11-19: Key Energy Indicators from 2008 to 2012 in Myanmar (ADB, 2012; 2013). ........................... 91
Table 11-20: Key Energy Indicators from 2008 to 2012 in Pakistan (ADB, 2013). ...................................... 95
Table 11-21: Potential Energy Efficiency and Energy Conservation Savings in Pakistan according to sector
(Enercon, 2013) ............................................................................................................... 96
Table 11-22: Installed Capacity by Technology from 2008 to 2012 in Pakistan (NEPRA, 2012a) ................. 98
Table 11-23: Electricity Consumed by Electrical Appliances in the Residential Sector in Pakistan in 2008 and
forecast for 2019 (SAARC, 2009) ........................................................................................ 99
Table 11-24: Key Energy Indicators from 2008 to 2012 in the Philippines (ADB, 2013b). ......................... 101
Table 11-25: Household Electrification in the Philippines (2011) ............................................................ 105
Table 11-26 - : Key Energy Indicators from 2008 to 2012 in Singapore (ADB, 2013) ............................... 108
Table 11-27: Key Energy Indicators from 2008 to 2012 in Sri Lanka (ADB, 2013). .................................. 113
Table 11-28: Total Installed Capacity from 2010 to 2011 in Sri Lanka (SLSEA, 2011) .............................. 115
Table 11-29: Total Electricity Generation from 2010 to 2011 in Sri Lanka (SLSEA, 2011) ......................... 115
Table 11-30: Electricity Demand Forecast for Sri Lanka from 2010 – 2030 (CEB, 2010) ........................... 117
Table 11-31: Key Energy Indicators from 2008 to 2012 in Thailand (EPPO, 2012) ................................... 118
Table 11-32: Projected new installed capacity during 2012-2019 according to PDP 2012-2030 (EPPO, 2013)123
Table 11-33: Projected new installed capacity during 2020-2030 according to PDP 2012-2030 (EPPO, 2013)123
Table 11-34: Summary of Total Capacity, Added Capacity and Re tired Capacity during 2012 – 2030
according to PDP 2012-2030 (EPPO, 2013) ....................................................................... 123

April 2014 ix
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 11-35: Key Energy Indicators from 2008 to 2011 in Viet Nam (ADB, 2013).................................... 124
Table 11-36: Electricity Capacity, Generation and Investment Projections from 2011 to 2030 in Viet Nam
(ADB, 2012; GoV, 2011) .................................................................................................. 128
Table 12-1: Summary of National Agencies responsible for Standards and Regulatory Framework for
Electric Fans in South Asia and Southeast Asia .................................................................. 137
Table 12-2: Summary of Standards and Regulatory Framework for Electric Fans in South Asia and
Southeast Asia................................................................................................................ 138
Table 12-3: Summary of Energy Efficiency Ratios for Electric Fans under MEPS and Labeling Programs in
South Asia and Southeast Asia ......................................................................................... 141
Table 13-1: Proposed MEPS for Table Fans in Bangladesh (Choudhury, 2014; BRESL, 2012) ................... 148
Table 13-2: Proposed MEPS for Ceiling Fans in Bangladesh (Choudhury, 2014; BRESL, 2012) .................. 148
Table 13-3: Proposed Energy Efficiency Ratios according to Star Rating for Electric Fans in Bangladesh
(Choudhury, 2014) ......................................................................................................... 149
Table 13-4: List of Electrical Appliances under the Mandatory/Voluntary Comparative Labeling Program
(BEE, 2014) ................................................................................................................... 154
Table 13-5: Performance Standards for the Electric fans in India (BIS, 2014) ......................................... 155
Table 13-6: Energy Efficiency Ratios according to Star Rating for Ceilings Fans in India (BEE, 2014)155
Table 13-7: List of NABL Accredited Test Laboratories for Ceiling Fans in India (BIS, 2013) ..................... 156
Table 13-8: Draft Energy Efficiency Ratios for Table and Pedestal Fans under the Energy Label Scheme in
Indonesia (BRESL, 2013a; 2013b) .................................................................................... 158
Table 13-9: Safety Standards for Electric Fans in Malaysia (DSM, 2014; EC, 2014) .................................. 162
Table 13-10: MEPS of Electric Fans in Malaysia (EC, 2014).................................................................... 162
Table 13-11: Energy Efficiency Ratio according to Electric Fan Type and Star Rating in Malaysia (EC, 2014)164
Table 13-12: Proposed MEPS for Ceiling Fans (1,400 mm) in Pakistan (ENERCON, 2013) ........................ 166
Table 13-13: Performance Grading for Ceiling Fans in Sri Lanka (SLSI, 2011) ......................................... 173
Table 13-14: Draft Voluntary MEPS for Electric Fans in Thailand (BRESL, 2013) ...................................... 175
Table 13-15: Energy Efficiency Criteria for Electric Fans under EGAT’s Label No.5 in Thailand (EGAT, 2014)177
Table 13-16: Number of labels issued by EGAT according to electric fan type from 2009 to 2013 (EGAT,
2014) ............................................................................................................................ 178
Table 13-17: MEPS for Electric Fans in Viet Nam (BRESL, 2012; VNEEP, 2014) ....................................... 181
Table 13-18: Energy Efficiency Index per Star Rating for Electric Fans (BRESL, 2014; VNEEP, 2014) ........ 182
Table 14-1: List of Electric Fan Manufacturers/Suppliers Surveyed according to Country .......................... 195
Table 18-1: Diffusion Parameters for Fans ........................................................................................... 210

April 2014 x
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

1 E XECUTIVE S UMMARY
This report was conducted by the International Institute for Energy Conservation (IIEC) with the aim of
understanding the electric fan markets for residential applications in South Asia1 and Southeast Asia2.
This included the review of the energy sector and electric fan market characteristics as well as available
standards and other regulatory mechanisms in each country, current technology performance and best
available technologies, and subsequently determining the potential electricity and CO2 emission savings
under different scenarios for both ceiling fans and table/floor/wall fans.

Energy Sector Overview – Heavy dependence on fossil fuels and growing demand for
electricity

Overall, despite the regions diversity, all countries share a common issue: heavy dependence on fossil
fuels to meet growing energy demand and fuel their fast economic growth. Many countries in these two
regions are rich in natural resources but struggle to find an adequate energy mix to limit their exposure
to global fossil fuel prices and their high dependence on neighbouring countries for energy resources.

Southeast Asia has a mix of countries with adequate electricity supply and others which struggle to
provide affordable electricity to its population and are subject to regular power outages or load shedding
such as Myanmar. While all South Asian countries covered under this study struggle to meet electricity
demand for all sectors and still have a large percentage of their population without proper electricity
access. The Table below provides key energy indicators per country for South Asia and Southeast Asia.
Table 1 - Key Energy Indicators per Country in Southeast Asia and South Asia
Residential
Transmission
Country Electricity Electricity Sector Share
& Electrification
Population Installed Generation of Generation/
Distribution Rates*
Capacity* Capacity* Consumption
Losses*
(%)*
Unit Million GW GWh % % %
Bangladesh 152.5 6.2 31,355 48 14 49
Brunei 0.4 0.9 3,792 48 10 99
Cambodia 14.8 0.6 3,527 - 10 - 40 34
India 1,198.0 205.0 755,847 24 27 75
Indonesia 247.2 30.0 200,328 41 10 73
Lao PDR 6.5 1.6 2,399 40 12 82
Malaysia 29.3 24.3 124,976 21 10 99
Myanmar 61.0 3.4 6,312 42 27 26
Pakistan 180.7 23.5 98,664 45 23 55
Philippines 95.8 16.1 69,050 27 12 70
Singapore 5.3 11.6 46,936 16 5 100
Sri Lanka 20.3 3.1 11,627 40 11 91
Thailand 67.6 31.4 162,343 22 7 99
Viet Nam 87.8 26.2 101,499 39 10 97
TOTAL 2,167 384 1,659,089 - - -
* Data from 2010/2011/2012 depending on country

Energy Efficiency Policy Overview – India, Thailand and Singapore lead the way

In terms of energy policies, particularly those focusing on energy efficiency, it is clear that India,
Thailand and Singapore are leaders in energy efficiency policy development and implementation as
shown by the number of extensive support mechanisms for energy efficiency and conservation in all

1
Bangladesh, India, Pakistan and Sri Lanka
2
Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand & Viet Nam

April 2014 1
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

sectors. To certain extent Indonesia, Malaysia, Philippines and Viet Nam are slowly but surely progressing
in the same direction. Majority of the barriers and challenges in the implementation of energy efficiency
in the residential sector are related to lack of government capacity and/or funding to carry out or enforce
the regulatory framework and targets established. There is a clear need to take standards and labeling
for electrical appliances one step further and in some countries to consider mandatory enforcement or
extend it to other appliances. Positively, majority of the government’s recognise standards and labeling
as a key policy to deliver energy efficiency to households.

Standards & Regulatory Framework – No clear front-runners, enforcement required

There are no clear front runners in standards and labeling (S&L) for electric fans in South Asia and
Southeast Asia. There is a clear opportunity to harmonize common performance standards and energy
labels for electric fans, particularly in ASEAN member countries2, and support new comers in quickly
developing similar S&L programs for electrical appliances including electric fans.

Thailand, Malaysia, India and Viet Nam have implemented S&L programs covering electric fans. However,
only Viet Nam has a mandatory comparative energy label for electric fans since 2013, while the
remaining three countries have voluntary energy labeling schemes with no indication of when these
would become mandatory. New comers in implementing S&L programs for electric fans are Bangladesh,
Indonesia, Pakistan and Sri Lanka, which all have MEPS and a regulatory framework for electric fans
ready to be approved/enacted by the respective governments. The energy label for electric fans is
available, on a voluntary basis, in Bangladesh, Pakistan and Sri Lanka for manufacturers/importers of
electric fans wanting to participate. Even though the Philippines was one of the first countries in
Southeast Asia to implement a S&L program, it still does not cover electric fans. The Philippine
Department of Energy is considering the introduction of MEPS and an energy label for electric fans in
2016. In Singapore, there is a recent S&L program in place but no indication if it will be extended to
electric fans. Brunei Darussalam has a voluntary S&L program covering only air conditioners and is
currently working to enhance the program but electric fans will not be included. Cambodia, Lao People’s
Democratic Republic (Lao PDR) and Myanmar have no S&L program for electrical appliances and, based
on S&L experience in Asia, it is unlikely such a program will be established and implemented before 2020
in each of these countries.

Figure 1 - Summary of Standards and Regulatory Framework for Electric Fans in South Asia
and Southeast Asia

April 2014 2
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Electric Fan Markets – Annual electric fan market size estimated at 80 to 100 million units

The current total annual market size for electric fans in the residential sector in South and Southeast Asia
is estimated at around 80 to 100 million electric fans, of which 55 to 65 million units in South Asian
countries and 25 to 35 million units in Southeast Asian countries. Based on the current average
number of electric fans per households, electrification rates and economic data in both regions, the total
annual market size for electric fans is projected to reach 110, 120 and 130 million units in 2020,
2025 and 2030, respectively.

The electric fan markets are primarily constituted by replacement purchases by existing households and
new purchases by new households. India is by far the largest market for electric fans in South Asia and
Southeast Asia with an estimated annual market size of around 40 to 50 million units. The second largest
markets for electric fans are Indonesia, Pakistan, Viet Nam, Bangladesh and Thailand with an estimated
annual market size of approximately 9.0 to 14.0 million, 6.0 to 8.0 million, 5.0 to 7.5 million, 5.0 to 6.0
million units and 4.0 to 5.0 million units, respectively. The annual market size projections, from 2015 to
2030, are highlighted in the figures below for South Asia and Southeast Asia. In Southeast Asia, market
saturation of electric fans is expected after 2025 (40 million units per year) due to expected higher
electrification rates and slower growth of urbanization.

Figure 2 - Projection of Annual Electric Fan Market Size per Country in South Asia and
Southeast Asia from 2015 to 2030

In terms of import and export flows of electric fans in the region (Figure 3), based on average annual
monetary value from 2008 to 2012, East Asia exports a significant amount of electric fans to South Asia
and Southeast Asia. Southeast Asia also exports a considerable amount of electric fans to East Asia, while
the exports from South Asia to East Asia are very low. South Asia mainly exports to other regions beyond
East Asia and Southeast Asia. The trading between Southeast Asia and South Asia is relatively low
compared import/export to other regions.

April 2014 3
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 3 – Import and Export flows of Electric Fans in South Asia and Southeast Asia
(average annual monetary values from 2008 – 2012)

Survey of Electric Fan Manufacturers – Energy Efficiency not main priority

Under this study, 30 major manufacturers/suppliers of electric fans were surveyed in the region. They
expressed their views and shared information on the types of electric fans manufactured, distribution
process, familiarity with international and national safety and performance standards, expected lifetime
of their products, average number of electric fans per household in each country, market barriers,
customer perceptions, potential and capability for improvements of energy efficiency of different electric
fans components. Some of the key findings from the survey are mentioned below:
 27% manufacturers have an annual production below 200,000 units and 33% have an annual
production above 1 million units;
 Motors, capacitors, timers, steel sheets and switches mainly sourced from the People’s Republic of
China;
 Majority of electric fan manufacturers claim an expected lifetime between 4 to 10 years;
 Majority stated that the major barrier was by far the lack of government support to encourage
investment in production and design of energy efficient electric fans;
 Majority stated that modern design and low cost are major critical factors for customer satisfaction
and decision making when purchasing an electric fan, much less so than energy efficiency;
 Majority stated there are substantial opportunities to improve efficiency of electric fans through
energy efficiency electric motors and efficient blade designs.

Potential Energy and CO2 Emission Savings – Best Commercially Available Technologies
Deliver Significantly Higher Savings than Enforcement of Existing S&L Schemes in the
Region

The baseline electricity consumption from electric fans was determined prior to determining the potential
electricity and CO2 emissions savings as shown in Figure 4. Overall, ceiling fans in South Asia and
table/floor/wall fans in Southeast Asia constitute the majority of electricity consumed by electric fans
annually. It is estimated that the current stock of electric fans in both regions will consume about 25

April 2014 4
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

TWh in 2015, equivalent to the annual electricity generation of approximately 8 x 500 MW coal-fired
power plants1, and is likely to reach 37 TWh in 2030, equivalent to the annual electricity generation of
approximately 12 x 500 MW coal-fired power plants, if no extra efforts are made towards energy efficient
electric fans in both regions.

Figure 4 - Baseline Electricity Consumption by Electric Fans in South Asia (SA) and Southeast
Asia (SEA) from 2015 to 2030

Following the determination of the baseline, seven energy efficiency scenarios with different energy
efficiency ratios were established according to two electric fan types as shown in Table 2. The scenarios
and assumptions are further detailed in the main report and covered enforcement of S&L schemes as
well as efficiency improvements in motors and blades using commercially available technology. Motors
are an essential component of electric fans. Typically, fans have always utilized Alternating Current (AC)
induction motors as these motors are relatively durable, easy to manufacture and have reached
economies of scale and respective low manufacturing costs. However, AC induction motors are relatively
inefficient compared with Direct Current (DC) motors and AC Synchronous motors. Based on existing
research, Improved AC Induction motors can represent a significant improvement in efficiency against
existing AC induction motors, approximately 25% to 30% more efficient. Brushless DC motors are almost
twice as efficient as AC induction motors because there is no friction loss associated with the mechanical
commutation.
Table 2 - Scenarios for Energy Efficient Electric Fans
Type of Electric Energy Efficiency Scenario Energy Efficiency Ratio
Fan m3/min/W
Ceiling Fan Brushless DC Motor + Efficient Blades 7.2
Improved AC Induction Motor + Efficient Blades 5
Highest energy label rating for each country 3.0 to 4.0
Table/Floor/Wall Switching to Ceiling Fan with Similar Air Flow
1.8
(Southeast Asia only)
Best Available Technology 1.7
Highest energy label rating for each country 0.9 to 1.2

1
Assuming a coal-fired plant with 500 MW installed capacity with a 70% capacity factor and excluding transmission and distribution
losses. The capacity of 500 MW was selected as it is the average capacity of existing coal fired power plants in the United States.

April 2014 5
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Harmonized highest energy label rating 1.2

A summary of the electricity savings achieved under each scenario are summarized in the Table below.

Table 3 – Summary of Potential Electricity Savings according to Scenario


Number of
Cumulative South Asia Southeast
Avoided
Type of Energy % Savings Share of Share of
Energy Efficiency 500 MW
Electric Savings by from Cumulative Cumulative
Scenario Coal Fired
Fan 2030 Baseline Savings Savings
Power
(TWh) (%) (%)
Plants
Brushless DC Motor +
57 19 35% 91% 9%
Ceiling Fan

Efficient Blades
Improved AC Induction
38 12 23% 93% 7%
Motor + Efficient Blades
Highest energy label
21 7 13% 93% 7%
rating for each country
Switching to Ceiling Fan
with Similar Air Flow – 11 3.5 7% - 100%
25% Market Penetration
Switching to Ceiling Fan
Table/Floor/ Wall

with Similar Air Flow – 28 9 18% - 100%


50% Market Penetration
Switching to Ceiling Fan
with Similar Air Flow – 40 13 26% - 100%
75% Market Penetration
Best Available
73 24 35% 24% 76%
Technology
Highest energy label
40 13 19% 20% 80%
rating for each country
Harmonized highest
51 19 25% 18% 82%
energy label rating

For ceiling fans, 23% to 35% cumulative energy and CO2 emission savings against the
baseline can be achieved by opting for the best commercially available technologies. Only
about 13% cumulative energy and CO2 savings are obtained by enforcing the current S&L
schemes in each country. Enforcing the best S&L scheme in the region would provide cumulative energy
and CO2 emission savings similar to the lower range of the best commercially available technology. This
indicates a need to enforce more ambitious S&L schemes to enable significant market transformation,
particularly for South Asia where ceiling fans are predominant in the market.

For table/floor/wall fans, substantial energy and CO2 emission savings can be achieved by harmonizing
mandatory S&L schemes, particularly in the ASEAN economic region. Compliance and enforcement of
the current S&L schemes in each country could provide of 19% cumulative energy and CO2
savings compared to the baseline. However, opting for a mandatory S&L scheme with the highest
energy efficiency rating in the region would provide additional savings - 25% cumulative energy
and CO2 savings.

As Southeast Asia represents 63% of the estimated annual market size for table/floor/wall fans, there
should be additional effort from governments to adopt more ambitious mandatory S&L schemes to
enable a significant market transformation, particularly in Malaysia, Philippines and Thailand, where S&L
schemes have been in place for more than 10 years. In addition, as Southeast Asian countries adopt new
S&L schemes it is important focus on higher energy efficiencies in electric fans in line with the best
commercially available technology. For example, in Indonesia, the MEPS and energy label values
proposed could be higher and aligned with those of Thailand and Malaysia, especially as Indonesia is
major manufacturing hub for electric fans and is the largest electric fan market in Southeast Asia.

The use of the best commercially available technologies for table/floor/walls fans could provide 35%
cumulative energy and CO2 savings showing that there is still room for enhancing the existing S&L

April 2014 6
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

schemes in the region. The market replacement of energy efficient table/floor/wall fans with energy
efficient ceiling fans under different market penetrations for Southeast Asia alone would represent 7%
to 26% cumulative energy and CO2 savings against the baseline. The results show that although
the market transformation from table/floor/wall fans to ceiling fans in Southeast Asia would be beneficial,
it would be at best equivalent to a harmonized highest energy efficiency rating scheme in the Southeast
Asia. However, the savings would be well below the use of best available technologies for
table/floor/walls fans in Southeast Asia as a substantial market transformation would have to take place
to achieve similar savings (above 75% market penetration of ceilings fans per year).

April 2014 7
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

2 I NTRODUCTION
The main objective of the study and assessment of electric fan markets in South and Southeast Asia is to
understand the market characteristics, available standards and other regulatory mechanisms that would
impact the consumption of electricity from electric fans for domestic (residential) applications.

The study and assessment covers all the member countries of the Association of Southeast Asian Nations
(ASEAN) - Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines,
Singapore, Thailand and Viet Nam - and specific countries in South Asia - Bangladesh, India, Pakistan
and Sri Lanka.

It is envisaged that the market study and assessment report will enable the United Nations Environment
Programme (UNEP) and policy makers in each targeted country to understand overall energy saving
potentials and available mechanisms to realize these energy savings through the introduction of more
energy efficient electric fans.

The study and assessment aims to cover both national and regional perspectives. Basic information on
market characteristics, standards and regulatory mechanisms would include but not limited to supply
characteristics (domestic manufacturing, and import/export statistics), demand characteristics (general
product types and categories, domestic consumption trends), product standards and performance (safety
and energy efficiency performance), domestic testing capabilities, and relevant regulatory frameworks.
The market study and assessment also demonstrates the potential electricity and CO2 emission savings
as a result of higher penetration of energy efficient electric fans in each country and in the regions.

Overall, the study and assessment comprised of four individual reports which are included in this report:

 Task 1 Report - Conduct review and prepare profile of power industries (Annex I)

 Task 2 Report - Conduct survey, study and analysis of electric fan markets (this report & Annex
III)

 Task 3 Report - Conduct review of standards and regulatory frameworks for electric fans (Annex
II)

 Task 4 Report - Conduct review and assessment of potential energy savings (this report)

April 2014 8
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

3 O VERVIEW OF E LECTRIC F AN M ARKETS IN


S OUTH AND S OUTHEAST A SIA
The current total annual market size for electric fans in the residential sector in South and
Southeast Asia is estimated at around 80 to 100 million electric fans, of which 55 to 65
million units in South Asian1 countries and 25 to 35 million units in Southeast Asian2
countries. Based on the current average number of electric fans per households,
electrification rates and economic data in both regions, the total annual market potential3
for electric fans could reach 120 million units per year in 2025.

The electric fan markets are primarily constituted by replacement purchases by existing households and
new purchases by new households. India is by far the largest market for electric fans in South Asia and
Southeast Asia with an estimated annual market size of around 40 to 50 million units. The second largest
markets for electric fans are Indonesia, Pakistan, Viet Nam, Bangladesh and Thailand with an estimated
annual market size of approximately 9.0 to 14.0 million, 6.0 to 8.0 million, 5.0 to 7.5 million, 5.0 to 6.-
million units and 4.0 to 5.0 million units, respectively. However, Pakistan is increasingly investing on
becoming a major manufacturing hub for electric fans and in-country demand for electric fans is high,
consequently, the annual market size is likely to rise significantly in the near future. Summary of electric
fan markets in South and Southeast Asia is shown in Table 3-1.

In terms of annual production and imports-exports of electric fans, the available data compiled indicates
that India, Indonesia, Viet Nam and Thailand are the largest manufacturing hubs for electric fans in the
region, both for domestic and export markets. India’s electric fan annual production is likely to be almost
equivalent to the combined annual production of Indonesia, Viet Nam and Thailand. In terms of types of
electric fans, the majority of consumer demand in South Asia is for ceiling type fans, while in Southeast
Asia, the majority of the demand is for table/desk and pedestal/stand/floor type fans, except for
Malaysia, where ceiling type fans are more popular. Key characteristics of major electric fan markets in
South and Southeast Asia are summarized in Table 3-2.

In addition to the data gathered and described above, the manufacturers/suppliers of electric fans
surveyed also expressed their views and shared information on the types of electric fans manufactured,
distribution process, familiarity with international and national safety and performance standards,
expected lifetime of their products, average number of electric fans per household in each country,
market barriers, customer perceptions, potential and capability for improvements of energy efficiency of
different electric fans components. The following points illustrated some of the key relevant findings:
 30 manufacturers/suppliers surveyed
 70% manufacture all four main types of fans – Table, Pedestal, Wall and Ceiling Fans;
 Majority consider pedestal and desk type fans as their best-selling appliances (with exception for
India and Pakistan where ceiling type fans are their flagship models);
 61% sell electric fans through dealerships and distributors (using weighted average);
 27% have an annual production below 200,000 units and 33% above 1 million units;
 Only 3 companies manufacture all the components required to assemble an electric fan (all from
Viet Nam);

1
Bangladesh, India, Pakistan and Sri Lanka
2
Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand & Viet Nam
3
Estimated using the Bottom-Up Model approach, see more details in Table 3-1 and Annex VII

April 2014 9
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

 Motors, capacitors, timers, steel sheets and switches are generally sourced outside the country of
manufacturer (mainly from the People’s Republic of China);
 77% stated the international and/or national safety standards applicable and 60% knew the
national/international performance standards applicable;
 81% have testing facilities for electric fans of which 60% are accredited;
 Majority of electric fan manufacturers claim an expected lifetime between 4 to 10 years. Based on
weighted average the expected lifetime for electric fans is between 5 to 7 years for all electric
fans except ceilings fans for which manufacturers claim slightly longer lifetimes of 5 to 10 years.
 Majority stated that the major barrier was by far the lack of government support to encourage
investment in production and design of energy efficient electric fans;
 Majority stated that modern design and low cost are major critical factors for customer satisfaction
and decision making when purchasing an electric fan, much less so than energy efficiency;
 Majority stated there are substantial opportunities to improve efficiency of electric fans through
energy efficiency electric motors and efficient blade designs. However, majority have limited
capability to improve the energy efficiency of motors but are capable of addressing blade design
and to lesser extent control system design.

April 2014 10
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 3-1: Summary of Electric Fan Markets in South Asia and Southeast Asia
Estimated Annual Market Size in
Population Annual 2014 (million units)
Country Imports Exports Other Sources
(million) Production1 Bottom-Up Market Surveys &
Modeling2 Secondary Resources
Bangladesh 152.5 - No data No data Average 2.6 ceiling fans and 0.17 stand fans per 6 5
household (CEA, 2009)
Brunei 0.4 - 0.1 million - No data 0.02 0.1
Darussalam (2012)
Cambodia 14.8 No data, majority of electric fans imported 0.66 -
India 1,198.0 22.0 million 4.6 million 0.2 million Annual market demand: 40 million (2011) – 70% 50 40
(5 manuf. replies) (2012) (2012) ceiling, 20% table, pedestal and wall fans, 10%
exhaust fans (PWC, 2011)
Annual fan sales: 35.76 million from the organized
market (70% of the total market) (World Bank, 2012)
90% market penetration in urban areas and 55%
market penetration in rural areas (NSO, 2012)
Indonesia 247.2 6.5 – 10.5 million 0.2 million 1.2 million Annual market demand: 6.40 million (2009) – 48% 13.8 9
(7 manuf. replies) (2011) (2011) pedestal, 29% table, 8% wall, 6% ceiling fans (SAI,
2010)
Annual Production: 4.9 million (2009) (SAI, 2010)
Lao PDR 6.5 - - - Table Fan 12 – 16 inch: Average 1 unit per electrified 0.32 -
household, present in 99.6% of electrified households
and 59.8% of all households (IIEC, 2010)
Pedestal Fan 12 -16 inch: Average 0.5 unit per
electrified household, present in 50.6% of electrified
households and 30.4% of all households (IIEC, 2010)
Ceiling Fan 15 inch: Average 0.3 unit per electrified
household present in 32.3% of electrified households
and 19.4% of all households (IIEC, 2010)
Malaysia 29.3 - 7.1 million 2.8 million Annual market demand: 2.85 million (2009) – 38% 1.7 2.5
(2012) (2012) ceiling, 20% table, 18% pedestal, 16% wall fans
(SAI, 2010)
Annual Production: 2.73 million (2009) (SAI, 2010)
Myanmar 61.0 - - - No data 2.4 -

April 2014 11
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Estimated Annual Market Size in


Population Annual 2014 (million units)
Country Imports Exports Other Sources
(million) Production1 Bottom-Up Market Surveys &
Modeling2 Secondary Resources
Pakistan 180.7 1.0 million 0.6 million 1.7 million Annual market demand: 10 – 12 million (DPRC, 5.9 8
(1 manuf. reply) (2012) (2012) 2011; TDAP, 2011)
Annual Production: 8 - 10 million - 63% ceiling,
30% pedestal and 7% bracket fans (DPRC, 2011;
TDAP, 2011)
Philippines 95.8 1.6 million – 2.2 1.0 million 0.5 million Annual market demand: 2.25 million (2009) – 33% 5.5 2
million (2012) (2012) pedestal, 30% table, 15% wall, 10% ceiling fans
(8 manuf. replies) (SAI, 2010)
Annual Production: 1.30 million (2009) (SAI, 2010)
Singapore 5.3 - 5.9 million 5.2 million - 0.45 0.25
(2012) (2012)
Sri Lanka 20.3 - 1.3 million - - 1 1.2
(2012)
Thailand 67.6 7.8 million – 10.0 0.6 million 1.5 million Annual market demand: 3.45 million (2009) – 43% 3.8 5
million (2011) (2011) table, 24% pedestal, 21% wall, 3% ceiling fans (SAI,
(3 manuf. replies) 2010)
Annual Production: 4.50 million (2009) (SAI, 2010)
Energy Labels: 6.1 million labels issued (2013) –
68% table, 16% wall, 12% floor and 4% orbit fans
(EGAT, 2014)
Viet Nam 87.8 5.4 million – 9.4 1.1 million 0.5 million Annual market demand: 3.80 million (2009) – 33% 4.7 7.5
million (2011) (2011) pedestal, 31% table, 20% wall, 7% ceiling fans (SAI,
(10 manuf. replies) 2010)
Annual Production: 4.5 million (2009) (SAI, 2010)
Market Saturation: 6 units per household (ICA,
2009)
1 – Based on Survey of Electric Fan Manufacturers/Suppliers conducted from November 2013 to March 2014. Not all manufacturers/suppliers surveyed indicated their current annual production so the
number of replies received are indicated in brackets.
2 – Numbers of new purchase and replacement fans are computed based on an empirical relationship observed between appliance ownership and macroeconomic household variables such as population
size, number of households, average number of fans per households, household income, average lifetime of electric fans of 10 years, etc.

April 2014 12
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 3-2: Summary of Characteristics of Large Electric Fan Markets in South and Southeast Asia
Country India Indonesia Philippines Thailand Viet Nam

2014 Estimated
Market Demand
(million units)

Supply of Electric
Fans

Type of Electric Fan

April 2014 13
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

3.1 Supply Side


Based on data compiled from industry interviews and various secondary resources, there are more than
55 major electric fan manufacturers in South and Southeast Asia. If counting all electric fan
manufacturers the number is likely to be well above 600 manufacturers. The leading fan manufacturers
based on manufacturing capacities and annual sale volumes are summarized in the table below.

Table 3-3: Summary of Key Fan Manufacturers in South Asia and Southeast Asia
Country Leading Fan Manufacturers No. of Fan
Manufacturers
South Asia

India Crompton, Usha, Orient, Bajaj, Havells, Khaitan, Polar, 10 Major Manufacturers
Ortem, Anchor

Pakistan General Fan Company, Golden Star, Rafiq Engineering 7-8 Major Manufacturers
(Royal Fans), Noor Fans, Tamoor Fans, Wahid
Industries Limited, Al Ahmad Fans, Tarannum Fans, Approximately 450 fan
Ammar Industries, Breeze Fans manufacturers

Southeast Asia

Indonesia Maspion, Miyako, Tripacific Electrindo, Panasonic 6 Major Manufacturers

Malaysia Kawakita Denki Kigyosha (KDK) Fans, Panasonic, 7 Major Manufacturers


Khind-Mistral, Juan Kuang Electric Fans

Philippines Panasonic, Northern Islands, Asahi Electrical 10 Major Manufacturers


Manufacturing
Approximately 30 fan
manufacturers

Thailand PNC Industrial (OEM), Wanavit Manufacturing (OEM, 6 Major Manufacturers


Hatari), Kan Yong Electric (Mitsubishi), Panasonic
Approximately 25 fan
manufacturers

Viet Nam Thong Nhat Electromechanical, South Fan, Tan Tien 10 Major Manufacturers
Senko, Yen Anh Manufacturing-Trading-Service
Approximately 120 fan
manufacturers

3.2 Demand Side


The total electric fan market demand in South and Southeast Asia is estimated between 80 to 100 million
units per year. The South Asian electric fan market is estimated to be double in size of the Southeast
Asian market, and the annual market demand accounts for about 65% of the total estimation (or around
50 to 65 million units years). The SAI study conducted in 2010 reported an estimated 9% CAGR from
2009 to 2014 for the key electric fan markets in Southeast Asia, including Indonesia, Malaysia,
Philippines, Thailand and Viet Nam. Considering lack of statistical data on large variations on
manufacturers’ responses in terms of market sizes, this study use a bottom-up mathematical model
developed by Lawrence Berkeley National Laboratory (LBNL) to calculate the number of fans per
household in a country at a given point in time, primarily based on an empirical relationship observed
between appliance ownership and macroeconomic household variables such as household income. The

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

model is integrated into the Policy Analysis Modelling System (PAMS) also developed by LBNL. However,
PAMS has only refrigerator, washing machine and air-conditioner data built-in, therefore, electric fan data
was integrated to enable the market size estimations and projections required by this study. Details on
data and parameters modified are given in Annex VII.

The electric fan market sizes based on the bottom-up model and the market interviews are summarized
in Table 3-4 and Figure 3-1 respectively.

Table 3-4: Estimated Electric Fan Market Sizes in South Asia and Southeast Asia
2014 Forecast using the Bottom-Up Model Estimated
Annual Market
Region/Country First Purchase Replacements Total Sales Size in 2014
(million units) (million units) (million units) (million units)
South Asia
Bangladesh 1.798 4.556 6.243 5
India 14.518 38.737 52.080 40
Pakistan 1.647 4.479 5.989 8
Sri Lanka 0.165 0.911 1.057 1.2
South Asia Sub-Total 18.128 48.683 65.369 54.2
Southeast Asia
Brunei Darussalam 0.002 0.014 0.016 0.1
Cambodia 0.244 0.459 0.685
Indonesia 3.158 11.215 14.073 9
Laos 0.112 0.224 0.328
Malaysia 0.466 1.327 1.754 2.5
Myanmar 0.647 1.918 2.508 0.4
Philippines 2.039 3.828 5.715 2
Singapore 0.161 0.319 0.467 0.25
Thailand 0.479 3.369 3.801 5
Viet Nam 0.878 3.901 4.701 7.5
Southeast Asia Sub-Total 8.186 26.574 34.048 26.75
GRAND TOTAL 26.314 75.257 99.417 80.95

Figure 3-1: Electric Fan Market Sizes in South and Southeast Asia Countries

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

In addition to the total market sizes, the bottom-up model is able to estimate demands from new and
replacement purchases, as well as project demand of electric fans over a period of time. According to
the results from the bottom-up model, approximately 25% of electric fan demand in each country is from
new purchases and the 75% balance is from replacement purchases. The shares of replacement
purchases are usually higher than 75% in countries where electrification rates are more than 80%.
Illustrated in Figure 3-2 and Figure 3-3 are projections of the annual electric fan market size according to
demand in South and Southeast Asia respectively. It is projected that the electric fan market demand in
South Asia will continue to rise due to higher electrification rates and affordability of residential
households, and the total demand is expected to reach 90 million units by 2030. As for the Southeast
Asia region, the demand of electric fans is projected to be saturated after 2025 at the level of around 40
million units per year, and this is essentially due to high electrification rates and slower growth of
urbanization. The bottom-up model projects that new purchases in the key electric fan markets in
Southeast Asia (e.g. Indonesia, Thailand and Viet Nam) after 2025 will account for only around 10% to
15% of the total annual sales.

Figure 3-2: Projection of Annual Electric Fan Market Size in South Asia from 2015 to 2030

Figure 3-3: Projection of Annual Electric Fan Market Size in Southeast Asia from 2015 to
2030

With respect to types of electric fans, it is clear from the manufacturer surveys and various secondary
researches that ceiling fans are more popular in the South Asia region, while residential consumers in
Southeast Asia have opted for pedestal/table fans due to their convenience and mobility. SAI study
(2010) estimated that the market share of ceiling fans in each of the key electric fan markets in
Southeast Asia (i.e. Indonesia, Philippines, Thailand and Viet Nam) is less than 10%, except Malaysia in
which the market share of ceiling fans is estimated at about 35%.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

4 M ARKET C HARACTERISTICS
4.1 Indonesia
Indonesia is one of the largest electric fan producers in Southeast Asia, on par with Thailand and Viet
Nam. There are a number of fan manufacturers in Indonesia, and among which the key large
manufacturers include Maspion, market leader with 40% market share, Miyako with 12% and Tripacific
Electrindo (Sekai) with 11% market share. Based on IIEC’s manufacturer surveys, these major
manufacturers produce well above 1 million units per year and the total combined production capacity of
fan manufacturers in Indonesia is estimated between, 6.5 to 10 million units. This is insufficient to meet
growing demand and therefore approximately 25% of fans have to be imported of which 90% are
sourced from the People’s Republic of China (PRC). Components and motors are also mostly imported
from the PRC (>80%) (SAI, 2010).

Approximately 48% of local demand is for pedestal fans, followed by table fans with 29%, wall fans with
8% and ceiling fans with 6% (SAI, 2010). Majority of these are sold through local electric fan
manufacturers sell through dealers/distributors and supermarkets. Due to the expected population and
urbanization growth, electric fan production is expected to increase considerably in the near future to
meet demand. IIEC estimates the annual market size could reach 16 million fans within the next 10
years.

4.2 India
India is the second largest electric fan market in the world after the PRC. The country does not have a
major electric fan market leader by far as there is very low product differentiation between leading
brands and the second hand market is significant in India. The industry varies from large, medium and
small enterprises and electric fan manufacturers are spread across the country but majority are located in
Northern India (35%) followed by West (26%) and South (24%). Due to its large market size, it is one of
the few countries to have a dedicated association (i.e. the Indian Fan Manufacturers Association).

The organized market is dominated by four major manufacturers which have a market share of 75% and
some produce above 4 million fans per year. In 2011, Crompton had an estimated market share of 23%,
followed by Usha with 19%, Orient with 18%, Bajaj with 15% and Havells with 11%. The market has
grown gradually at an average of 18% compound annual growth rate from 2003 to 2010. Recently the
industry has focused on outsourcing of components and there a number of component suppliers such as
Yash, Guru, Lazer Fans, KKG Industries, Kakaranla Industries, and many others. However, the industry
generally comprises of low technology manufacturing process, with poor quality norms (World Bank,
2012).

Based on IIEC’s survey, the annual production of electric fans in India is at least 22 million fans per year
but the estimated annual market size is for 40 million fans. The local fan manufacturers produce all types
of electric fans, which are mainly sold through dealers/distributors and supermarkets, although there are
some manufacturers that have direct sales. According to PWC (2011), 70% of the market is for ceilings
fans, 20% for table, pedestal and wall fans and 10% for exhaust fans. The total stock of installed fans in
2011 is estimated by PWC (2011) at 354 million fans with approximately 51% in urban areas and 49% in
rural areas. The largest ownership of fans is seen in Haryana, Punjab and Gujarat. The current market
production does not meet demand and therefore about 8% of the electric fans are imported from the
PRC, Thailand and Viet Nam. While India also exports to countries such as Nepal, United Arab Emirates,
Bahrain, Ghana, Nigeria and many others (PWC, 2011; World Bank, 2012)..

The growth in real estate, particularly residential buildings, is seen as the major factor contributing to the
growth of the fan market in India.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

4.3 Lao PDR


There is limited information on the electric fan market in Lao PDR, however, the International Institute
for Energy Conservation (IIEC, 2010), conducted a residential appliance survey as part of the Household
Appliance Standards & Labeling Conceptual Program Design. The findings show that table fans are the
most popular type of fan for residential use in Lao PDR with every electrified household holding at least
one. In addition, 51% of electrified households reported having pedestal fans, while ownership of wall
and ceiling fans ranged from 18% to 32% as shown in the Figure below. Based on this survey, fans are
used for about 4 to 5 hours per day and the estimated average wattage of the table and pedestal fans
(12-16 inch) was 55 Watts, while for ceiling fans (16 inch) the estimated average wattage was 60 Watts.

Fan Ownership Rate in Lao PDR

120.0%
99.6%
100.0%
Ownership Rate (%)

80.0%

60.0%
50.6%
40.0% 32.3%
21.1% 24.2%
18.3%
20.0%
2.4%
0.0%
Table 12” - Pedestal 12” Tripod 20” – Wall 16” & Ceiling 16” Ceiling - Ceiling - Big
16” -16” 24” others Small

Figure 4-1: Electric Fan Ownership in Electrified Households in Lao PDR (IIEC, 2010)

4.4 Malaysia
Unlike other Southeast Asian Countries, Malaysia is a major market for ceilings fans with an
approximately 35% market share, followed by table fans with 20%, 18% pedestal and 16% wall fans.
The main reason for this difference is customer and real estate preference for decorative fans combined
with air conditioning for the warmer months. Malaysia is a major hub for import and export of electric
fans in Asia, similarly to Singapore. Approximately 92% of electric fans consumed in Malaysia are
manufactured domestically. In addition, 70% of the electric fan motors are produced locally whilst 30%
are imported mainly from the PRC and Taiwan. In 2009, Kawakita Denki Kigyosha (KDK), Panasonic and
Khind Mistral had more than 80% of the market sales share (SAI, 2010).

IIEC estimates the market size for Malaysia is approximately 2.5 million fans per year and is close to full
saturation. This is due to the high electrification rate and being an upper middle income country.

4.5 Pakistan
Pakistan is a growing hub for electric fan manufacturing with an average 17% annual sales growth rate
since 1999. The contribution of the fan industry to Pakistan’s Gross Domestic Product is approximately
0.27% and it employs directly 35,000 to 40,000 people and indirectly about 90,000 - 140,000.
Approximately 98% of the total fan production and 70% of the 450 fan manufacturers are located in
Gujrat and Gujranwala. In terms of production breakdown by type of electric fan: about 63% of the
production is for ceiling fans, 32% are pedestal fans and 5% bracket fans (DPRC, 2011).

The electric fan industry is included in the light engineering industry category focusing particularly on
production for domestic demand but increasingly dependent on exports (mainly for pedestal fans). The

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

fans are exported to number of countries, especially Bangladesh, Iraq, Yemen, United Arab Emirates,
Sudan and Saudi Arabia. The average capacity of a typical electric fan industry in Pakistan is
approximately 500 fans/days (DPRC, 2011).

Only 1% of the fan electric companies can be categorized as large scale manufacturing industries which
are autonomous and comprise of higher levels of investment and modern technology. Approximately 9-
10% would be classified as medium-sized companies and the remaining 89% would be small industries
which are highly dependent on outsourcing and partnerships with other fan manufacturers. In terms of
the value chain, 80% of the production costs are for materials and parts of which about 50% is imported
(DPRC, 2011). The production of fans is also relatively seasonal as most of the major manufacturers also
produce other components and electrical equipment (TDAP, 2011). There is generally low investment in
technology and R&D with low skilled workforce and lack of knowledge on standardization. Consequently,
the electric fans produced are relatively low quality products at low prices targeting the low-income
household sector (DPRC, 2011).

IIEC estimates Pakistan has an annual market size of 8 million fans and it could potentially grow and
become one of the important fan market in Asia as a result of rising urbanization and economic growth.

4.6 Philippines
Philippines has more than 25 electric fan manufacturers but the largest manufacturers produce well
below their competitors in neighbouring countries (<400,000 units). Based on IIEC’s survey there are at
least 1.6 million to 2.2 million fans produced per year which is insufficient to meet demand and therefore
approximately 40% of electric fans have to be imported, particularly from the PRC, Taiwan and Viet Nam.
Majority of the manufacturers also import components from the PRC and to lesser extent from Viet Nam.

The electric fan market share in the Philippines is relatively fragmented, with no clear market leader.
Standard Appliances, Asahi and Camel represent 30% of the total market sales in 2009. Approximately,
33% of the market consumption is for pedestal fans, followed by table fans with 30%, wall fans with
15% and ceiling fans with 10%. This is due to the ease of handling these type of fans to be used in
different locations. All manufacturers sell their fans either through dealers and distributors and/or
through supermarkets. The demand for electric fans is equally low but likely to grow with urbanization
and rising middle income families.

4.7 Thailand
Almost all electric fans sold in the Thai market are manufactured locally and sold through
dealers/distributors or supermarkets. Based on data compiled by the Office of Industrial Economics
(OIE), Ministry of Industry, Thailand, as well as various industry reports published by local agencies,
there are about 25 domestic manufacturers with the combined production capacity of around 5.5 million
units per year. The manufacturers, shown in Table 4-1, are considered as the key manufacturers
producing their own products and also serve as original equipment manufacturers (OEMs) for other
suppliers. Based on OIE’s statistics, around 20% of electric fans produced in Thailand are for export. The
key export destinations include ASEAN member countries (Cambodia, Lao PDR, Malaysia, Myanmar,
Philippines, Singapore and Viet Nam) as well as India, Sri Lanka and Bangladesh. Although it is clear that
domestic production dominates the electric fan supply in Thailand, imported electric fans, primarily from
the PRC and Japan, also constitute the overall electric fan supply for the country.

Table 4-1: Key Fan Manufacturers in Thailand


Manufacturer Brand

Federal Electric Sharp

Kan Yong Electric (Mitsubishi) Mitsubishi

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Manufacturer Brand

Panasonic Panasonic

PNC Industrial Accord, Aiko, Singer, Imarflex, Ogawa, Camel

Siam United Hightech Imarflex, Hanabishi

Wanavit Manufacturing Co., Ltd. Hatari

Based on IIEC’s manufacturer surveys and various secondary resources, the annual demand of electric
fans in Thailand is estimated between 4 to 6 million units. Residential consumers in Thailand tend to
prefer table and pedestal fans due to portability and convenience. As a result, table and pedestal fans
constitute around 90% of total electric fan market in Thailand. Interviews with fan manufacturers and
other market study reports suggest that the ceiling fan market share is less than 5%. Based on the
study conducted by SAI (2010), electric fan market grew between 8% to 10% annually from 2004 to
2008. The key factors driving market growth include increasing number of households and urban
population. IIEC estimates the electric fan market in Thailand is relatively saturated and could potentially
grow to just above 5 million fans per year.

4.8 Viet Nam


Viet Nam has approximately 120 electric fan manufacturers ranging from small to large size companies.
These have an estimated average annual production of 50,000 units per year, which would indicate
annual production of at least 6 million electric fans per year. There are about 10 major manufacturers, of
which four are located in Northern Viet Nam (2 in Hanoi, 1 in Bac Ninh and 1 in Hai Phong) and the other
six in Ho Chi Min City. The biggest electric fan manufacturers is Thong Nhat Electromechanical Co. Ltd
located in Hanoi with annual production well above million units per year. The smallest company is Bing
Dong Electromechanical Co. Ltd. with less than 200,000 units per year. Based on IIEC’s survey, the
actual annual production of electric fans ranges from 5.4 million – 9.4 million fans. IIEC estimates the
market could potentially grow to 10 million fans per year due to growing middle class and urbanization.

Overall, the local fan manufacturers meet approximately 90% of the domestic fan market demand, while
about 10% are imported from other countries such as Thailand, Malaysia and the PRC. Most parts and
components of the electric fans are provided by local suppliers, while the capacitors and silica steel sheet
are usually imported from the PRC or Taiwan. There is not much information exchange between
companies and therefore there are no combined efforts to improve technology and efficiency. Majority of
the manufacturers in the North focus on product durability while the manufacturers in the South focus on
product design rather than durability.

Pedestal fans have a market share of approximately 33%, while table fans have a share of 31% followed
by wall fans with 20% and ceiling fans with 7% (SAI, 2010). The fan manufacturers in Viet Nam
generally opt to distribute fans through a combination of direct sales, distributors, dealers, and/or
supermarkets. According to the International Copper Association Household Appliance Survey (ICA,
2009), there are approximately 6 electric fans per household of which majority are pedestal, table and
wall fans due to their portability and ease to install and use.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

5 I MPORT AND E XPORT OF E LECTRIC F ANS


In terms of import and export flows of electric fans in the region (Figure 5-1), based on average annual
monetary value from 2008 to 2012, East Asia exports a significant amount of electric fans to South Asia
and Southeast Asia. Southeast Asia also exports a considerable amount of electric fans to East Asia, while
the exports from South Asia to East Asia are very low. South Asia mainly exports to other regions beyond
East Asia and Southeast Asia. The trading between Southeast Asia and South Asia is relatively low
compared import/export to other regions.

Figure 5-1: Export and Import flows of Electric Fans in South Asia and Southeast Asia
(average annual monetary values from 2008 – 2012)

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

6 P OTENTIAL T ECHNOLOGICAL I MPROVEMENTS


FOR E LECTRIC F ANS

6.1 Introduction
According to Lawrence Berkeley National Laboratory (LBNL, 2012), ceiling fan efficiency can be cost-
effectively improved by at least 50% using commercially available technology. As highlighted in the
survey findings (Task 2 Report), the majority of the manufacturers/suppliers of electric fans stated that
there are substantial opportunities to raise efficiency of electric fans through energy efficient electric
motors and efficient blade designs, while the efficiency improvements through better controls system
and lighter materials are slightly less substantial.

Focusing specifically on these two components of electric fans, this section provides an overview of the
commercially available technological developments in the electric fan industry that can provide
substantial energy efficiency gains, particularly for ceiling fans. Reduction of power consumption through
different energy efficiency improvements in ceiling fans is shown in Figure 6-1. The information discussed
in this section is based on literature review only, particularly from LBNL and the SEAD Initiative studies
on ceiling fans, and not actual testing of the energy performance of electric fans.

Figure 6-1: Energy Efficiency Improvement Options for Ceiling Fans

Ceiling fans (open type and with no protective grills) have higher energy efficiency ratios than
table/wall/floor fans. A typical ceiling fan will have blade diameters ranging from 32 to 56 inches
(approximately 812 mm to 1,422 mm), while a typical table/wall/floor fans will have blade diameters
ranging from 8 to 24 inches (approximately 203 mm to 610 mm). As a result of its larger size, BLDC
motors technology is currently a suitable option for ceilings fans but not for other fans.

There is limited information on the highest energy efficiency ratio for table/wall/floor fans based on best
commercially available technology. As indicated in the Task 3 report, the highest energy label rating for
table/wall/floor fans in the region covered under this study is 1.65 m3/min/W (600 mm = 23 inch) in
Bangladesh and 1.68 m3/min/W (400 mm fan = 15 inch) in Indonesia. This likely only to be achieved
through improved induction motors and efficient blade design.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

6.2 Motors
Motors are an essential component of electric fans. Typically, fans have always utilized Alternating
Current (AC) induction motors as these motors are relatively durable, easy to manufacture and have
reached economies of scale and respective low manufacturing costs. For electric fans in residential
households, two main types of single phase induction motors are commonly used by manufacturers, i.e.
Shaded-Pole motors and Permanent Split-Capacitor (PSC) motors, and their basic characteristics are
shown in the table below.
Table 6-1: General Characteristics of Single Phase Induction Motors for Electric Fans
(IEE, 1998)
Type of Single-Phase Induction Characteristics Remark
Motor
Shaded-Pole Motor  Compact in size and inexpensive Efficiency of small shaded-pole
to manufacture motors (less than 10W) is about
 Capable of multi-speed operation 20% or less at rated output.
Efficiency of 50W shaded-pole
 Low starting torque (less than motors is around 30% to 35%.
50% of full load torque)
 Relatively low efficiency (20% to
40% depending on rated power)
 Low power factor (50% to 60%)
Permanent Split-Capacitor  Capable of multi-speed operation Permanent split-capacitor motors
(PSC) Motor  50% to 80% of full load torque are most widely used by electric
fans in households.
 55% to 65% efficiency
 80% to 100% power factor

AC induction motors are relatively inefficient compared with Direct Current (DC) motors and AC
Synchronous motors due to the difference between the speed of the rotor and the magnetic field in the
AC induction motor (also known as slip). Therefore the rotors do not rotate synchronously with the
magnetic field that causes the motion of the rotor. However, AC induction motors are inexpensive to
manufacture and require less maintenance, making them the preferred choices for household appliances.

In terms of higher efficiency alternatives to the existing AC Induction Motors for ceiling fans (SEAD,
2013), the following two options are available:

 Improved AC Induction (IACI) motors can represent a significant improvement in efficiency


against existing AC induction motors, approximately 25% to 30% more efficient. For example, in
India, the Energy Efficiency ratio for an IACI ceiling fan motor is approximately 4.5 m3/min/W,
providing a reduction of 36% in electricity consumption compared to the baseline in India. When
compared to the current MEPS for ceiling fans in India of 3.2 m 3/min/W, this represents 40%
increase in the energy efficiency ratio.

 Brushless Direct Current (BLDC) motors are almost twice as efficient as AC induction motors
because there is no friction loss associated with the mechanical commutation. These have
become common as a result of recent developments in electronic commutation and reduction in
costs of high performing magnetic components. The Energy Efficiency ratio for the BLDC ceiling
fan is approximately 6.5 m3/min/W, providing a reduction of 50% in electricity consumption
electricity consumption compared to the baseline in India. When actually compared to the
current MEPS for ceiling fans in India of 3.2 m3/min/W, this represents 100% increase in the
energy efficiency ratio (twice as efficient).

Overall, in summary, Table 6-2, provides an overview of the efficiency limits of IACI and BLDC in the
United States. However, according to SEAD (2013), in terms of cost effectiveness, the IACI Motor is still a
more affordable option than the BLDC motor. Induction motors and BLDC motors have similar material
costs, with exception to the BLDC motor controller (controller costs vary from 5 to 11 USD in India), as

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

the additional cost of the permanent magnets in BLDC motor is compensated by a reduction in copper
and steel costs. However, this study does not cover assessment of the cost savings related to energy
savings or manufacturing.
Table 6-2: Motor Efficiency for 75W motor types in the United States (LBNL, 2012)
Motor Type Efficiency

Practical Limits of Brushless direct current (BLDC) motors 87% – 90%

Practical Limits of Alternating Current Induction 84%

Average New Production 75%

Average Installed Base 60%

6.3 Blades
Fan efficiency is dependent on the blade length because power consumption decreases as the blade
length increases assuming a constant air flow. Therefore, the fan size is always mentioned when
determining the Energy Efficiency ratio under the MEPS for each electric fan type.

There a number of parameters that can be altered in the blade design which have an impact of electric
fans efficiency such as:

 Blade Materials (e.g. wood, metal, plastic, carbon fibre)

 Blade Aerodynamics (e.g. angle of attack and shape – aerofoil design)

The use of lighter materials and optimized blade aerodynamics can reduce the energy losses due to flow-
separation and turbulence. These blades also allow for use of smaller and cheaper motors providing
added benefits. The Energy Efficiency ratio for efficient blade ceiling fan is approximately 3.8
m3/min/W and can be compared to the current MEPS for ceiling fans in India which is 3.2 m 3/min/W
(19% gain in the energy efficiency ratio).

6.4 Others
There are a number of other potential savings technologies such as occupancy sensors and resistance
speed controls but the potential savings are not considered as significant as with new motors and blade
design.

6.5 Barriers/Challenges
Despite the availability of the above technological improvements in electric fans, there are two key
challenges or barriers:

 High manufacturing costs due to low production volumes or additional costs of


materials required to raise efficiency of electric fans (e.g. copper). To reduce
manufacturing costs it is essential to reach economies of scale for energy efficient fans which can
be trigger by legislation (e.g. MEPS) and customer awareness from purchasers (e.g. energy
labeling). However, most electric fans in Asia are usually seen as a low cost commodity. For
example, the survey findings showed that manufacturers/suppliers in South Asia and Southeast
Asia believe modern design and low cost are critical factors for customer decision/satisfaction. In
addition, the survey showed the manufacturers/suppliers feel there is lack of government
support to encourage investment in production and design of energy efficient electric fans.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

 Lack of awareness from customers on the energy performance of electric fans as well
as lack of technical capability from electric fan manufacturers/suppliers to improve
energy efficiency of their fans. Whilst, the first point can be addressed through the
introduction of energy labels; the second point, which was highlighted in the survey results with
majority of manufacturers having limited capability to improve the energy efficiency of motors
and therefore dependant on their motor suppliers, can be addressed through the introduction of
MEPS.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

7 A SSESSMENT OF E NERGY AND CO 2 S AVINGS OF


E NERGY E FFICIENT E LECTRIC F ANS
The findings in this section build upon the information compiled and reviewed under Task 1, 2 and 3 as
well as the SEAD Initiative and LBNL studies on ceiling fans. Note that for the countries in which in-
country data is limited, the assessment is essentially based on data from the bottom-up model.

7.1 Scenarios
The scenarios considered for the assessment of energy and CO2 savings of energy efficient electric fans
are as follows:
 Ceiling Fans:

o Brushless Direct Current (BLDC) Motor + Efficient Blades = 7.2 m3/min/W

o Improved Alternating Current (AC) Induction Motor + Efficient Blades = 5.0 m3/min/W

o Highest energy label rating for each country = 3.0 to 4.0 m3/min/W

 Table/Floor/Wall Fans:

o Switching to Ceiling Fan with Similar Air Flow = 1.8 m3/min/W

o Best Available Technology = 1.7 m3/min/W

o Average highest energy label rating for each country = 0.9 to 1.2 m3/min/W

o Harmonized highest energy label rating = 1.2 m3/min/W

The “Switching to Ceiling Fan with Similar Air Flow” scenario applies only to Southeast Asia where the
market share of ceilings fans is low and additional savings could be achieved if consumers opt for energy
efficient ceilings fans instead of energy efficient table/floor/wall fans. The energy efficiency ratio
indicated for this scenario was determined based on compilation of average electricity consumption of
existing ceilings fan models with airflow of approximately 60 m3/min (identical to the air flow of standard
table/wall/floor fans).

An additional scenario was considered for ceilings fans focusing on the harmonized highest energy label
rating from all the countries covered. The energy efficient ratio for this scenario would have been 4.0
m3/min/W and therefore the savings obtained would have been similar to those obtained under the
“Improved AC Induction Motor + Efficient Blades” Scenario.

7.2 Summary of Baseline Data and Assumptions


Table 7-1 provides a summary of stock data of electric fans in South and Southeast Asian countries based
primarily on the bottom-up model. Table 7-2 summarizes the estimated current annual market size
(sales data) for each country, which was determined under Task 2 and based on the findings from the
survey on manufactures/suppliers of electric fans in the region. In addition, the market share of ceiling
fans and table/floor/wall fans was also compiled from secondary sources and is highlighted in Table 7-2.
Table 7-1: Stock of Electric Fans by Country calculated by the Bottom-Up Model in PAMS1
Stock of Electric Fans (million Units)
Country
2015 2020 2025 2030
South Asia
Bangladesh 53.1 60.1 67.5 73.4

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Stock of Electric Fans (million Units)


Country
2015 2020 2025 2030
India 455.7 528.0 602.0 670.4
Pakistan 52.3 60.2 69.8 78.6
Sri Lanka 10.2 11.0 11.7 12.2
Southeast Asia
Brunei Darussalam 0.2 0.2 0.2 0.2
Cambodia 5.5 6.7 7.9 9.2
Indonesia 127.9 143.1 156.2 167.3
Lao PDR 2.7 3.3 3.8 4.4
Malaysia 15.6 17.7 19.5 21.4
Myanmar 22.0 24.9 28.2 31.7
Philippines 47.3 57.0 67.2 78.0
Singapore 4.0 4.7 5.3 5.9
Thailand 37.3 39.4 41.2 42.8
Viet Nam 44.4 48.6 52.4 55.3
TOTAL 878.2 1,004.9 1,132.9 1,250.8
Note: 1) Policy Analysis Modeling System (PAMS) is a self-contained Microsoft Excel spreadsheet analysis tool
developed by Lawrence Berkeley National Laboratory (LBNL) and CLASP

Table 7-2: Estimated Annual Market Size (Sales) and Market Share of Electric Fan Type by
Country
Country Estimated Current Market Share
Market Share of Ceiling
Market Size in 2014 Table/Floor/Wall Fans
Fans (%)
(Sales in million units) (%)
South Asia
Bangladesh 6.0 94% 6%
India 49.8 70% 30%
Pakistan 5.8 63% 37%
Sri Lanka 1.0 70% 30%
Southeast Asia
Brunei Darussalam 0.016 38% 62%
Cambodia 0.6 10% 90%
Indonesia 13.6 7% 93%
Lao PDR 0.3 10% 90%
Malaysia 1.7 38% 62%
Myanmar 2.4 10% 90%
Philippines 5.5 10% 90%
Singapore 0.4 38% 62%
Thailand 3.8 4% 96%
Viet Nam 4.6 6% 94%
TOTAL 95.5 - -

Overall, based on the Table above, the current annual market size of electric fans in South and Southeast
Asia is about 96 million. The South Asian market is larger accounting for about 65% and the Southeast
Asian market accounts for the remaining 35%. In the South Asian market, ceiling fans are more popular
with an estimated 70% market share. While, in Southeast Asia, table/floor/wall fans are more popular
with approximately 90% market share.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Under the Task 3 report, information was compiled on the MEPS and the energy efficiency label ratings in
each country for electric fans. It should be noted that Energy Efficiency Ratios for electric fans vary
according to fan sizes. To simplify the analysis and due to the lack of sufficient market data, for ceiling
fans, the MEPS used is the lowest value irrespective of the fan size as there is no significant variation in
values except for Bangladesh. However, for the table/floor/wall fans, an average value is used as the
range of MEPS values is substantial and depends on a wide range of fan sizes.

Table 7-3 summarizes the lowest MEPS value according to fan type and the highest energy efficiency
label rating for electric fans per country. For the countries for which MEPS or the highest energy
efficiency rating was not available, we have assumed the market for the closest neighbouring country.
Table 7-3: Lowest Minimum Energy Performance Standards (MEPS) and Highest Energy
Efficiency Ratio under a National Energy Labeling Scheme according to Country and Electric
Fan Type
Country Lowest MEPS Value Highest Energy Efficiency Ratio under
(m3/min/W) National Energy Label Scheme
(m3/min/W)
Ceiling Fans Table/ Ceiling Fans Table/ Floor/Wall
Floor/Wall Fans 1 Fans1
Bangladesh 2.75 0.91 3.81 1.14
India 3.20 0.912 4.003 1.142
Pakistan 3.20 0.912 4.002 1.142
Sri Lanka 3.202 0.912 4.002 1.142
Brunei Darussalam 2.582 1.042 3.002 1.202
Cambodia 2.452 0.94 3.432 1.203
Indonesia 2.582 0.50 3.002 0.92
Lao PDR 2.452 0.94 3.432 1.203
Malaysia 2.58 1.04 3.00 1.203
Myanmar 2.452 0.942 3.432 1.202
Philippines 2.452 0.652 3.432 0.912
Singapore 2.582 1.042 3.002 1.202
Thailand 2.452 0.94 3.432 1.203
Viet Nam 2.45 0.65 3.43 0.91
Note: 1) Average values used for Table/Floor/Wall Fans.
2) Assumed value from closest neighbouring country when values are not available in-country (Brunei
Darussalam = Malaysia; Indonesia = Malaysia; Myanmar = Thailand; Pakistan = India; Philippines = Viet
Nam; India = Bangladesh; Singapore = Malaysia; Sri Lanka = India; Thailand = Viet Nam).
3) Highest Values

In order to determine the CO2 savings, the average electricity generation emission factors where
obtained from the International Energy Agency (IEA) as shown in Table 7-4.
Table 7-4: Average CO2 emissions per kWh from electricity generation for 2008 – 2010
according to country (IEA, 2012)
Country Average CO2 emissions per kWh from electricity generation
for 2008 – 2010 (kg/kWh)
Bangladesh 0.584
Brunei Darussalam 0.805
Cambodia 0.813
India 0.936
Indonesia 0.734
Lao PDR 0.292

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Country Average CO2 emissions per kWh from electricity generation


for 2008 – 2010 (kg/kWh)
Malaysia 0.660
Myanmar 0.256
Pakistan 0.445
Philippines 0.480
Singapore 0.500
Sri Lanka 0.410
Thailand 0.518
Viet Nam 0.407

In summary, the assumptions for determining the baseline are:

1. Assumed lowest MEPS used irrespective of fan size for Ceiling Fans;

2. Assumed average MEPS for Table/Floor/Wall Fans;

3. Assumed all models currently purchased in the market have the lowest MEPS;

4. For countries without data, assumed values for market share of electric fan type, MEPS and
highest Energy Efficiency Ratio on closest neighbouring country.

7.3 Calculation of Baseline


To determine the energy consumption and CO2 emission baselines, it is necessary to determine power
consumption and annual operating hours electric fans. In this report, the baseline power consumption of
electric fans (ceiling type and /table/floor/wall type) will be determined by the MEPS values shown in
Table 7-3. It is assumed that under the business as usual scenario, the current stock of electric fans as
well as new and replacement purchase meet the MEPS value in each country. The following assumptions
have also been used:
1. Minimum air flow of Ceiling fans: 200 m3/min

2. Minimum air flow of Table/Floor/Wall fans: 60 m3/min

3. Daily operating hours: 2 hours

4. Annual operating days: 200 days

Based on the above assumptions, the annual unit electricity consumption per fan type is shown in the
Table below.

Table 7-5: Annual Unit Electricity Consumption for Electric Fans in South and Southeast Asia
Country Annual Unit Electricity Consumption (kWh/year)
Ceiling Fans Table/Floor/Wall Fans
Bangladesh 29.1 26.4
India 25.0 26.4
Pakistan 25.0 26.4
Sri Lanka 25.0 26.4
Brunei Darussalam 31.0 23.1
Cambodia 32.7 25.5
Indonesia 31.0 48.0

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Country Annual Unit Electricity Consumption (kWh/year)


Ceiling Fans Table/Floor/Wall Fans
Lao PDR 32.7 25.5
Malaysia 31.0 23.1
Myanmar 32.7 25.5
Philippines 32.7 36.9
Singapore 31.0 23.1
Thailand 32.7 25.5
Viet Nam 32.7 36.9

Based on the above annual electricity consumption values as well as the market share of ceiling and
table/floor/wall fans as well as stock data and estimated annual market size indicate in Table 7-2 and
Table 7-2, the baseline annual energy consumption and annual CO2 emissions are projected by the
bottom-up model and PAMS, and illustrated in Figures below.

Figure 7-1: Baseline Electricity Consumption by Electric Fans in South Asia (SA) and
Southeast Asia (SEA) from 2015 to 2030

Overall, ceiling fans in South Asia and table/floor/wall fans in Southeast Asia constitute the majority of
electricity consumed by electric fans annually. It is estimated that the current stock of electric fans in
both regions will consume about 25 TWh in 2015 (equivalent to the annual electricity generation of
approximately 8 x 500 MW coal-fired power plants1), and is likely to reach 37 TWh in 2030 (equivalent
to the annual electricity generation of approximately 12 x 500 MW coal-fired power plants) if no extra
efforts are made towards energy efficient electric fans in both regions.

Figure 7-2 illustrates the baseline growth in South Asia allowing for the comparison of energy
consumption of electric fans between India with other South Asian countries. It highlights the importance
of enhancing energy efficiency of electric fans in India which could potentially have positive ripple effects
on neighbouring countries as India is a major manufacturing hub in the region.

1
Assuming a coal-fired plant with 500 MW installed capacity with a 70% capacity factor and excluding transmission and distribution
losses. The capacity of 500 MW was selected as it is the average capacity of existing coal fired power plants in the United States.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 7-2: Baseline Electricity Consumption by Electric Fans in South Asia by Country (2015
– 2030)

In Southeast Asia, Indonesia has the highest energy consumption baseline, followed by the Philippines,
Viet Nam and Thailand. Ceiling fans only account for a small share of energy consumption compared to
other fans in Southeast Asia.

Figure 7-3: Baseline Electricity Consumption by Electric Fans in Southeast Asia by Country
(2015 – 2030)

In terms of CO2 emissions, India has the highest CO2 emission factor from electricity generation of all the
countries covered. As a result, India’s share of total annual CO2 emissions from electric fans is almost
60% of the total annual CO2 emissions for electric fans in both regions. Indonesia is the second largest

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

accounting for about 20% of the total annual CO2 emission. All the other countries have shares below
10%.

Figure 7-4: Baseline CO2 Emission by Electric Fans in South Asia and Southeast Asia by
Country (2015 – 2030)

7.4 Assessment of Energy and CO2 Savings


The assessment of energy and CO2 savings will be presented under different energy efficiency scenarios
for ceiling fans and table/floor/wall fans. In addition to the assumptions used in the baseline calculations
in Section 4.3, the assessment of energy and CO2 savings assumes that all new and
replacement/purchase of electric fans in 2020 will become energy efficient with the Energy Efficiency
Ratio (EER) value as specified in each scenario. The scenarios for energy efficient electric fans are
summarized in Table 7-6 and the electricity savings and CO2 emission reduction results of each scenario
are discussed below.
Table 7-6: Scenarios for Energy Efficient Electric Fans
Type of Electric Energy Efficiency Scenario Energy Efficiency Ratio
Fan m3/min/W

Ceiling Fan Brushless Direct Current Motor + Efficient Blades 7.2

Improved AC Induction Motor + Efficient Blades 5

Highest energy label rating for each country 3.0 to 4.0

Table/Floor/Wall Switching to Ceiling Fan with Similar Air Flow 1.8

Best Available Technology 1.7

Highest energy label rating for each country 0.9 to 1.2

Harmonized highest energy label rating 1.2

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

7.4.1 Ceiling Fans

7.4.1.1 Scenario - Brushless Direct Current Motor + Efficient Blades

Brushless Direct Current (BLDC) Motors and Efficient Blades Scenario assumes the use of best available
technology currently in the market for ceiling fans. According to the SEAD (2013) Initiative, an energy
efficient ceiling fan with this technology would have an energy efficiency ratio of 7.2 m3/min/W. This
was compared against the lowest MEPS value for ceiling fans in each country as shown in Table 7-3 and
the energy and CO2 savings were determined. The results are shown below.

Overall, for ceiling fans, this scenario would represent potential cumulative electricity savings of 57
TWh by 2030, equivalent to avoiding the annual electricity generation from approximately 19 x 500 MW
coal-fired power plants, or about 35% savings of cumulative baseline consumption for the same
period. The annual electricity savings by 2030 would represent 9.4 TWh and would be equivalent
to avoiding the annual electricity generation of 3 x 500 MW coal-fired power plants.

On a regional basis, the savings would be considerable in South Asia and represent 91% of the
cumulative electricity savings for the same period, due to the large ceiling fan market share in the region.
Table 7-7 shows the results of the electricity savings potential analysis, and Table 7-8 shows the
corresponding CO2 emissions reductions.

Figure 7-5: Projected Electricity Consumption of BLDC & Efficient Blade Ceiling Fans and
Electricity Savings by Region (2015-2030)

Table 7-7: Annual and Cumulative Electricity Savings Projections of BLDC & Efficient Blade
Ceiling Fans from 2020 to 2030
Annual Electricity Savings Cumulative Electricity
Country (GWh) Savings (GWh)
2020 2025 2030 2020 2025 2030
Bangladesh 104 690 1,241 104 2,323 7,592

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

India 572 3,586 6,518 572 12,408 39,700


Pakistan 57 377 688 57 1,279 4,175
Sri Lanka 11 67 118 11 233 734
Total South Asia 744 4,720 8,564 744 16,243 52,201
Brunei Darussalam 0.1 1 1 0.1 3 9
Cambodia 2 11 20 2 37 119
Indonesia 21 130 233 21 453 1,431
Lao PDR 1 5 10 1 17 57
Malaysia 14 88 161 14 307 980
Myanmar 6 37 68 6 127 411
Philippines 14 90 168 14 308 1,006
Singapore 4 25 45 4 85 273
Thailand 3 21 37 3 72 228
Viet Nam 7 40 71 7 140 442
Total Southeast Asia 72 447 815 72 1,548 4,955

Table 7-8: Annual and Cumulative CO2 Emission Reduction Projections of BLDC & Efficient
Blade Ceiling Fans from 2020 to 2030
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Bangladesh 61 403 725 61 1,356 4,433
India 536 3,357 6,100 536 11,614 37,160
Pakistan 26 168 306 26 569 1,858
Sri Lanka 4 27 49 4 95 301
Total South Asia 626 3,955 7,180 626 13,635 43,752
Brunei Darussalam 0.1 1 1 0.1 2 7
Cambodia 1 9 16 1 30 97
Indonesia 16 95 171 16 332 1,050
Lao PDR 0.2 1 3 0.2 5 17
Malaysia 9 58 107 9 202 647
Myanmar 1 9 18 1 32 105
Philippines 7 43 81 7 148 483
Singapore 2 12 22 2 43 136
Thailand 2 11 19 2 37 118
Viet Nam 3 16 29 3 57 180
Total Southeast Asia 41 257 466 41 889 2,840

7.4.1.2 Scenario - Improved AC Induction Motor + Efficient Blades

Improved AC Induction Motor + Efficient Blades Scenario represents a transition phase for the market
before BLDCs become mainstream. According to the SEAD (2013) initiative, an energy efficient ceiling fan
with these efficient components would have an energy efficiency ratio of 5.0 m3/min/W. When
compared against the lowest MEPS value for ceiling fans shown in Table 7-3 and the energy and CO2
savings were determined. The results are shown below.

Overall, for ceiling fans, this scenario would represent potential cumulative electricity savings of 38
TWh by 2030, equivalent to avoiding the annual electricity generation from approximately 12 x 500 MW
coal-fired power plants, or about 23% savings of cumulative baseline consumption for the same

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

period. The annual electricity savings by 2030 would represent 6.2 TWh and would be equivalent
to avoiding the annual electricity generation of 2 x 500 MW coal-fired power plants.

On a regional basis, the savings would be considerable in South Asia and represent 93% of the
cumulative electricity savings, due to the large ceiling fan market share in the region. Table 7-9 shows
the results of the electricity savings potential analysis, and Table 7-10 shows the corresponding CO2
emissions reductions

Figure 7-6: Projected Electricity Consumption of Improved AC Induction Motor & Efficient
Blade Ceiling Fans and Electricity Savings by Region (2015-2030)

Table 7-9: Annual and Cumulative Electricity Savings Projections of Improved AC Induction
Motor & Efficient Blade Ceiling Fans from 2020 to 2030
Annual Electricity Savings Cumulative Electricity
(GWh) Savings (GWh)
Country
2020 2025 2030 2020 2025 2030
Bangladesh 76 502 903 76 1,691 5,527
India 371 2,324 4,223 371 8,041 25,726
Pakistan 37 244 446 37 829 2,705
Sri Lanka 7 43 77 7 151 476
Total South Asia 491 3,114 5,649 491 10,711 34,434
Brunei Darussalam 0.1 1 1 0 2 6
Cambodia 1 8 15 1 28 92
Indonesia 16 98 176 16 341 1,079
Lao PDR 1 4 7 1 13 44
Malaysia 11 67 122 11 231 740
Myanmar 4 29 53 4 98 318
Philippines 11 70 130 11 238 777

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Singapore 3 19 34 3 64 206
Thailand 3 16 29 3 56 176
Viet Nam 5 31 55 5 108 342
Total Southeast Asia 55 341 622 55 1,181 3,780

Table 7-10: Annual and Cumulative CO2 Emission Reduction Projections of Improved AC
Induction Motor & Efficient Blade Ceiling Fans from 2020 to 2030
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Bangladesh 44 293 528 44 988 3,228
India 347 2,175 3,953 347 7,526 24,079
Pakistan 17 109 198 17 369 1,204
Sri Lanka 3 18 31 3 62 195
Total South Asia 411 2,595 4,710 411 8,944 28,706
Brunei Darussalam 0.1 0.5 1 0 2 5
Cambodia 1 7 13 1 23 75
Indonesia 12 72 129 12 251 792
Lao PDR 0.2 1 2 0 4 13
Malaysia 7 44 80 7 153 488
Myanmar 1 7 14 1 25 81
Philippines 5 33 62 5 114 373
Singapore 1 9 17 1 32 103
Thailand 1 8 15 1 29 91
Viet Nam 2 13 22 2 44 139
Total Southeast Asia 31 195 355 31 676 2,161

7.4.1.3 Scenario - Highest energy label rating for each country

Under this scenario, the assumption is that the energy labeling of fans is effective and that market
demand would be for only the highest energy label ceiling fans (e.g. five star label) in the respective
country. Based on the information gathered in Task 3 Report, the highest energy label for ceiling fans in
the region ranges from 3.0 to 4.0 m3/min/W depending on the country. This scenario enables the
assessment of the potential energy and CO2 emission savings from an effective mandatory S&L program.
The lowest MEPS value for ceiling fans shown in Table 7-3 was used under this scenario and the energy
and CO2 emission savings were determined as shown in Figure 7-7.

Overall, for ceiling fans, this scenario would represent potential cumulative electricity savings of 21
TWh by 2030, equivalent to avoiding the annual electricity generation from approximately 7 x 500 MW
coal-fired power plants, or about 13% savings of cumulative baseline consumption for the same
period. The annual electricity savings by 2030 would represent 3.5 TWh and would be equivalent
to avoiding the annual electricity generation of 1 x 500 MW coal-fired power plants. On a regional basis,
the savings would be considerable in South Asia and represent 93% of the cumulative electricity savings.

This value is much lower than the adoption of the best available technologies and shows that
governments in the region should continue to review MEPS and energy efficiency ratings for electric fans
on a regular basis. This would enable regular market transformation to higher efficiencies and gradually
trigger investment from manufacturers and demand from the market. With the expected increase in
market size, the potential energy and CO2 emission savings could be at least twice as more than the
current savings.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 7-7: Projected Electricity Consumption of Highest Energy Label Rating Ceiling Fans
and Electricity Savings by Region (2015-2030)

Table 7-11: Annual and Cumulative Electricity Savings Projections of Highest Energy Rating
for Each Country from 2020 to 2030
Annual Electricity Savings Cumulative Electricity
Country (GWh) Savings (GWh)
2020 2025 2030 2020 2025 2030
Bangladesh 47 310 559 47 1,046 3,417
India 206 1,291 2,346 206 4,467 14,292
Pakistan 21 136 248 21 460 1,503
Sri Lanka 4 24 43 4 84 264
Total South Asia 277 1,761 3,195 277 6,057 19,477
Brunei Darussalam 0.03 0.2 0.3 0.03 1 2
Cambodia 1 5 9 1 16 52
Indonesia 5 28 51 5 99 312
Lao PDR 0.3 2 4 0.3 8 25
Malaysia 3 19 35 3 67 214
Myanmar 3 16 30 3 55 178
Philippines 6 39 73 6 133 435
Singapore 1 5 10 1 19 60
Thailand 1 9 16 1 31 99
Viet Nam 3 17 31 3 61 191
Total Southeast Asia 23 141 258 23 488 1,567

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 7-12: Annual and Cumulative CO2 Emission Reduction Projections of Highest Energy
Rating for Each Country from 2020 to 2030
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Bangladesh 27 181 326 27 611 1,996
India 193 1,208 2,196 193 4,181 13,377
Pakistan 9 60 110 9 205 669
Sri Lanka 2 10 17 2 34 108
Total South Asia 231 1,460 2,650 231 5,031 16,150
Brunei Darussalam 0.02 0.1 0.2 0.02 0.5 2
Cambodia 1 4 7 1 13 42
Indonesia 3 21 37 3 72 229
Lao PDR 0.1 1 1 0.1 2 7
Malaysia 2 13 23 2 44 141
Myanmar 1 4 8 1 14 46
Philippines 3 19 35 3 64 209
Singapore 0.4 3 5 0.4 9 30
Thailand 1 5 8 1 16 51
Viet Nam 1 7 13 1 25 78
Total Southeast Asia 12 75 137 12 260 834

7.4.2 Table/Floor/Wall Fans

7.4.2.1 Switching to Ceiling Fans with Similar Air Flow (Southeast Asia only)

This scenario focuses on Southeast Asia only and is aimed at understanding the potential savings
resulting from greater market penetration of energy efficient ceiling fans against energy efficient
table/floor/wall fans, as ceiling fans can reach much higher energy efficiency ratios than other fans with
similar air flow. The energy efficiency ratio assumed for this scenario is 1.8 m3/min/W and it was
determined based on compilation of average electricity consumption of existing ceilings fan models with
airflow of approximately 60 m3/min (identical to the air flow for standard table/wall/floor fans).

Three different market penetrations are assessed for South East Asia, starting from 2020, and assuming
25%, 50% and 75% of all new and replacement fans are energy efficient ceilings fans. The 25% market
penetration would result in a market share of 27% of ceilings fans by 2030 in Southeast Asia, while the
50% market penetration would represent 56% market share and the 75% market penetration would
account for a 76% market share. The figures and tables below highlight the additional savings provided
by energy efficient ceiling fans against business as usual.

Overall, the 25% Market Penetration of Energy Efficient Ceilings Fans in 2020, would represent potential
cumulative electricity savings of 11 TWh by 2030 in Southeast Asia, equivalent to avoiding the
annual electricity generation from approximately 3.5 x 500 MW coal-fired power plants, or about 7%
savings of cumulative baseline consumption for the same period. The 50% Market Penetration
of Energy Efficient Ceilings Fans in 2020, would represent potential cumulative electricity savings of
28 TWh by 2030 in Southeast Asia, equivalent to avoiding the annual electricity generation from
approximately 9 x 500 MW coal-fired power plants, or about 18% savings of cumulative baseline
consumption for the same period. The 75% Market Penetration of Energy Efficient Ceilings Fans in
2020, would represent potential cumulative electricity savings of 40 TWh by 2030 in Southeast
Asia, equivalent to avoiding the annual electricity generation from approximately 13 x 500 MW coal-fired
power plants, or about 26% savings of cumulative baseline consumption for the same period.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 7-8: Projected Electricity Consumption of Switching to Ceiling Fans with Similar Air
Flow in Southeast Asia (2015-2030) – 25% Market Penetration

Table 7-13: Annual and Cumulative Electricity Savings Projections of Switching to Ceiling
Fans with Similar Air Flow in Southeast Asia from 2020 to 2030 - 25% Market Penetration
Annual Electricity Savings Cumulative Electricity
Country (GWh) Savings (GWh)
2020 2025 2030 2020 2025 2030
Brunei Darussalam 0.02 0.12 0.23 0.02 0.43 1
Cambodia 1 10 19 1 34 109
Indonesia 91 586 1,077 91 2,038 6,413
Lao PDR 1 5 9 1 16 52
Malaysia 2 13 25 2 46 148
Myanmar 5 34 67 5 117 383
Philippines 24 157 309 24 536 1,768
Singapore 1 4 7 1 13 41
Thailand 9 55 102 9 191 608
Viet Nam 21 133 250 21 460 1,475
Total Southeast Asia 155 997 1,865 155 3,452 10,996
Table 7-14: Annual and Cumulative CO2 Emission Reduction Projections of Switching to
Ceiling Fans with Similar Air Flow in Southeast Asia from 2020 to 2030 – 25% Market
Penetration
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Brunei Darussalam 0.02 0.1 0.2 0.02 0.4 1

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Cambodia 1 8 15 1 28 89
Indonesia 67 430 791 67 1,496 4,707
Lao PDR 0.2 1 3 0.2 5 15
Malaysia 1 9 17 1 31 98
Myanmar 1 9 17 1 30 98
Philippines 11 76 148 11 257 848
Singapore 0.3 2 3 0.3 6 20
Thailand 5 28 53 5 99 315
Viet Nam 8 54 102 8 187 600
Total Southeast Asia 96 617 1,149 96 2,139 6,791

Figure 7-9: Projected Electricity Consumption of Switching to Ceiling Fans with Similar Air
Flow in Southeast Asia (2015-2030) – 50% Market Penetration

Table 7-15: Annual and Cumulative Electricity Savings Projections of Switching to Ceiling
Fans with Similar Air Flow in Southeast Asia from 2020 to 2030 - 50% Market Penetration
Annual Electricity Savings Cumulative Electricity
Country (GWh) Savings (GWh)
2020 2025 2030 2020 2025 2030
Brunei Darussalam 0.05 0.31 0.58 0.05 1.09 3
Cambodia 4 27 52 4 91 298
Indonesia 241 1,493 2,802 241 5,203 16,534
Lao PDR 2 13 25 2 43 142
Malaysia 6 35 67 6 121 389
Myanmar 14 92 179 14 315 1,033
Philippines 66 431 849 66 1,472 4,856

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Singapore 2 10 19 2 33 108
Thailand 23 140 261 23 488 1,551
Viet Nam 55 342 640 55 1,188 3,789
Total Southeast Asia 413 2,582 4,894 413 8,956 28,702

Table 7-16: Annual and Cumulative CO2 Emission Reduction Projections of Switching to
Ceiling Fans with Similar Air Flow in Southeast Asia from 2020 to 2030 – 50% Market
Penetration
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Brunei Darussalam 0.04 0.3 0.5 0.04 1 3
Cambodia 3 22 42 3 74 242
Indonesia 177 1,096 2,057 177 3,819 12,136
Lao PDR 1 4 7 1 13 41
Malaysia 4 23 44 4 80 256
Myanmar 4 24 46 4 81 264
Philippines 32 207 408 32 707 2,331
Singapore 1 5 9 1 17 54
Thailand 12 73 135 12 253 803
Viet Nam 22 139 260 22 483 1,542
Total Southeast Asia 255 1,591 3,009 255 5,527 17,673

Figure 7-10: Projected Electricity Consumption of Switching to Ceiling Fans with Similar Air
Flow in Southeast Asia (2015-2030) – 75% Market Penetration

April 2014 41
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 7-17: Annual and Cumulative Electricity Savings Projections of Switching to Ceiling
Fans with Similar Air Flow in Southeast Asia from 2020 to 2030 - 75% Market Penetration
Annual Electricity Savings Cumulative Electricity
Country (GWh) Savings (GWh)
2020 2025 2030 2020 2025 2030
Brunei Darussalam 0.07 0.44 0.81 0.07 1.53 5
Cambodia 6 38 74 6 129 423
Indonesia 342 2,098 3,952 342 7,312 23,282
Lao PDR 3 18 35 3 61 202
Malaysia 8 49 94 8 171 549
Myanmar 21 130 254 21 448 1,466
Philippines 95 613 1,210 95 2,096 6,915
Singapore 2 14 26 2 47 153
Thailand 32 197 367 32 686 2,179
Viet Nam 78 482 900 78 1,673 5,332
Total Southeast Asia 586 3,639 6,913 586 12,625 40,506

Table 7-18: Annual and Cumulative CO2 Emission Reduction Projections of Switching to
Ceiling Fans with Similar Air Flow in Southeast Asia from 2020 to 2030 – 75% Market
Penetration
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Brunei Darussalam 0.1 0.4 1 0.1 1 4
Cambodia 5 31 60 5 105 344
Indonesia 251 1,540 2,900 251 5,367 17,089
Lao PDR 1 5 10 1 18 59
Malaysia 5 32 62 5 113 362
Myanmar 5 33 65 5 115 375
Philippines 45 294 581 45 1,006 3,319
Singapore 1 7 13 1 24 76
Thailand 17 102 190 17 355 1,129
Viet Nam 32 196 366 32 681 2,170
Total Southeast Asia 362 2,241 4,249 362 7,785 24,928

7.4.2.2 Best Available Technology

This scenario assumes the use of the best available technology for table/floor/wall fans. An energy
efficiency ratio of 1.7 m3/min/W was assumed based on the highest energy label rating in the
countries covered under this study and therefore the best commercially available technology. This was
compared against the lowest MEPS value for table/floor/wall fans in each country as shown in Table 7-3
and the energy and CO2 savings were determined.

Overall, this scenario would represent potential cumulative electricity savings of 73 TWh by 2030,
equivalent to avoiding the annual electricity generation from approximately 24 x 500 MW coal-fired
power plants, or about 35% savings of cumulative baseline consumption for the same period.
The annual electricity savings by 2030 would represent 12 TWh and would be equivalent to
avoiding the annual electricity generation of 4 x 500 MW coal-fired power plants. On a regional basis,
the savings would be considerable in Southeast Asia and represent 76% of the cumulative electricity
savings due to the larger market share of table/floor/wall fans.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 7-11: Projected Electricity Consumption of Best Available Technology for


Table/Floor/Wall Fans (2015-2030)

Table 7-19: Annual and Cumulative Electricity Savings Projections of Best Available
Technology for Table/Floor/Wall Fans from 2020 to 2030
Annual Electricity Savings Cumulative Electricity
Country (GWh) Savings (GWh)
2020 2025 2030 2020 2025 2030
Bangladesh 5 30 54 5 101 330
India 216 1,356 2,465 216 4,693 15,014
Pakistan 30 195 356 30 663 2,164
Sri Lanka 4 25 45 4 88 278
Total South Asia 255 1,607 2,920 255 5,545 17,786
Brunei Darussalam 0.1 0.6 1 0.1 2 6
Cambodia 8 51 95 8 175 567
Indonesia 481 2,937 5,270 481 10,240 32,370
Lao PDR 4 24 45 4 83 271
Malaysia 10 65 119 10 225 720
Myanmar 28 176 326 28 604 1,962
Philippines 133 857 1,601 133 2,932 9,580
Singapore 3 18 33 3 63 201
Thailand 43 264 469 43 920 2,898
Viet Nam 108 668 1,185 108 2,320 7,330
Total Southeast Asia 818 5,061 9,145 818 17,564 55,906

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 7-20: Annual and Cumulative CO2 Emission Reduction Projections of Best Available
Technology for Table/Floor/Wall Fans from 2020 to 2030
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Bangladesh 3 18 32 3 59 193
India 203 1,269 2,307 203 4,392 14,053
Pakistan 13 87 159 13 295 963
Sri Lanka 2 10 18 2 36 114
Total South Asia 220 1,384 2,516 220 4,782 15,323
Brunei Darussalam 0.08 0.5 0.82 0.08 1.62 5
Cambodia 7 41 77 7 142 461
Indonesia 353 2,156 3,869 353 7,516 23,760
Lao PDR 1.1 7 13 1.1 24 79
Malaysia 7 43 78 7 149 475
Myanmar 7 45 83 7 155 502
Philippines 64 412 769 64 1,407 4,599
Singapore 1.4 9 17 1.4 31 100
Thailand 22 137 243 22 477 1,501
Viet Nam 44 272 482 44 944 2,983
Total Southeast Asia 506 3,122 5,632 506 10,847 34,466

7.4.2.3 Scenario – Average highest energy label rating for each country

This scenario is similar to that of the ceiling fans. The assumption is that the mandatory energy labeling
of fans is effective and that market demand would be for only the average highest energy label
table/floor/wall fans (e.g. five star label) in the respective country.

The energy efficiency ratio assumed for this scenario ranges from 0.9 to 1.2 m3/min/W depending on
the country. The average value was used for both MEPS and highest energy label as there is a wide
range of MEPS and energy ratings for different fan size in each country. This was compared against the
average lowest MEPS value for table/floor/wall fans shown in Table 7-3 and the electricity savings and
CO2 emission savings were determined as shown in Figure 7-12, Table 7-21 and Table 7-22.

Overall, for table/floor/wall fans, this scenario would deliver cumulative electricity savings of 40
TWh by 2030, equivalent to avoiding the annual electricity generation from approximately 13 x 500 MW
coal-fired power plants, or about 19% savings of cumulative baseline consumption for the same
period. The annual electricity savings by 2030 would represent 5.2 TWh and would be equivalent
to avoiding the annual electricity generation of 1.5 x 500 MW coal-fired power plants.

On a regional basis, the cumulative electricity savings are higher for Southeast Asia, accounting for 80%
of the total cumulative savings, as these countries have a larger market share of these type of fans than
South Asian countries. On a country level, Indonesia shows the highest cumulative electricity savings,
with a share of 53% of the total cumulative electricity savings, followed by India (16%), Philippines
(11%) and Viet Nam (9%).

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 7-12: Projected Electricity Consumption of Table/Floor/Wall Fans with Highest


Energy Label Rating for each Country and Electricity Savings by Region (2015-2030)

Table 7-21: Annual and Cumulative Electricity Savings Projections - Table/Floor/Wall Fans
with Highest Energy Label Rating for each Country from 2020 to 2030
Annual Electricity Savings Cumulative Electricity
Country (GWh) Savings (GWh)
2020 2025 2030 2020 2025 2030
Bangladesh 2 13 23 2 44 143
India 94 589 1,070 94 2,037 6,518
Pakistan 13 85 155 13 288 939
Sri Lanka 2 11 19 2 38 120
Total South Asia 111 698 1,268 111 2,407 7,722
Brunei Darussalam 0.03 0.20 0.35 0.03 0.69 2
Cambodia 4 25 46 4 85 275
Indonesia 311 1,899 3,409 311 6,623 20,935
Lao PDR 2 12 22 2 40 131
Malaysia 4 22 41 4 77 247
Myanmar 13 85 158 13 293 951
Philippines 61 397 741 61 1,356 4,432
Singapore 1 6 11 1 21 69
Thailand 21 128 227 21 446 1,405
Viet Nam 50 309 548 50 1,073 3,391
Total Southeast Asia 467 2,883 5,203 467 10,015 31,838

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 7-22: Annual and Cumulative CO2 Emission Reduction Projections - Table/Floor/Wall
Fans with Highest Energy Label Rating for each Country from 2020 to 2030
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Bangladesh 1 8 14 1 26 84
India 88 551 1,002 88 1,907 6,101
Pakistan 6 38 69 6 128 418
Sri Lanka 1 5 8 1 16 49
Total South Asia 96 601 1,092 96 2,076 6,652
Brunei Darussalam 0.03 0.2 0.3 0.03 0.6 2
Cambodia 3 20 37 3 69 224
Indonesia 228 1,394 2,502 228 4,861 15,366
Lao PDR 0.5 3 6 0.5 12 38
Malaysia 2 15 27 2 51 163
Myanmar 3 22 40 3 75 243
Philippines 29 190 356 29 651 2,127
Singapore 0.5 3 6 0.5 11 34
Thailand 11 66 118 11 231 728
Viet Nam 20 126 223 20 437 1,380
Total Southeast Asia 299 1,840 3,315 299 6,398 20,306

7.4.2.4 Scenario – Harmonized highest energy label rating

In this scenario, the assumption is that the countries have opted to harmonize the energy efficiency
ratios of their mandatory energy labels to the highest existing value available for table/floor/wall fans
(i.e. Malaysia and Thailand). In addition, the mandatory energy labeling of fans is effective and the
market demand would be for only the highest energy label ceiling fans.

The energy efficiency ratio assumed for this scenario was 1.2 m3/min/W. Note that the average value
was used for both MEPS and the highest energy label as there is a wide range of MEPS and energy
ratings for different table/floor/wall fan sizes. The electricity savings and CO2 emission savings were
determined as shown in Figure 7-13, Table 7-23 and Table 7-24.

Overall, this scenario would deliver cumulative electricity savings of 51 TWh by 2030 equivalent to
avoiding the annual electricity generation from approximately 19 x 500 MW coal-fired power plants, or
about 25% savings of cumulative baseline consumption for the same period. The annual
electricity savings by 2030 would represent 6.9 TWh and would be equivalent to avoiding the annual
electricity generation of 2 x 500 MW coal-fired power plants.

On a regional basis, the cumulative electricity savings in Southeast Asia are higher, about 82%, due to a
larger market share of these type of fans. On a country level, Indonesia shows the highest cumulative
electricity savings, with a share of 52% of the total cumulative electricity savings, followed by India
(15%), Philippines (14%) and Viet Nam (9%).

This scenario shows the additional savings compared to the Highest Energy Label Rating Scenario per
Country if energy efficiency ratios where harmonized, particularly for ASEAN. The wider range of energy
efficiency ratios per fan size show the savings could be more substantial than for ceiling fans were there
is less variation.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Figure 7-13: Projected Electricity Consumption of Harmonized Highest Energy Label Rating
for Table/Floor/Wall Fans and Electricity Savings by Region (2015-2030)
Table 7-23: Annual and Cumulative Electricity Savings Projections - Harmonized Highest
Energy Label Rating for Table/Floor/Wall Fans from 2020 to 2030
Annual Electricity Savings Cumulative Electricity
Country (GWh) Savings (GWh)
2020 2025 2030 2020 2025 2030
Bangladesh 2 16 28 2 53 172
India 113 705 1,282 113 2,440 7,808
Pakistan 15 102 185 15 345 1,125
Sri Lanka 2 13 23 2 46 144
Total South Asia 132 836 1,518 132 2,883 9,249
Brunei Darussalam 0.03 0.2 0.4 0.03 1 2
Cambodia 4 25 46 4 85 275
Indonesia 397 2,427 4,355 397 8,462 26,750
Lao PDR 2 12 22 2 40 131
Malaysia 4 22 41 4 77 247
Myanmar 13 85 158 13 293 951
Philippines 98 636 1,188 98 2,176 7,109
Singapore 1 6 11 1 21 69
Thailand 21 128 227 21 446 1,405
Viet Nam 80 496 880 80 1,722 5,439
Total Southeast Asia 621 3,837 6,929 621 13,323 42,379

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 7-24: Annual and Cumulative CO2 Emission Reduction Projections - Harmonized
Highest Energy Label Rating for Table/Floor/Wall Fans from 2020 to 2030
Annual CO2 Emission Cumulative CO2 Emission
Country Reductions ('000 tons) Reductions ('000 tons)
2020 2025 2030 2020 2025 2030
Bangladesh 1 9 16 1 31 100
India 105 660 1,200 105 2,284 7,308
Pakistan 7 45 82 7 153 501
Sri Lanka 1 5 10 1 19 59
Total South Asia 114 720 1,308 114 2,487 7,968
Brunei Darussalam 0.03 0.2 0.3 0.03 0.6 2
Cambodia 3 20 37 3 69 224
Indonesia 292 1,781 3,197 292 6,211 19,635
Lao PDR 0.5 3 6 0.5 12 38
Malaysia 2 15 27 2 51 163
Myanmar 3 22 40 3 75 243
Philippines 47 305 570 47 1,044 3,412
Singapore 0.5 3 6 0.5 11 34
Thailand 11 66 118 11 231 728
Viet Nam 33 202 358 33 701 2,214
Total Southeast Asia 393 2,418 4,360 393 8,405 26,693

April 2014 48
Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

8 C ONCLUSION
8.1 Ceiling Fans
Based on the findings for ceiling fans, 23% to 35% cumulative energy and CO2 emission savings
against the baseline can be achieved by opting for the best commercially available
technologies. Only about 13% cumulative energy and CO2 savings are obtained by enforcing
the current S&L schemes in each country. Enforcing the best S&L scheme in the region would provide
cumulative energy and CO2 emission savings similar to the lower range of the best commercially available
technology. This indicates a need to enforce more ambitious S&L schemes to enable a significant market
transformation, particularly for South Asia where ceiling fans are predominant in the market.

8.2 Table/Floor/Wall Fans


Based on the findings for table/floor/wall fans, substantial energy and CO2 emission savings can be
achieved by harmonizing mandatory S&L schemes, particularly in the ASEAN economic region.
Compliance and enforcement of the current S&L schemes in each country could provide of 19%
cumulative energy and CO2 savings compared to the baseline. However, opting for a mandatory
S&L scheme with the highest energy efficiency rating in the region would provide additional
savings - 25% cumulative energy and CO2 savings.

As Southeast Asia represents 63% of the estimated annual market size for table/floor/wall fans, there
should be additional effort from governments to adopt more ambitious mandatory S&L schemes to
enable a significant market transformation, particularly in Malaysia, Philippines and Thailand, where S&L
schemes have been in place for more than 10 years. In addition, as Southeast Asian countries adopt new
S&L schemes it is important focus on higher energy efficiencies in electric fans in line with the best
commercially available technology. For example, in Indonesia, the MEPS and energy label values
proposed could be higher and aligned with those of Thailand and Malaysia, especially as Indonesia is
major manufacturing hub for electric fans and is the largest electric fan market in Southeast Asia.

The use of the best commercially available technologies for table/floor/walls fans could provide 35%
cumulative energy and CO2 savings showing that there is still room for enhancing the existing S&L
schemes in the region. The market replacement of energy efficient table/floor/wall fans with energy
efficient ceiling fans under different market penetrations for Southeast Asia alone would represent 7%
to 26% cumulative energy and CO2 savings against the baseline. The results show that although
the market transformation from table/floor/wall fans to ceiling fans in Southeast Asia would be beneficial,
it would be at best equivalent to a harmonized highest energy efficiency rating scheme in the Southeast
Asia. However, the savings would be well below the use of best available technologies for
table/floor/walls fans in Southeast Asia as a substantial market transformation would have to take place
to achieve similar savings (above 75% market penetration of ceilings fans per year).

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

9 B IBLIOGRAPHY
CEA, 2009. Report on Survey on the Electrical Lighting Load and Consumption in the Urban Household
Sector of Bangladesh. Clean Energy Alternatives Inc (CEA). March 2009.
http://www.esmap.org/sites/esmap.org/files/25.%20Bangladesh_Lighting_Survey_Report_2009_.pdf

DPRC, 2011. DPRC Working Paper – Fan Industry in Gujrat & Gujranwala: An SME Cluster Study.
Development Policy Research Centre (DPRC). School of Humanities, Social Sciences and Law. Lahore
University of Management Sciences. March 2011 http://lums.edu.pk/docs/dprc/Fan-Industry-Report.pdf

EGAT, 2014. Personal Communication with the Demand Side Implementation Division at the Electricity
Generating Authority of Thailand. February 2014

ICA, 2009. National Survey on Residential Electricity Use by Appliances - Volume 1: Analysis Report.
Financed by The International Copper Association – Singapore. Hanoi, 2009

IEA, 2012. CO2 Emissions from Fuel Combustion – Highlights. 2012 Edition. International Energy Agency
(IEA). https://www.iea.org/co2highlights/co2highlights.pdf

IEE, 1998. Small Electric Motors, Institution of Electrical Engineers, 1998. Single-Phase AC Induction
Squirrel Cage Motors, Fan Engineering FE-1100, 1999.

IIEC, 2010. Household Appliance Standards & Labeling Conceptual Program Design for the Electricite du
Laos under the Rural Electrification APL Phase 1 – Demand-Side Management – Phase 1B funded by the
World Bank. International Institute for Energy Conservation (IIEC). July, 2010.

LBNL, 2012. Potential Global Benefits of Improved Ceiling Fan Energy Efficiency. Environment Energy
Technologies Division. Ernest Orlando Lawrence Berkeley National Laboratory (LBNL). October 2012.
http://ies.lbl.gov/sites/all/files/lbnl.5980e_0.pdf

NSO, 2012. Household Consumption of Various Goods and Services in India – NSS 66th Round – July
2009 – June 2010. National Sample Survey Office. National Statistical Organisation (NSO). Ministry of
Statistics and Program Implementation. Government of India. February 2012

PWC, 2011. Draft Report on Market Assessment for Standards & Labeling of table fans, pedestal fans,
wall mounted fans & exhaust fans. PriceWaterhouseCoopers. India. 2011

SAI, 2010. Assessment of Copper Consumption and Density in Electric Fans in Southeast Asia. Strategic
Analysis Inc (SAI). A report to International Copper Association Southeast Asia (ICASEA). March 2010

SEAD, 2013. Potential Global Benefits of Improved Ceiling Fan Energy Efficiency. Super-efficient
Equipment and Appliance Deployment (SEAD). SEAD Technical Analysis Working Group. April 2013.
http://www.superefficient.org/

TDAP, 2011. Engineering Division’s Report on Fan Industry of Pakistan. Trade Development Authority of
Pakistan (TDAP), Government of Pakistan. 2011
http://www.tdap.gov.pk/doc_reports/tdap_report_on_fan_industry_in_pakistan.pdf

World Bank, 2012. Ceiling Fans Market in India. Presentation by Kanv Garg. South Asia Sustainable
Development. The World Bank.

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A NNEX I - P ROFILE OF P OWER I NDUSTRIES IN


S OUTH A SIA AND S OUTHEAST A SIA

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

10 O VERVIEW OF E NERGY P ROFILE


This section provides a general and brief overview of energy sector in Southeast Asia1 and South Asia2.

Figure 10-1: Map of Southeast Asian (blue) and South Asia (green) countries covered under
this Study and Assessment

Overall, despite the regions diversity, all countries share a common issue: heavy dependence on fossil
fuels to meet growing energy demand and fuel their fast economic growth. Many countries in these two
regions are rich in natural resources but struggle to find an adequate energy mix to limit their exposure
to global fossil fuel prices and their high dependence on neighbouring countries for energy resources.
The Southeast Asia region has a mix of countries with adequate electricity supply and others which
struggle to provide affordable electricity to its population and are subject to regular power outages or
load shedding such as Myanmar. All South Asian countries covered under this study struggle to meet
electricity demand for all sectors and still have a large percentage of their population without proper
electricity access.

In terms of energy policies, particularly those focusing on energy efficiency, it is clear that India,
Thailand and Singapore are leaders in energy policy development and implementation as shown by the
number of extensive support mechanisms for energy efficiency and conservation in all sectors. To certain
extent Indonesia, Malaysia, Philippines and Viet Nam are slowly but surely progressing in the same
direction. Majority of the barriers and challenges in the implementation of energy efficiency in the
residential sector are related to lack of government capacity and/or funding to carry out or enforce the
regulatory framework and targets established. There is a clear need to take standards and labeling for
electrical appliances one step further and in some countries to consider mandatory enforcement or
extend it to other appliances. Positively, majority of the government’s recognise standards and labeling
as a key policy to deliver energy efficiency to households.

Table 2.1 provides of summary of key indicators per country.

1
Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Na

2
Bangladesh, India, Pakistan and Sri Lanka

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 10-1: Key Energy Indicators per Country in Southeast Asia and South Asia
(2010/2011/2012)
Residential
Transmission
Country Electricity Electricity Sector Share
& Electrification
Population Installed Generation of Generation/
Distribution Rates
Capacity Capacity Consumption
Losses
(%)

Unit Million GW GWh % % %

Bangladesh 152.5 6.2 31,355 48 14 49

Brunei 0.4 0.9 3,792 48 10 99

Cambodia 14.8 0.6 3,527 - 10 - 40 34

India 1,198.0 205.0 755,847 24 27 75

Indonesia 247.2 30.0 200,328 41 10 73

Lao PDR 6.5 1.6 2,399 40 12 82

Malaysia 29.3 24.3 124,976 21 10 99

Myanmar 61.0 3.4 6,312 42 27 26

Pakistan 180.7 23.5 98,664 45 23 55

Philippines 95.8 16.1 69,050 27 12 70

Singapore 5.3 11.6 46,936 16 5 100

Sri Lanka 20.3 3.1 11,627 40 11 91

Thailand 67.6 31.4 162,343 22 7 99

Viet Nam 87.8 26.2 101,499 39 10 97

TOTAL 2,167 384 1,659,089 - - -

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

11 C OUNTRY P ROFILES
11.1 Bangladesh
11.1.1 Overview of Energy Sector and Regulatory Framework
Bangladesh is one the most densely populated countries in the world and 70% of its population still
reside in rural areas. Bangladesh meets over 90% of its oil demand through imports, and is totally
dependent on imported petroleum products for its needs. For example, net energy imports in 2009 were
4.67 Mtoe posing a significant risk to Bangladesh’s energy security. In addition, Bangladesh is subject to
regular power cuts as it struggles to meet growing demand. Figure 11-1 and Table 11-1 provide an
overview of electricity consumption and Gross Domestic Product (GDP) in Bangladesh and show a close
link between electricity consumption and GDP growth, particularly since 2010. Electricity consumption per
capita remains relatively low, although there has been a gradual increase, which reflects the low but
improving GDP per capita (ADB, 2011).

Figure 11-1: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in
Bangladesh (ADB, 2013)
Table 11-1: Key Energy Indicators from 2008 to 2012 in Bangladesh (ADB, 2013)

Unit 2008 2009 2010 2011 2012

Gross Domestic Product at


Billion Taka 5458.2 6148.0 6943.2 7967.1 9181.4
Current Prices

Population Million 144.7 146.7 148.6 150.6 152.5

Gross Domestic Product per Thousand Taka per


38 42 47 53 60
Capita capita

Electricity Consumption GWh 22,622 23,937 25,744 28,627 32,443

Electricity Consumption per


kWh per capita 156 163 173 190 213
capita

Bangladesh’s Ministry of Finance estimates that only 49% of the population has electricity access,
lowering to only 25% in rural areas. Grid-based rural electrification in Bangladesh is improving, however,
majority of the population is still dependent on traditional biomass to meet their energy requirements.
Overall, access to energy has been major challenge for the Government of Bangladesh in recent decades.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

The reason for the moderate growth in electrification is that, it is not economical to extend grid access to
sparsely-populated areas. Electricity supply to low-load rural and remote areas is characterized by high
transmission and distribution losses, and heavily subsidized electricity pricing. This pattern of low
consumption and electricity access results in low level of per capita consumption in the country (MOF,
2011).

Based on the above, the Government of Bangladesh envisaged the National Energy Policy (NEP - updated
in 2005), with the aim of providing reliable and affordable power to all by 2021. The current legal and
policy frameworks relating to energy efficiency are included in the NEP and incorporate the following
regulations (MEPMR, 2005):
 Private Sector Power Generation Policy (1996)

 Policy Guidelines for Small Power Plants in Private Sector (1998)

 National Policy Statement on Power Sector Reform (2000)

 Energy Regulatory Commission Act (2003)

 Remote Area Power Supply System’s (2007)

 Policy Guidelines for the Enhancement of Private Participation in the Power Sector (2008)

 Renewable Energy Policy (2009)

The development of the energy sector is detailed in the Five-Year Development Plans. One of the
objectives set out in the current plan (Sixth Five Year Plan – SFYP 2011 to 2015) relating to energy
efficiency is to “Reduce system losses and improve energy use efficiency”. The SFYP provides direction
towards achieving the regulatory framework necessary for implementation of energy efficiency measures
in Bangladesh. However, Bangladesh’s energy efficiency initiatives still require scaling up to ensure
substantial impact.
The 2012 draft Building Code addresses the energy efficiency issues and practices in buildings. The Code
includes a set of minimum standards for Electrical and Electronic engineering installations covering all
building segments including residential buildings. The energy efficiency and sustainability section of the
building codes is aimed at enhancing the design and construction of buildings through the use of
concepts having positive environmental impact, sustainable construction practices, encouraging efficiency
and conservation of energy, water and building materials; and promoting resource efficiency. It proposes
both mandatory and voluntary measures for “green buildings” (MOF, 2011).

The Bangladesh Standards and Testing Institution (BSTI) in cooperation with national experts is currently
drafting standards for energy performance for a range of appliances including electric fans.

11.1.2 Key Energy Sector Stakeholders

The government, through the Ministry of Power, Energy and Mineral Resources (MPEMR), is responsible
for the overall planning and development of the energy sector through the issuance of policy directives
relating to energy. MPEMR also has overall authority for the electricity sector and regulates the
development of the electricity sector, including the implementation of reforms. The Power Cell,
established within MPEMR, has the responsibility for coordinating the implementation of energy efficiency
projects by the private sector.

The Bangladesh Energy Regulatory Commission Act was enacted in March 2003 and as a result the
Bangladesh Energy Regulatory Commission (BERC) was established in March 2004. The BERC has the
mandate to regulate the electricity, gas and petroleum sector. BERC operations are funded through the
BERC Fund comprising of government contributions and operational revenues. Since the commencement
of operations in 2008, BERC has limited its activities to tariff regulations (MOF 2011; Power Cell, 2013).
Figure 11-2 summarizes the structure of the key energy policy stakeholders in Bangladesh.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Electricity Regulatory Ministry of Power, Energy


Commission and Mineral Resources

Office of the Electrical


Power Cell Advisor and Chief
Electrical Inspector

Figure 11-2: Key Energy Policy Stakeholders in Bangladesh (Power Cell, 2013)

11.1.3 Electricity Sector

11.1.3.1 Overview

The Bangladesh Power Development Board (BPDP) is a state-owned utility responsible for the majority of
electricity generation and some of the distribution network in Bangladesh (ADB, 2011). Table 11-2 shows
the installed capacity in 2010 and 2011 and how the government owns more than 50% of the total
installed capacity. Over the last couple of years, the load growth averaged 10% annually resulting in
increasing electricity shortages due to restricted capacity additions. There is a shortage of approximately
500-700 MW due to limited supply of natural gas resulting in 800 MW of load shedding during the
summer months of 2010. This clearly highlights the need for energy efficient appliances and standards
and labeling program in Bangladesh (BPDB, 2011).
Table 11-2: Installed Generation Capacity in Bangladesh from 2010 to 2011 (MOF, 2011)
Source Installed capacity (MW)

Owner 2010 2011 % Change

Government Bangladesh Power Development Board (BPDP) 2,452 2,620 6.8

Ashuganj Power Station Company Ltd. 536 606 13.1

Electricity Generation company of Bangladesh 240 255 6.3

Sub-Total 3,226 3,481 7.9

Private Independent Power Producers (IPP) 1,271 1,271 0

Small Independent Power Producers (BPDP) 99 88 -11.1

Small Independent Power Producers (Rural 226 226 0


Electrification Board)

Rental 482 1,131 134.8

Sub-total 2,150 2,727 26.8

TOTAL (MW) 5,376 6,208 15.5

Table 11-3 provides a summary of generation from all power plants from the Bangladesh Power
Development Board and Independent Power Producers. It shows the significant and increasing load
shedding during the period 2001 to 2010. Based on this, it is clear that the government’s energy policy
needs to be reviewed to provide a new direction covering a combination of additional capacity, energy
efficiency and demand-side management (BPDB, 2011).

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 11-3: Electricity Generation from 2002 to 2010 in Bangladesh (BPDB, 2011)
Year Electricity Generation (GWh) Load Shedding
(MW)
BPDP IPP Total
2002 14,449 3,771 18,220 367
2003 12,880 6,298 19,178 468
2004 13,342 7,478 20,820 694
2005 14,067 7,939 22,006 770
2006 15,416 8,286 23,702 1,312
2007 15,494 8,244 23,738 1,345
2008 16,155 9,138 25,293 1,269
2009 17,748 11,398 29,246 1,459
2010 16,544 14,811 31,355 1,335

11.1.3.2 Electricity in the Residential Sector

The total electricity consumption by sector for 2010-2011 is given in Figure 11-3. The residential sector
accounted for 48% of the total electricity consumption, while the industrial sector accounted for 36%
(Power Cell, 2013).

Figure 11-3: Electricity Consumption by Sector in Bangladesh (2010 – 2011 Financial Year)
(MPEMR, 2011)

11.1.3.3 Transmission and Distribution

Bangladesh Power Development Board (BPDB), Dhaka Electric Supply Authority (DESA), Rural
Electrification Board (REB) and the Power Grid Company of Bangladesh (PGCB) are responsible for
transmission and distribution of electricity in Bangladesh.

The performance of the transmission and distribution network has shown substantial improvement over
the last 10 years as shown by Table 11-4.

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

Table 11-4: Distribution and Transmission Losses from 2007 to 2013 (Power Cell, 2013)
Financial Year Distribution Loss (%) Transmission Loss (%) Total (%)

2007-08 15.6 3.5 18.5

2008-09 14.3 3.1 16.9

2009-10 13.5 3.1 15.7

2010-11 12.8 2.7 14.7

2011-12 12.3 3.0 14.6

2012-13 12.0 3.0 14.4

11.1.3.4 Future Electricity Demand


The proposed Power Development Plan (PDP 2012 - 2016) is aimed at achieving 8% GDP growth by
2013 and beyond. The goal is to maintain sustained electricity supply to facilitate the establishment of
new industries and Small and Medium Enterprises in line with the national target of “electricity for all by
2021”. The proposed generation plan to accomplish the Government’s 2021 vision is given in Table 11-5.
A total of 13 GW installed capacity is projected by 2016 of which 45% will be from public investment and
51% from private sector investment (BPDB, 2011).
Table 11-5: Proposed Power Generation Plan (2012 – 2016) for Bangladesh (BPDB, 2011)
Year 2012 2013 2014 2015 2016 Total
(MW) (MW) (MW) (MW) (MW) (MW)

Public 632 1,467 1,660 1,410 750 5,919

Private 1,354 1,372 1,637 772 1,600 6,735

Power Import - 500 - - - 500

Total 1,986 3,339 3,297 2,182 2,350 13,154

11.1.3.5 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on electrical
appliances and energy efficiency in the residential sector. There are extensive number of challenges and
constraints in Bangladesh such as:
 Lack of clear policies and regulation to encourage adoption of energy efficiency.
 Subsidized electricity tariffs discourage customers undertaking energy efficiency activities.
 Absence of mandatory policies with regard to energy performance of electrical appliances leading
to high penetration of low efficiency appliances.
 Lack of government funding and resources for energy efficiency program implementation and
coordination between government agencies in relation to energy efficiency activities and collection
of good quality data for energy planning.
 Limited availability of energy efficient technologies.

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11.2 Brunei Darussalam


11.2.1 Overview of Energy Sector and Regulatory Framework

Brunei Darussalam is a small developed country, rich in natural gas and crude oil reserves, and has one
of the highest GDPs per capita in the world. The country’s energy consumption currently relies on natural
gas, which represents 99% of total primary energy consumption. The remaining 1% is composed of solar
power and crude oil. Brunei has no coal, and depends on its large stock of hydrocarbons for roughly
two-thirds of its GDP (APEC, 2013).

Overall, GDP reached US$16.95 billion in 2012 and is projected to grow at an average rate of 1.7% over
the following decade. In 2011, Brunei’s GDP owed 67.7% to crude oil and gas, demonstrating a strong
reliance on its fuel economy (APEC, 2013). Figure 11-4 shows a close relationship between electricity
and GDP with exception for 2009 and 2010 potentially due to the global economic crisis.

Figure 11-4: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in
Brunei Darussalam (ADB, 2013b)
Table 11-6: Key Energy Indicators from 2008 to 2012 in Brunei Darussalam (DEPD, 2011;
ADB, 2013)

Unit 2008 2009 2010 2011 2012

Gross Domestic Product at


Billion Brunei Dollars 20,398 15,611 16,867 20,996 21,185
Constant Prices

Population Million .39 .39 .40 .41 .41

Gross Domestic Product per


Brunei Dollars 52,302 40,029 42,168 51,210 51671
Capita

Electricity Consumption GWh 3,145 3,243 3,328 3,389 -

Electricity Consumption per


kWh per capita 8,065 8,315 8,319 8,267 -
capita

Current proven reserves of oil are measured at 1.1 billion barrels, and are sufficient to maintain the 2011
distribution rate of approximately 166,000 barrels per day for a minimum of 25 years. Natural gas
reserves, which are estimated to be as large as 390 bcm, hold a distribution potential of 40 years.
Although proven reserves and projected quantities of crude oil and natural gas are ample, Brunei is
aware of the need to diversify its energy-reliant economy, and to reduce current internal energy demand.

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If Brunei is to continue long-term financial growth, and to ensure continuity in its high per capita GDP, it
will need to diversify its economy.

On this basis, Brunei is currently working towards this and other long-term goals through a national
development strategy, “Wawasan Brunei 2035”, as well as several other subsidiary projects. Wawasan
Brunei 2035, also referred to as Brunei’s “National Vision”, is a national strategy designed in partnership
with the United Nations in 2008. It was created to foster responsible social and economic growth in
Brunei by targeting eight key areas: education, social security, government institutions, security,
economy, local business, infrastructure, and environment. The National Vision operates on five-year
plans that design short-term benchmark goals. These programs operate through Brunei’s Department of
Energy and are coupled with a joint-effort energy efficiency research within ASEAN (UNDP, 2007).

These collaborative efforts seek to reduce internal energy demand, decrease Brunei’s dependence on
fossil fuel economy, and meet the broader efficiency goals established by ASEAN. In order to meet the
energy reduction goals set in place by ASEAN, Wawasan Brunei 2035 led to the development of, and
partnership with, several other organizations tasked to help monitor and reduce current energy
consumption patterns. A newly established branch of the Energy Department at the Prime Minister’s
Office (EDPMO) called the Brunei National Energy Research Institute (BNERI) was established with the
purpose of targeting these goals. The organization seeks to produce research and develop projects that
address the energy needs of Brunei in order to meet the goals of Wawasan Brunei 2035 (APEC, 2012;
UNDP, 2007).

In addition, Brunei set the nationwide goal of a 25% energy intensity reduction by 2030 while continuing
to meet the needs of an increasing energy demand, which is expected to double by 2030 (using 2005 as
a base year). In order to meet these goals, it is undertaking revision of energy efficiency standards in the
generation, residential, industrial, government, and transportation sectors, while implementing
mechanisms to help reduce internal electricity demand in each respective area (APEC, 2012).

Three main approaches have been highlighted in order to address demand-side reduction in energy and
electricity consumption. These include, an electricity tariff placed on the residential sector, a standards
and labeling program for electrical appliances, and an energy education campaign. In order to directly
target the residential and commercial sectors, a new electricity tariff structure (set in place during
January 2012), was designed to lower demand by encouraging the use of low-energy appliances and by
decreasing the use of superfluous electricity. This tariff structure rewards lower consumption of
electricity, and is projected to create financial savings for over half of Brunei’s population. In addition to
the tariff, residential electricity meters have been switched from a post-paid to a pre-paid system
enabling a reduction of electricity consumption by 13% (APEC, 2012).

11.2.2 Key Energy Sector Stakeholders

The entirety of Brunei’s energy sector is managed by the Energy Department at the Prime Minister’s
Office (EDPMO), which is responsible for managing generation and distribution of energy and electricity.
The Minister of Energy oversees two “Permanent Secretariats” of which one is responsible for upstream
energy, and the other for downstream power (Figure 11-5).

The Upstream Secretariat is primarily responsible for energy extraction and distribution on a corporate
and international level – it oversees the research, extraction, and processing of all non-renewable energy
resources. The Downstream Secretary, by contrast, is responsible for the internal distribution of energy
and electricity, as well as renewable energy markets and end-user consumption trends. The downstream
office is responsible for implementing both the demand-side energy reduction programs, as well the
growth and development of an internal renewable energy market.

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Figure 11-5: Hierarchical Map of Brunei Darussalam’s Ministry of Energy (EDPMO, 2013)

11.2.3 Electricity Sector

11.2.3.1 Overview

In 2010, Brunei’s two utility companies – The Department of Electrical Services (DES) and The Berakas
Power Management Company (BPMC) – had a total installed capacity of 888 MW. The two state owned
companies account for about 99% of all electricity generation in Brunei. Both utilities operate exclusively
on gas-powered plants, with the exception of one diesel facility managed by the DES. Spread over
Brunei’s small population, the annual electricity generation of 3,792 GWh, provided about 9,250 kWh per
capita per year which is one of the highest in Southeast Asia (DEPD, 2011).

The majority of Brunei’s population are concentrated in urban areas and therefore the major cities are
the electricity consumption hubs. The DES currently operates the power plants in all 4 districts (Maura,
Tutong, Belait and Temburong), and the BPMC provides additional power to the Temburong district (WB,
2012).

11.2.3.2 Electricity in the Residential Sector

In 2010, the residential sector accounted for 48% of total electricity generation as shown in Figure 11-6.
Brunei has one of the highest electricity consumption per capita values in Southeast Asia (DEPD, 2011).
This clearly highlights the need for implementation of energy efficiency measures in the residential sector
and introduction of standards and labels.

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Figure 11-6: Electricity Consumption per Sector in Brunei Darussalam (2008) (AIPA,
2009)

11.2.3.3 Transmission and Distribution

The transmission and distribution network in Brunei is relatively small compared to the other Southeast
Asian countries and transmission and distribution losses were low and reached an average 9.5% in 2010.
Recently the network is also connected to the neighbouring country Malaysia making use of their nearby
hydropower plants (WB, 2012).

The electrification rate is 99% and is one of the highest in Southeast Asia (WB, 2012).

11.2.3.4 Future Electricity Demand

Historically, electricity demand has grown at an average rate of 9.8% since 1980, and is projected to
reach 4,328 GWh by 2020 (UBD, 2009). The Asia Pacific Economic Cooperation, under the 2013 Energy
Demand and Supply Outlook predicts that electricity generation will continue to be heavily reliant on
natural gas but with expected improvements in efficiency from the combined-cycle gas power plants. It is
projected that renewable energy electricity generation will rise from currently 0% to 5% of total
generation by 2035 (Figure 11-7).

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Figure 11-7: Share of Electricity Generation Mix under Business as Usual Scenario (APEC,
2013)

11.2.3.5 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on electrical
appliances and energy efficiency in the residential sector. The three main key challenges and constraints
are in Cambodia are:

 High dependency on natural gas for electricity and one of highest electricity consumers per capita
in Asia.

 Energy standards and labels for electrical appliances only now under consideration/implementation
and government needs stronger drive for energy efficiency.

 Awareness of energy efficiency in the residential sector.

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11.3 Cambodia
11.3.1 Overview of Energy Sector and Regulatory Framework

Cambodia is one of the poorest countries in Southeast Asia. Approximately 85% of the population lives in
rural areas with limited access to electricity. Majority of the population works in the agricultural sector
and households are dependent on biomass for energy (91% use fuel wood or charcoal for cooking
according to the 2008 National Census). In addition, in 2009, total primary energy demand amounted to
5.2 million tons of oil equivalent, of which 71.7% was biomass, 28.2% was imported oil and only 0.1 %
was hydropower. The large majority of commercial fossil fuels are imported, however there are in-
country oil, gas and coal deposits.

Since 2002, GDP grew at an average 6% per year while electricity generation grew by 9% per year
(Figure 11-8). In 2013, heavy fuel oil and diesel power plants accounted for about 60% of total electricity
generation. In terms of natural renewable energy resources, there is significant potential for hydropower
in Cambodia, estimated at about 10 GW. Hydropower already accounts for about 36% of total
generation. Annual electricity generation per capita is approximately 238 kWh, however actual electricity
consumption is likely to be much lower when taking into account transmission and distribution losses
ranging from 10% to 40% depending on the provinces (ADB, 2013; EAC, 2013; ERIA, 2012; MIME,
2013; UN, 2011).

Figure 11-8: Electricity Generation, Installed Capacity and Gross Domestic Product from
2002 to 2012 in Cambodia (ADB, 2013; EAC, 2013)
Table 11-7: Key Energy Indicators from 2008 to 2012 in Cambodia (ADB, 2013; EAC, 2013)

Unit 2008 2009 2010 2011 2012


Country
Gross Domestic
Product at Current Billion Riels 41,968 43,066 47,048 52,069 56,617
Prices
Population Million 13.9 14.1 14.3 14.5 14.8
Gross Domestic Thousand Riels per
3,019 3,054 3,290 3,591 3,825
Product per Capita capita
Electricity 1,858 2,077 2,515 2,848 3,527
GWh
Generation
Electricity
Generation per kWh per capita 134 147 176 196 238
capita

The Royal Government of Cambodia has four main aims under their energy sector policies (ERIA, 2012):

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1) Providing an adequate supply of electricity throughout the country at reasonable and affordable
price;
2) Ensuring reliable and secure electricity supply which facilitate investment in Cambodia and
development of the national economy;
3) Encouraging exploration of environmentally and socially acceptable energy resources needed to
supply all sectors of the Cambodian economy; and
4) Encouraging efficient use of energy to minimize environmental effects resulting from energy supply
and use.

The Electricity Law of the Kingdom of Cambodia was adopted in 2000 to regulate the power sector and
establish the Electricity Authority of Cambodia (EAC). This law covers all relevant matters regarding the
power sector but makes no major provisions on energy efficiency. In 2008, the Royal Government of
Cambodia issued the “Implementation of Electricity Saving Measures” which required the Ministry of
Industry, Mines and Energy (MIME) to issue guidelines on energy savings to the public sector and the
Ministry of Information to cooperate with MIME to disseminate these energy saving messages to the
wider audience. The Energy Saving Measures included:
 Air Conditionings shall be turned on at 25 degree Celsius,
 Air Conditionings shall be turned off 30 minutes prior to leaving the office,
 Fans can be turned on in rooms equipped with air conditioning only in case of necessity to avoid
fading away cool air,
 Do not plug in computers, printers or copy machines without usages,
 Plug out all devices when stopping usage,
 Use sunlight from the window by all means, avoiding closure of window curtains and usage of
electricity instead of sunlight,
 Use lamps efficiently which can save and consume electricity but set the same bright/light,
 All public lighting except on national holidays shall use only one side of lamp or turn on only half of
the lamps,
 All public lighting shall turn on and off at necessary time by avoiding lighting when it is not dark
and in the morning that has sunlight but the public lighting is not yet turned off.

The National Strategic Development Plan 2009-2013 includes certain actions pertaining to energy
efficiency such as (MIME, 2013):
 Developing a policy and a legal and regulatory framework for the energy sector in order to ensure
efficient management and resources utilization for the economic development and improvement
in livelihoods of the Cambodian people.
 Encouraging the efficient use of energy with minimal impact on the environment.

Most of the support for energy efficiency and rural electrification comes through donor agencies and
development banks. For example, the World Bank and ADB are implementing the Rural Electrification and
Transmission (RE&T) Project to expand the transmission network and support affordable renewable
energy for rural households. More importantly, during 2012-2013, the EU Energy Initiative Partnership
Dialogue Facility (EUEI PDF) supported the Ministry of Industry, Mines and Energy (MIME) in the
development of a National Energy Efficiency Policy, Strategy and Action Plan. The National Energy
Efficiency Policy and Strategy (NEEPS) will be formally submitted for adoption to the Council of Ministers
by the end of 2013. The NEEPS includes the establishment of an Energy Efficiency Information Resource
Centre within MIME (GIZ, 2013; MIME, 2013).

There is currently no energy efficiency standards or labels for electrical appliances in Cambodia which has
led to the import of inefficient energy consuming appliances.

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11.3.1.1 Key Energy Sector Stakeholders

There are four key stakeholders in the energy sector in Cambodia.

The Ministry of Industry, Mines and Energy (MIME) is responsible for developing energy policies, electric
power strategies, power development plan and technical standards. MIME has four main departments
which include the General Department of Energy and the Institute of National Standards.

The Electricity Authority of Cambodia (EAC) is an autonomous public entity responsible for regulating
electricity services including issuing regulations, licenses for electric power providers and determining
electricity tariffs.

The Electricité du Cambodge (EDC) is a wholly state-owned utility responsible for generation,
transmission and distribution of electricity nationwide. Cambodian National Petroleum Authority is
responsible for overseeing upstream and downstream petroleum activities in Cambodia (EAC, 2012).

In addition, the Royal Government of Cambodia created the Rural Electrification Fund (REF) in 2004. It is
currently part of the EAC. The REF was setup to expand rural electrification coverage at an affordable
prices for rural households. It also promotes the private sector to provide rural electrification services
mainly through renewable energy technologies such as solar home systems, micro-hydro power plants
and small biogas/biomass plants. The objective is that by 2020, all households will have electricity of
some form and by 2030 at least 70% of households will have access to grid quality electricity (REF,
2013).

11.3.2 Electricity Sector

11.3.2.1 Overview

The electricity sector consists of a state owned utility (Electricite du Cambodge), several independent
power producers, as well as small rural electricity enterprises providing electricity in rural areas using
diesel generators and battery charging stations. In 2008, Phnom Penh accounted for 77% of total
electricity demand in Cambodia (EDC, 2013). The EDC accounted for only 5% of total electricity
generation in 2012, while independent power producers accounted for 92% of total electricity
generation. Electricity is imported from neighbouring countries - Thailand, Viet Nam and Laos (EAC,
2013). With support from the World Bank and the Asian Development Bank, the electricity grid is
expanding to reach rural areas. However it is still very fragmented and dependant on electric
cooperatives with isolated distribution grids (EAC, 2013; EDC, 2013).

Table 11-8 shows that electricity generation grew at an average 20% per year while installed capacity
increased by 15% per year from 2004 to 2012.
Table 11-8: Electricity Generation and Installed Capacity in Cambodia from 2004 to 2012
(EAC, 2013)
2004 2005 2006 2007 2008 2009 2010 2011 2012

Electricity Generation
814 977 1,203 1,517 1,858 2,077 2,515 2,848 3,527
(GWh)

Installed Capacity (MW) 190 231 300 314 385 372 360 569 582

In 2012, heavy fuel oil/diesel power plants accounted for 60% of total electricity generation, followed by
hydropower with 36% (Figure 11-9). In terms of installed capacity, the shares are slight different, with
heavy fuel oil/diesel power plants representing 55% and hydropower with 39%. Over the last 10 years
the share of electricity generation from heavy fuel oil/diesel power plants fell from about 80% to 60%
(EAC, 2013; EDC, 2013).

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Figure 11-9: Electricity Generation according to fuel source in Cambodia (2012) (EAC, 2013)

Figure 11-10: Electricity Installed Capacity according to fuel source in Cambodia (2012)
(EAC, 2013)

11.3.2.2 Electricity in the Residential Sector

There are no figures for electricity consumption per sector. Electricity consumption in the residential
sector is characterized by a large discrepancy between urban and rural areas. Only 34% of households
have access to electricity, of which majority are in urban areas such as the capital Phnom Penh which
has approximately 11 million inhabitants and accounts for approximately 70% of total electricity
consumption (MIME, 2013).

Off-grid residential sector relies on expensive diesel generation resulting in low electricity consumption
which is mainly used for lighting. At least 12,000 solar home systems (30W and 50W) have been
introduced by the REF across Cambodia. Majority of the rural households use electricity for lighting
purposes (REF, 2013). However, with the anticipated economic growth, rise in urbanization rate and
electricity demand for other electrical appliances this is likely to change in the near future (MIME, 2013).

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11.3.2.3 Transmission and Distribution

There are two main high voltage grid systems in Cambodia – the National Grid and the Banteay
Meanchey Grid. The national grid covers 10 Provinces including Phnom Penh which is served by a 115
kV transmission line. The 22 kV medium voltage grid is operated by EDC. Electricity imports from Viet
Nam are done through a 22 kV medium voltage line and a 230 kV high voltage line, while through
Thailand it is done through a 22 kV and 115 kV line. The distribution losses in 2008 were approximately
11% in Phnom Penh. However, it varies from 10% to 40% in other provinces (EAC, 2013).

In 2011, the electrification rate in Cambodia was approximately 34%, a gradual increase from the 25% in
2009. Electrification rate is likely to rise rapidly with network expansion and the REF support (MIME,
2013).

11.3.2.4 Future Electricity Demand

The Power Development Plan of the Kingdom of Cambodia (2008 - 2021) anticipates that electricity
generation will reach 8,176 GWh by 2020 with the majority of the demand coming from the Southern
grid including Phnom Penh. The projected installed capacity and electricity generation are highlighted in
the Table below and shows how the Government anticipates installed capacity will triple in the next 10
years (EDC, 2007).
Table 11-9: Future Installed Capacity and Electricity Generation from 2008 to 2020 in
Cambodia (EDC, 2007)
2009 2010 2015 2020

Installed Capacity (MW) 808 1,015 1,915 3,867

Electricity Generation (GWh) 1,550 1,895 3,500 8,300

The NEESP also includes projections on energy demand in Cambodia from 2009 to 2034 as shown in
Figure 11-11 and anticipates energy demand will increase from 1,592 ktoe in 2009 to 5,948 ktoe in 2035
under a Business as Usual (BAU) Scenario. The NEESP includes projections based on adoption of an
energy efficiency policy with an anticipated reduction of 1,190.7 ktoe (20% reduction) compared to a
BAU scenario. According to these projections, there is an energy saving potential of up 50% by
introducing energy efficiency standards and labels in electrical appliances for the residential sector
(MIME, 2013).

Figure 11-11: Projected Energy Demand in Cambodia from 2009 to 2035 under Business as
Usual (BAU), Alternative Policy Scenario (APS) & New Energy Efficiency Policy (MIME, 2013)

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11.3.3 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on electrical
appliances and energy efficiency in the residential sector. The five main key challenges and constraints
are in Cambodia are:

 Low electrification rate, limited access to adequate electricity supply and high electricity costs

 Lack of good quality energy data

 No labels or standards for electric appliances resulting in the availability of inefficient appliances

 Limited capacity from key government stakeholders to implement energy efficiency policies

 Lack of regulatory framework on energy efficiency

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11.4 India
11.4.1 Overview of Energy Sector and Regulatory Framework
India is currently a lower middle income country, with the second highest number of inhabitants
worldwide. At a global scale, it is currently the fourth largest importer of crude oil and tenth largest user
of fossil fuels for production of electricity (IEA, 2013). India, in its post liberalization period, saw a rapid
increase in its economic activity which subsequently resulted in a rise in electricity demand. From 2000
to 2010, India’s primary energy consumption grew at about 6% per year, while global consumption rose
at about 3%. As a result, the country transitioned from being the world’s seventh largest energy
consumer in 2000 to the fourth-largest within a decade. However, primary energy consumption per
capita, is still one of the lowest in the world. In 2011, the global average of per capita consumption was
1.75 Toe, while India’s per capita consumption was merely 0.45 Toe. Nevertheless, according to the
International Energy Agency, the country’s total primary energy demand is expected to increase at about
4% during 2009-25 (CEA, 2011; EIA, 2011; IEA, 2012).

In 2011, coal accounted for 41% of total energy consumption, followed by petroleum with 23%, solid
biomass and waste with 23%, natural gas with 8% and nuclear and other renewables with 5%. India has
the world’s fifth-largest reserves of coal. However, despite abundant coal reserves, there has been a rise
in coal imports. The reason for low domestic production of coal, in the recent years, has been due to
tighter environmental regulations and various policy paralysis in the coal sector. Coal is likely to continue
to be a major energy source for the foreseeable future with the setup of coal based thermal power plant
as per the 11th and 12th Five Year Plan (2012-2017) (IEA, 2011; 2012; EIA, 2011). Overall, India is
heavily dependent on the fossil fuels to meets it growing energy demand which is an ongoing challenge.
Fossil fuels are likely to remain a major energy component in medium to long term future. Figure 11-12
shows electricity generation against GDP illustrating that GDP is growing at higher rate than electricity
generation.

Figure 11-12: Electricity Generation and Gross Domestic Product from 2005 to 2011 in India
(ADB, 2013)
Table 11-10: Key Energy Indicators from 2008 to 2011 in India (ADB, 2013)

Unit 2008 2009 2010 2011


Country
Gross Domestic Product at 53,036 61,089 72,670 83,535
Billion Rupees
Current Prices

Population Million 1,150 1,166 1,182 1,198

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Gross Domestic Product per Thousand Rupees per 46 52 61 70


Capita capita

Electricity Generation GWh 562,888 620,251 684,324 755,847

Electricity Generation per capita kWh per capita 489 532 579 631

Over the last decade, energy policy maker’s concentred efforts on enhancing access to electricity, energy
security and climate change mitigation as the three key focus areas in 11th and 12th Five Year Plan by
Government of India (GoI). This ushered a set of the reforms to the electricity sector, which saw various
programs and policy measures to enhance the energy efficiency. Although these three key focus areas
are interdependent, they also bring their own sets of challenges. Policy push by the GoI in the energy
sector has seen major capacity additions, however, due to several bottlenecks, the target set by the 11th
Five Year Plan (2007 – 2012) was not met. GoI has drafted 12th Five Year Plan (2012-2017) to bridge the
gap of demand and supply and fuel the growth of the country’s economy.

India’s energy efficiency policy and program was initiated after establishment of the Energy Conservation
Act (2001) by the Ministry of Power (MoP). Subsequently in 2002, the Bureau of Energy Efficiency (BEE)
was formed under MOP to assist in developing, implementing and monitoring policies to primarily reduce
energy intensity of the country. The Planning Commission envisaged an Integrated Energy Policy (2006)
to meet the challenges and make the energy sector more resilient. It broadly governs the energy policy
landscape in the country. This includes meeting the energy needs of vulnerable households, country-
wide, with safe and convenient energy at the least cost in a technically efficient, economically viable and
environmentally sustainable manner (IEA, 2011; 2012a; 2012b).

India’s Energy Efficiency policy framework was formally initiated upon enactment of the Energy
Conservation Act in October 2001. The Energy Conservation Act provides for efficient use of energy and
its conservation and for matters connected therewith. It requires large energy consumers to adhere to
energy consumption norms and also directs new buildings to follow the Energy Conservation Building
Code. Electrical appliances need to meet minimum energy performance standards (MEPS) and display
energy consumption labels.
Overall, the Energy Conservation Act targeted the following key schemes for energy efficiency in India:
 Appliance Standards & Labelling;

 Energy Efficiency in Building sector/ECBC for new buildings;

 Energy Benchmarking in Designated Consumers;

 Energy Efficiency in Small and Medium scale Industries;

 Certification of Energy Managers and Auditors;

 Energy Conservation Awards.

The Electricity Act came into force in June 2003 with key objective making laws pertaining to the
generation, transmission, distribution, trading and use of electricity and to reform legislation by “
promotion of efficient and environmentally friendly policies”. This Act mandates efficiency in the complete
life cycle of the electricity sector. Under the Section 3(1) of the Act, the central government notified the
National Electricity Policy (NEP) for the development of the country’s electricity sector. NEP put special
emphasis on the Demand Side Management (DSM) and made periodic energy audits compulsory for the
energy intensive industries. NEP also focussed on labelling on the appliances and high energy efficiency
pumps in the agricultural sector.

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The National Mission of Enhanced Energy Efficiency (NMEEE) was endorsed by the MOP’s steering
committee in September 2008 to undertake new schemes and initiatives to contribute to climate change
mitigation through energy efficiency. NMEE’s focuses on key programs for energy efficiency in the
country. For example, key schemes to be undertaken under NMEEE are the Perform Achieve and Trade
(PAT) for large industrial units called Designated Consumers and the Super-Efficient Equipment Program
(SEEP). Implementing NMEEE could save about 23 million Mtoes of fuel by 2015 and a capacity addition
of about 19 GW would be avoided.
Overall the institutional and policy framework for energy efficiency is well established in India through
initiatives like the Energy Conservation Act 2001 and the Integrated Energy Policy (IEP) (IEA, 2011;
2012a; 2012b).

11.4.2 Key Energy Sector Stakeholders


Electricity is on the concurrent list of the Indian Constitution, with central and state governments sharing
responsibility. Until the 5th Five-Year Plan (FYP 1974-79) that established electricity utilities (e.g. NTPC)
under the central government, state governments were solely responsible for energy sector development
through the State Electricity Boards (SEBs) which monopolized generation, transmission and distribution,
which was intended as per the Electricity (Supply) Act of 1948 to facilitate power sector development. As
an outcome of the Electricity Act 2003 and the subsequent unbundling of SEBs, a multitude of market
players emerged in India’s power sector.
The Ministry of Power (MOP) administrates legislation regarding thermal, hydropower distribution, and
the transmission and distribution grid. The Planning Commission supports the government in assessing
and formulating the national plans for the energy sector. The Bureau for Energy Efficiency from the
Ministry of Power implements and regulates energy efficiency policies and programmes. The Central
Electricity Authority’s main task is to advise the central government on national electricity and tariff
policy. The Central Electricity Regulatory Commission (CERC) regulates all electricity activities at both
central and interstate level. These include regulating interstate tariffs and management of electricity
trading market. The Energy Coordination Committee, chaired by the Prime Minister is responsible for
coordinating and integrating energy policy across the states (Figure 11-13).

Government of India

Planning Commission Empowered Group of Ministers

Ministry of
Ministry of Ministry of New and Department of
Petroleum and Ministry of Coal
Power Renewable Energy Atomic Energy
Natural Gas

Figure 11-13: Mapping for the Key Energy Stakeholders in India (adapted from IEA, 2012)

11.4.3 Electricity Sector

11.4.3.1 Overview
The rapid rise in industrialization and urbanization made India one of the most energy-intensive countries
worldwide. However, electricity supply has not kept up with demand and therefore there are regular
power shortages (ADB, 2013). To meet increasing electricity demand in the country, installed capacities

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are expected to grow at 7% annually. For example, the total installed capacity in India grew 94 times
since independence (1947) and reached 205 GW as of June 2012 (CEA, 2011). In 2011, the total
electricity generation was approximately 755,847 GWh. Nonetheless, energy demand in India is growing
at the faster rate than new capacity. Based on the Table below there was an average peak demand
shortage of around 11% over last three years, and an overall energy deficit of 8% in the country and this
is consistently increasing (ADB, 2013, CEA, 2011).

Table 11-11: Peak demand supply shortage in India (GW) (CEA, 2011)
Year Requirement Availability Shortage

2008-09 109.8 96.8 -13.0

2009-10 122.3 110.3 -12.0

2010-11 136.2 118.7 -17.5

Overall, electricity generation capacity and infrastructure is facing constraints and shortfall due to the
lack of the adequate investment in the sector. This results in unreliable electricity supply and a large
percentage of the population and industry faces regular electricity outages, fluctuation in voltage and
frequency (IEA, 2012b).

11.4.3.2 Electricity in the Residential Sector

The electricity consumption pattern per sector is shown in the Figure below and reveals that the industry
sector, with 39% share, is the biggest consumer of electricity and this is expected to grow further with
rising economic growth and industrialization. It is then followed by the residential and agricultural sectors
with 24% and 19% share respectively. Thus, the three sectors combined form 82% of electricity
consumption in India in the year 2010-11 (CEA, 2011).

Figure 11-14: Electricity consumption per sector in India (2010-2011) (CEA, 2011)

According to the National Productivity Council study for the BEE, summarized in Table 11-12 it is
estimated that implementation of energy efficiency measures would lead to overall savings of 75,400
GWh and contribution of the residential sector would be approximately 24,160 GWh (NPC, 2009).

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Table 11-12: Estimated Energy Consumption and Potential Energy Savings across selected
sectors in India in 2007-08 (thousand GWh) (NPC, 2009)
Sector Actual Consumption Potential Savings

Agricultural Sector 92.33 27.79

Commercial Sector 9.92 1.98

Municipalities 12.45 2.88

Residential Sector 120.92 24.16

Industrial Sector (Including SME’s) 265.39 18.57

Total 501 75.36

Figure 3.15 shows that 50% of total electricity consumption in the residential sector is dominated by
lighting and electric fans in India. With expected rise in population and demand for new technologies,
household electricity consumption is likely to increase significantly making it even more important for
policy makers to target energy efficiency aggressively in this sector.

Figure 11-15: Residential electricity consumption share per electrical appliance in India
(PWC, 2012)

11.4.3.3 Transmission and Distribution

The Indian transmission network is primarily managed by the two tier structure: intra state and local
grids managed by State Transmission Utilities (STU) and Inter State grid managed by the POWERGRID
(i.e. Public Sector Unit). India still needs to establish integrated national grids for optimum utilization of
its generation resources. Also, the distribution sector is largely controlled by stated owned companies and
reform in the sector is essential to plug the leakages due to the Aggregated Transmission and
Commercial losses.

India has one the highest transmission and distribution losses in the world. Nationwide losses was
estimated at 27 % during FY 2011-2012. According to the Central Electricity Authority total losses stand
to be equivalent to approximately 1.5 % of India’s GDP. Therefore the regulatory and utility companies
(both private and state owned) have much work to achieve acceptable international norms and levels.

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The Accelerated Power Development and Reform Programme (APDRP) was launched in 2001 and was
again re-launched in 2008 to strengthen the transmission and distribution network (PFC, 2012).

Approximately 75% of the population have access to electricity supply, while the remaining 25% face
several challenges in securing affordable energy. Electrification rate vary significantly across the country
with lower values in the states Orissa, Uttar Pradesh, Bihar and Jharkhand (ADB, 2013; IEA, 2012).

11.4.3.4 Future Electricity Demand


Demand forecasting forms the basis for generation planning in India. The Planning Commission carries
out regular electricity demand forecasts. The demand forecast for the 12th Five Year Plan (2012-2017) is
presented in Table 11-13 The forecasts are done on the basis of demand corresponding to actual
demand in 2009-10 with 9% GDP growth rate and 0.9 elasticity during the 12th Five Year Plan in order
to project the additional capacity required. The reduction in peak demand and electricity requirements
due to Demand-Side Management programs and energy efficiency programs by the BEE are also
accounted in the forecasting (PCI, 2012).
Table 11-13: Electricity Demand Forecast during the 12th Five Year Plan in India (PCI, 2012)
Period Energy Requirement (BU) Peak Load (MW)

9% GDP Growth Rate (0.9 9% GDP Growth Rate (0.9


Elasticity in 12th Plan) Elasticity in 12th Plan)

2016-17 (end of 12th Plan) 1,403 197,686

The Power Development Plan or the capacity addition planning was carried out by the Planning
Commission using the Electric Generation Expansion Analysis System software for the 12th Five Year Plan
period (2012-2017). Some of the assumptions considered during the plan are 5% spinning reserve as
stipulated in the National Energy Policy, effect of up rating of hydro power plants and retirement of about
4 GW each from old and inefficient thermal units by 12th and 13th Five Year Plan (PCI, 2012).
Table 11-14: Planned Additional Capacity during 12th Five Year Plan according to the Power
Development Plan in India (PCI, 2012)
Type of Capacity Additional Installed Capacity (MW)

Thermal 63,781

Coal 62,695

Gas 1,086

Hydro 9,204

Nuclear 2,800

Total 75,785

Overall, the Planning Commission plans a total additional capacity of 75.8 GW during the 12th Five Year
Plan. Priority is given to renewable, hydro and nuclear energy generation and hence, 9.2 GW hydro and
2.8 GW nuclear are planned. The analysis also considers 1.1 GW of natural gas power plants and 1.2 GW
import from Bhutan (PCI, 2012).

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11.4.3.5 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The four key challenges and constraints are
listed below:

 Regular blackouts and electricity supply unable to keep up with growing electricity demand

 Lack of consistent quality data for energy and electricity consumption

 Lack of capacity at state level to implement energy efficiency programs

 The regulatory structure/enforcement mechanism at state level needs strengthening

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11.5 Indonesia
11.5.1 Overview of Energy Sector and Regulatory Framework

Indonesia is the fourth largest country worldwide in terms of population. It is the seventh largest net
exporter of natural gas and the largest net exporter of coal worldwide. However, it is also the third
largest net importer of oil products globally (IEA, 2013).

Overall, Indonesia is heavily dependent on fossil fuels for electricity and ranked the fifth largest electricity
producer from fossil fuels worldwide. Approximately 87% of all electricity generation derives from fossil
fuels such as coal, natural gas, fuel oil and diesel. Indigenous fossil fuel resources are not sufficient to
meet growing demand for energy. In 2011, 41% of primary energy supply was from oil, followed by coal
with 23%, natural gas with 18% and biomass with 14%. In the same year, households only represented
12% of total final energy consumption of which 47% was from electricity and 41% for liquefied
petroleum gas. Indonesia’s dependence on imported fossil fuels means it is subject to global fuel prices
affecting the government’s annual energy subsidy allocation. Nevertheless, according to the Ministry of
Energy and Mineral Resources (MEMR), primary energy intensity (toe per US$) has been on a downward
trend since 2001. Figure 11-16 actually shows that GDP is growing at a faster rate than electricity
consumption which could also indicate the economy is becoming more efficient (ADB, 2012; IEA, 2013;
MEMR, 2012).

Figure 11-16: Electricity Generation and Gross Domestic Product from 2002 to 2012 in
Indonesia (ADB, 2013; PLN, 2012)
Table 11-15: Key Energy Indicators from 2008 to 2012 in Indonesia (ADB, 2013; PLN, 2012)

Unit 2008 2009 2010 2011 2012


Country

GDP at Current Prices Trillion Rupiah 4,948.7 5,606.2 6,446.9 7,422.8 8,241.9

Population million 228.5 231.4 237.6 241.6 247.2

GDP per Capita Million Rupiah 21.66 24.23 27.13 30.72 33.34

Electricity Consumption GWh 129,019 134,582 147,300 157,993 173,991

Electricity Consumption
kWh per capita 564.6 581.6 619.9 653.9 703.8
per capita

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Over the past 10 years, the Government of Indonesia introduced several energy regulations and laws
covering energy efficiency and conservation.
The Energy Law is the core legislation supported by numerous subsequent regulations. The Energy Law,
enacted in 2007, sets legislation covering all energy sectors including implementation of energy
efficiency. It outlines the National Energy Policy and creates the National Energy Council.
The National Energy Policy aims at reducing energy elasticity below 1 by 2025 and is the basis for
developing the National Energy Master Plan and National Energy Conservation Master Plan. The National
Energy Conservation Master Plan, revised every five years or annually, aims at reducing energy intensity
by an average 1% per annum until 2025. The plan covers measures for all sectors and estimates that
there is potential for energy savings of 10% to 30% in the residential sector, particularly through energy
standards and labelling (APEC, 2011; APEC, 2012).
In addition, in 2005, the Government of Indonesia introduced a Law requiring voluntary compliance with
energy building standards which cover both commercial and residential sectors. Currently government
agencies are also obliged to implement energy saving measures in government buildings (APEC, 2011;
Lites-Asia, 2012).

In addition to the main energy policies indicated above there is also the (APEC, 2011; 2012):
 National Energy Management Blueprint (2006) which mentions a goal of reducing 41% of total
primary energy supply by 2025 against business as usual and utilizing measures approved in the
National Energy Conservation Master Plan.
 Energy and Water Efficiency Instruction (2008) which provides directives for the introduction of
energy and water saving initiatives in all sectors and levels.

 Energy Vision 25/25 (2010) which aims at achieving 25% of renewable energy in the primary
energy supply mix by 2025. This vision serves as the basis for the National Energy Conservation
Master Plan goal.

Regarding energy standards and labels for electrical appliances, in 1999, the Government of Indonesia
launched an energy labelling program covering refrigerators only. This program was later discontinued
and replaced by a revised energy labelling program which is currently mandatory for CFLs only but is
being extended, voluntarily, to other electrical appliances including electric fans (Figure 11-17). The
minimum energy performance standards for electric fans is planned for 2014 (APEC, 2011; Lites-Asia,
2013).

Figure 11-17: Comparative Energy Label Scheme in Indonesia

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11.5.1.1 Key Energy Sector Stakeholders

The National Energy Council is responsible for developing energy policies in Indonesia. The Ministry of
Energy and Mineral Resources (MEMR) is the key stakeholder regarding the management, development
and supervision of energy programs and policies including energy efficiency and standardization. Under
the MEMR, there are three Directorates:
 General of Oil and Gas,
 Mineral and Coal, Electricity,
 New Energy, Renewable and Energy Conservation.

The MEMR technical staff are part of relevant technical committees under the National Standardisation
Agency of Indonesia. In addition, the MEMR, with the support from the Danish International
Development Agency, also established the Clearing House of Energy Conservation which collects
information on energy efficiency activities in Indonesia (APEC, 2011; Lites-Asia, 2013).

The Perusahaan Listrik Negara (PLN) is the state-owned electricity corporation responsible for managing
and operating the whole electricity sector in Indonesia. It owns majority of the electricity transmission
and distribution network. The PLN also has a R&D centre which carries out testing of electrical appliances
and the PLN and MEMR recently commenced launching information campaigns to promote energy
efficient appliances (ADB, 2012).

11.5.2 Electricity Sector

11.5.2.1 Overview

Since 1997, Indonesia has struggled to invest in additional generation capacity to meet growing demand.
The MEMR estimates it would require US$100 billion by 2020 to ensure it meets demand and enhances
its electricity sector reliability, of which, US$70 billion would be for power plants and US$30 billion for the
transmission and distribution network. However, PLN has limited annual funds available for improving its
infrastructure and over the last 10 years about 50% of new generation investment is from public
investment (ADB, 2012).

In 2012, the total electricity generation reached 200,328 GWh, showing an increase of about 9% from
2011. In 2011, as illustrated by Figure 11-18, fossil fuels accounted for approximately 90% of the total
electricity generation mix in Indonesia and about 75% of total generation was from power plants owned
by PLN. For the same year, the PLN electricity system registered a peak load of 26.7 GW (ADB, 2012;
PLN, 2012).

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Figure 11-18: Electricity Generation according to fuel type in Indonesia (2011) (MEMR,
2012)

11.5.2.2 Electricity in the Residential Sector

Based on PLN’s electricity sales data for 2012, and as shown by the Figure below, the residential sector
accounts for 42% of total energy sales (72,135 GWh). Although there is no indication of residential
electricity consumption per region, approximately 80% of the population lives in the Java-Madura-Bali
islands (APEC, 2011; PLN, 2012).

Figure 11-19: Electricity Sales according to sector in Indonesia (2012) (PLN, 2012)

11.5.2.3 Transmission and Distribution

Indonesia has a total of 38,000 km of transmission lines with several voltages (500 kV, 225 kV, 150 kV,
70 kV, 30 and 25 kV). The distribution lines are approximately 741,957 km and include medium
transmission lines of 20 kV, 12 kV and 7 kV. In 2012, the PLN indicates that transmission losses were

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approximately 3% and distribution losses where 7% (PLN, 2012). Since 2009, Indonesia imports more
than 1 GWh of electricity from Malaysia particularly from micro-hydro power plants. (ADB, 2012; MEMR,
2012; PLN, 2012).

In 2012, the electrification rate was estimated at 73% (PLN, 2012; MEMR, 2012). However, the
government’s ambitious target is to reach 95% by 2020. This will be a challenge due to the population’s
spread across thousands of islands making it a necessity to have a decentralized electricity grid and small
off-grid sources in rural and remote areas. Another issue is the fact that electricity is subsidized in
Indonesia and therefore extending the network also means additional funds required for the
government’s energy subsidy and funds to support PLN’s low return on investment. From 2010 to 2014,
the PLN plans to provide electricity access to an additional 10 million customers (ADB, 2012).

11.5.2.4 Future Electricity Demand

The MEMR projects that electricity demand will increase from approximately 180 TWh in 2010 to over
700 TWh by 2030. Consequently, installed capacity would need to increase from about 30 GW in 2010 to
approximately 180 GW in 2030. This represents an increase of about 7 GW per year, however from 1996
to 2009 only 1 GW of installed capacity was added on an annual basis (ADB, 2012).

To overcome this challenge, the government introduced the Accelerated Power Development Program
(2006) to trigger installation of 10 GW of coal power plants. In 2009, the 10-year Electric Power Provision
Plan (EPPP) introduced a second Accelerated Power Development Program for additional 10 GW focusing
more on renewable energy and clean coal technologies. This is due to the first Accelerated Power
Development Program being detrimental do Indonesia’s environmental performance due to the low-
efficiency of the coal-fired power plants. According to the EPPP, the plan is to introduce an additional 55
GW of installed capacity (32 GW from PLN and 23 GW from IPPs) (ADB, 2012).

11.5.3 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The five main key challenges and constraints in
Indonesia are:

 Subsidized electricity prices

 Limited funding and capacity to meet growing demand

 Recent energy efficiency policies which require time for full implementation and uptake by the
residential sector

 Lack of adequate demand-side data

 Voluntary energy efficiency label scheme which limits potential benefits

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11.6 Lao People’s Democratic Republic


11.6.1 Overview of Energy Sector and Regulatory Framework

The Lao People’s Democratic Republic (Lao PDR) is one of the poorest countries in Southeast Asia
together with Myanmar and Cambodia (World Bank 2012). However, it is a country in economic
transition, rich in natural resources, mainly hydropower, and closely integrated with neighbouring
countries. Currently, as shown by Figure 11-20 and Table 11-16, there is no particular link between GDP
growth (average growth of 7%-8% per year) and electricity generation but this is likely to change with
projected mining and hydropower investments which will contribute significantly to economic growth
(ADB, 2013a).

Figure 11-20: Energy Generation and Gross Domestic Product from 2002 to 2012 in Lao PDR
(ADB, 2013b)

Similarly to Myanmar, the main fuel source for energy in Lao PDR is biomass, which represents
approximately 60% of final energy use, while petroleum products account for approximately 17% and
electricity for 12% of final energy use. The residential sector accounts for about 54% of total final energy
consumption and is highly reliant on biomass for energy, particularly cooking.
Table 11-16: Key Energy Indicators from 2008 to 2012 in Lao PDR (ADB, 2013b)

Unit 2008 2009 2010 2011 2012


Country

Gross Domestic Product


Billion Kips 46,215 47,562 55,694 64,727 72,728
at current market prices

Population Million 6.00 6.12 6.26 6.38 6.51

Gross Domestic Product 7,703 7,772 8,897 10,145 11,172


Thousand Kips / capita
per Capita

Electricity Installed
MW 681 1,805 2,520 2,570 -
Capacity

The Government of Lao PDR established the Seventh Five-Year National Socio-Economic Development
Plan (NSEDP 2011-2015) which prioritizes energy security and nationwide electrification. NSEDP includes
specific energy sector targets such as additional 2,862 MW of new hydropower plants, expansion of on-
grid and off-grid transmission network to reach 80% of households by 2015, integration of transmission
network including additional transmission lines to neighbouring countries.

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Energy efficiency is still not a major part of the existing regulatory framework as there is no
comprehensive national strategy and the lead has been taken mainly through donor and development
bank project support such as the World Bank Rural Electrification Project focusing on demand-side
management together with the state-owned utility – Electricite du Laos (EDL). The recent establishment
of the Department of Energy Management (DEM) under the Ministry of Energy and Mines (MEM), is likely
to provide additional support and coordination for pursuing energy efficiency.

11.6.1.1 Key Energy Sector Stakeholders

The main key stakeholders in the energy sector in Lao PDR are the Ministry of Energy and Mines (MEM),
Electricity do Laos (EDL) as well as the Lao Holdings State Enterprise, Ministry of Finance and Ministry of
Natural Resources and the Environment (MONRE). The MEM is responsible for energy policies,
management of the energy sector development as well as overall strategic guidance (Figure 11-21).
Within the MEM, the Department of Energy Business is responsible for private sector investment in the
energy sector. The Department of Energy Policy and Planning is responsible for developing national
energy policies and plans. The Department of Energy Management is responsible for designing energy
legislation, regulations and standards for electrical equipment and appliances. The Institute for
Renewable Energy Promotion is responsible for the promotion of renewable energy and energy
conservation (ADB, 2013a).

Ministry of Energy and


Mines (MEM)

Department of Energy Department of Energy Department of Energy Institute of Renewable


Business Policy and Planning Management Energy Promotion

Figure 11-21: Organizational Structure of the Ministry of Energy and Mines in Lao PDR

The Electricite du Laos (EDL), established in 1961, is a state-owned utility under the MEM. It owns and
operates the main electricity generation plants as well as the transmission and distribution networks
including management of electricity imports and exports from and to neighbouring countries. The Lao
Holding State Enterprise is responsible for facilitating investment in energy generation. The provincial
authorities are responsible for rural electrification and small grids/generation (ADB, 2013a).

11.6.2 Electricity Sector

11.6.2.1 Overview

In Lao PDR, majority of the power plants are owned by EDL (through EDL-GEN) and Independent Power
Producers (IPPs). The IPPs export mainly to neighbouring countries, while EDL’s power plants, almost all
of these hydropower based, are insufficient to meet in-country demand. In 2011, the total installed
capacity was approximately 2,570 MW, however the maximum peak load registered in 2011 was only 527
MW.

Figure 11-22 shows that the installed capacity start growing considerably from 2008, while before that
the installed capacity was around 600 MW. In 2011, the total electricity consumption was 2,399 GWh
(ADB, 2013a. EDL, 2012).

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Figure 11-22: Electricity Installed Capacity from 2003 to 2011 in Lao PDR (EDL, 2012)

11.6.2.2 Electricity in the Residential Sector

Approximately 75% of the population lives in rural areas and 25% below the poverty line (less than US$
per day in purchasing power parity terms). The residential sector accounts for 40% of total electricity
consumption followed by commercial sector with 28% and the industrial sector with 24% (Figure 11-23)
(ADB, 2013a).

Figure 11-23: Electricity Consumption per sector in Lao PDR (2012) (EDL, 2012)

The EDL, with support from the MEM, setup the Power to the Poor (P2P) Program to subsidize affordable
connection and indoor wiring in the poor rural areas that cannot afford the respective costs. The
objective is to increase connection rates in villages connected to the grid. The households pay
approximately 200,000 kip on average (US$25) and they can receive interest free credit up to 700,000
kip (US$89) to cover the connection and indoor wiring costs. The remaining credit is paid by the
household to EDL in instalments of 20,000 kip (US$2.5) over a period of three years as part of their
monthly electricity bill. The credit returned is put back into the P2P Revolving fund (World Bank, 2012).

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11.6.2.3 Transmission and Distribution

Until 2009, EDL’s transmission network (115 kV) was divided into 4 areas with no interconnection. Since
then, the transmission network is being expanded and has currently been interconnected into 3 main
areas with a total 2,500 km. The distribution network consists mostly of medium voltage 22 kV lines
concentrated around Vientiane and Luang Prabang as well as 13 cross border connections of 22 kV and
35 kV with People’s Republic of China, Thailand and Viet Nam. In addition, 4 IPPs also have dedicated
transmission lines to their export markets. In rural areas or remote areas, the provincial authorities
operate small grids and diesel generators or small hydropower plants. The estimated transmission and
distribution losses in Lao PDR are relatively low and approximately 12% (ADB, 2013a).

Electrification rate in Lao PDR has improved significantly with the support from development banks and
donor agencies. In 2012, the electrification rate was 82%, equivalent to 876,762 households, compared
to about 15% in 1995. The target is to reach 80% of households by 2015 and 90% by 2020. This will
require a substantial investment in additional generation and transmission capacity as well as further
government activity to support adequate energy use through energy efficiency and demand-side
management programs (ADB, 2013a; EDL, 2012).

11.6.2.4 Future Electricity Demand

The EDL Power Development Plan (PDP) for Lao PDR covers the period of 2010 to 2020 and Table 11-17
summarizes the additional capacity planned according to three areas. Overall, the additional capacity
planned will come from EDL (10%) and IPPs (90%). On average, electricity demand is expected to
increase at 15%-18% per year due to the government’s policy to enhance energy security and further
expand rural electrification.
Table 11-17: Summary of Added Capacity during 2012 – 2020 per area according to the PDP
2010-2020 in Lao PDR (EDL, 2010)
Northern Area Central Area Southern Area TOTAL

Additional Capacity
876 MW 1,484 MW 954 MW 3,314 MW
(2010 – 2015)

Additional Capacity
1,973 MW 216 MW 944 MW 3,133 MW
(2016 – 2020)

TOTAL 2,850 MW 1,700 MW 1,897 MW 6,447 MW

11.6.3 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The two main key challenges and constraints
are in Lao PDR are:

 Lack of comprehensive and integrated national energy policy and with the inclusion of an energy
efficiency roadmap/plan and limited financial and human capacity from MEM and EDL.

 Limited electricity generation to meet growing demand and balancing it with export opportunities

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11.7 Malaysia
11.7.1 Overview of Energy Sector and Regulatory Framework

Malaysia is one of the most developed countries in Southeast Asia, with extensive natural resources and
classified as an upper-middle income country. It is the tenth largest net exporter of natural gas
worldwide but also the tenth largest importer of coal globally (IEA, 2013). Malaysia is heavily dependent
on fossil fuels for economic growth and to meet its fast-rising electricity demand. In 2011, natural gas
accounted for 45% of total primary energy supply, followed by crude oil with 31% and coal/coke with
19%. For the same year, diesel, motor petrol, natural gas and electricity accounted for 80% of final
energy demand (approximately 20% share each). Coal represents for about 30% of electricity generation
in Peninsular Malaysia and about 90% of this is imported from Australia, Indonesia, People’s Republic of
China and South Africa (ADB, 2011; APEC, 2011a; 2011b; 2013; MEIH, 2013). Figure 11-24 shows how
closely electricity consumption follows GDP since 2002. It also indicates that electricity consumption is
increasing at a higher rate than GDP.

Figure 11-24: Energy Consumption and Gross Domestic Product from 2002 to 2012 in
Malaysia (ADB, 2013)
Table 11-18: Key Energy Indicators from 2008 to 2012 in Malaysia (ADB, 2013)

Unit 2008 2009 2010 2011 2012


Country

GDP at Current Prices Million Ringgit 769,949 712,857 795,037 881,080 937,532

Population Million 27.57 28.08 28.59 28.96 29.34

GDP per Capita Ringgit 27,927 25,387 27,808 30,424 31,954

Electricity Consumption GWh 94,393 93,714 101,550 105,057 112,555

Electricity Consumption per


kWh 3,424 3,337 3,552 3,628 3,836
capita

Until recently, energy policy was relatively fragmented and there were no energy efficiency policy targets
available in Malaysia, and the government priorities are particularly regarding oil and gas subsector (ADB,
2011).

The Tenth Malaysia Plan (2011-2015) outlines strategies for energy efficiency improvement and the
Economic Transformation Program initiative (2010) highlights energy efficiency and the need to promote

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and implement energy management systems in government buildings and sales of energy efficient
appliances. The 1979 Energy Policy aims to ensure an efficient, secure and environmentally sustainable
supply of energy in the future. The Electricity Supply Act (2001) regulates the electricity sector and
includes provisions for energy efficiency including the development of standards for electrical appliances.
The Efficient Management of Electrical Energy Regulation (2008) was developed based on the Electricity
Supply Act and focuses particularly on large electricity consumers (APEC, 2011a, KeTTHA, 2013; UNEP,
2011).

In 2006, the Malaysian Energy Efficiency Improvement Programme (MIEEIP) was introduced, supported
by the Government of Malaysia, the United Nations Development Programme (UNDP) and the Global
Environmental Facility (GEF), and focused particularly on energy-intensive sectors. Under this project,
energy efficiency and conservation guidelines were prepare to aid the industry in energy efficient
management.

In 2012, the National Energy Efficiency Master Plan (2012 – 2022) was proposed and set a target of 79.8
TWh for accumulated energy savings for the industrial, commercial and industrial sectors. This is
equivalent to 3.6 GW installed capacity or a 9.5% reduction in electricity consumption against business as
usual scenario (APEC, 2011a; KeTTHA, 2013).

In addition to the regulatory framework mentioned above, the government provides support for small
scale energy efficiency programs including the Malaysia Industrial Energy Efficiency Improvement Project
and tax allowances and import duty exemptions and rebates for energy efficient appliances. As part of
these programs, in 2006, the government introduced a voluntary energy labeling program (Figure 11-25)
and also minimum energy performance standards which are mandatory for electric fans (ADB, 2011).
The Energy commission also introduced an endorsement label in addition to the comparative energy label
(APEC, 2011a, 2011b).

Figure 11-25: Comparative Energy Label in Malaysia (UNEP, 2011)

11.7.1.1 Key Energy Sector Stakeholders

There are several key energy sector stakeholders in Malaysia. The Ministry of Energy, Green Technology
and Water (MEGTW) is the key energy agency and is responsible for developing the regulatory
framework for the electricity supply, energy efficiency and renewable energy sector. The Ministry of Rural
Development focuses particularly on policies for the rural electricity supply sector. The Energy
Commission provides technical and performance support and covers legislation on electricity and piped
gas supply industry all states except Sawarak (KeTTHA, 2012). There is also the Energy Unit of Economic
Planning Unit of the Prime Minister’s office which provides direction and strategies for the national energy
regulatory framework. The Sustainable Energy Development Authority is a key focal point for the
Economic Transformation Program initiative.

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11.7.2 Electricity Sector

11.7.2.1 Overview

There are several independent power producers and three integrated utilities (Kettha, 2012; MEIH,
2013):

 Tenaga Nasional Berhad (TNB) with covers Peninsula Malaysia and is the largest electricity
company in Malaysia with a total of about 7,040 MW installed capacity of which almost 75% is
from natural gas. It has subsidiaries responsible for generation, transmission and distribution.

 Sabah Electricity Sdn. Bhd. (SESB) and covers Sabah and Labuan. It is owned by TNB and State
Government of Sabah.

 Sarawak Electricity Supply Corp. (SESCo) was established by the State Government of Sarawak
(55% shareholder).

Overall, in 2010, the total installed capacity for Peninsular Malaysia was 21.8 GW and a peak demand of
15.0 GW. In Sabah, the installed capacity was 1.1 GW, while in Sarawak the installed capacity was 1.3
GW. In 2010, total electricity generation amounted to approximately 124,976 GWh with natural gas being
the main fuel source as shown in Figure 11-31 (ADB, 2012; MEIH, 2013).

Figure 11-26: Electricity Generation according to fuel type (2009) (APEC, 2011)

11.7.2.2 Electricity in the Residential Sector

In 2011, as shown in Figure 11-27, the residential sector accounted for 21% of total final electricity
consumption and majority was from residential buildings which are not regulated in terms of energy
efficiency and therefore relatively low energy-use performance (APEC, 2011b; MEIH, 2013).

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Figure 11-27: Final Electricity Consumption per Sector in Malaysia (2011) (MEIH, 2013)

11.7.2.3 Transmission and Distribution

The transmission network comprises of 275 kV and 132 kV networks. Low to medium voltage networks
consist of 33 kV, 22 kV and 11 kV. There are three major transmission and distribution networks –
Peninsular Malaysia, Sabah and Sarawak. Malaysia also has transmission connections with Brunei
Darussalam, Indonesia, Singapore and Thailand. The Peninsular Malaysia network is the largest and
accounts for 79% of total installed generation capacity in Malaysia and with a reserve margin at about
53%. The transmission and distribution losses in Peninsular Malaysia account for about 10% in 2009. The
overall electricifcation rate is one of the highest in Southeast Asia with 99% (APEC, 2011b).

11.7.2.4 Future Electricity Demand

According to the Asian Development Bank, the peak demand reached 15 GW in 2010 and the forecast is
it will grow by 3.5% per annum. This means it will reach 22 GW by 2015 and 32 GW by 2030. Due to
limited transmission networks, this demand is likely to be met by coal-fired power plants using imported
coal (ADB, 2012).

In comparison and according to the 2013 APEC Energy Demand and Supply Outlook, electricity
generation is projected to grow by 2.8% per year rising from 105 TWh in 2009 to 217 TWh by 2035.
Under Business and Usual Scenario, the current share of natural gas for electricity should fall from 62%
in 2010 to 49% in 2035 as shown by the Figure below.

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Figure 11-28: Share of Electricity Generation Mix under Business as Usual Scenario in
Malaysia (APEC, 2013)

11.7.3 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The three main key challenges and constraints
are in Malaysia are:

 High dependency of fossil fuels for energy and electricity.

 Recent energy efficiency policies that need to be further strengthened and wider goals beyond
energy consumption and GDP ratio.

 Lack of strong policies to tackle energy use in the residential sector.

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11.8 Myanmar
11.8.1 Overview of Energy Sector and Regulatory Framework

Myanmar has one of the lowest GDPs in Southeast Asia and despite economic sanctions since the 1980s,
the economy maintained steady growth in 2011 and 2012 on the back of the agricultural sector and the
growing industrial sector (Figure 11-29 and Table 11-19). Electricity consumption is closely coupled with
GDP growth particularly since 2007. There is limited information on the primary energy supply in
Myanmar with the International Energy Agency (IEA) estimating it at 15.1 Mtoe in 2009 of which 70%
from biomass, 18% from natural gas, 9% from oil, 2% from hydropower and 1% from coal. However,
these shares are changing rapidly with expansion mainly in natural gas, coal and hydropower production
(ADB, 2012; 2013; WEC, 2013).

Figure 11-29: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in
Myanmar (ADB, 2013)

Overall, Myanmar has significant in-country energy resources such as hydropower as well as natural gas
which it exports to countries in the region. It is ranked 34th globally in terms of hydrocarbon reserves.
However, a significant amount remains unexploited but with greater energy demand and economic
development this is likely to change. In 2011, domestic gas consumption was used mainly for gas-fired
power plants (60%), fertilizer production (12%) and compressed natural gas (10%). In terms of
hydropower, in 2011, 753 MW were commissioned of an estimated potential of 100,000 MW (ADB, 2012;
WEC, 2013).
Table 11-19: Key Energy Indicators from 2008 to 2012 in Myanmar (ADB, 2012; 2013).

Unit 2008 2009 2010 2011 2012


Country

Gross Domestic Product at


Billion Kyats 29,233 33,894 39,777 46,344 51,728
current producers prices

Population Million 58.4 59.1 59.8 60.4 61.0

Gross Domestic Product Thousand Kyats per 427 574 665 767 848
per Capita capita

Electricity Consumption GWh 4,701 4,993 6,312 7,717 8,255

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Electricity Consumption
kWh per capita 80.5 85.5 105.5 127.8 135.3
per capita

In terms of energy policy framework there are three main regulations: Electricity Act, Myanmar Electricity
Law and Electricity Rules which are all relatively out dated in terms of inclusion of energy efficiency
regulations and there is no proper roadmap for energy efficiency. However, the government’s four main
key goals are to promote energy independence, new and renewable energy sources as well as energy
efficiency and alternative fuels for residential use. The government’s target for energy efficiency is to
save 5% of the total primary energy consumption by 2020 and 8% by 2030, compared to the base year
2005. There is currently no supporting legal framework that covers energy efficiency performance
standards for electrical appliances nor energy efficiency in buildings standards and codes (ADB, 2012;
WEC, 2013).

11.8.1.1 Key Energy Sector Stakeholders

There are a total of seven ministries responsible for energy in the Myanmar with the Ministry of Energy
(MOE) responsible for overall energy policy implementation and coordination as well responsible for three
state-owned enterprises that carry out exploration, production and distribution of petroleum products
(Figure 11-30).

The Myanmar Oil and Gas Enterprise (MOGE) is responsible for exploration, production and
transportation of crude oil and natural gas. The Myanmar Petrochemical Enterprise (MPE) is responsible
for operation of refineries, fertilizer plants, liquefied petroleum gas (LPG) and methanol plants. The
Myanmar Petroleum Products Enterprise (MPPE) is responsible for marketing and distribution of
petroleum products. The other six ministries involved in energy topics include the Ministry of Electric
Power (MOEP), Ministry of Mines, Ministry of Agriculture and Irrigation, Ministry of Science and
Technology, Ministry of Environmental Conservation and Forestry and Ministry of Industry (MOI). The
MOI is particularly relevant for topics regarding energy efficiency, yet there is no dedicated department
for energy efficiency (ADB, 2012; WEC, 2013). In January 2013, the government established a National
Energy Management Committee (NEMC) and an Energy Development Committee (EDC) to strengthen
coordination and planning among ministries (WEC, 2013).

Ministry of Energy

Energy Planning
Department (EPD)

Myanmar Petroleum
Myanmar Oil and Gas Myanmar Petrochemical
Products Enterprise
Enterprise (MOGE) Enterprise (MPE)
(MPPE)

Figure 11-30: Organizational Structure of the Ministry of Energy in Myanmar

The MOEP, a merger between MOEP1 (hydropower and coal power generation) and MOEP 2 (power
transmission and distribution, gas-fired generation, mini-hydro) in September 2012, is responsible for
developing, implementing, operating and maintaining all major power plants as well as the transmission
and distribution networks. There are a total of seven departments under MOEP covering generation,
transmission and distribution (ADB, 2012; WEC, 2013).

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11.8.2 Electricity Sector

11.8.2.1 Overview

The existing electricity capacity and infrastructure is poor and can only meet about 50% of the current
electricity demand resulting in regular blackouts and challenges in electricity supply management (ADB,
2012). In addition, electricity consumption has double from 2001 to 2011. In 2011, the total electricity
consumption in Myanmar was approximately 6,312 GWh representing about 100 kWh per capita per year
which is amongst the lowest in Southeast Asia. Approximately 45% of electricity sales are in Yangon,
followed by Mandalay with 16% (ADB, 2012; WEC, 2013).

In 2011, the total electricity installed capacity was 3,361 MW with majority deriving from hydropower
with 76% (Figure 11-31). In the same year, the registered peak load was 1,533 MW, however this value
does not reflect actual demand but rather limited available/firm capacity from power plants due to poor
maintenance and operational limitations. The actual value in 2012 was estimated at approximately 1,957
MW and the actual shortfall estimated at 500 MW which is managed through blackouts to reduce load.
More importantly, the hydropower capacity diminishes significantly in the dry season with potential
reductions in the 400-500 MW range. In terms of total electricity generation, in 2011, the value was
10,033 GWh (ADB, 2012; WEC, 2013).

Figure 11-31: Electricity Installed Capacity according to fuel source in Myanmar (2011)
(ADB, 2012)

11.8.2.2 Electricity in the Residential Sector

Approximately 70% of the population lives in rural areas. Due to the lack of adequate electricity supply,
the residential sector, both in urban and rural areas, is dependent on biomass for energy. However, the
residential sector still represents 42% of the total electricity consumption in 2011 as shown by Figure
11-32. On average, each household in Yangon consumes approximately 1,760 kWh, while in Nay Pyi Taw
and Mandalay it is about 1,270 kWh per household (ADB, 2012; WEC, 2013).

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Figure 11-32: Electricity Consumption per sector in Myanmar (2011) (ADB, 2012)

11.8.2.3 Transmission and Distribution

The Myanmar Electric Power Enterprise (MEPE), under the MOEP, is responsible for the 9,886 km
transmission network (66 kV, 132 kV and 230 kV), while the Yangon City Electricity Supply Board (YESB)
and the Electricity Supply Enterprise are responsible for the 36,428 km distribution networks (0.4 kV, 6.6
kV, 11 kV and 33 kV). YESB covers only Yangon and ESE covers the remaining 13 regions including off-
grid generation. The transmission and distribution losses are currently very high – approximately 8%
from transmission and 19% from distribution in 2011 (ADB, 2012).

In 2011, the electrification rate in Myanmar was approximately 26% which is a significant increase
compared to 2006 when the value was approximately 16%. The electrification rate is higher in urban
areas such as Yangon, Nay Pyi Taw, Kayar and Mandalay. However, there is still a need for further
improvement in transmission and distribution of electricity which can be combined with demand-side
management and energy efficiency policies.

11.8.2.4 Future Electricity Demand

Unfortunately, there are no forecasts on long-term energy demand and supply from the Ministry of
Energy. The last demand projection and power development plan was carried out in 2001 but has not
been revised since. This lack of planning reflects the frequent blackouts and poor electricity supply
throughout the country (ADB, 2012).

11.8.3 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The four main key challenges and constraints
are in Myanmar are:
 Limited availability of data on energy and electricity supply and demand.
 Regular blackouts due to limited generation capacity, high transmission and distribution losses and
low electrification.
 Lack of integrated planning and out-dated energy policies.
 No legal and regulatory framework for energy efficiency standards for electrical appliances.

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11.9 Pakistan
11.9.1 Overview of Energy Sector and Regulatory Framework
In the last decade Pakistan’s Energy Sector has been through the worst crises since its inception. Energy
crises has its roots in number of issues including internal civil turmoil which left the energy sector without
proper integrated policy planning. In terms of total primary energy supply, in 2010-2011, natural gas
accounted for 48%, followed by oil with 32% and hydropower with 12%. For the same year, an annual
growth rate of 2% was registered compared to the previous years. Overall, Pakistan is heavily dependent
on fossil fuels for energy and particularly dependent on crude oil imports. For example, since the 1990s,
Pakistan has almost doubled its oil fuel imports for electricity generation and transport. Consequently,
electricity generation is subject to global oil prices which is adversely affecting the electricity industry in
Pakistan. Figure 11-33 shows how GDP has grown significantly in the last 10 years while electricity
generation and consumption have remained relatively unchanged (IEA, 2012; NEPRA, 2012a; 2012b).

Figure 11-33: Electricity Consumption, Electricity Generation and Gross Domestic Product
from 2002 to 2012 in Pakistan (ADB, 2013)
Table 11-20: Key Energy Indicators from 2008 to 2012 in Pakistan (ADB, 2013).

Unit 2008 2009 2010 2011 2012


Country

Gross Domestic Product at


Billion Rupees 10,355 12,542 14,249 17,656 19,406
Current Prices

Population Million 166.4 169.9 173.5 177.1 180.7

Gross Domestic Product Thousand Rupees per


62 74 82 100 107
per Capita capita

Electricity Consumption GWh 73,400 70,371 74,348 77,099 76,761

Electricity Consumption
kWh per capita 441 414 428 435 425
per Capita

According to the Pakistan Electric Power Company (PEPCO), Pakistan faces a shortfall of almost 5,000
MW on average (NEPRA, 2013b). Several power plants are operating at half of their capacity and new
generation capacity added in the system during last two years could not operate due to fuel

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unavailability. Access to electricity is another issue that Pakistan is struggling to handle with only 55 %
electrification rate achieved by 2010 (IEA, 2012).

The status of energy efficiency implementation in Pakistan is at the early and preparatory stages. There
is the consensus among the policy and decision makers that Pakistan requires strong energy efficiency
and energy conservation policy and efforts. However, the country does not have strong institutional
capacity. Lack of energy efficiency policy and program design is a consequence of the low profile of
energy efficiency in the country in the past two decades. In 2013, the government of Pakistan introduced
its National Power Policy providing a vision for the power sector and general strategy to meet current and
future needs of the country with energy efficiency as one of its core pillars. It does not cover operation
strategy or provide detail on implementation plans. Overall, the main goals of the National Power Policy
are to (MOWP, 2013):

i. Build a power generation capacity that can meet Pakistan’s energy needs in a sustainable manner.

ii. Create a culture of energy conservation and responsibility

iii. Ensure the generation of inexpensive and affordable electricity for domestic, commercial, and
industrial use by using indigenous resources such as coal and hydropower

iv. Minimize pilferage and adulteration in fuel supply

v. Promote world class efficiency in power generation

vi. Create a cutting edge transmission network

vii. Minimize inefficiencies in the distribution system

viii. Minimize financial losses across the system

ix. Align the ministries involved in the energy sector and improve the governance of all related
federal and provincial departments as well as regulators

The two of the five targets of the Energy Policy, pertaining to energy efficiency, are (MOWP, 2013):

 Supply Demand Gap: Goals i and ii pertain to this target

- Target: Decrease supply demand gap from 4,500 – 5,000 MW today to 0 MW by 2017.

 Efficiency: Goals iv to vii pertain to this target

- Target: Decrease transmission and distribution losses from 23-25% to 16% by 2017.

In the same year, the government approved the Energy Conservation Bill to provide for the
establishment of institutions, mechanisms and procedures for energy efficiency and conservation in the
country

The National Energy Conservation Centre (ENERCON) prepared some broad energy conservation
potential estimates according to sector as shown in Table 11-21. However the basis and details of the
plan are not available.

Table 11-21: Potential Energy Efficiency and Energy Conservation Savings in Pakistan
according to sector (Enercon, 2013)
Sector Potential Energy Savings
Industry 15-25 %
Transport 15-20 %
Agriculture 15-20 %
Buildings 20-30 %
Average 15-25 %

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Project Barrier Removal to Energy Efficiency Standards and Labelling is a regional project funded by the
Global Environment Facility (GEF), implemented by United Nations Development Programme (UNDP).
ENERCON is the implementing agency in Pakistan. This initiative targets at rapidly accelerating the
adoption of the energy efficiency standards and labelling in the region. The project also encourages
harmonization of the test procedures, energy efficiency standards and labels among the various countries
in Asia. The project includes six areas of intervention, i.e., fans, motors, compact fluorescent lamps,
ballasts, refrigerators and air conditioners. It includes regional harmonization between six member
countries, i.e. Bangladesh, China, Indonesia, Pakistan, Thailand and Viet Nam. Pakistan was nominated
as lead country for electric fans. Minimum energy performance standards were developed,
approved/adopted and notified for fans, CFLs, electronic and magnetic ballasts. Minimum energy
performance standards for electric motors are under process of approval, while standards for air
conditioners and refrigerators are under development/approval. The energy label for appliances along are
in the process of development and received approval from the project steering committee (BRESL,
2013).This particularly important as the projected rise in economic growth and electricity access will
ensure that residential consumer demand grows at a steady rate and therefore, proper energy efficiency
regulatory framework is necessary to enhance country’s power sector.

11.9.2 Key Energy Sector Stakeholders


The Ministry of Water and Power (MOWP) is the key energy stakeholder in Pakistan and responsible for
design and implementation of energy policies, programs and plans in the country. Other key stakeholders
include:
 National Energy Conservation Centre (ENERCON) was established in December 1986 by the
Government of Pakistan. As the national focal agency for every aspect of energy efficiency
related activities in all sectors of economy, ENERCON helps cultivate a new energy culture
focusing on sustainable development through energy conservation and efficient use of energy
resources and steers Pakistan towards “energy efficient and environment friendly tomorrow”.
Responsible partners for energy efficiency standards and labels are the Pakistan Standards and
Quality Control Authority, Pakistan Council of Chambers of Scientific & Industrial Research,
Pakistan Federation of Chambers of Commerce and Industry, Islamabad Chambers of Commerce
& Industry and the Network of Consumers Protection- Pakistan (BRESL, 2013).

 The National Power Regulatory Authority (NEPRA) regulates the electricity sector to ensure
competitiveness and coordinated, reliable and secure supply of electricity.

 The Private Power and Infrastructure Board (PPIB) was established facilitate private sector
involvement in the development of the electricity sector in the Pakistan.

 The Alternative Energy Development Board (AEDB) was established in an effort to enhance the
energy mix and energy security in the country. It acts as central agency for development,
promotion and facilitation of renewable energy technologies and formulation plan policies in
regards to the renewable and clean energy space.

11.9.3 Electricity Sector

11.9.3.1 Overview
Pakistan’s Electricity Sector was historically served by two utilities: Pakistan Water and Power
Development Authority (WAPDA) which provides services to whole of Pakistan except Karachi City, which
was served by the Karachi Electric Supply Company (KESC).

During the 1990’s the growth in electricity sector supply was not sufficient to meet the growing demands
of the economy and population. The electricity sector was seen as inefficient organization where it was
monopolistic and dominated by in efficient public sector organization which was unable to meet the
demand of the nation. Therefore, the Government of Pakistan approved a Strategic Plan for Power Sector
Reforms and Restructuring in 1992. The actual implementation of the reforms took place from 1998, and

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led to the unbundling of the WAPDA into the four generation companies (GENCO’s), nine distribution
companies (DISCO’s) and one National Transmission and Dispatch Company (NTDC). Also, as part of this
reform policy, KESC was privatized in 2005 (NEPRA, 2012a; 2012b).

Overall, the total installed capacity of Pakistan as of June 2012 was 23,538 MW, of which 16,035 MW
(68%) was thermal, 6,716 MW (29%) was hydropower and 787 MW (3%) was nuclear power as shown
in Table 11-22. In 2012, approximately 50% of the total installed capacity was public sector investment
and the remainder was private sector investment (NEPRA, 2012a).
Table 11-22: Installed Capacity by Technology from 2008 to 2012 in Pakistan (NEPRA,
2012a)
Technology 2008 2009 2010 2011 2012

Thermal Power (MW) 13,215 13,539 14,597 15,895 16,035

Hydro Power (MW) 6,555 6,555 6,555 6,645 6,716

Nuclear Power (MW) 462 462 462 787 787

Total 20,232 20,556 21,614 23,327 23,538

During fiscal year 2011-12, the total electricity generated was 98,664 GWh of which the share of thermal
electricity generation was 64,821 GWh (66%), followed by hydropower with 28,643 GWh (29%) and
nuclear power with 4,872 GWh (5%). The share of public sector is increasing gradually in the electricity
generation in Pakistan (NEPRA, 2012a).

11.9.3.2 Electricity in the Residential Sector

The residential sector represented 47% of total electricity consumption in 2011-12 as shown by Figure
11-34. This share is likely to increase as the current electrification rate is at 67% and amongst the lowest
in South Asia (IEA, 2012).

Figure 11-34: Electricity Consumption per Sector in Pakistan (2011-12) (NEPRA, 2012a)

According to the South Asian Association for Regional Cooperation’s Roadmap for Energy Efficiency and
Conservation in Pakistan, based on a residential survey carried out in 2008, electric fans represented

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about 30% of total household electricity consumption to be the highest consuming appliance overall
(Figure 11-35). Table 11-23 shows total electricity consumption per appliance in the residential sector in
2008 and projected electricity consumption by 2019. Based on the projections, electric fans will continue
to represent 30% of total electricity consumption in the residential sector by 2019 (SAARC, 2009).

Figure 11-35: Residential Electricity Consumption according to electrical appliances in


Pakistan (2008) (SAARC, 2009)
Table 11-23: Electricity Consumed by Electrical Appliances in the Residential Sector in
Pakistan in 2008 and forecast for 2019 (SAARC, 2009)
Appliance Type Electricity Consumed - 2008 Electricity Consumption
(GWh) Forecast - 2019 (GWh)

Refrigeration 4,524 10,550

Water Pump 1,258 2,993

Air Conditioning 5,845 13,631

Fans 10,105 23,565

Lighting 5,641 13,156

Others 6,332 14,765

TOTAL 33,705 78,660

11.9.3.3 Transmission and Distribution

Pakistan has two entities responsible for managing the transmission network. One is the National
Transmission and Despatch Company (NTDC) and other is Karachi Electric Supply Company Ltd (KESC).
NTDC is a state owned utility responsible for electricity transmission except for the areas served by the
KESC. NTDC came into existence after the restructuring of the WAPDA in 1998 and then obtained the
transmission licences from NEPRA in 2002. There are nine state owned distribution companies operating
in Pakistan, except in the KESC designated area (NEPRA, 2012a; 2012b).

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Total transmission losses in the country for 2011-2012 was at 2.80 %, however total transmission and
distribution loss is as high as 23% due to mismanagement, poor infrastructure and electricity theft. The
target is to reduce losses to 16% by 2017. (MOWP, 2013; NEPRA, 2012a).

Based on the International Energy Agency, the current electrification rate in Pakistan is about 55% (IEA,
2012).

11.9.3.4 Future Electricity Demand

According to the Integrated Energy Plan (IEP) for 2009-2022, to attain ‘business as usual’ scenario
economic growth rate, Pakistan would need an additional 55 GW of installed capacity by 2022 of which
10 GW from coal, 17 GW would by hydropower and 4.4 GW from nuclear power. To achieve this Pakistan
would need to increase its primary energy supply by at least two fold and power generation capacity by
2-3 fold with an additional 3-4 GW per year (IEP, 2009). Electricity demand is expected to grow at the
average rate of 8.1 % to 54,000 MW by 2020 and 113,695 MW by 2030 (MOF, 2009).

11.9.3.5 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The three main key challenges and constraints
are in Pakistan are:
 High dependency on fossil fuel availability, growing electricity demand which is not meet by
current supply and relatively low electrification rate

 Lack of capacity and awareness amongst various government organizations to address energy
efficiency

 Difficulty in obtaining funding for the energy efficiency programs, projects and initiatives

 Relatively weak legislation and enforcement

 Limited financial incentives by the Government for energy efficiency initiatives

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11.10 Philippines
11.10.1 Overview of Energy Sector and Regulatory Framework

The Philippines is one of the fastest growing developing countries in Southeast Asia, with modest
indigenous fossil fuel resources. It comprises of at least 7,000 islands with three main island groups:
Luzon, Visayas and Mindanao. It is heavily dependent on fossil fuels and partially subject to global price
fluctuations. For example, in 2012, the country spent US$12.6 billion on oil imports, which represented
an increase of 14% from the previous year. In 2011 the country’s energy supply reached 39.40 Mtoe of
which 60% was indigenously sourced. In the same year, coal accounted for 31% of primary energy
supply followed by geothermal with 22%, coal with 20%, biomass with 12%, natural gas with 8% and
hydropower with 6%. Overall, in 2011, oil products accounted for 48% of total final energy consumption
followed by biomass with 21% and electricity with 21%. The residential sector accounted only for 26% of
total final energy consumption but still higher the industrial sector with 5% and commercial sector with
12% (ADB, 2013a; APEC, 2013). Figure 11-36 shows that GDP is growing at a faster rate than electricity
consumption in the Philippines.

Figure 11-36: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in the
Philippines (ADB, 2013b)
Table 11-24: Key Energy Indicators from 2008 to 2012 in the Philippines (ADB, 2013b).

Unit 2008 2009 2010 2011 2012


Country

Gross Domestic Product at


Billion Pesos 7720.9 8026.1 9003.5 9706.3 10564.9
Current Prices

Population Million 89.4 91.0 92.6 94.2 95.8

Gross Domestic Product Thousand Pesos


86 88 97 103 110
per Capita per Capita

Electricity Consumption GWh 49,206.1 50,867.8 55,265.8 56,097.6 58,180.8

Electricity Consumption
kWh per Capita 550 559 597 596 608
per capita

In 2004, the Government of the Philippines, through the Department of Energy (DOE) launched the
National Energy Efficiency and Conservation Program (NEECP) to promote the implementation of energy
efficiency across the country. In 2012, the government introduced the Energy Reform Agenda through its
“Energy Access for More” which has strengthened DOE’s role in energy efficiency across all sectors.

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Under this agenda, the target is to reduce energy consumption by 10% from 2010-2030. The achieve
these, the DOE has set a series of long-term strategies across all sectors (APEC, 2012). Efforts have been
identified that will support the government in promoting energy efficiency in partnership with the various
sectors. These efforts form part of the National Energy Efficiency and Conservation Program (NEECP). In
addition, the DOE is currently working on the 2012–2030 Philippine Energy Plan (APEC, 2013).

The Philippine Energy Standards and Labelling Program which started in 1993, consists of energy labeling
for room air conditioners, refrigerators, compact fluorescent lamps (CFLs) and fluorescent lamp ballasts.
As part of its continuing effort to promote the welfare of consumers and energy efficient household
appliances, the DOE is closely collaborating with various organizations including active alliance with the
Department of Trade and Industry (DTI), Philippine Appliance Industry Association (PAIA) and the
Philippine Lighting Industry Association (PLIA) for the effective implementation of the government’s
energy efficiency standards and labelling for selected household appliances and lighting products.
Significant benefits have been gained through this program such as the improved quality of locally-
manufactured products, making them more competitive in the local market. Furthermore, as a result, it
discourages the manufacturing and the import of inefficient household appliances and lighting products
sold in the market. The Philippine Standards and Labelling Program is being implemented, managed and
enforced by government agencies - Department of Trade and Industry and the DOE.

At present, the “informative type” of labeling program is being implemented and the “Endorsement type”
of labeling is being considered. In addition, the DOE aims to expand the coverage of the program within
the planning period to include luminaires, household electric fans, industrial fans and blowers, television
sets and electric motors. Consumer education shall also be undertaken as complementary activity for the
effective implementation of the program.

Overall, in 2006, the standards and labeling program generated an estimated energy savings of 0.29
Mtoe which is over 100 percent increase from its 2005 performance of 0.14 Mtoe. CFL standards and
labeling was the biggest contributor, generating an estimated savings of 0.16 Mtoe.

In addition to the standards and labeling program, the Bright No! Campaign, the carrier slogan of DOE’s
IECs aims to educate as well as empower Filipinos consumer to be smart energy users (ADB, 2013a,
APEC, 2012; 2013; DOE, 2012).

11.10.2 Key Energy Sector Stakeholders

The Philippine Department of Energy (DOE) is tasked to prepare, integrate, coordinate, supervise and
control all plans, programs, projects and activities of the Government relative to energy exploration,
development, utilization, distribution and conservation. The structure of the DOE is highlighted in the
Figure below.

Department of Energy

Power Sector Assets Philippine The National


National Power
and Liabilities National Oil National Electrification Transmission
Corporation
Management Company Administration (NEA) Corporation
(NPC)
Corporation (PSALM) (PNOC) (TRANSCO)

Figure 11-37: Structure of the Department of Energy (DOE, 2012)

The Energy Regulatory Commission (ERC) is responsible for regulating the electricity sector. The ERC
was established June 2001 through the Electric Power Industry Reform Act of 2001. The Act abolished

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the Energy Regulatory Board (ERB) and created the ERC, which is an independent regulatory body
performing the combined quasi-judicial, quasi-legislative and administrative functions in the electric
industry.

The National Electrification Administration (NEA), created in 1969, is a state-owned corporation. It is


responsible for the Rural Electrification Program, providing financial, institutional, and technical services
to the electric distribution utilities. Overall, NEA supervises a total of 96 electric cooperatives in areas not
covered by the Manila Electric Company, the economy’s biggest privately-owned utility (APEC, 2013).

The National Transmission Corporation (TransCo) is a state owned corporation that assumed the
electrical transmission functions of the National Power Corporation (NPC) in the major Philippine grids.
Created by the Electric Power Industry Reform Act of 2001, TransCo is responsible for the planning,
construction, centralised operation and maintenance of high voltage transmission facilities nationwide,
including those of grid interconnections and provision of ancillary services. Napocor currently operates as
a generation and wholesale enterprise. Since 2009, the National Grid Corporation of the Philippines, a
private corporation, has taken over the management and operation of the transmission grid.

The Power Sector Assets and Liabilities Management Corporation (PSALM) is tasked to help transform the
power industry into a competitive, market-driven sector. PSALM began operations in July 2001 to take
ownership, manage, privatise and dispose of all existing generation assets, liabilities and other disposable
resources of the NPC. These include contracts with independent power producers that the state-owned
power firm tapped in the 1990s (during the power crisis) to provide the additional capacity needed to
ensure an adequate supply of electricity. PSALM also owns the transmission assets and facilities and sub-
transmission functions and resources of the TransCo. It has a corporate life of 25 years, after which all
properties possessed by the company will be turned over to the Philippine government (APEC, 2012).

11.10.3 Electricity Sector

11.10.3.1 Overview

Philippines has one of the highest electricity costs in Southeast Asia due to (ADB, 2013):
 Complex geography and reliance on diesel for electricity.

 Inefficient and small generation as well as the transmission and distribution in some areas.

 Low investments in the electricity sectors as well as high cost investments made during the 1990s
power crisis in the Philippines.

 Cost reflective tariffs with no Government subsidies.

In 2011, the total installed capacity was 16,162 MW, with coal plants accounting for 30% and natural gas
fired plants (all located in Luzon) accounting for 18%. Renewable energy sources accounted for 33%
with a combined share of hydropower and geothermal energy (Figure 11-38). In 2011, the peak demand
account for 10,460 MW (DOE, 2012; NEA, 2012).

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Figure 11-38: Installed capacity according to fuel source in the Philippines (2011) (DOE,
2012)

In 2011, total electricity generation accounted for 69,050 GWh. Figure 11-39 shows the shares of
electricity generation in 2011 according to fuel source with geothermal power making a significant
contribution with 42% of total electricity generation. Fossil fuel based sources contributed with
approximately 47% of total generation (DOE, 2013).

Figure 11-39: Electricity Generation according to fuel source in the Philippines (2011) (DOE,
2012)

11.10.3.2 Electricity in the Residential Sector

Based on data from 2008, the residential sector accounted for 27% of total electricity generation as
shown in Figure 11-40.

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Figure 11-40: Electricity generation according to sector in the Philippines (2008) (APEC,
2012)

11.10.3.3 Transmission and Distribution

The TransCo is still the owner of the transmission network, however, since 2009, the National Grid
Corporation of the Philippines, a private entity, has taken over its management and operation. The
distribution network is the responsibility of several stakeholders such as private distribution utilities,
cooperatives and local government units. Overall, there are three large grids separated according to its
three major islands: Luzon, Visayas and Mindanao. The grid in Luzon is mostly coal fired, while the gird
in Visayas is mostly geothermal and the Mindanao grid is mostly hydropower. The government is not
planning to interconnect the three major islands in the near future (ADB, 2013). In 2010, transmission
and distributions losses were relatively low at 11.5% (APEC, 2012).

In 2011, out of the 20.5 million household nationwide, 14.42 million household have access to electricity.
Table 11-25 shows the breakdown according to island grid. Overall, this represents an electrification rate
of 70% and the government plans to reach 90% by 2017 (APEC, 2013).
Table 11-25: Household Electrification in the Philippines (2011)
Island Grid No. of Household (million) % Electrification

Luzon 11.89 78.1

Visayas 3.95 66.9

Mindanao 4.70 52.9

Total 20.54 70.2

11.10.3.4 Future Electricity Demand

The Philippine Energy Plan (PEP) for 2012-2030, which is being formulated by the DOE, is the
government’s medium-term plan for 2012–2030 in the energy sector. The Philippine energy efficiency
targets are to be consistent or in parallel with ASEAN target of reducing energy consumption by 8%
annually, as well as with APEC’s target of reducing by 45% the region’s aggregate energy consumption
by 2035.

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Based on the draft plan, peak demand is expected to grow on average by 4.25% per year. The PEP also
anticipates that approximately 58% of electricity generation will be from renewable energy sources of
which 47% will be from geothermal power. Electricity generation from natural gas will only represent
17% by 2030 compared to 15% in 2011, while the coal share will decrease to 24% in 2030 from 28% in
2011 (Figure 11-41) (DOE, 2012).

Figure 11-41: Future Share of Electricity Generation according to fuel source in the
Philippines by 2030 (DOE, 2012)

In comparison, according to the Asia-Pacific Economic Cooperation Energy Demand and Supply Outlook,
under a business as usual scenario, electricity generation would be expected to rise from 67 TWh in 2010
to 187 TWh by 2035, of which 70% would be from coal generation (Figure 11-42) (APEC, 2012).

Figure 11-42: Share of Electricity Generation Mix under Business as Usual Scenario in the
Philippines by 2035 (APEC, 2013)

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11.10.3.5 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The main key challenges and constraints in the
Philippines are:

 High electricity costs and challenges to provide electricity access to all households due to complex
geography.

 Lack of strategy and roadmap for energy efficiency implementation and regulatory framework is
still relatively weak.

 Lack of capacity and funding from the Department of Energy to undertake all tasks pertaining to
energy efficiency and conservation.

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11.11 Singapore
11.11.1 Overview of Energy Sector and Regulatory Framework

Singapore is a small island state, classified as a high income country, and its economy is largely export-
oriented with a highly diversified market that encompasses both internal and external trade industries,
emphasizing on the production of goods and services. In 2011, the service-producing industry in
Singapore accounted for 69% of the GDP and the production of goods reached 27% of overall GDP
(Table 11-26) (EMA, 12013; APEC, 2013).

Energy production and export makes up a significant portion of Singapore’s economy, with 94.2 Mtoe of
energy products exported in 2011. Of these exports, 99% were petroleum-based, with none of the crude
oil having been sourced internally. Singapore has no endowment of natural energy resources, and relies
exclusively on hydrocarbon imports for all of its energy needs (EMA, 12013; APEC, 2013).

Singapore also imports large amounts of crude oil and petroleum products (about 46 Mtoe and 106 Mtoe
respectively in 2011) in order to meet its production demand and high export volume. Overall, this
indicates Singapore’s role as central player in the petroleum trade and refining industries in Southeast
Asia. Crude oil and petroleum products represent 95% of total energy imports, the remaining 5%
account for the majority of internal electricity generation. This fraction of total energy is transported by
offshore pipelines form Malaysia and Indonesia, and accounts for 78% of the overall fuel mix for
electricity generation in Singapore (EMA, 2013).
Table 11-26 - : Key Energy Indicators from 2008 to 2012 in Singapore (ADB, 2013)

Unit 2008 2009 2010 2011 2012


Country

Gross Domestic Product at Million Singapore


269,658 274,655 315,921 334,093 345,561
Constant Prices Dollars

Population Million 4.84 4.99 5.08 5.18 5.31

Gross Domestic Product Singapore Dollars


55,714 55,041 62,189 64,497 65,077
per Capita per capita

Electricity Consumption GWh 37,940 37,974 41,200 41,787 42,808

Electricity Consumption
kWh per Capita 7,839 7,610 8,110 8,067 8,062
per Capita

Although Singapore’s economy is heavily dependent on fossil fuels for import and export and electricity
generation, the government is working to reduce its internal electricity consumption while remaining
competitive. In 2007, the Government of Singapore introduced the National Energy Policy Report which
contains the national energy framework aimed at providing economic competitiveness, energy security
and environmental sustainability. Soon after the government set voluntary goals for energy-intensity
reduction of 35% by 2030 (using 2005 levels as a base measurement) under the Sustainable Singapore
Blueprint. The government of Singapore sees the greatest potential in the sector of energy efficiency,
and it is currently working to develop this capacity in four primary sectors: power generation, industry,
transportation, and buildings (APEC, 2013; EDB, 2012).

The goals for reduction of energy intensity led to the creation of a government-wide efficiency program
titled the Energy Efficiency Programme Office (E2PO) which functions under the National Environmental
Agency (NEA). Broad interest in energy reduction also led to the development of an Energy Blueprint
which set’s mid-range energy efficiency goals through by communication between statutory boards. The
E2PO is responsible for coordinating all governmental agencies, divisions, and statutory boards that play a
role in energy development or environmental strategy (NEA, 2013).

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The Energy Blueprint is a forward-looking document with the aims of increasing overall energy efficiency
while continuing economic development and increasing quality of life (IMCSD, 2008). Singapore’s Energy
Blueprint seeks to encourage retrofitting of buildings, as well as minimum performance standards in
order to have 80% of buildings in Singapore meet the Green Mark standards by 2030. Although the
Blueprint project is still in its implementation phase, effects of the 2006 plan are beginning to show up in
national energy and electricity trends (APEC, 2012).

In terms of energy efficiency in the residential sector, the focus has been on standards and labelling. The
mandatory comparative energy label was formally introduced in 2008 covering high energy consuming
appliances: air conditioners, refrigerators and clothes dryers. The Minimum Energy Performance Standard
came into effect in 2011 and covers air conditioners and refrigerators. Both have been particularly
relevant to address annual summer peak demands in the residential sectors (EMA, 2013).

11.11.2 Key Energy Sector Stakeholders

The Ministry of Trade and Industry (MTI) holds 27 subsidiary divisions, each operating with specialized
roles in the larger institutional structure. Two subsections of the MTI cover specifically the energy and
electricity markets in Singapore: the Energy Division (ED), and the Energy Market Authority (EMA).

The ED is responsible for overseeing Singapore’s energy development. It designs the nation’s energy
goals legislation, including energy use and efficiency standards. At an external level, the ED works closely
with multilateral organizations such as ASEAN and the United Nations in order to develop nation-wide
strategies that line up with regional and international goals. Internally, the ED communicates with the
economic divisions of the MTI, as well as working closely with the EMA in order to ensure stable,
sustainable economic development within Singapore’s energy sector (MTI, 2013).

The EMA was established in 2001 as part of Singapore’s effort to create an open electricity market. It
oversees electricity generation and consumption at a national level, and operates as a statutory board
under the MTI. Following the successful establishment of the National Electricity Market of Singapore
(NEMS), the EMA was given the role of overseeing its market rules and regulations in tandem with the
NEMS’s operating company – the Energy Market Company (EMC). As a public energy market, the NEMS
functions as a catalyst for creating cheaper energy costs and a wide range of electricity services. It does
so by selling energy reserves, regulations, permits, production contracts, and by determining electricity
generation volume and supply produced and distributed by respective utilities. Suppliers and end-users
are then connected through the EMC, which is responsible for maintaining connections between utilities
and final electricity demand (EMA, 2009).

11.11.3 Electricity Sector

11.11.3.1 Overview

In contrast with many Southeast Asian countries, Singapore’s electricity market is periodically
oversaturated (as opposed to under-saturated), and a primary concern for utilities and service providers
is balancing projections of future demand with current use patterns. Singapore’s open market has
generated competition among several utilities leading to heightened energy efficiency since the market
first began liberating its energy assets for public sale in 1995. Overall improvements in generation
facilities, as well as increased policy to encourage energy efficiency have resulted in an overall 15%
decrease in energy intensity between 1990 and 2005 as show by the Figure below.

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Figure 11-43: Energy Intensity Index for Singapore since 1990 (NEA, 2013)

By September 2013, the total installed capacity in Singapore reached 11,615 MW (EMA, 2013). In 2012,
natural gas accounted for 78% of total electricity generation, followed by petroleum products with 18%.
In spite of its limited energy resources, Singapore made use of solar power, waste incineration, and
biomass in order to supply 3% of total electricity generation (APEC, 2012). For the same year, electricity
consumption accounted for 42,808 GWh while electricity generation was 46,936 GWh (ADB, 2013).

Figure 11-44: Electricity Generation according to fuel source in Singapore (2012) (EMA,
2013)

11.11.3.2 Electricity in the Residential Sector

In spite of Singapore’s high population density, the residential sector only represents 16% of overall
electricity demand. The most significant portion of electricity consumption is distributed between the
industrial sector (40%) and the service and goods industry (38%).

Between 2009 and 2011, electricity demand in the residential sector increased proportionally to overall
electricity demand in Singapore. However, the growth rate in the number of housing units increased
more rapidly than demand, indicating, potentially, that consumption rates-per household have decreased.
This shift may be indicative of effective energy reduction programming and successful policy
implementation within the housing and building sectors (EMA, 2013).

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11.11.3.3 Transmission and Distribution

Singapore Power manages the transmission and distribution network in Singapore. Overall, the current
electricity network and generation infrastructure allows for efficient transmission with relatively low
distribution losses (5% in 2011) and all households have access to electricity in Singapore (EMA, 2013).

11.11.3.4 Future Electricity Demand

The current high volume of development plans for new generation facilities threatens to create an excess
of generation capacity in the short-term as demand rises slowly to meet newly developing supply. Due
to Singapore’s open electricity market, new plants can be built based solely on prediction models for
increased demand, and the EMA has issued a statement to utility firms indicating the investment risks of
developing further supply units before actual demand requires their operation. The current supply-side
generation trends threaten to oversaturate the generation market, producing heightened competition in
NEMS (APEC, 2013).

Nevertheless, under a Business as Usual Scenario, the Energy Security Division of the Energy Studies
Institute Singapore, projects that energy and electricity demand will continue to grow at an annual rate
of 3% up through 2030 (using 2007 as a base year) (EST, 2013).

Under the Asia-Pacific Economic Cooperation Energy Outlook projections for 2035, Singapore is expected
to increase its overall electricity demand by a modest 38% (2010 as a base); this is a relatively low rise
when compared to Malaysia’s and Indonesia’s projected growth rates of 103% and 293% respectively.
The primary use of natural gas for electricity generation is expected to remain constant, though new
import methods including the introduction of a liquefied natural gas facility in 2013 which is expected to
relieve pressure on the Malaysian and Indonesian pipelines (APEC, 2013).

Figure 11-45: Share of Electricity Generation Mix under Business as Usual Scenario in
Singapore by 2035 (APEC, 2013)

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11.11.3.5 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The main key challenges and constraints in
Singapore are:

 Lack of indigenous natural resources means Singapore will always dependent on global fossil fuel
prices as well as neighbouring countries for energy and electricity.

 Energy efficiency is a core part of energy policy however most goals are voluntary and standards
and labelling only cover three high energy consuming appliances.

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11.12 Sri Lanka


11.12.1 Overview of Energy Sector and Regulatory Framework

Sri Lanka is a developing country and heavily dependent on fossil fuels and biomass for energy. In 2011,
petroleum represented 43% of total primary energy supply together with biomass with 44%, followed by
hydropower with 9%. In 2010, Sri Lanka imported 1,802 billion tonnes of crude oil and petroleum
products and energy demand is expected to increase by about 15,000 ktoe by the year 2020 at an
average growth rate of 3%. Electricity and petroleum products are the main forms of commercial energy,
and an increasing amount of biomass is also commercially grown and traded. Renewable energy, biomass
and the hydropower resource are the only indigenous energy sources (SLSEA, 2011). Figure 11-46 shows
that GDP has risen at a much higher rate than electricity consumption potentially indicating challenges in
increasing installed capacity to meet growing demand.

Figure 11-46: Electricity Consumption and Gross Domestic Product from 2002 to 2012 in Sri
Lanka (ADB, 2013)
Table 11-27: Key Energy Indicators from 2008 to 2012 in Sri Lanka (ADB, 2013).

Unit 2008 2009 2010 2011 2012


Country

Gross Domestic
Product at Current Billion Rupees 4,410,682 4,835,293 5,604,104 6,544,009 7,582,375
Prices

Population Million 20.2 20.5 20.7 20.9 20.3

Thousand
Gross Domestic
Rupees per 218,167 236,445 271,345 313,576 373,002
Product per Capita
capita

Electricity
GWh 8417 8441 9268 10024 10475
Consumption

Electricity
Consumption per kWh per capita 416 413 449 480 515
Capita

High price of petroleum products are affecting all sectors of society and economy in Sri Lanka. To rescue
energy sector from external shocks of global fuel price and to enhance energy security, Sri Lankan

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government is focusing on developing indigenous energy sources. Therefore, the National Energy Policy
and Strategies (NEPS), introduced in 2006, identified the development of renewable energy sources and
demand side management and energy efficiency improvements as major strategic pillars. The key
features of a 10-Year Plan to implement NEPS includes the following:
 Increase the share of on-grid renewable energy from 4.1% to 10.7% by 2016
 Add 500 MW of renewable energy capacity by 2016
 Introduce energy efficiency labelling of electrical appliances by 2010
 Update and introduce mandatory energy efficiency building codes by 2009

Sri Lanka does not have an Energy Conservation Act. In 1983, the Government of Sri Lanka realizing the
need to intervene in energy conservation and management, established a dedicated organization under
the “Energy Conservation Fund” (ECF). To strengthen the institutional framework towards achieving the
targets of NEPS, the Government of Sri Lanka enacted new legislation to convert the Energy
Conservation Fund (ECF) into a statutory body called the Sustainable Energy Authority (SEA) within the
Ministry of Power and Energy. The SEA became operational in 2007 with a clear mandate to develop and
implement government policies relating to demand-side energy efficiency improvement, energy
conservation and renewable energy development (ADB, 2013).

In terms of appliance energy performance standards and labelling and according to the Sri Lanka
Sustainable Energy Authority (SLSEA) Act there is provision for regulations specifying minimum energy
performance standards (MEPS) and to display energy labels on all products. The first energy label
introduced in Sri Lanka was for CFLs in 2000. A government gazette notification was published in July
2009 introducing mandatory MEPS and energy labeling for CFLs. The formulation of energy labeling
programmes for ceiling fans, linear fluorescent lamps (LFLs) and ballasts have recently being finalized
(ADB, 2013).

Figure 11-47: Energy Label for Compact Fluorescent Lamps in Sri Lanka

11.12.2 Key Energy Sector Stakeholders


The Ministry of Power and Energy (MOPE) is the ministry responsible for the formulation and
implementation of policies related to electricity and energy sectors. The statutory institutions under
MOPE include the Sri Lanka Sustainable Energy Authority (SLSEA), Ceylon Electricity Board (CEB), Lanka
Electric Company (Private) Ltd (LECO) and Lanka Transformers Ltd (LTL).
The Public Utilities Commission of Sri Lanka (PUCSL) established in 2002 is the regulator for energy and
water under the PUCSL Act 2002. The Electricity Reform Act 2002 was introduced to empower PUCSL to
issue licenses and determine electricity tariffs but the Act did not become fully effective due to the failure
of previous power sector reform programs. The Sri Lanka Electricity Act was enacted in 2009 to replace
the Electricity Reform Act which entrusts the PUCSL the task of technical, safety and economic regulation
of the industry. One of the functions of PUCSL is the promotion of the efficient use of energy and energy
conservation.

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The Ceylon Electricity Board (CEB) was the implementing agency for the World Bank funded Energy
Services Delivery project and established a DSM Branch for this purpose. The DSM Branch is no longer
operational but the CEB provides support to the energy efficiency programs initiated by SLSEA.
The Sri Lanka Standards Institute is the national standards body of Sri Lanka established under the
Bureau of Ceylon Standards Act No: 38 of 1964. The institution now functions under the Ministry of
Science and Technology. The SLSI is responsible for the implementation of the Energy Efficiency
Labelling Scheme for electrical appliances. SLSI is responsible for the certification and labelling of CFLs
under the existing regulations for MEPS. Other energy labelling certification undertaken includes ballasts,
electric ceiling fans, refrigerators and air conditioners.

11.12.3 Electricity Sector

11.12.3.1 Overview
Initially, Sri Lanka’s electricity sector development focused on conventional hydropower resources. In
1995, Sri Lanka produced 96% of its grid electrical energy from conventional hydropower plants.
However, with no major new hydroelectric projects to be developed, this changed from 1996 onwards.
The growing demand for electricity had to be met with new thermal power plants. Between 1996 and
2008, Sri Lanka added 965 MW of oil-fired power plants. Over the same period, households using
electricity rose from 47% to 80%, and a similar increase in demand was observed from commercial and
industrial customers. In 2007, 60% of energy in the national grid was sourced from oil-fired thermal
power plants. Generally, when hydropower output decreases owing to adverse weather, the share of
electricity from oil-fired thermal power plant rises to about 65% (SLSEA, 2011). Overall, in 2011, total
installed capacity was approximately 3,140 MW, of which 38% was hydropower and 54% was thermal
power (Table 11-28).
Table 11-28: Total Installed Capacity from 2010 to 2011 in Sri Lanka (SLSEA, 2011)
Installed Capacity (MW) 2010 2011
Hydropower 1,207.5 1,207.5
Thermal Power (Oil and Coal) 1,389.5 1,689.5
Wind 3.0 3.0
New Renewable Energy 217.6 240.7
TOTAL 2,817.6 3,140.7

As shown by Table 11-29, the total amount of electricity generated in 2011 was 11,627 GWh out of
which 59% was from thermal power plants, followed by hydropower with 34.5 % (SLSEA, 2011).
Table 11-29: Total Electricity Generation from 2010 to 2011 in Sri Lanka (SLSEA, 2011)
Electricity Generation (GWh) 2010 2011
Hydropower 4,988.5 4,017.7
Thermal Power (Oil) 5,063.3 5,858.5
Thermal Power (Coal) - 1,027.6
Wind 3.0 2.7
New Renewable Energy 728.5 722.3
TOTAL 10,783.2 11,627.8

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11.12.3.2 Electricity in the Residential Sector

The residential sector accounted for 40% of total electricity consumption in 2011 (Figure 11-48). This
share is expected to grow because of the rapid growth in economy and per capita income as well as with
population growth.

Figure 11-48: Electricity Consumption per Sector in Sri Lanka (2011) (SLSEA, 2011)

The residential sector also accounts for 88% of the electricity customers of the two electric utilities (CEB
and LECO) and 36% of the total electricity sales (CEB, 2012).

11.12.3.3 Transmission and Distribution

Sri Lanka has single transmission network for the country and primarily controlled by the Ceylon
Electricity Board (CEB). Electricity distribution and sales in the Sri Lanka is responsibility of following two
utilities:

1. Ceylon Electricity Board (CEB);

2. Lanka Electricity Company (Pvt.) Ltd. (LECO)

In 1970’s electricity distribution was responsibility of the CEB and Local Authorities (LA). Gradually
between 1983 and 1995, LA Networks were transferred to the CEB and LECO. In 2012, transmission and
distribution losses were amongst the lowest in the region and accounted for 11%. The MOPE has set an
ambitious target to achieve 9%. In 2011, the electrification rate was approximately 91% (CEB, 2012;
MPE, 2013).

11.12.3.4 Future Electricity Demand


The CEB’s demand forecasting follows internationally accepted practice. It uses an econometric approach
to estimate the national demand for electricity based on expected national income growth and population
growth. A summary of the demand forecast for the period 2010 – 2030 is given in Table 11-30. Overall,
energy demand is project to rise from 9 TWh in 2010 to 32 TWh by 2030, while generation will grow
from 11 TWh to 38 TWh. Peak demand is projected to rise from 2.1 GW in 2010 to 7.3 GW by 2030
(CEB, 2010).

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Table 11-30: Electricity Demand Forecast for Sri Lanka from 2010 – 2030 (CEB, 2010)
Year Electricity Average Generation Average Peak Average
Demand Growth (%) (GWh) Growth (%) Demand Growth (%)
(GWh) (MW)
2010 9,190 8.9 10,740 8.7 2,170 11.0
2011 10,036 9.2 11,715 9.1 2,356 8.6
2012 10,698 6.6 12,464 6.4 2,503 6.2
2013 11,402 6.6 13,402 7.5 2,688 7.4
2014 12,149 6.6 14,315 6.8 2,853 6.1
2015 12,941 6.5 15,238 6.4 3,035 6.4
2016 13,773 6.4 16,220 6.4 3,211 5.8
2017 14,630 6.2 17,168 5.8 3,397 5.8
2018 15,530 6.2 18,188 5.9 3,604 6.1
2019 16,481 6.1 19,257 5.9 3,820 6.0
2020 17,489 6.1 20,397 5.9 4,051 6.0
2021 18,563 6.1 21,741 6.6 4,258 5.1
2022 19,708 6.2 23,019 5.9 4,513 6.0
2023 20,932 6.2 24,436 6.2 4,796 6.3
2024 22,242 6.3 25,922 6.1 5,092 6.2
2025 23,647 6.3 27,559 6.3 5,418 6.4
2026 25,153 6.4 29,284 6.3 5,684 4.9
2027 26,768 6.4 31,149 6.4 6,051 6.5
2028 28,503 6.5 33,142 6.4 6,443 6.5
2029 30,365 6.5 35,308 6.5 6,869 6.6
2030 32,367 6.6 37,615 6.5 7,323 6.6
Ave. 6.5 6.47 6.8
Growth

11.12.3.5 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The main key challenges and constraints in Sri
Lanka are:
 Lack of clear policies and regulation to encourage adoption of energy efficiency.

 Absence of mandatory policies with regard to energy performance of electrical appliances besides
CFLs.

 Lack of coordination amongst multiple agencies responsible for energy efficiency policies and
implementation.

 Other national priorities take precedence over energy efficiency projects in government budgets.

 Limited availability of energy efficient technologies.

 High penetration of low efficiency electrical appliances.

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11.13 Thailand
11.13.1 Overview of Energy Sector and Regulatory Framework

Thailand is in upper-middle income country with limited indigenous reserves of oil, natural gas and coal.
Therefore, the country is heavily dependent on imported fossil fuels to meet its current and future
energy demand as well as being subject to international market price fluctuations. In 2011, fossil fuels
accounted for at least 90% of the total primary energy consumption and approximately 80% of total
electricity generation making it the 7th largest global net importer of fossil fuels for electricity generation
(DEDE, 2012; EPPO, 2012; IEA, 2013). In 2011, about 44% of total primary energy consumption was
from natural gas and 37% from crude oil (EPPO, 2012). The Gulf of Thailand provides Thailand with
approximately 80% of natural gas needs while the remaining 20% is imported from Myanmar. In terms
of electricity generation, in 2011, natural gas represented about 67% of Thailand´s electricity generation
raising concerns regarding energy security and supply as well as price volatility (EPPO, 2012).In the last
10 years, Thailand’s energy consumption and electricity demand has been closely coupled with Gross
Domestic Product (GDP) growth as shown in Figure 11-49 and Table 11-31.

Figure 11-49: Energy Consumption, Electricity Demand and Gross Domestic Product from
2002 to 2011 in Thailand (EPPO, 2012)
Table 11-31: Key Energy Indicators from 2008 to 2012 in Thailand (EPPO, 2012)

Unit 2008 2009 2010 2011


Country

Gross Domestic Product at


Billion Baht 4,365 4,263 4,596 4,600
Constant 1988 Prices

Population Million 66.5 66.9 67.3 67.6

Gross Domestic Product per


Thousand Baht / capita 65.6 63.7 68.3 68.0
Capita

Electricity Generation GWh 135,520 135,181 149,301 148,855

Electricity Generation per 2,038 2,021 2,218 2,202


kWh / capita
capita

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As a result of the high dependency on imported fossil fuels for energy, the Government of Thailand has
been promoting the implementation of energy efficiency and renewable energy support policies and
programs. The main energy efficiency and renewable energy policies were enacted in the 1990s, with the
stepping stone being the Energy Conservation Promotion (ENCON) Act approved in 1992. Energy
efficiency is also an integral part of the government’s development framework. The 10th National
Economic and Social Development Plan (2007 - 2011) identifies specific targets for the energy sector
over the next 5 years, while the draft 11th National Economic and Social Development Plan (2012-2016)
highlights the importance of low carbon growth.

Until 2011, every four years, Thailand´s Ministry of Energy (MOEN) would develop an Energy
Conservation Program which set the plan, targets and actions to increase energy efficiency and the share
of renewable energy in all sectors. Beyond 2011, the current government and MOEN established a 20-
year Energy Efficiency Development Plan (2011 – 2030) to “reduce energy intensity by 25% in 2030,
compared with that in 2005, or equivalent to reduction of final energy consumption by 20% in 2030, or
about 30,000 thousand tons of crude oil equivalent (ktoe)”. This plan focuses particularly on the
transport and industrial sector with the residential sector energy efficiency targets being lighting, air
conditioners and water heaters. However, an energy efficiency technology roadmap is mentioned as one
of the measures to improve energy efficiency in the residential sector in a range of appliances including
electric fans.

Regarding policies on energy use from electrical appliances, the Ministry of Energy (MOEN) has
established a Minimum Energy Performance Standards (MEPS) and High Energy Performance Standards
(HEPS). These schemes apply to air conditioners, refrigerators, ballasts, fluorescent lamps and Compact
Fluorescent Lamps (CFLs), particularly for the residential and commercial sectors. To complement these
schemes, and since 1993, the voluntary Energy Efficiency Labeling No. 5 Programme, implemented by
the Energy Generating Authority of Thailand (EGAT), raised awareness on the efficiency of electrical
appliances and highlighted those with highest efficiency allowing consumers to reduce their electricity
bills. It was also setup to increase competition amongst manufacturers to further increase the efficiency
of their appliances/equipment. The Label No. 5 Programme covers electric fans, refrigerators, air
conditioners, CFLs, ballasts, rice cookers, Fluorescent Tube Lamps (FTLs) and many others.

Figure 11-50: Electric Fan with Label No.5 in Thailand (IIEC, 2013)

To complement the Label No. 5 Programme, in 2007-2008, the Government of Thailand implemented a
CFL bulk procurement and distribution program through EGAT’s Demand-Side Management Unit. As a
result the sales of high efficiency CFLs No. 5 Label (highest efficiency) increased by 11.9 million units,
compared to 2006, resulting in a saving of 403 GWh/year. From 2007 to 2010, a total of 20 million CFLs

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No.5 Label were purchased in Thailand. Based on survey and evaluation, conducted by EGAT, this
initiative received great acceptance from the general public (APEC, 2010; EGAT, 2010).

11.13.1.1 Key Energy Sector Stakeholders

The Ministry of Energy (MOEN), established in 2002, is responsible for managing the whole energy
sector, develop the national strategic energy plans and targets and overseeing the five state utilities
EGAT, Metropolitan Electricity Authority (MEA), Provincial Electricity Authority (PEA), Petroleum Authority
of Thailand (PTT) and Bangchak Petroleum as well as the Energy Fund Administration Institute. The
MOEN is also responsible for ensuring and overseeing the stability of Thailand´s energy supply. The
organizational structure of the MOEN is presented in Figure 11-51. It shows the wide range of
stakeholders in energy policy making with two or three partially complimentary entities – Energy Policy
and Planning Office (EPPO), Department of Alternative Energy Development and Efficiency (DEDE) and
National Energy Policy Council (NEPC).

Ministry of
National Energy Policy Energy
Office of the Minister
Council (NEPC)

Office of the Department of Energy Policy Department of


Alternative Department of
Permanent Energy and Planning
Energy Mineral Fuels
Secretary Business Office (EPPO)
Development
and Efficiency
(DEDE)

Figure 11-51: Organizational Structure of the Ministry of Energy in Thailand

The Energy Policy and Planning Office (EPPO) sets the national energy policies and plans ( Policy Maker).
The Department of Alternative Energy Development and Efficiency (DEDE) is responsible for
implementing the policies and programs set by EPPO (Regulator/ Implementer). Both these departments
are under the Ministry of Energy (Figure 11-51). The National Energy Policy Council (NEPC) is responsible
for assessing and approving the strategic plans and policies of the Ministry of Energy before the
Government Cabinet.

The Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA) are state
utilities under the Ministry of Interior and covering different provinces in Thailand. MEA covers Greater
Bangkok area as well as Samut Prakan and Nonthaburi Provinces while PEA covers all the remaining
provinces.

11.13.2 Electricity Sector

11.13.2.1 Overview

The development of the electricity sector has been gradual with a successful private sector Independent
Power Producers (IPP), Small Power Producers (SPP) and Very Small Power Producers (VSPP) programs.
The IPP operate according to a Build, Own and Operate Scheme. The first round of IPP public tenders
was held in 1994, leading to the establishment of seven IPPs with a total of 5,944 MW installed capacity.
In 2007, a second round was realized for a total 5,600 MW installed capacity. The SPP program was
launched in 1992 for small plants with installed capacities below 90 MW for providing decentralized
energy to local industrial sector. While the VSPP program was launched much later in 2002 for very small
power plants with installed capacities below 10 MW to promote power generation from renewable
sources such as biomass.

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In 2011, the total electricity installed capacity in Thailand was 31,447 MW of which 48% supplied by
EGAT, 38% by IPP, 7% from SPP and 7% imported from outside Thailand. The maximum peak load
registered in 2011 was in May 2011 at 14h reaching 24,518 MW. This indicates there was an
approximate reserve margin of 28% to the total installed capacity. For the same year, the electricity
generation amounted to 162,343 GWh. The electricity generation share according to fuel types is shown
in Figure 11-52 with natural gas taking the largest share with 67% (Ministry of Energy, 2012).

Figure 11-52: Electricity Generation according to fuel type in Thailand (2011) (EPPO, 2012)

In 2011, majority of the electricity consumption is from the industrial sector with 45.5%, followed by the
residential sector with 22% (Figure 11-53). Figure 11-54 shows that this has been the general trend
since 2002 and also shows a gradual growth in both the industrial and residential sectors highlighting the
need to put further emphasis on energy efficiency and improving energy intensity (Ministry of Energy,
2012).

Figure 11-53: Electricity Consumption according to sector in Thailand (2011) (EPPO, 2012)

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Figure 11-54: Electricity Consumption according to sector in Thailand from 2002 to 2011
(EPPO, 2012)

11.13.2.2 Electricity in the Residential Sector

As shown in the Figures above, the residential sector represents 22% of the electricity consumption in
Thailand and its annual consumption continues to grow on average by 5% from 2002 to 2011 (while the
industrial sector was 4% average). A small percentage of residential customers are not charged for
electricity if they consume below 50 kWh per month (Ministry of Energy, 2012).

11.13.2.3 Transmission and Distribution

The EGAT is a state owned utility that controls and operates a number of large power plants as well as
the transmission and distribution lines in Thailand. The standard voltage levels of the EGAT transmission
system are 500 kV, 230 kV, 132 kV, 115 kV, and 69 kV at operating frequency of 50 Hz. The total length
of high voltage transmission line as of December 2009 was 30,446 circuit-kilometres. The total number of
high voltage substations was 209 with total transformer capacity of 72,787 MVA. EGAT sells a large
share of its electricity generation to MEA (35% of total supply) and PEA (63% of total supply), which re-
distribute it in their areas. The transmission and distribution losses are one of the lowest in Asia with 7%
(EPPO, 2012).

Over 99% of the population has access to electricity and the electricity network covers more than 99% of
the total area of the country. Overall, in Thailand, approximately 64.1 million people have access to
electricity and less than 0.6 million have no access to electricity (EPPO, 2012).

11.13.2.4 Future Electricity Demand

The EGAT´s Thailand Power Development Plan (PDP) 2012 – 2030 was approved in June 2012 following
a third revision of the Thailand Power Development Plan 2010 – 2030. According to the Ministry of
Energy this revision was made to increase the share of renewable energy instead of nuclear, coal, and
foreign power purchase in accordance with the aim of achieving low carbon growth under the 11th
National Economic and Social Development Plan (2012-2016).

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The assumptions used to formulate the PDP were based upon energy consumption patterns from end-
users and projected according to MEA and PEA. These are based on recorded electricity retail and
projected GDP growth according to the Office of the National Economic and Social Development Board
(NESBD). It also includes assumptions made by the Energy Policy and Planning Office (EPPO) based on
the 20-Year Energy Efficiency Development Plan (2011 – 2030) targeting a 25% reduction of the
country’s energy intensity (ratio of energy consumption to GDP) within 20 years, as well as regarding
Demand-Side Management (DSM) programs and renewable energy projections (10-Year Alternative
Energy Development Plan 2012 – 2021) by the Ministry of Energy. The minimum annual reserve margin
was kept at 15% and all retired gas power plants were assumed to be replaced by combined cycle gas
turbines (CCGT) (EPPO, 2013).

The summary of expected capacities based on agreed projects and the assumptions above for 2012-2019
and 2020-2030 under the PDP 2012-2030 are shown in Table 11-32 and Table 11-33, respectively.
Table 11-32: Projected new installed capacity during 2012-2019 according to PDP 2012-
2030 (EPPO, 2013)
Power Purchases from Renewable Energy (both domestic and neighbouring 8,194 MW
countries)
Cogeneration 5,170 MW
Combined cycle power plants 6,551 MW
Thermal power plants (coal/lignite) 3,473 MW
TOTAL 23,325 MW
Table 11-33: Projected new installed capacity during 2020-2030 according to PDP 2012-
2030 (EPPO, 2013)
Power Purchases from Renewable Energy (both domestic and neighbouring 6,387 MW
countries)
Cogeneration 1,368 MW
Gas Turbine power plant (3 x 250 MW) 750 MW
Combined cycle power plants (21 x 900 MW) 18,900 MW
Thermal power plants (coal) (3 x 800 MW) 2,400 MW
Thermal power plants (nuclear) (2 x 1,000 MW) 2,000 MW
TOTAL 31,805 MW
Table 11-34: Summary of Total Capacity, Added Capacity and Re tired Capacity during 2012
– 2030 according to PDP 2012-2030 (EPPO, 2013)
Total Capacity (as of December 2011) 32,395 MW
Total added capacity during 2012 – 2030 +55,130 MW
Total retired capacity during 2012 – 2030 - 16,839 MW
Grand total capacity (at the end of 2030) 70,686 MW

11.13.3 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The two main key challenges and constraints
are in Thailand are:

 High dependency of fossil fuels for energy and electricity.

 DEDE does not have a full legal authority to enforce energy efficiency requirements pertaining to
electrical equipment/appliances and building construction.

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11.14 Viet Nam


11.14.1 Overview of Energy Sector and Regulatory Framework

Viet Nam is a fast growing developing country with diverse fossil fuel resources and rising demand for
electricity for all sectors on the back of economic growth. In 2013, it was the 10th largest net exporter of
coal worldwide in 2013 and in-country natural gas resources are being used for electricity generation.
From 2004 to 2010, electricity consumption grew on average by 14% per year while GDP grew at half
this rate. Figure 11-55 and Table 11-35 compares GDP growth and electricity generation showing a close
link between both indicators and an increasing annual growth rate in electricity generation. From 2011 to
2015, electricity demand is likely to rise considerably by 14% per year. This potentially indicates energy
efficiency in the industrial sector is a key requirement to ensure sustainable economic growth. Currently,
the industrial sector is inefficient and energy intensity in this sector is still 50-70% higher than in
Thailand or Malaysia (ADB, 2012; APEC, 2013; IEA, 2013).

Figure 11-55: Energy Production and Gross Domestic Product from 2002 to 2011 in Viet Nam
(ADB, 2013)
Table 11-35: Key Energy Indicators from 2008 to 2011 in Viet Nam (ADB, 2013)

Unit 2008 2009 2010 2011


Country

Gross Domestic
Product at Current Billion Dong 1,616,047 1,809,149 2,157,828 2,779,880
Prices

Population Million 85.12 86.02 86.93 87.84

Gross Domestic
Thousand Dong / capita 18,986 21,032 24,823 31,647
Product per Capita

Electricity Generation GWh 70,960 80,643 91,722 101,499

The Government of Viet Nam has a Socio-Economic Development Plan (2011 – 2015) that recognises the
need for infrastructure investment to overcome challenges and limitations of the current power sector.
This is reflected in the National Power Development Master Plan VII (PDMP 2011 - 2020).

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In 2003, the Government of Viet Nam issued the Decree on Energy Efficiency and Conservation (EEC). In
2005, the Electricity Law was enacted comprising of sections on energy efficiency in generation,
transmission and distribution. That same year the Energy Efficient Commercial Building Code was
approved aimed at reducing energy losses in buildings. In 2006, the Ministry of Industry and Trade
(MOIT) introduced the Viet Nam National Energy Efficiency Program (VNEEP, also known as National
Strategic Program on Energy Savings and Effective Use) for the period 2006–2015, which included the
Electricity Saving Program (ESP 2006 – 2010). The MOIT, through the Energy Efficiency and
Conservation Office (EECO) was responsible for the implementation of the ESP.

The specific targets of the Program are to (i) formulate and implement a framework for effective
management of EEC within the government, enterprises, and public services, and society as a whole; (ii)
establish a model for EEC management and apply the model to 40% of the designated energy
consumers/enterprises during the period 2006–2010 and to the remaining 60% by 2015; (iii) formulate
and enforce an energy-efficient building code for all new buildings to be constructed after 2008; (iv)
achieve 3%–5% reduction of the total energy consumption in the country during 2006–2010 and 5%–
8% reduction during 2011–2015; (v) reduce energy consumption in the industry sector by 5% in 2006–
2010 and 8% in 2011-2015. The program includes six key components of which five are highlighted
below (APEC, 2011):

1. Component 1: State Management on EEC:


a. Complete the legislative framework on EEC in industrial production, construction site
management, domestic activities, and energy consumed equipment

2. Component 2: Education and Information Dissemination:


a. Public awareness enhancement on EEC;
b. Integrate EE&C in to the education system
c. Develop pilot models for ‘EEC in the household’ movement

3. Component 3: High Energy Efficiency Equipment:


a. Develop standards and provide energy efficiency labels for selected products
b. Technical assistance to domestic producers on energy efficiency compliance

4. Component 4: EEC in Buildings:


a. Improving capacity in EEC and conducting EEC in building design and management;
b. Develop pilot models and disseminate EEC management activities in building Operation.

In 2006, the MOIT also issued a Guideline for Energy Efficiency Standard and Labelling for electrical
appliances (APEC, 2011). The Australian Government is currently supporting the Government of Viet Nam
in the implementation of Minimum Energy Performance Standards (MEPS) for electrical appliances. From
January 2013 it will be mandatory for all lighting and most electrical appliances to have an energy label in
Viet Nam (DCCEE, 2012).

In 2011, the Law on Energy Efficiency and Conservation was approved and enforced, replacing the EEC
decree from 2003. The aim is to reduce energy consumption from the industrial from 10% to 50% by
implementing the National EEC Program. This will involve the implementation of guidelines and
standards, financial support for new technology and capacity building/training. Several other energy
efficiency initiatives have been undertaken by the Government of Viet Nam focusing on the Commercial
sector and the Small and Medium Enterprise (SME) sector (APEC, 2011).

11.14.1.1 Key Energy Sector Stakeholders

There is no Ministry of Energy in Viet Nam. The Ministry of Industry and Trade (MOIT) is the key
government stakeholder for energy and is responsible for supervising the development of the power

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sector in Viet Nam including development of the energy regulatory framework, modernisation of the
power sector and supporting the establishment of a domestic manufacturing for electrical equipment
(ADB, 2012). Under MOIT, there is the EEC Office, established in 2006, with the responsibility of
improving EEC in the central and local governments, manage EE activities and the VNEEP (APEC, 2011).

The Electricite du Viet Nam (EVN) is a state owned electricity utility responsible for management and
operation of power generation plants. There are several independent power producers, owned by the
Government of Viet Nam, such as the oil and gas company PetroViet Nam and the mining company
Vinacomin (ADB, 2012).

Other relevant agencies in Viet Nam include the Institute of Energy, the Energy Efficiency Centers in
major cities and the Viet Nam Standards and Quality Centre.

11.14.2 Electricity Sector

11.14.2.1 Overview

Electricity generation is driven particularly by the demand from the industrial sector. However, the power
sector entities struggle to invest further in the power sector due to lack of funding as a result of
regulated electricity prices. The Government of Viet Nam has recognised this and therefore has been
increasing the annual electricity retail tariff.

In 2010, the total installed capacity was approximately 26,167 MW and the electricity generation was
approximately 101,499 GWh. In 2009, electricity generation was sourced mainly from natural gas with
43%, followed by hydropower with 32% and coal with 23%. Coal and natural gas will become the major
sources for electricity over the coming years due to the challenges in implementation of nuclear, hydro
and renewable power plants as already illustrated by the figure below (APEC, 2013).

*** - Includes geothermal, solar, wind, biofuels and waste, etc


Figure 11-56: Electricity Generation by Fuel in Viet Nam from 1971 to 2010 (IEA, 2012)

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11.14.2.2 Electricity in the Residential Sector

Figure 11-57 shows that the industrial sector consumers more than 50% of electricity produced followed
by the residential sector with 39%. With current economic growth, this share is unlikely to change
considerably in the next couple of years (ADB, 2013).

Figure 11-57: Electricity Consumption according to sector in Viet Nam (2010) (ADB, 2012)

Based on a market survey conducted in September 2012 by the Australian Government under the Viet
Nam Energy Efficiency Standards and Labelling (VEESL) Program, all households (connected to the grid)
surveyed had at least one electric fan, however these only represent 2% of overall household electricity
consumption. Average operating hours of the electrical fans is about 4 hours per day (DCCEE, 2012).

Figure 11-58: Household Electricity Consumption according to appliance based on household


survey conducted in Viet Nam (DCCEE, 2012)

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11.14.2.3 Transmission and Distribution

The National Power Transmission Corporation (NPT), owned by EVN, is responsible for management and
operation of the 500 kV and 200 kV transmission lines. The Northern, Central, Southern, Ha Noi, and Ho
Chi Minh power corporations, also owned by EVN, are responsible for the distribution network (ADB,
2012). In 2010, the transmission and distribution losses were approximately 10% and the Government of
Viet Nam plans to reduce it to 8% by 2020 (ADB, 2012).

The electrification rate in Viet Nam improved significantly in the past 10 years from 78% in 1999 to about
97% in 2010. The households without access to electricity are mostly located in remote areas of the
northwest. The target is to reach 100% of all households by 2020 (ADB, 2012; GoV, 2011).

11.14.2.4 Future Electricity Demand

In 2011, the Government of Viet Nam approved the National Power Development Master Plan VII (PDMP
2011 - 2020). According to the PDMP VII, electricity consumption will almost triple from 85,932 gigawatt
hours (GWh) in 2010 to 251,763 GWh in 2020 in Viet Nam. Table 11-36 shows projections for installed
capacity, generation capacity and investment projects in order to meet the estimated peak demand of
45.2 GW by 2020 and maintain a high reserve margin of 41% due to seasonality of hydropower. By
2020, it is anticipated that the total installed capacity by fuel type will be 48% will be from coal power
plants, 17% from natural gas power plants, 23% from hydropower and 6% from other renewables by
2020. Figure 11-59 and Figure 11-60 project that coal power generation will continue to have a
significant share of installed capacity and electricity generation by 2030 (ADB, 2012; GoV, 2011).
Table 11-36: Electricity Capacity, Generation and Investment Projections from 2011 to 2030
in Viet Nam (ADB, 2012; GoV, 2011)
Unit 2011 - 2015 2016 – 2020 2021 - 2030

Additional Installed Capacity GW 22.3 35.1 -

Additional Generation 85,932 251,763 -


GWh
Consumption

Total Installed Capacity GW - 75.0 146.8

Investment in Power Sources Trillion Dong 619.3 935.3

Investment in Grid Trillion Dong 210.4 494.0

Total Electricity Generation 194,000 – 330,000 – 695,000 –


GWh
and Import 210,000 362,000 834,000

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Figure 11-59: Projected Share of Electricity Installed Capacity by fuel type by 2030 in Viet
Nam (GoV, 2011)

Figure 11-60: Projected Share of Electricity Generation by fuel type by 2030 in Viet Nam
(GoV, 2011)

11.14.3 Overview of key sector challenges and constraints

This section covers key energy sector challenges and constrains focusing particularly on the electrical
appliance and energy efficiency in the residential sector. The main key challenges and constraints are in
Viet Nam are (ADB, 2012; APEC, 2012):

 Limited financial capacity of power sector entities in meeting high growth demand for electricity.

 Lack of consumer knowledge on energy efficiency.

 Limited energy data available and diffused in a number of government agencies.

 Lack of trained government staff for energy efficiency data analysis.

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11.15 Bibliography per County


11.15.1 Bangladesh

ADB, 2011. Energy Sector Assessment (Summary). Country Partnership Strategy for Bangladesh – 2011
to 2015. Asian Development Bank. 2011

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

BPDB, 2011. Annual Report 2010-2011. Bangladesh Power Development Board. 2011

MOF, 2011. Power and Energy Sector Roadmap: An Update. Finance Division, Ministry of Finance. 2011

MPEMR, 2005. National Energy Policy, 2005. Ministry Power, Energy and Mineral Resource. 2005
MPEMR, 2011. Commercial Statistics (2010-11). Power Cell, Ministry of Power, Energy and Mineral
Resource. 2011

Power Cell, 2013. Ministry of Power, Energy and Mineral Resources, Government of Bangladesh. 2013.
http://www.powercell.gov.bd/

11.15.2 Brunei Darussalam

ADB, 2013a. Energy Outlook for Asia and the Pacific. October 2012. Asian Development Bank. 2013

ADB, 2013b. Key Indicators for Asia and the Pacific. Asian Development Bank. 2013

AIPA, 2009. Brunei Darussalam: Country Report on “Encouraging Clean Energy Initiatives”. Asia Pacific
Inter-Parliamentary Assembly. 2009

APEC, 2013. APEC Energy Demand and Supply Outlook 5th Edition – Brunei Economy Review. Asia Pacific
Economic Cooperation. 2013

APEC, 2012. Compendium of Energy Efficiency Policies of APEC Economies - Brunei Darussalam. Asia
Pacific Economic Cooperation. 2013

DEPD, 2011. Brunei Darussalam Key Indicators, 2nd Release. Department of Economic Planning and
Development and Department of Statistics. 2011

DEPD, 2010. Millennium Development Goals and Beyond - Revisited. Department of Economic Planning
and Development. Brunei Darussalam. 2010

EDPMO, 2013. Organization Map. Energy Department at the Prime Minister’s Office. 2013

EIA, 2013. Brunei Country Analysis. US Energy Information Administration. 2013

UBD, 2009. Sustainable electricity model for Brunei Darussalam. Sathyajith Mathew, Lim Chee Ming, Low
Kim Cheng Patrick. University of Brunei Darussalam. 2009

UNDP, 2007. Wawasan Brunei 2035 - Beyond the Millennium Development Goals and High Human
Development. United Nations Development Programme. 2007

WB, 2013. Key Statistics. World Bank Data Website. http://data.worldbank.org/indicator

11.15.3 Cambodia

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

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EAC, 2013. Report on Power Sector of the Kingdom of Cambodia for the Year 2012. 2013 Edition.
Electricity Authority of Cambodia. 2013

EDC, 2007. Annual Electricite du Cambodge Report 2007. Electricite du Cambodge. 2007

EDC, 2013. Electricite du Cambodge. 2013. http://www.edc.com.kh.

ERIA, 2012. Cambodia’s Electricity Sector in the Context of Regional Electricity Market Integration.
Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies. ERIA Research Project
Report 2011-17. Economic Research Institute for ASEAN and East Asia (ERIA). 2012.

GIZ, 2013. Development of Cambodia’s National Energy Efficiency Policy, Strategy and Action Plan.
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). http://giz-cambodia.com/?p=1085

MIME, 2013. National Policy, Strategy and Action Plan on Energy Efficiency in Cambodia. Ministry of
Industry, Mines and Energy. May 2013

REF, 2013. Rural Electrification Fund Website. 2013. http://www.ref.gov.kh/.

11.15.4 India

ADB, 2013. Energy Sector Assessment (Summary). Country Partnership Strategy for India – 2013 to
2017. Asian Development Bank. 2013

CEA, 2011. Annual Reports 2010-11. Central Electricity Authority. Ministry of Power. 2011

EIA, 2011. US Energy Information Administration, International Energy Statistics. 2011

IEA, 2011. World Energy Outlook 2011. International Energy Agency. 2011

IEA, 2012a. World Energy Outlook 2012. International Energy Agency. 2012

IEA, 2012b. Understanding Energy Challenges in India. International Energy Agency. 2012

NPC, 2009. National Productivity Council study for Bureau of Energy Efficiency. National Productivity
Council, Government of India. 2008

PCI, 2012. The Report of Working Group on Power-12th Plan (2012-2017). Planning Commission of
India. 2012

PFC, 2012. The Performance on State Power Utilities for the Year 2010-11 to 2011-2012. Power Finance
Corporation Ltd. Government of India. 2012

PwC, 2012. Emerging Opportunities and Challenges. India Energy Congress. PriceWaterHouseCoopers,
India. 2012.

11.15.5 Indonesia

ADB, 2012. Energy Sector Assessment (Summary). Country Partnership Strategy for Indonesia – 2012 to
2014. Asian Development Bank. 2012

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

APEC, 2011. The Compendium of Energy Efficiency Policies of APEC Economies – Indonesia. Asia-Pacific
Economic Cooperation. 2011

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APEC, 2012. Peer Review on Energy Efficiency in Indonesia. Asia-Pacific Economic Cooperation. June
2012

IEA, 2013. Key World Energy Statistics. International Energy Agency. 2013

PLN, 2012. Perusahaan Listrik Negara Statistics. Perusahaan Listrik Negara. 2012

Lites-Asia, 2013. Energy Efficiency and Conservation Policy in Indonesia. Maritje Hutapea, Director of
Energy Conservation, Ministry of Energy and Mineral Resources Jakarta. 22 April 2013. Presentation for
Lites-Asia Workshop. 2013

MEMR, 2012. Handbook of Energy & Economics Statistics of Indonesia – 2012. Center for Data and
Information on Energy and Mineral Resources. Ministry of Energy and Mineral Resources. 2012

11.15.6 Lao People’s Democratic Republic

ADB, 2013a. Lao People’s Democratic Republic - Energy Sector Assessment, Strategy and Road Map –
2013 Update. Asian Development Bank. 2013

ADB, 2013b. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

EDL, 2010. Appendix 3 - Power Development Plan (PDP 2010-2020) – Revision 1. Electricite du Laos.
2013

EDL, 2012. Electricity Statistics 2012. Electricite du Laos. 2013

World Bank, 2012. Power to the People: Twenty Years of National Electrification in Lao PDR. Asia
Sustainable and Alternative Energy Program. The International Bank for Reconstruction and Development
/ World Bank. January 2012

11.15.7 Malaysia

ADB, 2011. Energy Sector Assessment (Summary). Country Partnership Strategy for Malaysia – 2011-
2012. Asian Development Bank. 2013

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

APEC, 2011a. The Compendium of Energy Efficiency Policies of APEC Economies – Malaysia. Asia-Pacific
Economic Cooperation. 2011

APEC, 2011b. Peer Review on Energy Efficiency in Malaysia. Asia-Pacific Economic Cooperation. May
2011. 2011

APEC, 2013. APEC Energy Demand and Supply Outlook – 5th Edition. February 2013. Asia-Pacific
Economic Cooperation. 2013

IEA, 2012. Energy Balances of Non-OECD Countries – 2012 Edition. International Energy Agency. 2012

IEA, 2013. Key World Energy Statistics. International Energy Agency. 2013

KeTTHA, 2013. Website for the Ministry of Energy, Green Technology and Water. 2013.
http://www.kettha.gov.my/

MEIH, 2013. Malaysia Energy Information Hub. 2013. meih.st.gov.my

UNEP, 2011. National Priorities for Energy Efficiency and Conservation. Fourth Meeting of Southeast Asia
Network of Climate Change Focal Points. Jakarta, 5 May 2011. United Nations Environment Program.

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11.15.8 Myanmar

ADB, 2012. Myanmar Energy Sector Initial Assessment. Asian Development Bank. October 2012

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

WEC, 2013. New Energy Architecture: Myanmar. World Economic Forum. Prepared in collaboration with
Accenture and the Asian Development Bank. June 2013

11.15.9 Pakistan

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

BRESL, 2013. Barrier Removal to the Cost-Effective Development and Implementation of Energy
Efficiency Standards and Labeling – Pakistan. 2013. http://www.bresl.com

ENERCON, 2013. The National Energy Conservation Centre. Government of Pakistan. 2013

IEA, 2012. World Energy Outlook 2012. International Energy Agency. 2012

MOF, 2009. Integrated Energy Plan 2009-2022. Report of the Energy Expert Group, Economic Advisory
Council. Ministry of Finance. 2009

MOWP, 2013. National Power Policy – Pakistan. Ministry of Water and Power. 2013

NEPRA, 2012a. State of Industry Report 2012, National Electric Power Regulatory Authority. 2012

NEPRA, 2012b. Annual Report 2011-12, National Electric Power Regulatory Authority. 2012

SAARC, 2009. Roadmap for Energy Efficiency and Conservation in Pakistan, SAARC Energy Centre,
Islamabad. 2009

11.15.10 Philippines

ADB, 2013a. Energy Sector Assessment. Country Operations Business Plan for the Philippines – 2014 to
2016. Asian Development Bank. 2013

ADB, 2013b. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

APEC, 2012. Peer Review on Energy Efficiency in the Philippines – Final Report. Asia-Pacific Economic
Cooperation. 2012

APEC, 2013. APEC Energy Demand and Supply Outlook – 5th Edition. February 2013. Asia-Pacific
Economic Cooperation. 2013

DOE, 2012. Philippine Energy Plan 2012-2030. Department of Energy. 2012

NEA, 2012. “Electricity for a Better Life” - NEA Annual Report. National Electrification Administration.
2012

NGCP, 2012. Transmission Development Plan. National Grid Corporation of the Philippines. 2012

11.15.11 Singapore

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

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APEC, 2011a. The Compendium of Energy Efficiency Policies of APEC Economies – Malaysia. Asia-Pacific
Economic Cooperation. 2011

APEC, 2012b. Energy Demand and Supply Outlook – 5th Edition. Asian-Pacific Economic Cooperation.
2012

EDB, 2013. Website. Singapore’s Economic Development Board. 2012.

EMA, 2009. Introduction to the National Electricity Market of Singapore. Energy Market Authority. 2009

EMA, 2013. Energizing Our Nation; Singapore Energy Statistics 2012. Energy Market Authority. 2013

IMCSD, 2008. A lively and Livable Singapore: strategies for Sustainable Growth. The Inter-Ministerial
Committee on Sustainable Development. 2008

MTI, 2013. Website: Organizational Structure. Ministry of Trade and Industry. 2013

NEA, 2013. E2 Singapore. National Energy Agency, 2013.

11.15.12 Sri Lanka

ADB, 2012. Energy Sector Assessment. Country Partnership Strategy for Sri Lanka – 2012 to 2016. Asian
Development Bank. 2012

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

CEB, 2010. Long Term Generation Plan 2010, Ceylon Electricity Board, 2010

CEB, 2012. Summary Statistics 2012: CEB, Ceylon Electricity Board, 2012

MPE, 2013. Ministry of Power and Energy, Government of Sri Lanka, 2013

SLSEA, 2011. Sri Lanka Energy Balance 2010-2011. Sri Lanka Sustainable Energy Authority, 2011

World Bank, 2013. WDI, 2013. World Development Indicator, World Bank, 2013

11.15.13 Thailand

APEC, 2010. Peer Review on Energy Efficiency in Thailand. Asia-Pacific Economic Cooperation. April 2010

DEDE, 2012. Energy in Thailand: Facts & Figures 2012. Department of Alternative Energy Development
and Efficiency. 2012

EGAT, 2010. Corporate Social Responsibility Report 2010. Electricity Generating Authority of Thailand.
2010

EPPO, 2012. Energy Statistics of Thailand 2012. Energy Policy and Planning Office, Ministry of Energy in
Thailand. 2012

EPPO, 2013. Summary of Thailand Power Development Plan 2012 – 2030 (PDP 2010: Revision 3). Energy
Policy and Planning Office, Ministry of Energy in Thailand. 2013

IEA, 2013. Key World Energy Statistics. International Energy Agency. 2013

MOEN, 2012. Thailand 20-Year Energy Efficiency Development Plan (2011-2030). Ministry of Energy in
Thailand. June 2012

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11.15.14 Viet Nam

ADB, 2012. Energy Sector Assessment (Summary). Country Partnership Strategy for Viet Nam – 2012 to
2015. Asian Development Bank. 2012

ADB, 2013. Key Indicators for Asia and the Pacific 2013 – 44th Edition. Asian Development Bank. 2013

APEC, 2011. The Compendium of Energy Efficiency Policies of APEC Economies – Viet Nam. Asia-Pacific
Economic Cooperation. 2011

APEC, 2012. APEC Peer Review on Energy Efficiency: Viet Nam Follow-up. Evaluating & Monitoring the
Implementation of National Energy Efficiency Programs. Workshop Summary Report. APEC Energy
Working Group. November 2012. Asia-Pacific Economic Cooperation. 2012

APEC, 2013. APEC Energy Demand and Supply Outlook – 5th Edition. February 2013. Asia-Pacific
Economic Cooperation. 2013

DCCEE, 2012. Viet Nam Energy Efficiency Standards and Labelling Program: Australian Government
Support Project. Market Survey. September 2012. Australian Government – Department of Climate and
Energy Efficiency. 2012

IEA, 2012. Energy Balances of Non-OECD Countries – 2012 Edition. International Energy Agency. 2012

IEA, 2013. Key World Energy Statistics. International Energy Agency. 2013

GoV, 2011. Approval of the National Master Plan for Power Development for the 2011 - 2020 Period with
the Vision to 2030. July 2011. Government of Viet Nam. 2011

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Annex II - Standards and Regulatory Framework


for Electric Fans

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12 O VERVIEW OF S TANDARDS AND R EGULATORY


F RAMEWORK FOR E LECTRIC F ANS
12.1 Status in South Asia and Southeast Asia
There is contrasting differences across South Asia1 and Southeast Asia2 countries with regards to
standards and regulatory framework for electric fans. Overall, there is a clear opportunity to harmonize
common performance standards and energy labels for electric fans, particularly in ASEAN member
countries, and support new comers in quickly developing similar standards and labeling (S&L) programs
for electrical appliances including electric fans. In terms of safety standards for electric fans, all countries
follow international standards set by the International Electrotechnical Commission (IEC). Nevertheless,
there is scope for improving in-country ability to conduct testing according to national and/or
international performance and safety standards and ensuring selected laboratories are accredited to
national and/or international standards.

Overall and comparatively, there are no clear front runners in S&L for electric fans in South Asia and
Southeast Asia. Thailand, Malaysia, India and Viet Nam have implemented S&L programs covering
electric fans. However, only Viet Nam has a mandatory comparative energy label for electric fans since
2013, while the remaining three countries have voluntary energy labeling schemes with no indication of
when these would become mandatory. In addition, Thailand’s minimum energy performance standards
(MEPS) for electric fans are still under draft format. New comers in implementing S&L programs for
electric fans are Bangladesh, Indonesia, Pakistan and Sri Lanka, which all have MEPS and a regulatory
framework for electric fans ready to be approved/enacted by the respective governments. In the
meantime, the energy label for electric fans is available, on a voluntary basis, in Bangladesh, Pakistan
and Sri Lanka for manufacturers/importers of electric fans wanting to participate. Even though the
Philippines was one of the first countries in Southeast Asia to implement a S&L program, it still does not
cover electric fans. The Philippine Department of Energy is considering the introduction of MEPS and an
energy label for electric fans in 2016. In Singapore, there is a recent S&L program in place but no
indication if it will be extended to electric fans. Brunei Darussalam has a voluntary S&L program covering
only air conditioners and is currently working to enhance the program but electric fans will not be
included. Cambodia, Lao People’s Democratic Republic (Lao PDR) and Myanmar have no S&L program for
electrical appliances and, based on S&L experience in Asia, it is unlikely such a program will be
established and implemented before 2020 in each of these countries.

Table 12-1, Table 12-2 and Figure 12-1 provide a summary of the standards and regulatory framework
for electric fans per country as described above.
Table 12-1: Summary of National Agencies responsible for Standards and Regulatory
Framework for Electric Fans in South Asia and Southeast Asia
National Agency Responsible for
Country National Agency Responsible for Standards
Energy Labeling
Ministry of Power, Energy and Mineral
Bangladesh Bangladesh Standards and Testing Institution Resources / Sustainable and Renewable
Energy Development Authority
Brunei Department of Electrical Services, Ministry of Energy Division of the Prime Minister’s
Darussalam Development Office
Cambodia Institute of Standards of Cambodia NA
India Bureau of Indian Standards, inistry of Consumer Bureau of Energy Efficiency

1
Bangladesh, India, Pakistan and Sri Lanka
2
Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand & Viet Nam

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National Agency Responsible for


Country National Agency Responsible for Standards
Energy Labeling
Affairs, Food and Public Distribution
Ministry of Energy and Mineral Resources / Ministry of Energy and Mineral
Indonesia National Standardization Agency / Ministry of Resources / National Standardization
Industry Agency
Department of Intellectual Property
Lao PDR Standardization and Metrology, Ministry of Science NA
and Technology
Department of Standards Malaysia, Ministry of
Malaysia Energy Commission
Science, Technology and Innovation
Myanmar Myanmar Industrial Development Committee NA
Pakistan Pakistan Standards and Quality Control Authority National Energy Conservation Centre
Department of Energy / Department of
Philippines Department of Trade and Industry Trade and Industry – Bureau of Product
Standards
Standards, Productivity and Innovation Board,
Singapore National Environment Agency
Ministry of Trade and Industry
Sri Lanka Standards Institution, Ministry of
Sri Lanka Sri Lanka Sustainable Energy Authority
Technology and Research
Thai Industrial Standards Institute, Ministry of
Electricity Generating Authority of
Thailand Industry / Department of Alternative Energy
Thailand
Development and Efficiency, Ministry of Energy
Viet Nam Standard and Quality Institute, Ministry
Viet Nam Ministry of Industry and Trade
of Science and Technology

Table 12-2: Summary of Standards and Regulatory Framework for Electric Fans in South Asia
and Southeast Asia
Performance & Energy Labeling Testing Facility
Country Safety Standards
MEP Standards Scheme Capability
BDS 818:1998, BDS
Bangladesh BDS IEC 60335 1860:2012 pending Voluntary Yes
approval for MEPS
Brunei
IEC 60335 None None None
Darussalam
Cambodia IEC 60335 None None None
IS 555:1979, IS
1169:1967, IS
India IS 302-2-80 (2003) Voluntary Yes
2312:1967, IS
374:1979
SNI 04-6292-80-
Draft format,
Indonesia SNI IEC 60335 2003 pending Yes
pending approval
approval
Lao PDR IEC 60335 None None None
MS 1219:1992 / MS
1219: Part 2:2002,
Malaysia MS 1220:2001 Voluntary Yes
MS 1597: Part 2-
80:2007
Myanmar IEC 60335 None None None
PS-1:2010
PS IEC 60335
Pakistan MEPS is pending Voluntary Yes
approval
Philippines PNS IEC 60335 IEC 60789 None Yes
Singapore IEC 60335 None None Yes

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Performance & Energy Labeling Testing Facility


Country Safety Standards
MEP Standards Scheme Capability
SLS 814:1988, SLS
Sri Lanka SLS 814:2011 Voluntary Yes
1600:2011
TIS 934-2533
(1990), TIS 92-2536 Yes but not
(1993), TIS 127- according to latest
Thailand MEPS in draft format Voluntary
2536 (1993), TIS international
205-2530 (1987), standards
TIS 572-2528 (1985)
TCVN 7826:2007,
Viet Nam TCVN 5699:2007 Mandatory Yes
TCVN 7827:2007
Note: IEC 60335 – Household and similar appliance – Safety

Figure 12-1: Summary of Standards and Regulatory Framework for Electric Fans in South
Asia and Southeast Asia

The MEPS values for electric fans for both ceiling fans and other fans such as table, pedestal and wall
fans in South and Southeast Asia are shown in the

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Table 12-3 and illustrated in Figure 12-2 and Figure 12-3. These values are correlated with the blade
sweep1 or diameter of the electric fan. Typically the fans will have to surpass minimum requirements (i.e.
voltage, power factor, ventilation, etc) prior to determining the energy efficiency ratio, also known as
coefficient of performance, measured in m3/minute/watt.

The highest MEPS values for ceiling fans are in Bangladesh and the lowest MEPS values are in Viet Nam,
while India and Pakistan have both identical values. For table/pedestal/wall fans there is a wider range of
MEPS values, with Bangladesh holding the highest values and Indonesia with the lowest. Note that for
Bangladesh, Indonesia and Pakistan these values are proposed and pending approval. Exceptionally for
Sri Lanka, the MEPS are not based only on the energy efficiency ratio but depend also on the power
factor and average incremental flow rate. In addition, the table and figures below do not differentiate the
MEPS according to blade sweep or diameter of the fans. Further details are provided in the individual
country sections below.

1
Blade Sweep: The diameter of the circle traced out by the extreme tips of the fan blade

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Table 12-3: Summary of Energy Efficiency Ratios for Electric Fans under MEPS and Labeling
Programs in South Asia and Southeast Asia
Energy Efficiency Ratio for MEPS1 Energy Efficiency Ratio for Labeling Program1
(m3/min/W) (m3/min/W)
Country Table/Pedestal/
Ceiling Fans Lowest Rating Highest Rating
Wall Fans
0.54 to 1.30 for pedestal, 0.71 to 1.65 for pedestal,
wall and table fans wall and table fans
Bangladesh2 2.75 to 3.47 0.54 to 1.30
2.75 to 3.47 for ceilings 2.95 to 3.81 for ceilings
fans fans
Brunei - - - -
Cambodia - - - -
≥ 3.20 to < 3.40 for
India 3.20 - ≥ 4.00 for ceiling fans
ceilings fans
≤ 0.40 to ≤ 0.80 for > 0.65 to > 1.68 for
Indonesia2 - 0.40 to 0.80 pedestal, wall and table pedestal, wall and table
fans fans
Lao PDR - - - -
2.50 to 2.57 for ceiling
≥ 3.00 for ceiling fans
fans
Malaysia 2.58 1.04 ≥ 1.20 for pedestal, wall
1.00 to 1.03 for pedestal,
and table fans
wall and table fans
Myanmar - - - -
Pakistan2 3.20 - ≥ 3.20 for ceilings fans3 ≥ 3.20 for ceilings fans3
Philippines - - - -
Singapore - - - -
Not based on the Not based on the energy Not based on the energy
Sri Lanka -
energy efficiency ratio efficiency ratio efficiency ratio
< 0.66 or < 0.79 for ≥ 1.10 or ≥ 1.30 for
Thailand - 0.81 to 1.07 pedestal, wall and table pedestal, wall and table
fans fans
> 3.36 or 3.43 for ceiling
< 2.40 for ceiling fans
fans
Viet Nam 2.45 0.50 to 0.80 < 0.50 or 0.80 for table,
> 0.7 or 1.12 for table,
wall and pedestal fans
wall and pedestal fans
1 - The MEPS values are dependent on the blade sweep/diameter and type of electrical fan; 2 – Draft/Proposed; 3 – Proposed
Endorsement Label

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*Draft/Proposed

Figure 12-2: Energy Efficiency Ratios for MEPS for Ceiling Fans in South Asia and Southeast
Asia

*Draft/Proposed

Figure 12-3: Energy Efficiency Ratios for MEPS for Table/Pedestal/Wall Fans in South Asia
and Southeast Asia

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12.2 International Standards for Electric Fans


12.2.1 Safety Standards

The safety standards for electric fans followed by all the countries covered under this study are based on
IEC 60335 - Household and similar electrical appliances – Safety. Part 1 of this standard sets the
general requirements for safety of electrical appliances for household and similar purposes with the rated
voltage being not more than 250 V for single-phase appliances and 480 V for other appliances. Part 2 of
this standard is IEC 60335-2-80 - Household and Similar Electrical Appliances - Safety - Part 2-
80: Particular Requirements for Fans and has to be used in conjunction with IEC 60335-1. Examples
of fans within the scope of this standard include:
 Ceiling fans
 Duct fans
 Partition fans
 Pedestal fans
 Table fans
 It also covers controls supplied with the above mentioned fans (e.g. regulators).
The standard sets the testing requirements including:
 Ambient Temperature (including temperature for tropical climates),
 Power Input
 Voltage,
 Test Frequency,
 Voltage variation limit
 Current.
The standard tests for number of parameters is listed below and typically can take up to 2 days to test:
i. Classification
ii. Marking and instructions
iii. Protection against accessibility to live parts (Figure 12-4)
iv. Power input and current
v. Leakage current and electric strength at operating temperature
vi. Transient overvoltages
vii. Moisture resistance
viii. Leakage current and electric strength
ix. Abnormal operation
x. Stability and mechanical hazards
xi. Mechanical strength
xii. Construction
xiii. Internal wiring
xiv. Components
xv. Supply connection and external flexible and cords
xvi. Terminals for external conductors
xvii. Provisions for earthing
xviii. Screws and connections
xix. Clearances, creepage distances and solid insulation (Figure 12-5)
xx. Resistance to heat and fire (Figure 12-6)

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xxi. Resistance to rusting


xxii. Radiation, toxicity and similar hazards.

Figure 12-4: Testing of Electric Fan Blade Protection using standard test finger (left) and
impact test device (right) (IIEC, 2014)

Figure 12-5: Check for clearance and creepage distances (IIEC, 2014)

Figure 12-6: Check for presence of thermal cut-out (fuse) (IIEC, 2014)

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12.2.2 Performance Standards

The countries which have adopted performance standards for electric fans will typically follow IEC
60879 - Performance and Construction of Electric Circulating Fans and Regulators. This
standard applies to electric motor driven fans and their associated regulated intended for use on single-
phase ac and dc circuits not exceeding 250 V. For household and similar purposes this includes:
 Ceiling fans
 Table fans
 Pedestal fans
The standard sets the testing requirements as listed below and typically can take up to 4 days to test
depending on number of samples required:
 Voltage,
 Test frequency,
 Voltage variation limit,
 Ambient temperature for test chamber,
 Fan height,
 Testing instrument/apparatus arrangement and test procedures,
 Test chamber,
 Speed measurement,
 Power factor measurement
To carry out this test, the laboratory will require the following equipment:
 Test Chambers (examples shown in Figure 12-7, Figure 12-8 and Figure 12-9)
 Environment Control Arrangements
 Power Analyzer
 Anemometer
 Tachometer
 Regulated Stabilized Power Supply for Testing
 Telescope

Figure 12-7: Testing speed of pedestal fan using anemometer

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Figure 12-8: Testing speed of table fan using anemometer

Figure 12-9: Test Chamber for Ceiling Fans

The standard requires the following information to be measured and recorded:


 The blade sweep/diameter as the size of the fan in centimetres (mm/inches)
 The number of blades
 The blade angle
Once a required/consistent temperature is achieved, at full speed, the following measurements are taken
in the test chamber shown in the figure below:
 Power factor at full speed in %
 Fan speed in rotations per minute (rpm)
 Current in Amperes
 Power in Watts

The energy efficiency of the electric fan is basically determined by dividing the air flow ratio in cubic
meters per minute by the electricity input to the electric fan in a controlled electricity frequency.

Energy Efficiency of Electric Fan = Air Flow Ratio (m3/min) / Wattage (W)

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12.3 Opportunities for Improvement in Standards and


Regulatory Framework for Electric Fans in South Asia
and Southeast Asia
Following the review and assessment of the standards and regulatory framework for electric fans in each
country covered under this study, there is a significant scope for improvement and synergies, particularly
at regional level, including:

 Harmonizing minimum energy performance standards for electric fans. Particularly for
Cambodia, Lao PDR and Myanmar which currently have no minimum energy performance
standards for electric fans. There is an opportunity for ASEAN member countries to share
experiences and harmonize minimum energy performance standards across all member
countries.

 Enhancing existing voluntary labeling programs for electric fans by making it


mandatory. Particularly in countries where labeling programs for electric fans have been in
place for more than 4 years such as India (2010), Malaysia (2009) and Thailand (2001).

 Enhancing existing S&L program to include electric fans (depending on market


characteristics). Particularly in the Philippines and Singapore and to lesser extent in Brunei
Darussalam.

 Enhancing testing capability for performance and safety testing of electric fans. Some
countries, such as Indonesia, Sri Lanka, Thailand, Viet Nam and to a lesser extent, Bangladesh,
have no or limited number of testing laboratories and not all are accredited to carry out testing
of safety and performance according to national and/or international standards. This is
particularly relevant for when introducing new mandatory standards for electric fans as it
typically takes 4 days to complete performance tests and 2 days for safety tests including test
sample preparation which can be costly for manufacturers/suppliers and laboratories. One
alternative could be to accept test reports from international accredited laboratories.

 Possibility of a Regional Energy Label Scheme for electric fans. All energy labels
approved/proposed for electric fans have a rating of 1 to 4/5, with 4/5 being the highest energy
efficiency. The Philippines is an exception although the government is considering changing it to
a star rating scheme. Therefore, there is an opportunity to create a regional energy label across
these countries, particularly within ASEAN, or at least for similar grading values.

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13 C OUNTRY P ROFILES
13.1 Bangladesh
13.1.1 Overview of Standards and Regulatory Framework for Electric Fans

The Government of Bangladesh (GoB) is a late entrant in establishing standards and labeling (S&L) for
electrical appliances when compared to other Asian countries. The Energy Efficiency and Conservation
Rules sets the regulatory framework for MEPS and Energy Labeling and is pending formal approval as of
February 2014. It is likely to be formally approved in 2014. Based on draft legislation from the 22 nd
October 2012, electric fans are included in the first phase of equipment for which energy labeling and
MEPS will be obligatory starting from 2016. In the meantime, MEPS and Energy Labels are voluntary for
electric fan importers and manufacturers, and standards are available for testing performance and safety
of electric fans.

13.1.2 Safety Standards for Electric Fans

Bangladesh has its own safety standard, developed by the Bangladesh Standards and Testing Institution
(BSTI), and applicable to electric fans - BDS IEC 60335-2-80. This standard is in line with the IEC 60335-
2-80 - Household and Similar Electrical Appliances - Safety - Part 2-80: Particular Requirements for Fans.

The Power Division of the Ministry of Power, Energy and Mineral Resources is responsible for
undertaking, formulating and implementing energy efficiency measures in the country. To date, the
Power Division is responsible for overseeing the standards for electrical appliances and the Bangladesh
Standards and Testing Institution (BSTI) is responsible for developing standards for electrical appliances
including electric fans. To overcome the institutional barriers associated with energy conservation
activities, a dedicated central agency called Sustainable and Renewable Energy Development Authority
(SREDA) was enacted in 2012. Once formally established, the SREDA will be responsible for promoting
and developing the Renewable Energy and Energy Efficiency framework in Bangladesh.

13.1.3 Performance Standards for Electric Fans

The performance testing standard for electric fans is BDS 818:1998, amended in 2006, to adopt IEC
60879 - Performance and Construction of Electric Circulating Fans and Regulators. The MEPS for electric
fans are currently pending formal approval but importers/manufacturers can already test their appliances
according to BDS 1860:2012 - Minimum Allowable Values of Energy Efficiency and Energy Efficiency
Grades for AC Electric Fans - which is currently voluntary for ceiling and table/desk fans. Once the
Energy Efficiency and Conservation Rules is enacted, the MEPS will be mandatory for electric fans
starting from 2016. The proposed MEPS threshold according to fan type and diameter are shown in Table
13-1 and Table 13-2.

Table 13-1: Proposed MEPS for Table Fans in Bangladesh (Choudhury, 2014; BRESL, 2012)
Blade Sweep (mm) 200 230 250 300 350 400 450 500 600

MEPS (m3/min/W) 0.54 0.64 0.74 0.80 0.90 1.00 1.10 1.13 1.30

Table 13-2: Proposed MEPS for Ceiling Fans in Bangladesh (Choudhury, 2014; BRESL, 2012)
Blade Sweep (mm) 900 1050 1200 1300 1400 1500 1600 1800

MEPS (m3/min/W) 2.75 2.79 2.93 N/A 3.15 3.33 N/A 3.47

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13.1.4 Energy Labeling Schemes for Electric Fans

The Energy Labeling Scheme for Bangladesh has been drafted and will be mandatory for electric fans
starting from 2016 following expected enactment of the Energy Efficiency and Conservation Rules in
2014. It is applicable to table/desk, box, wall, floor and ceilings fans. The proposed label design will be a
comparative label with star rating from 1 to 5 stars, with 5 being the highest efficiency (Figure 13-1). The
proposed energy efficiency ratios according to star rating are shown in Table 13-3 and rating 1
corresponds exactly to the MEPS values. Whilst awaiting formal approval, the BSTI has already
introduced the comparative label for electric fans, on a voluntary basis, and is encouraging and
motivating local manufacturers and importers to register their appliances for Energy Labels and MEPS.

Figure 13-1: Proposed Energy Rating Label for Electric Fans in Bangladesh (BRESL, 2012)

Table 13-3: Proposed Energy Efficiency Ratios according to Star Rating for Electric Fans in
Bangladesh (Choudhury, 2014)
Electric Fan Blade Diameter Energy Efficiency Ratio (m3/min/watt)
Type (mm)
1-Star 2-Star 3-Star 4-Star 5-Star
200 0.54 0.57 0.60 0.66 0.71
230 0.64 0.67 0.70 0.77 0.84
250 0.74 0.76 0.79 0.85 0.91
300 0.80 0.83 0.86 0.92 0.98
Desk, Box, Wall,
350 0.90 0.92 0.95 1.02 1.08
Floor Fans
400 1.00 1.03 1.06 1.15 1.25
450 1.10 1.15 1.19 1.31 1.42
500 1.13 1.19 1.25 1.35 1.45
600 1.30 1.36 1.43 1.54 1.65
900 2.75 2.81 2.87 2.91 2.95
1,050 2.79 2.86 2.93 3.02 3.10
1,200 2.93 3.00 3.08 3.15 3.22
Ceiling Fans
1,400 3.15 3.24 3.32 3.39 3.45
1,500 3.33 3.43 3.52 3.60 3.68
1,800 3.47 3.57 3.67 3.74 3.81

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13.1.5 Overview of National Testing Facilities and Capability

Bangladesh has three laboratories for testing electric fans as per the BSTI’s safety and performance
standards (BRESL, 2013b):
 Bangladesh Standards and Testing Institution (BSTI)
 Bangladesh University of Engineering and Technology (BUET)
 Bangladesh Council for Scientific and Industrial Research (BCSIR)

These laboratories are not accredited but testing conditions and equipment are generally in line with
International standards (IEC 60879 - Performance and Construction of Electric Circulating Fans and
Regulators). All tests set by IEC 60879, except for ambient temperature, are currently being followed
such as air velocity, sizes, power input, power factor and rotations per minute (BRESL, 2013a).

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13.2 Brunei Darussalam


13.2.1 Overview of Standards and Regulatory Framework for Electric Fans

Since May 2008, there is a voluntary comparative label for air conditioners. According to the Brunei
National Energy Research Institute (BNERI, 2014), Brunei Darussalam is currently in the process of
establishing a mandatory S&L regulatory framework for electrical appliances. The first electrical appliance
to be regulated will be residential air conditioners as these appliances are the highest consuming in the
residential sector. The S&L legislation is currently being drafted and should be enacted by March 2014
and comprises the establishment of a comparative energy label. BNERI are also working on proposing
MEPS for air conditioners, which would be published in 2014 and voluntary for one year period prior to
making it mandatory. There is no plan to extend the S&L program to electric fans in the near future.

13.2.2 Safety Standards for Electric Fans

The Department of Electrical Services, under the Ministry of Development, is responsible for
standardization of electrical and electronic equipment in Brunei. The applicable safety standard for
electric fans in Brunei Darussalam is IEC 60335-2-80 - Household and similar electrical appliances -
Safety - Part 2-80: Particular requirements for fans. This is in accordance with the ASEAN Sectoral Mutual
Recognition Arrangement for Electrical and Electronics Equipment1 in order to undertake testing and
certification of electrical appliances. There is currently no indication of national laboratories in Brunei
Darussalam suited to conduct such testing and majority of the electric fans are imported.

13.2.3 Performance Standards for Electric Fans

There is an Energy Labeling and Standards Task Force (ELSTF) in the Energy Division of the Prime
Minister’s Office. The ELSTF was established in September 2008 to promote energy efficiency best
practices in Brunei Darussalam. The ELSTF comprises of stakeholders from the Energy Division, the
Department of Technical Services, the Public Works Department and the Department of Electrical
Services. Currently, there are only performance standards for air conditioners and lighting appliances in
Brunei Darussalam based on IEC standards (UNEP, 2011).

The Energy Division and the recently formed Brunei National Energy Research Institute (BNERI) are
tasked to design and develop a National Standards and Labeling Regulation for Brunei Darussalam. As of
February 2014, the government of Brunei Darussalam is set to approve a mandatory S&L legislation for
air conditioners in 2014 which will comprise of a comparative energy label. The voluntary MEPS for air
conditioners will also be introduced in 2014 and made mandatory in 2015. There is no indication of when
the S&L legislation would cover electric fans as these are not commonly used in Brunei Darussalam.

13.2.4 Energy Labeling Schemes for Electric Fans

See section above.

13.2.5 Overview of National Testing Facilities and Capability

There are currently no laboratories for testing of electric fans in Brunei Darussalam and majority of the
electric fans are imported.

1
The ASEAN Mutual Recognition Arrangement for Electrical and Electronics Equipment sets the requirements for
mutual recognition or acceptance of test reports and equipment certification to enhance trade of electrical and
electronic equipment in ASEAN.

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13.3 Cambodia
13.3.1 Overview of Standards and Regulatory Framework for Electric Fans

Cambodia does not have any regulatory framework for the establishment of standards and labeling (S&L)
for electrical appliances. Nevertheless, the Government of Cambodia is currently considering adopting the
National Energy Efficiency Policy, Strategy and Action Plan, which would set the basis for the
development of a S&L program in Cambodia. Overall, based on S&L experience in ASEAN, it is unlikely
that Cambodia will have a S&L program before 2018.

13.3.2 Safety Standards for Electric Fans

The applicable safety standard for electric fans in Cambodia is IEC 60335-2-80 - Household and similar
electrical appliances - Safety - Part 2-80: Particular requirements for fans. This is in accordance with the
ASEAN Sectoral Mutual Recognition Arrangement for Electrical and Electronics Equipment in order to
undertake testing and certification of electrical appliances. There is currently no indication of national
laboratories in Cambodia suited to conduct such testing, and the majority of the electrical appliances are
imported.

The Institute of Standards of Cambodia (ISC) is responsible for developing standards for electrical
appliances based on international standards and standards established under ASEAN.

13.3.3 Performance Standards for Electric Fans

There is no MEPS and energy labeling scheme in Cambodia. According to the ISC, before formulating a
new standard for Cambodia the following key criteria must be assessed:
1. National Development Policy
2. Urgency of the standard
3. Consumer and environmental protection
4. Degree of economic activity in the sector
5. Importance for import inspection, industry inspection or product certification
6. Capacity as import substitute
7. Availability of reference materials and testing facilities

A performance standard for electric fans would need an S&L regulatory framework which is not currently
in place in Cambodia. Therefore, the following steps would be required to establish a S&L scheme
including performance standards (Step 7):
1. Relate S&L to Energy Plans and Regulation
2. Data Collection and Assessment
3. Develop S&L Strategy
4. Setup Key Stakeholder Group
5. Develop Timetable
6. High Level Endorsement
7. Setup Legal Framework + Standards
8. Setup Administration
9. Implementation, Monitoring and Enforcing
10. Evaluation

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There are no plans or regulation on energy efficiency in Cambodia. The National Energy Efficiency Policy,
Strategy and Action Plan was prepared for review and approval of the Council of Ministers in 2013 but as
of February 2014, there is no indication that has been formally approved. Once approved, this plan will
set the baseline for the establishment of a S&L scheme. The next step will be to initiate data collection
and setup key a stakeholder group. However, there is limited data available on imports and exports of
electrical appliances and the resources and capacity of relevant government agencies will have to be
enhanced prior to implementing a S&L program. For example, the ISC will have to closely cooperate with
the Ministry of Industry, Mines and Energy to establish MEPS and it will be essential for the Ministry of
Commerce to regulate import and manufacture of electrical appliances in Cambodia. Overall, it is unlikely
there will be a S&L scheme in Cambodia before 2018.

13.3.4 Energy Labeling Schemes for Electric Fans

See section above.

13.3.5 Overview of National Testing Facilities and Capability

There are currently no known laboratories for testing of electric fans in Cambodia.

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13.4 India
13.4.1 Overview of Standards and Regulatory Framework for Electric Fans

India established its standards and labeling (S&L) regulatory framework in 2001 under the Energy
Conservation Act. The voluntary comparative energy label, also known as the Bureau of Energy Efficiency
(BEE) Star Labeling, was initiated in 2006 for refrigerators and air conditioners. In 2010, the energy label
became mandatory for frost free refrigerators, room air conditioners, distribution transformers and
fluorescent tube lamps; and voluntary for ten other electrical appliances including ceiling fans (Table
13-4). It is unlikely to be made mandatory or even extended to other electric fans in the near future due
to low penetration of the existing voluntary S&L for ceiling fans.
Table 13-4: List of Electrical Appliances under the Mandatory/Voluntary Comparative
Labeling Program (BEE, 2014)
Mandatory Comparative Labeling Program Voluntary Comparative Labeling Program

Ceiling Fans
Direct Cool Refrigerators
General Purpose Industrial Motors
Frost Free Refrigerators, Monoset Pumps
Room Air Conditioners, Open well Pump sets
Distribution Transformers Submersible Pump Set
Fluorescent Tube Lamps Domestic Gas Stoves
Stationary Storage Type Water Heater
Colour Television
Washing Machines

13.4.2 Safety Standards for Electric Fans

The S&L program in India is administered by the Bureau of Energy Efficiency (BEE), under the Ministry of
Power. The Bureau of Indian Standards (BIS), under the Ministry of Consumer Affairs, Food and Public
Distribution, provides technical support through the development of respective standards, test and
protocols including safety and performance standards for electric fans.

Electric fans in India must comply with safety standards set in IS 302-2-80 - Safety of Household and
Similar Electrical Appliances Part 2 Particular Requirements, Section 80 - Fan. This standard is
superseded earlier by IS 12155:1987 and was re-affirmed in September 2008. The present revision was
undertaken to align the standard with the IEC 60335-2-80:2008 - Household and similar appliance –
Safety – Part 2-80: Particular requirements for fans. This standard is used in conjunction with IS 302-1 –
Safety of Household and Similar Appliances – Part 1 – General Requirements. Following compliance with
the standards, the manufacturers of the electric fans must market their respective product with the
safety label shown below.

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Figure 13-2: Example of BIS Safety Standard Mark (BIS, 2013)

13.4.3 Performance Standards for Electric Fans

The BEE is responsible for defining the MEPS for electrical appliances in India. In 2006, the BEE initiated
the S&L program by introducing a voluntary comparative label scheme for refrigerators and air
conditioners. The objective was for the labeling scheme to commence on a voluntary basis and then
transition to a mandatory requirement for both MEPS and labeling. The Energy Performance Standards
for different electric fans has been established since the 1970s and is listed in Table 13-5. The
performance values vary depending on fan size and air delivery.
Table 13-5: Performance Standards for the Electric fans in India (BIS, 2014)
Electric Fan Type Performance Standards

Table Fans IS 555:1979

Wall Mounted Fans IS 555:1979

Pedestal Fans IS 1169:1967

Exhaust fans IS 2312:1967

Ceiling fans IS 374:1979

Performance standards for ceiling fans are set under IS 374:1979 which is based on IEC 60879 -
Performance and Construction of Electric Circulating Fans and Regulators. The performance standards
mentioned above do not set energy efficiency criteria or MEPS. The MEPs for ceiling fans currently
follows the 1 star rating set on voluntary basis by the BEE Labeling Program. When the labeling program
becomes mandatory, so will the MEPS for ceiling fans.

13.4.4 Energy Labeling Schemes for Electric Fans

The BEE energy label scheme in India is applicable to electric fans on a voluntary basis but covers only
ceiling fans with 1,200 mm blade sweep/diameter and minimum ventilation of 210 m3/min. The rating
ranges from 1 to 5, with 5 being the highest efficiency as shown in Figure 13-3. To date, a total of nine
manufacturers have applied for the voluntary label.

Figure 13-3: Voluntary Energy Label for Ceiling Fans in India (USAID, 2010)

The energy efficiency ratios according to star staring are shown in Table 13-6. These must be tested
according to IS 374:1979 – Specification for Ceiling Type Fans and Regulators.
Table 13-6: Energy Efficiency Ratios according to Star Rating for Ceilings Fans in India
(BEE, 2014)
Energy Efficiency Ratio
Minimum
Blade (m3 / minute / watt)
Ventilation
Sweep
(m3/minute)
1 Star 2 Stars 3 Stars 4 Stars 5 Stars

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1200 210 ≥ 3.2 to < 3.4 ≥ 3.4 to < 3.6 ≥ 3.6 to < 3.8 ≥ 3.8 to < 4.0 ≥ 4.0
Note: above or equal (≥)

13.4.5 Overview of National Testing Facilities and Capability

There are a total of nine National Accreditation Boards for Testing and Calibration Laboratories (NABL)
which are accredited and capable of testing electric fans in India. The NABL accredited test laboratories
are listed in Table 13-7 and only these can participate in the S&L program set by BEE (BIS, 2013). Figure
13-4 shows photographs of existing testing facilities for ceiling fans in India.

Table 13-7: List of NABL Accredited Test Laboratories for Ceiling Fans in India (BIS, 2013)
No. Name of Laboratory Region

1 Electrical Research and Development Association (ERDA), Vadodara West

2 National Test House( NTH), Ghaziabad North

3 Central Power Research Institute (CPRI), Bangalore South

4 Electronics and Quality Development Centre, Gandhinagar West

5 MSME, Kolkata East

6 Delhi Test House (DTH), New Delhi North

7 Bharat Test House, Rai, Sonepat North

8 Intertek India Private Limited, Mathura Road, New Delhi North

9 Shriram Institute of Industrial Research, Bangalore South

Figure 13-4: Examples of Testing Facilities for Ceiling Fans in India (CPRI, 2014)

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In addition to the NABL accredited laboratories, there are several other laboratories and laboratories
owned by manufacturers with capacity to test fans according to standards, which may or not be NABL
accredited.

13.5 Indonesia
13.5.1 Overview of Standards and Regulatory Framework for Electric Fans

Indonesia is still in its infancy in terms of standards and energy labels for electrical appliances compared
to other Southeast Asian countries. The revised energy label scheme was formally launched in 2011 and
covers only Compact Fluorescent Lamps (CFLs). There are no MEPS for electric fans but electric fans are
likely to be included together with the energy labeling scheme expected to be approved in 2014.

13.5.2 Safety Standards for Electric Fans

The safety standards for electrical appliances are regulated by the Directorate General of Electricity and
Energy Utilization, under the Ministry of Energy and Mineral Resources. The National Standardization
Agency (BSN) guides the development and coordination of national activities focusing on standardization.

The applicable safety standard for electric fans in Indonesia is SNI IEC 60335-2-80 - Household and
similar electrical appliances - Safety - Part 2-80: Particular requirements for fans. The Ministry of Industry
is responsible for issuing the Indonesia National Standard (SNI) safety label.

13.5.3 Performance Standards for Electric Fans

The Energy Law sets legislation covering all energy sectors including implementation of energy efficiency.
It outlines the National Energy Policy, which is the basis for developing the National Energy Master Plan
and National Energy Conservation Master Plan. The performance standards for electric fans are currently
being proposed in accordance with testing procedure - SNI 04-6292-80-2003. In the absence of this
national standard, Indonesia follows IEC 60879. In addition, BRESL indicates that the MEPS value could
correspond to the energy efficiency ratio for 1 star electric fans (see Table 13-8).

13.5.4 Energy Labeling Schemes for Electric Fans

The government of Indonesia introduced an energy labeling scheme in 1999 for refrigerators only. The
program was later discontinued and replaced by a revised scheme which is currently mandatory for CFLs
(comparative label shown in Figure 13-5). The plan is to extent it, voluntarily, to other electrical
appliances, including pedestal and table fans by 2014. The draft energy efficiency ratio per star rating for
table and pedestal fans is illustrated in Table 13-8. Star rating 5 represents the highest efficiency. BRESL
indicates that the energy efficiency ratios for 1 star would be the MEPS for pedestal and table fans in
Indonesia.

Overall, the Directorate General of Electricity and Energy Utilization, under the Ministry of Energy and
Mineral Resources, and the National Standardization Agency (BSN) are responsible for implementing and
managing the energy label scheme. While the Ministry of Trade carries out monitoring of compliance in
the market.

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Figure 13-5: Comparative Energy Label Scheme in Indonesia (BRESL, 2013a; 2013b)
Table 13-8: Draft Energy Efficiency Ratios for Table and Pedestal Fans under the Energy
Label Scheme in Indonesia (BRESL, 2013a; 2013b)
Blade Diameter Energy Efficiency Ratio (m3/min/watt)

mm inches 1-Star 2-Star 3-Star 4-Star

150 6 ≤ 0.40 0.41-0.50 0.51-0.65 > 0.65

180 7 ≤ 0.40 0.41-0.50 0.51-0.65 > 0.65

200 8 ≤ 0.40 0.41-0.59 0.6-0.75 > 0.75

230 9 ≤ 0.42 0.43-0.59 0.6-0.75 > 0.75

250 10 ≤ 0.42 0.43-0.59 0.6-0.81 > 0.81

300 12 ≤ 0.66 0.67-0.97 0.98-1.18 > 1.18

400 16 ≤ 0.80 0.81 - 1.1 1.12-1.68 > 1.68


Note: Below or equal (≤)

13.5.5 Overview of National Testing Facilities and Capability

Overall, Indonesia has a total of three laboratories suited for carrying out electrical testing of electric
fans:
 P2SMTP-LIPI
 BPMBEI
 SUCOFINDO ICS

P2SMTP-LIPI is not accredited, while BPMBEI and SUCOFUNDO ICS are accredited for safety testing of
electrical appliances under ISO/IEC 170251 but not for performance testing. Despite not being accredited,
the testing laboratories follow IEC 60879 (Performance and Construction of Electric Circulating Fans and
Regulators) for performance testing of electric fans until a national standard is adopted. This requires the
laboratories to be capable of:
 Testing Air Performance
 Measuring of Fan Speed

1
ISO/IEC 17025:2005 - General requirements for the competence of testing and calibration laboratories

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 Measuring Power Factor


 Measuring Power Input
The following equipment is available in these laboratories to carry out the above tests:
 Test Chambers
 Environment Control Arrangements
 Power Analyzer (to measure voltage, current, P.F, Power)
 Anemometer
 Tachometer
 Regulated Stabilized Power Supply for Testing
 Telescope

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13.6 Lao People’s Democratic Republic


13.6.1 Overview of Standards and Regulatory Framework for Electric Fans

Lao People’s Democratic Republic (Lao PDR) has no regulatory framework for standards and labeling
(S&L) for electrical appliances. Starting from 2014, the Demand Side Management and Energy Efficiency
Phase II Project funded by the World Bank and Electricite du Laos (EDL), will be tasked with the
establishment of an energy efficiency appliance S&L program which will cover lighting, electric fans
(particularly table fans), refrigerators and possibly air conditioners. It is likely this program will only be
fully established beyond 2020.

13.6.2 Safety Standards for Electric Fans

The applicable safety standard for electric fans in Lao PDR is IEC 60335-2-80 - Household and similar
electrical appliances - Safety - Part 2-80: Particular requirements for fans. This is in accordance with the
ASEAN Sectoral Mutual Recognition Arrangement for Electrical and Electronics Equipment in order to
undertake testing and certification of electrical appliances. There is currently no indication of national
laboratories in Lao PDR suited to conduct such testing and majority of the electrical appliances are
imported.

In addition, Lao PDR is already a member of the IEC Affiliate Country Programme since 2002 and
adopted more than 50 IEC standards as their national standards to date. The Department of Intellectual
Property Standardization and Metrology, under the Ministry of Science and Technology is responsible for
monitoring and enforcing quality and safety aspects of imported household appliances. Lao PDR has also
participated in the ASEAN Harmonization for Electrical and Electronic Equipment Regime (AHEEER).
However, despite various initiatives, Lao PDR has not yet implemented any safety certification schemes
for household appliances, and standard implementation structures in Lao PDR still need significant
upgrading and improvement.

13.6.3 Performance Standards for Electric Fans

The Demand Side Management and Energy Efficiency Phase II Project in Lao PDR, which commenced in
mid-2013, is providing support for the establishment of an energy efficient appliance S&L program. This
will involve the following tasks:

1. Establishment of a national committee to oversee the implementation of S&L program;

2. Conduct of an assessment on necessary mechanisms and legal frameworks to be strengthened or


established to support the implementation, monitoring and evaluation of the S&L program, and;

3. Conduct of necessary surveys to identify priority appliances for the program, develop core
elements related to quality and efficiency standards for one or two selected priority household
appliances, and prepare the implementation roadmap.

Under this project, EDL’s Demand-Side Management Cell will be tasked in establishing a national S&L
steering committee to oversee and direct the implementation of the S&L program in Lao PDR. The key
agencies to be invited include:
 Ministry of Energy and Mines (MEM)
 Electricite du Laos (EDL)
 National Authority for Science and Technology (NAST)
 Ministry of Industry and Commerce (MOIC)
 Ministry of Finance (MOF)

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Following the establishment of the national S&L Steering Committee, a subsequent dedicated technical
committee or task force may need to be established to support decisions related to technical matters.
Considering the technical and administration requirements of the S&L program, it is likely this will be the
Ministry of Science and Technology or, alternatively, EDL might assume the lead role in the national S&L
Steering and Technical Committees. Thereafter, a strategy and S&L program implementation roadmap
for Lao PDR will be developed.

Based on research from IIEC in 2009 and 2010, the following electrical appliances were recommended
for a S&L programme in Lao PDR:
 Lighting – focusing on Compact Fluorescent Lamps
 Fans – focusing on Table Fans
 Refrigerators – focusing on 1-Door Refrigerators
 Air conditioners (to be reconfirmed based on recent high market uptake)

13.6.4 Energy Labeling Schemes for Electric Fans

See section above.

13.6.5 Overview of National Testing Facilities and Capability

There are currently no laboratories for testing of electric fans in Lao PDR and majority of the electric fans
are imported.

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13.7 Malaysia
13.7.1 Overview of Standards and Regulatory Framework for Electric Fans

The Government of Malaysia, following the enactment of the Electricity Regulation in 1994, has
implemented both voluntary and mandatory MEPS as well as a voluntary Energy Efficiency Rating and
Labeling Program which includes both comparative and endorsement labels. The MEPS for electric fans
were established in 1999 (one of the first countries in Southeast Asia) and is currently mandatory. The
Energy Labeling Program is applicable for electric fans since 2009.

13.7.2 Safety Standards for Electric Fans

Malaysia follows two main safety standards which are based on IEC standards for electric fans, as shown
in Table 13-9.
Table 13-9: Safety Standards for Electric Fans in Malaysia (DSM, 2014; EC, 2014)
Corresponding International
Product Type National Standards
Standards

Ceiling Fan MS 1219:1992 / MS 1219: PART 2:2002 –


IEC 60335-1:2001 - Household and
Safety of Household and Similar Electric
Similar Electrical Appliances - Safety -
Pedestal Fan Appliances Part 2: Particular Requirements for
Part 1: General Requirements
Fans (First Revision)
Table Fan IEC 60335-2-80:2004 - Household
MS 1597: Part 2-80:2007 – Household and
Wall Fan and Similar Appliance – Safety – Part
Similar Electrical Appliances – Safety Part 2 –
2-80: Particular Requirements for
80: Particular Requirements for Fans (Second
& Regulators Fans
Revision)

The Department of Standards Malaysia (DSM), under the Ministry of Science, Technology and Innovation
(MOSTI), is the national standardization and accreditation body in accordance with the Standards of
Malaysia Act 1996. The Department is tasked in promoting standards and accreditation and the Malaysian
Standards and Accreditation Council provides advice to the Government on standardization policies,
programmes and activities. The Department also appointed the Standards and Industrial Research
Institute of Malaysia (SIRIM) as the national standards development agency.

13.7.3 Performance Standards for Electric Fans

The Government of Malaysia established the regulatory framework for MEPS with the enactment of the
Electricity Regulation in 1994. The MEPS was subsequently introduced in 1996 and today is mandatory
for a total of ten electrical appliances including electric fans since 1999. The MEPS for each type of
electric fan is indicated in Table 13-10 and is tested according to MS 1220 – Performance and
Construction of Electric Circulating Fans and Regulators (First Revision) which is based on IEC 60879 -
Performance and Construction of Electric Circulating Fans and Regulators
Table 13-10: MEPS of Electric Fans in Malaysia (EC, 2014)
Type of Fan Diameter Minimum Energy Efficiency Ratio (m3/min/W)
(inches)

Ceiling Fan 48’’ – 60’’ ≥ 2.58

Pedestal, Table & Wall Fan 10’’ – 16’’ ≥ 1.04

The Energy Efficiency Ratio, also known as coefficient of performance, is determined based on testing in
accordance with MS 1220:2001. Similarly to Thailand, it is determined by dividing the measured air
delivery (m3/min) by the input power (watts).

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13.7.4 Energy Labeling Schemes for Electric Fans

The voluntary Energy Efficiency Rating and Labeling program in Malaysia was established in 2003. The
Program now covers a total of four electrical appliances including electric fans. The Energy Commission is
responsible for the overall management of the program. The Ministry of Energy, the Green Technology
and Water (KeTTHA) and the Sustainable Energy Development Authority (SEDA) are responsible for
raising and promoting public awareness. There are two energy labels available for electric fans:

 Endorsement Label (Figure 13-6) – Ceiling, pedestal, wall and table fans which achieve a rating
of 5 stars (highest energy efficiency).

 Comparative Energy Label (Figure 11-25) – 1 (lowest efficiency) to 5 (highest efficiency) star
rating for ceiling, pedestal, wall and table fans.

Figure 13-6: Endorsement Label for Electric Fans in Malaysia (CLASP, 2014)

Figure 13-7: Comparative Energy Label for Electric Fans in Malaysia (UNEP, 2011)

To achieve a 5 star rating for both labels the energy efficiency ratio must be above or equal to 3.0
m3/min/W for ceiling fans and above or equal to 1.2 m3/min/W for pedestal, wall and table fans (Table
13-11). The MEPS for electric fans, mentioned above, corresponds to minimum requirement for the 2
star rating level.

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Table 13-11: Energy Efficiency Ratio according to Electric Fan Type and Star Rating in
Malaysia (EC, 2014)
Energy Efficiency Ratio
(m3/min/W)
Star Rating
Ceiling Fans Pedestal, Wall and Table Fans

5 Stars (highest efficiency) ≥ 3.00 ≥ 1.20

4 Stars 2.74 – 2.99 1.12 – 1.19

3 Stars 2.66 – 2.73 1.08 – 1.11

2 Stars 2.58 – 2.65 1.04 – 1.07

1 Star (lowest efficiency) 2.50 – 2.57 1.00 – 1.03


Note: Above or equal (≥)

13.7.5 Overview of National Testing Facilities and Capability

Certified laboratories for testing safety and performance of electric fans in Malaysia are appointed by the
Energy Commission and recognised by the Department of Standards Malaysia. Currently, only the SIRIM
QAS International seems to be authorized for conducting safety and performance testing of ceiling, table,
stand, box and ventilation fans.

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13.8 Myanmar
13.8.1 Overview of Standards and Regulatory Framework for Electric Fans

Myanmar has currently no regulatory framework for S&L for electrical appliances. The first step from the
Government, with technical support from international development agencies as well as the Asian
Development Bank and World Bank, is to develop a strategy and road map for energy efficiency over the
next two years and build capacity of the key government agencies. Consequently, it is likely that energy
labeling and MEPS will only be considered beyond 2020.

13.8.2 Safety Standards for Electric Fans

The applicable safety standard for electric fans in Myanmar is IEC 60335-2-80 - Household and similar
electrical appliances - Safety - Part 2-80: Particular requirements for fans. This is in accordance with the
ASEAN Sectoral Mutual Recognition Arrangement for Electrical and Electronics Equipment in order to
undertake testing and certification of electrical appliances. There is currently no indication of national
laboratories in Myanmar suited to conduct such testing.

Standards for electrical appliances in Myanmar are set by the Electrical and Electronic Standardization
Committee under the Myanmar Industrial Development Committee.

13.8.3 Performance Standards for Electric Fans

There is no performance standards or energy labeling scheme in Myanmar. Generally, the following steps
are required to establish a standards and labeling scheme:

1. Relate S&L to Energy Plans and Regulation


2. Data Collection and Assessment
3. Develop S&L Strategy
4. Setup Key Stakeholder Group
5. Develop Timetable
6. High Level Endorsement
7. Setup Legal Framework + Standards
8. Setup Administration
9. Implementation, Monitoring and Enforcing
10. Evaluation

Currently there is no legislation covering energy efficiency and there is limited capacity from government
stakeholders to address this. Secondly, there is very limited data on electrical appliance use in order to
objectively assess and develop a suitable S&L scheme for Myanmar. Overall, based on S&L experience in
Southeast Asia, it is unlikely there will be a S&L scheme in Myanmar before 2020. Majority of the
electrical appliances are imported from the People’s Republic of China.

13.8.4 Energy Labeling Schemes for Electric Fans

See section above.

13.8.5 Overview of National Testing Facilities and Capability

There are currently no known laboratories for testing of electric fans in Myanmar.

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13.9 Pakistan
13.9.1 Overview of Standards and Regulatory Framework for Electric Fans

The implementation of a regulatory framework for Energy Efficiency Standards & Labeling in Pakistan has
been a challenge. The draft Pakistan Energy Efficiency and Conservation Bill (2013) failed to be enacted
due to lack of support from key stakeholders. As a result, the Government of Pakistan (GoP) has now
begun a consultative process with key stakeholders on the Draft Energy Efficiency and Conservation Bill.
Once this legislation is approved, a MEPs and energy label scheme for ceiling fans will be introduced.

13.9.2 Safety Standards for Electric Fans

The Pakistan Standards and Quality Control Authority (PSQCA) is responsible for developing standards for
electrical appliances including electric fans. Pakistan has adopted its own safety standards for electric
fans - PS/IEC 60335-2-80/2010 – which is based on the IEC 60335-2-80 - Household and similar
electrical appliances - Safety - Part 2-80: Particular requirements for fans. The government circular
S.R.O. 74(KE)/2011, dated 23rd June 2011, states that manufacturing, buying, selling and keeping in
stock of electric fans is subject to safety certification along with labeling of the safety logo starting from
the 1st August 2011 (Figure 3-8).

Figure 13-8: Marking for Safety and Performance Standards in Pakistan (PSQCA, 2014)

13.9.3 Performance Standards for Electric Fans

Pakistan has its own performance standards - PS-1:2010 – Performance and Construction of Electric
Circulating Fans and Regulators (4th Revision). The standard applies to ceiling, table and pedestal fans.

There are currently no MEPS for ceiling fans until the approval of the Energy Efficiency and Conservation
Bill. Nevertheless, the National Energy Conservation Centre (ENERCON) has already proposed MEPS for
electric fans under Doc. No. EES-01/7-2011 in July 2011. The proposed MEPS apply to ceiling fans with
blade sweep/diameter size of 1,400 mm and power input between 70 and 80 watts and are shown in
Table 13-12.

Table 13-12: Proposed MEPS for Ceiling Fans (1,400 mm) in Pakistan (ENERCON, 2013)
Minimum Input Minimum Air Minimum Energy
Rated
Power Factor Power Delivery Efficiency Ratio
Voltage/Frequency
(Watt) (m³/min) (m3/min/W)

230 V/ 50 Hz Not less than 0.9 70 to 80 225 3.2

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13.9.4 Energy Labeling Schemes for Electric Fans

Once the Energy Efficiency and Conservation Bill is enacted, the proposed S&L program would be a
voluntary endorsement label for a three years and thereafter a mandatory comparative label (National
Power Policy, 2013). The label will contain information regarding:
 Power Factor
 Input Power
 Air Delivery
 Service Value

The ENERCON will be responsible for monitoring and implementing the S&L program in Pakistan.

13.9.5 Overview of National Testing Facilities and Capability

According to BRESL (2012), Pakistan has the following electric fan testing facilities:
 Pakistan Council of Scientific and Industrial Research (PCSIR) Laboratory in Lahore

 PSQCA Laboratories in Karachi and Lahore

 Fan Development Institute (FDI), Gujrat. This particular laboratory is managed and operated by
the Pakistan Electric Fan Manufacturers Association (PEFMA).

These laboratories have capability to conduct the necessary test as per the requirement of the IEC 60879
standard but only the PCSIR is accredited (Figure 13-9).

Figure 13-9: Testing facility for Electric Fans in Pakistan (UNIDO, 2012)

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13.10 Philippines
13.10.1 Overview of Standards and Regulatory Framework for Electric Fans

The Philippines is at the forefront of Energy Standards and Labeling (S&L) in Asia. The S&L Program
commenced in 1993 and now covers a large range of room air conditioners, refrigerators, freezers and
lighting systems. The mandatory informative energy label, under the Philippine Appliance Energy
Standards and Labeling Program, covers room air conditioners, refrigerators, freezers, compact
fluorescent lamps (CFLs), linear fluorescent lamps and lamp ballasts. The mandatory MEPs only covers air
conditioners, CFLs and linear fluorescent lamps. There are currently no MEPS and energy labels for
electric fans, however, the Philippine Department of Energy (DOE) is considering its inclusion and
implementation starting from 2016.

13.10.2 Safety Standards for Electric Fans

The safety standards for electrical appliances are regulated by the Department of Trade and Industry
(DTI). The applicable safety standard for electric fans in the Philippines is PNS IEC 60335-2-80 -
Household and similar electrical appliances - Safety - Part 2-80 - Particular requirements for fans. Based
on this standard, safety testing of electric fans is mandatory before it can be sold in the market. This
standard is mandatory and used in conjunction with the latest edition of PNS IEC 60335-1 – Safety- -
Part 1: General requirements. The DTI and other recognized inspection bodies conduct random sampling
of electric fans for safety testing.

13.10.3 Performance Standards for Electric Fans

The Philippine Appliance Energy Standards and Labeling Program is a government driven initiative. It is a
joint program being implemented, managed and enforced by the DOE and the Department of Trade and
Industry – Bureau of Product Standards (DTI-BPS). The BPS is the Philippine’s National Standards Body
and is responsible for developing, promulgating, implementing and promoting standardization activities
as mandated by the Republic Act 4109. Typically, the BPS formulates the national standards or adopts
relevant international standards based on the consensus of the technical committee. In addition, the DOE
and DTI-BPS work closely with the Philippine Appliance Industry Association (PAIA) and Federation of
Electrical and Electronic Manufacturers of the Philippines in the implementation of the S&L program.

The MEPS is currently mandatory for air conditioners, CFLs and linear fluorescent lamps. The informative
energy label, shown in Figure 13-10, is also mandatory. However, the DOE is considering changing the
energy guide label to a star rating label to allow for comparison and support customer decision making
(Figure 13-10). There is currently no performance standards or MEPS for electric fans. In the absence of
national performance standard, IEC 60789 is followed. The DOE aims to expand the coverage of the S&L
program to include household electric fans, clothes washers and television sets. According to DOE, the
performance standards and MEPS for electric fans are being considered for implementation in 2016.

Figure 13-10: Current (left) and Proposed (right) Informative Energy Label for Refrigerators
and Freezers in the Philippines (DOE, 2014)

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Overall, in 2006, the S&L program generated an estimated energy savings of 0.29 Mtoe which is over
100 percent increase from its 2005 performance of 0.14 Mtoe. CFL standards and labeling was the
biggest contributor, generating an estimated savings of 0.16 Mtoe.

13.10.4 Energy Labeling Schemes for Electric Fans

See section above.

13.10.5 Overview of National Testing Facilities and Capability

From 1997 to 2002, as one of the recognized testing laboratories of the DTI-BPS, the Lighting and
Appliance Testing Laboratory (LATL) conducted safety testing of electric fans using PNS 134:1987,
“Safety Requirements for AC Fans”. In 2003, BPS took over the testing activity from LATL and since then
only the safety requirements for electric fans are being tested based on PNS IEC 60335-2-80. There are
currently three testing laboratories accredited by the DTI-BPS, through the Philippine Accreditation
Office, to conduct safety testing of electric fans:

 Omni Solid Services Incorporated

 TUV-Rheiland

 BPS-Testing Centre

For the Energy Labeling Program, the DOE currently administers the testing samples of the electrical
appliances, through the LATL, and then submits the test results to the DTI-BPS. Both DOE and DTI-BPS
monitor the compliance of the household electrical appliances covered under the program.

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13.11 Singapore
13.11.1 Overview of Standards and Regulatory Framework for Electric Fans

The Government of Singapore established MEPS for air conditioners and refrigerators in 2008, and a
mandatory energy labeling scheme for air conditioners, refrigerators and dryers in 2011. Therefore, S&L
is fairly recent in Singapore and there is no indication if it will be extended to electric fans in the near
future. Majority of the electric fans in Singapore are imported from neighbouring countries such as
Malaysia, Philippines, Thailand and Viet Nam.

13.11.2 Safety Standards for Electric Fans

The safety standards for electrical appliances are regulated by the Standards, Productivity and Innovation
Board (SPRING) under the Ministry of Trade and Industry. SPRING was previously known as the
Productivity and Standards Board (PSB) and was a result of the merger between the National Productivity
Board and the Singapore Institute for Standards and Industrial Research. The Electrical and Electronic
Standards Committee (EESC), under SPRING, is responsible for developing and harmonizing standards
for electrical appliances including electric fans.

The Singapore Accreditation Council, which operates under SPRING, is responsible for accreditation of
laboratories in Singapore suited to test performance and safety of electrical appliances. The applicable
safety standard for electric in Singapore is IEC 60335-2-80 - Household and similar electrical appliances -
Safety - Part 2-80: Particular requirements for fans.

13.11.3 Performance Standards for Electric Fans

The current performance testing standard for electric fans in Singapore is SS 360:1992 which is based on
IEC 60879:1998 - Performance and Construction of Electric Circulating Fans and Regulators. In 2012,
SPRING issued a call for public comments to allow for review of this standard.

Since 2011, the MEPS apply only to air conditioners and refrigerators. There are currently no plans to
introduce MEPS for electric fans in Singapore.

13.11.4 Energy Labeling Schemes for Electric Fans

The National Environment Agency (NEA) is responsible for the energy labeling program in accordance
with the Environment Protection and Management Act. Any importer or manufacturer has to register
their products and submit test reports from selected accredited laboratories to the NEA.

The mandatory comparative energy label was formally introduced in 2008 covering only high energy
consuming appliances such as air conditioners, refrigerators and clothes dryers. Unlike other
neighbouring countries, the label uses a 1 to 4 mark rating instead of a 1 to 5 star rating (Figure 13-11).
The higher the number of marks, the higher the efficiency. It currently does not apply to electric fans
and there is no indication currently if it will be extended to other appliances.

Figure 13-11: Comparative Energy Label in Singapore – not applicable to fans (EMA, 2014)

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13.11.5 Overview of National Testing Facilities and Capability

There are several international accredited suited to test all IEC requirements for safety and performance
of electric fans in Singapore.

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13.12 Sri Lanka


13.12.1 Overview of Standards and Regulatory Framework for Electric Fans

Sri Lanka was one of the first countries in South Asia to establish a standards and labeling (S&L) program
for compact fluorescent lamps (CFLs) in 2000, with the Sri Lanka Standards Institution playing a critical
part. According to estimates from the Sri Lanka Sustainable Energy Authority, S&L for ceiling fans could
deliver savings of 35 GWh per year. Subsequently an energy efficiency rating standard was introduced in
2012 and made mandatory for any ceiling fans manufactured or imported into Sri Lanka starting from
January 2013.

13.12.2 Safety Standards for Electric Fans

The Sri Lanka Sustainability Authority Act No.35 of 2007 empowers the Sri Lanka Sustainable Energy
Authority (SLSEA) to implement and design S&L programmes for electrical appliances throughout the
country. The Sri Lanka Standards Institution (SLSI) is the national standards body in Sri Lanka, under the
Ministry of Technology and Research, and is responsible for formulating national standards for electrical
appliances and providing consumer education.

In Sri Lanka, in accordance with SLSI, electric fans follow safety standard SLS 814:2011 – Sri Lanka
Standard Specification for Electric Fans - Part 2: Safety Requirements. This standard is applicable to
ceiling, pedestal, wall, orbit and box fans. It is based on IEC 60335-2-80:2008 - Household and similar
appliance - Safety - Part 2-80: Particular requirements for fans. This standard deals with the safety of
electric fans for household and similar purposes, their rated voltage being not more than 250 V for
single-phase appliances and 480 V for other appliances.

13.12.3 Performance Standards for Electric Fans

SLS 814:1988 – Part 1 – Performance of Electric Fans and Regulators, sets the performance standard for
electric fans in Sri Lanka. It is based on IEC 60879:1986 - Performance and Construction of Electric
Circulating Fans and Regulators. It covers performance requirements for ceiling, pedestal, table,
oscillating (orbit) and non-oscillating type fans and other associated regulators intended for use in single
phase ac or dc circuits at voltages not exceeding 250V. The standard specifies preferred fan sizes per fan
type and then specifies minimum number of speeds for each type and size. This is ideal to be able to
manage operation and subsequent energy use.

According to SLSI, to date, the following four electric fan manufacturers/importers have registered their
product as per the SLS 814:1988 Part 1:

 Panasonic Manufacturing Malaysia Berhad

 PRG International Electrical (Pvt) Ltd,

 M/s USHA International Ltd and

 M/s Orient Paper & Industries Ltd

The MEPS for ceilings is linked to the lowest rating for the energy label (see next section).

13.12.4 Energy Labeling Schemes for Electric Fans

Energy Efficiency Labeling was first introduced for CFLs in 2000 in Sri Lanka. The SLSI operates this
scheme in accordance with national standards for efficiency rating of appliances.

The SLSEA, in its National Energy Management Plan (EnMap 2012-2015), identified an annual energy
saving potential of 35 GWh through the implementation of S&L for ceiling fans. To support this, the

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Minister of Power and Energy, under Section 67 of the Sri Lankan Sustainability Authority Act N0.35 of
2007, established “The Energy Performance Standards of Appliances (Ceiling Fans) Regulations No.1
2012” in January 2013. This regulation gives mandate to SLSI to certify any ceiling fan imported or
manufactured which must conform with the star rating specified in the respective SLSI standard. The
applicable standard is SLS 1600:2011 - Energy Efficiency Rating for Electric Ceiling Fans with Regulators.
This standard specifies requirements for energy efficiency labeling and the method of determining the
energy efficiency rating of electric ceiling fans which have two or more blades with blade sweep/diameter
1400 mm and associated with regulators having minimum of 5 speed settings (Table 13-13). It also
provides a testing method for determining the energy consumption and air delivery of electric ceiling
fans. It further specifies dimensions, colour scheme and the contents of the energy efficiency label. To
qualify for energy labeling, the electric fan must meet the requirements under the safety standards - SLS
814.

Unlike other neighbouring countries with energy labels for electric fans which use the energy efficiency
ratio for each star rating, in Sri Lanka a Performance Grading is used and is determined based on the
three indices listed below, which have specific formulas and reference values:
 Average Service Value (m3/min/W), also known as Energy Efficiency Ratio
 Geometric average incremental flow rate (m3/min)
 Average power factor.

The Performance Grading is estimated by taking the contribution from each of the indices to account for
80% from the average service value, 10% from the geometric incremental flow rate and 10% from the
average power factor. Further details on the formulas and calculations are included in the Annex V.

Table 13-13: Performance Grading for Ceiling Fans in Sri Lanka (SLSI, 2011)
Performance Grading (PG) Star Rating

PG > 85 5 Stars (highest efficiency)

70 ≤ PG < 85 4 Stars

55 ≤ PG < 70 3 Stars

40 ≤ PG < 55 2 Stars

30 ≤ PG < 40 1 Star (lowest efficiency)


Note: Below or equal (≤)

This labeling scheme is mandatory for importers and manufacturers of ceiling fans and is currently being
implemented. The proposed star label is shown below and the rating ranges from 1 to 5, with 5 being the
highest energy efficiency. The minimum Performance Grading is 30.

Figure 13-12: Proposed Star Label for Ceiling Fans in Sri Lanka (SLSI, 2011)

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SLSEA has also being raising public awareness on how to save energy with electric fans as shown in the
Figure below.

Figure 13-13: Public Awareness Campaign for Energy Conservation (SLSEA, 2013)

13.12.5 Overview of National Testing Facilities and Capability


Sri Lanka have primarily three government owned or funded National Testing facilities:

 Sri Lanka Standards Institution (SLSI)

 University of Moratuwa

 National Engineering Research and Development Centre of Sri Lanka (NERDC)

Out of these three, two laboratories from SLSI and the University of Moratuwa have the capability to
carry out safety testing of electric fans. Capacity enhancement is expected to take place for these
laboratories as the S&L program for ceiling fans is mandatory starting from January 2013.

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13.13 Thailand
13.13.1 Overview of Standards and Regulatory Framework for Electric Fans

Thailand is one of the leading countries in Southeast Asia in terms of standardization and energy labels
for electric fans. The Energy Labeling Scheme for electrical appliances, also known as Label No.5, was
triggered by the Energy Conservation Promotion Act (1992) and the subsequent Demand-Side
Management (DSM) Program initiated by the Electricity Generating Authority of Thailand (EGAT). Electric
fans were formally added to the list of eligible equipment for Label No.5 in 2001 due to is wide use
nationwide and operation throughout the year. However, the MEPS for electric fans is still in draft format.

13.13.2 Safety Standards for Electric Fans

The safety standards for electrical appliances are regulated by the Thai Industrial Standards Institute
(TISI) under the Ministry of Industry. The applicable safety standard for electric fans in Thailand is TIS
934-2533 (1990), which is compulsory since December 1991. It is based on IEC 60335-2-80 - Household
and similar electrical appliances - Safety - Part 2-80: Particular requirements for fans.

13.13.3 Performance Standards for Electric Fans

The performance standards for electric fans in Thailand is listed below per type of electric fan and
indicating the respective source:

 TIS 92-2536 (1993) for Table type and Wall type – based on IS: 555-1979

 TIS 127-2536 (1993) for Pedestal type – based on IS: 1169-1967 Amend. 1980

 TIS 205-2530 (1987) for Ceiling type – based on B.S. 367:1969, IEC 176:1966 and IS: 374-1966

 TIS 572-2528 (1985) for Double-Oscillating type (also known as Orbit Type) – based on AS
2071:1984 and IEC 342:1971

In addition, in accordance with the Energy Conservation Promotion Act (1992), the Ministry of Energy in
Thailand established MEPS and High Energy Performance Standards (HEPS) for electrical appliances. Both
MEPS and HEPS are set by the Department of Alternative Energy Development and Efficiency (DEDE),
under the Ministry of Energy, and regulated by the Thai Industrial Standards Institute (TISI) under the
Ministry of Industry. TISI is responsible for certification and monitoring and verification of market
compliance of electrical appliances against MEPS and HEPS.

In Thailand, MEPS is a mandatory standard for air conditioners and refrigerators and a voluntary
standard for ballast, CFLs and 3-phase electrical motors. The MEPS for electric fans is still in draft format
and once approved it would be equally voluntary for a certain period. Under the current draft MEPS, the
Energy Efficiency Ratio required for electric fans is illustrated in Table 13-14 according to fan type and
size of fan blade. The MEPS values closely match the minimum requirements to achieve rating 1 under
the Label No.5 scheme (see next section).
Table 13-14: Draft Voluntary MEPS for Electric Fans in Thailand (BRESL, 2013)
Size of Fan Blade Minimum Ventilation Energy Efficiency Ratio
Fan Type
(mm) Rate (m3/min) (m3/min/watt)

300 33.18 0.81


Table & Wall Fans
400 60.57 1.13

300 - 0.76
Floor Type Fan
400 - 1.07

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Figure 13-14: Voluntary and Mandatory Certification Mark for MEPS – not available for
electric fans in Thailand (DEDE, 2014)

HEPS is a voluntary standard, set by ministerial regulation, applicable to electric fans since 2010. The
objective of HEPS is to reward manufacturers that go beyond the market requirements and invest in high
energy efficiency. Currently, the HEPS value closely matches rating 5 on the Label No.5 scheme but
provides little or no benefit to manufacturers.

13.13.4 Energy Labeling Schemes for Electric Fans

The Energy Labeling Scheme in Thailand, also known as Label No. 5 (Figure 13-15), was introduced in
1993 through the state-owned utility - Electricity Generating Authority of Thailand (EGAT). The scheme
was part of a larger Demand-Side Management project which started in 1991 and was in line with the
policies, established by the Ministry of Energy including the Energy Conservation Promotion Act (1992).
This voluntary labeling scheme started as a comparative energy label rating from 1 to 5, with 5 being the
highest energy efficiency. However, as it is voluntary, overtime, the manufacturers have opted only to
label products that reach rating 5 (highest). Therefore, it has become more of an endorsement label than
a comparative label despite still including number 1 to 4.

The objective of the scheme is to raise awareness on appliance and equipment efficiency and highlight
those with highest efficiency allowing consumers to reduce their electricity bills. It was also setup to
increase competition amongst manufacturers to further increase the efficiency of their
appliances/equipment. It started by covering refrigerators, followed by air-conditioners and lighting
equipment in the late 1990s. Electric fans were included in 2001, as it is a commonly used appliance
throughout the year, while the double oscillating fan (also known as Orbit Type) and ventilation fan were
added in 2009 and 2012, respectively. The EGAT has focused on 300 millimetre (12’’) and 400 millimetre
(16’’) table/desk, wall and pedestal/stand fans, which account for approximately 90% of the overall
market.

Energy
Consumption
(kWh/year)

Energy Efficiency
(m3/min/watt)

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Figure 13-15: Example of EGAT’s Label No.5 for Electric Fan in Thailand (EGAT, 2014)

In Thailand, the labeling process starts once all key stakeholders involved decide on the applicable
standards and labeling criteria. Following formal approval, the manufacturers can apply for the labeling
program. EGAT and the Electrical and Electronics Institute (EEI) are responsible for inspection and
testing process according to the Thailand Industrial Standards (TIS). The results are then reported to
manufacturers and once accepted EGAT processes the label accordingly. The label provided by EGAT is
then included in their appliances and EGAT is responsible for verification of compliance throughout the
country. The process is summarized in the Figure below.

1. Key Stakeholders agree on testing standards and labeling criteria

2. Manufacturers apply to EGAT’s Labeling Program

3. EGAT and EEI inspect and test equipment supplied by Manufacturers


according to standards

4. EEI reports testing results to EGAT

5. Manufacturers review report and approve results

6. EGAT processes Energy Efficiency Label based on test results and


submit label to Manufacturers

7. Manufacturers attached label to their appliances

8. EGAT carries out regular monitoring and verification throughout the


country

Figure 13-16: Energy Efficiency Label Process for EGAT’s Label No.5 in Thailand (EGAT,
2014)

The Energy Efficiency ratio used for the Label No. 5 for electric fans is based on the standards mentioned
in the previous section. The energy efficiency ratio required for labeling electric fans, according to blade
size, from No. 1 to No. 5 is indicated in Table 13-15.

Table 13-15: Energy Efficiency Criteria for Electric Fans under EGAT’s Label No.5 in Thailand
(EGAT, 2014)
Energy Efficiency Ratio
Minimum (m3 / minute / watt)
Blade Size
Ventilation
(mm/ inches)
(m3/minute) New No.5
No. 1 No. 2 No.3 No.4 No.5
(Jan. 2011)

300/12 30 < 0.66 0.67-0.75 0.76-0.92 0.93-1.00 ≥ 1.01 ≥ 1.10

400/16 60 < 0.79 0.80-0.89 0.90-1.10 1.11-1.20 ≥ 1.21 ≥ 1.30


Note: Above or equal (≥)

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The scheme has been particularly effective due to its regular public awareness campaigns (Figure 13-17)
and EGAT monitors regularly the estimated energy savings achieved based on number of appliance
labelled.

Figure 13-17: Television Advertisement on EGAT’s Label No.5 (EGAT, 2014)

Table 13-16 shows the number of No.5 rating labels issued by EGAT from 2009 to 2013 according to
electric fan type with an average 29 electric fan manufacturers participating per year. Based on this
table, over the last five years, labels for desk type fans have represented 68% of total number of labels
issued by EGAT for electric fans providing a possible indication of market share. However, note that these
values do not necessarily reflect annual market size as there are non-labelled electric fans in the Thai
market and manufacturers do not necessarily use the labels all in one year.
Table 13-16: Number of labels issued by EGAT according to electric fan type from 2009 to
2013 (EGAT, 2014)
Fan Type 2009 2010 2011 2012 2013 TOTAL

Double Oscillating
75,100 209,700 139,500 263,180 272,200 959,680
Type (Orbit Type)

Desk Type 3,365,500 4,728,285 2,493,155 5,006,615 4,212,200 19,805,755

Floor Type 497,100 849,800 707,430 808,200 595,600 3,458,130

Wall Type 816,709 1,160,455 450,360 1,227,220 1,039,000 4,693,744

TOTAL 4,754,409 6,948,240 3,790,445 7,305,215 6,119,000 28,917,309

Number of
Manufacturers 28 29 29 32 29 -
Participating

According to EGAT, as of December 2013, the overall savings achieved for electric fans, under the Label
No.5 scheme, was a total of 62 MW, 539 GWh and 274,390 tons of CO2. In terms of peak demand
reduction, electric fans represented 2% of overall peak demand reduction. In addition, the double
oscillating fan (Orbit Type) represented savings of 4.1 MW, 9.5 GWh and 5,028 tons of CO2. Thailand is
the only country in Southeast Asia that has determined the savings achieved from its labeling program on
electric fans.

In addition to the comparative label, the DEDE also issues a high energy savings endorsement label
(Figure 13-18), however, it currently does not cover electric fans and focuses particularly on appliances
for commercial/industrial purposes.

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Figure 13-18: DEDE’s High Efficiency Endorsement Label in Thailand - currently not
applicable to electric fans (DEDE, 2014)

The Thai Green Label Scheme (Figure 13-19) is basically an environmental certificate for both products
and services that have minimum negative impact on the environment in comparison with standard
products available in the market. The scheme is under the Thailand Environment Institute (TEI) and is
managed by the Thai Green Label Board which consists of representatives from industries and
government such as EGAT, TISI and Ministry of Industry. Since 2011, the Green Label is applicable to
table and wall type fans, pedestal type fans, ceiling type fans, oscillating type fans and ventilating type
fans. The basic criterion is that it must meet or surpass the energy efficiency ratio for EGAT’s Label No.5.
Alternatively, if it is an AC electric fan, the energy efficiency ratio criteria is provided by TEI.

Figure 13-19: Thai Green Label Scheme (TEI, 2014)

13.13.5 Overview of National Testing Facilities and Capability

In Thailand, there are four testing laboratories but only two are accredited: the Electrical and Electronics
Institute (EEI) and Thailand Institute of Scientific and Technological Research (TISTR). This is insufficient
for the size of the country and number of electric fans sold in the market. According to BRESL, the test
conditions of laboratories for performance measurement in Thailand do not follow international standards
(IEC 60879) despite having the following equipment required for this international standard except the
Telescope:
 Test Chambers
 Environment Control Arrangements
 Power Analyzer
 Anemometer
 Tachometer
 Regulated Stabilized Power Supply for Testing

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The Figure below shows testing of electric fans in these laboratories.

Figure 13-20: Testing of Electric Fans in Thailand (BRESL, 2012)

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13.14 Viet Nam


13.14.1 Overview of Standards and Regulatory Framework for Electric Fans

The Government of Viet Nam is proactively giving its first steps in terms of mandatory MEPS and Energy
Labeling for electrical appliances, with the support from international development agencies and the
Government of Australia. The MEPS for electric fans will be mandatory from the 1st January 2015 upon
government approval (according to the Decision 03/2013/QD-TTg of the Prime Minister), while the
Comparative Energy Label for Electric Fans is already mandatory since 1st July 2013.

13.14.2 Safety Standards for Electric Fans

The Viet Nam Standard and Quality Institute, under General Department of Standardization, Metrology
and Quality Control of the Ministry of Science and Technology (MOST), is responsible for developing and
issuing national standards on energy efficiency related topics including safety standards, testing
standards and MEPS.

The applicable safety standard for electric fans in Viet Nam is TCVN 5699:2007-2-80 and applies to
table/standing fans, wall fans and ceiling fans. It is based on IEC 60335-2-80 - Household and similar
electrical appliances - Safety - Part 2-80: Particular requirements for fans. The national technical
regulation on safety for electrical and electronic appliances - QCVN 4:2009/BKHCN - is mandatory since
2009 and applies to electric fans.

13.14.3 Performance Standards for Electric Fans

The Energy Efficiency and Conservation Law, approved and enforced since 2011, triggered the
establishment of MEPS for electrical appliances, which will be made mandatory for five product types
including electric fans from the 1st January 2015 according to Decision 03/2013/QD-TTg of the Prime
Minister. The TCVN 7826:2007 standard also indicates the minimum energy efficiency ratio for electric
fans with rated voltage of 220 V and rated frequency of 50 Hz according to type and blade size, while the
TCVN 7827:2007 - Methods for determination of Energy efficiency - provides the methodology for
determining the energy efficiency ratio for electric fans. This standard is based on IEC 60879 -
Performance and Construction of Electric Circulating Fans and Regulators. The MEPS, according to
electric fan type and blade size, is shown in Table 13-17.
Table 13-17: MEPS for Electric Fans in Viet Nam (BRESL, 2012; VNEEP, 2014)
Minimum Energy
Blade Size
Electric Fan Type Efficiency Ratio
(mm)
(m3 / minute / watt)

≤ 250 0.50
Table/Wall/Pedestal Fans
250 - 450 0.80

< 1,200 2.40


Ceiling Fans
> 1,400 2.45
Note: Below or equal (≤)

13.14.4 Energy Labeling Schemes for Electric Fans

The Government of Viet Nam addressed Energy Labeling for the first time in 2003, under Decree
102/2003/ND-CP, which provided a definition of energy efficiency labeling and the need to declare
energy consumption of appliances through labels. In 2006, following Decision 79/2006/QD-TTg by the
Prime Minister approving a concrete strategy for energy efficiency, the Ministry of Industry and Trade
(MOIT) issued a Guideline for Energy Efficiency Standard and Labeling for electrical appliances (Circular

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08/2006/TT-BCN). This has now been replaced by Circular 07/2012/TT-BCT defining the energy labeling
scheme for electrical equipment. The current legal documents in place for S&L in Viet Nam are listed
below:
 Decree 21/2011/ND-CP: Regulation and measures to implement the Law on energy
conservation and efficient use on 29/3/2011.
 Decree 73/2011/ND-CP: Regulation on penalty in energy efficiency and conservation (now
replaced by Decree 134/2013/ND-CP).
 Decision 1427/QD-TTg, dated 02/10/2012, on approval of a national target program on energy
efficient use, period 2012-2015.
 Decision 51/2011/QD-TTg: List of equipment subject to energy labeling and application of
MEPS and roadmap and Decision 03/2013/QD-TTg (amend and modify Decision 51).
 Decision 68/2011/QD-TTg: State procurement regulation on energy efficient labeling products.

The MOIT, through its departments, is responsible for managing and implementing the overall Energy
Labeling Program, which currently has two energy labels:
 Comparative Energy Label (Figure 13-21): Mandatory for electrical fans since 1st July 2013 and
lowest rating (1) corresponds to MEPS.
 Viet Energy Star: Voluntary for appliances that perform above the 5 star rating of the
comparative energy label (according to High Energy Performance Standards – HEPS). Currently
not applicable to electric fans.

Figure 13-21: Comparative Energy Label with Star Rating in Viet Nam (VNEEP, 2014)

The star rating is based on an energy efficiency index (R), which is calculated by dividing the energy
efficiency ratio (m3/min/W) by the minimum energy efficiency ratio (m3/min/W) mentioned in Table
13-17 above. The energy efficiency index according to star rating is shown in the Table below.

Table 13-18: Energy Efficiency Index per Star Rating for Electric Fans (BRESL, 2014; VNEEP,
2014)
Energy Efficiency Index (R) Star Rating
R1 1 (Lowest efficiency)
1.1 < R ≤ 1.2 2
1.2 < R ≤ 1.3 3
1.3 < R ≤ 1.4 4
R  1.4 5 (Highest efficiency)
R = Energy Efficiency Ratio / Minimum Energy Efficiency Ratio; Note: Below or equal (≤)

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According to the VNEEP website, from 2011 to 2012, there were three major electric fan manufacturers
with electric fans voluntarily registered under the Comparative Energy Label program of which majority
where rating of 5 stars. The companies were:

 Viet Nam Fan Join Stock Company with 45 electric fan models labelled

 Lien Hiep Manufacturing Trading Co. Ltd. with 32 electric fan models labelled

 Tan Tien SK Manufacturing Trading & Service Co. Ltd. with 22 electric fan models labelled

However, once the comparative label became mandatory increased drastically and according to MOIT’s
latest data for 2013:

 Number of electric fans (models) labelled: 1,300

 Number of electric fan manufacturers and importers that have fans labelled: 137 companies

 Number of local fan manufacturers that have fans labelled: 80 manufacturers

13.14.5 Overview of National Testing Facilities and Capability

The MOIT is responsible for designating the national laboratories that are authorized to test electric fans
and there are a total of four testing laboratories responsible for supporting the implementation of the
energy labeling program:

 QUATEST 1 in Hanoi

 QUATEST 2 in Danang

 QUATEST 3 in Ho Chi Minh city

 Testing Laboratory, Branch Department for Standards, Metrology and Quality in Ho Chi Min City

However, only the three QUATEST laboratories are accredited for safety testing of electric fans. These
laboratories test for parameters including air performance, fan speed, power factor and power input
(Figure 13-22).

Figure 13-22: Testing of Electric Fans in Viet Nam (BRESL, 2012)

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13.15 Bibliography per County


13.15.1 Bangladesh

BRESL, 2012. TWG Feasibility Study Report on Enhancing Regional Harmonization for the BRESL
Products. Electric Fans Asia: Barrier Removal to the Cost-Effective Development and Implementation of
Energy Efficiency Standards and Labeling (BRESL) Project. United Nations Development Program and
Global Environment Facility. November 2012.

BRESL, 2013a. BRESL Bangladesh – Barrier Removal to the Cost-Effective Development and
Implementation of Energy Efficiency Standards and Labeling (BRESL). Presentation by Mr. Shahjahan
Chowdhury. Project Manager, BRESL. Hotel Ruposhi Bangla, Dhaka. 12 January 2013.

BRESL, 2013b. Asia: Barrier Removal to the Cost-Effective Development and Implementation of Energy
Efficiency Standards and Labeling (BRESL) – Minutes of the Meeting/Workshop. 2013 1st TWG Meeting.
Langkawi, Malaysia. 12-13 April 2013

Choudhury, 2014. Personal Communication with Mr. Ali Ahammad Shoukat Choudhury, Department of
Chemical Engineering, Bangladesh University of Engineering and Technology. February 2014

CLASP 2014. Collaborative Labeling and Appliance Standards Program (CLASP) Website.
http://www.clasponline.org/. February 2014

Power Division, 2012. Energy Efficiency and Conservation Rules – Initial Draft 22 October 2012.
Government of the People’s Republic of Bangladesh. Ministry of Power, Energy and Mineral Resources.
October 2012

Power Division, 2013. Action Plan for Energy Efficiency. Ministry of Power, Energy and Mineral Resources,
Government of People’s Republic of Bangladesh.

UNDP, 2013. BRESL workshop held. United Nations Development Programme.


http://www.bd.undp.org/content/bangladesh/en/home/presscenter/articles/2013/09/07/bresl-workshop-
held. September 2013.

13.15.2 Brunei Darussalam

APEC, 2013. Peer Review on Energy Efficiency in Brunei Darussalam. Asia-Pacific Economic Cooperation.
November 2013. http://aperc.ieej.or.jp/publications/reports/pree.php.

BNERI, 2014. Brunei National Energy Research Institute (BNERI). Personal Communication with Dr.
Romeo Pacudan and Dr. Xunpeng Shi from BNERI. February 2014.

UNEP, 2011. Regional Report on Efficient Lighting in Southeast Asia. En.lighten – efficient lighting for
developing and emerging countries. United Nations Environment Programme and Global Environment
Facility.http://www.enlighten-initiative.org/portals/0/documents/country-support/regional-
workshops/Regional%20Report%20SE%20Asia%20Final.pdf

13.15.3 Cambodia

ISC, 2014. Institute of Standards of Cambodia Website. http://www.isc.gov.kh/. February 2014

MIME, 2013. National Policy, Strategy and Action Plan on Energy Efficiency in Cambodia. Ministry of
Industry, Mines and Energy. May 2013

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13.15.4 India

BEE, 2014. Bureau of Energy Efficiency Website - Standards and Labeling Program. http://beeindia.in
February 2014

BIS, 1980. Bureau of Indian Standards, Indian Standard Specification for Ceiling Fans and Regulator (3 rd
Revision). IS 374-1979.

BIS, 2003. Bureau of Indian Standards. Indian Standards Safety of Household and Similar Electrical
Appliances, Part 2 Particular Requirement Sec. 80 Fans. IS 302-2-80 (2003) [ETD 5: Electric Fans]

BIS, 2014. Bureau of Indian Standards Website - List of BIS accredited Laboratories -
http://www.bis.org.in/

CPRI, 2014. Electrical Appliances Technology Division (EATD), Central Power Research Institute, Ministry
of Power, Government of India. http://www.cpri.in/about-us/departmentsunits/electrical-appliances-
technology-division-eatd/fan-testing-laboratory.html. February 2014.

13.15.5 Indonesia

BRESL, 2012. TWG Feasibility Study Report on Enhancing Regional Harmonization for the BRESL
Products. Electric Fans Asia: Barrier Removal to the Cost-Effective Development and Implementation of
Energy Efficiency Standards and Labeling (BRESL) Project. United Nations Development Program and
Global Environment Facility. November 2012.

BRESL, 2013a. Standard and Labeling Project for Households Appliances in Indonesia. Presentation by
Mr. Asep Suwarna, National Project Manager of BRESL Indonesia. Indonesian Renewable Energy &
Energy Conservation Conference and Exhibition. Jakarta. 22 August 2013.

BRESL, 2013b. BRESL Overview. Barrier Removal to the Cost-Effective Development and Implementation
of Energy Efficiency Standards and Labeling (BRESL) Project. Presentation by Mr. Asep Suwarna for
lites.asia – Seventh Regional Meeting. Four Seasons Hotel, Jakarta, Indonesia. 22-23 April 2013.

SISNI, 2014. National Standardization Agency of Indonesia Website. http://sisni.bsn.go.id/. February


2014

13.15.6 Lao People’s Democratic Republic

Based on IIEC’s current and past technical assistance projects for the World Bank and Electricite du Laos
on Demand-Side Management and Energy Efficiency. February 2014

13.15.7 Malaysia

DSM, 2014. Department of Standards Malaysia Website. http://www.standardsmalaysia.gov.my. February


2014

CLASP 2014. Collaborative Labeling and Appliance Standards Program (CLASP) Website.
http://www.clasponline.org/. February 2014

UNEP, 2011. National Priorities for Energy Efficiency and Conservation. Fourth Meeting of Southeast Asia
Network of Climate Change Focal Points. Jakarta, 5 May 2011. United Nations Environment Program.

EC, 2014. Energy Commission Website. www.st.gov.my. February 2014

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13.15.8 Myanmar

ADB, 2012. Myanmar Energy Sector Initial Assessment. Asian Development Bank. October 2012

13.15.9 Pakistan

BRESL, 2012. TWG Feasibility Study Report on Enhancing Regional Harmonization for the BRESL
Products. Electric Fans Asia: Barrier Removal to the Cost-Effective Development and Implementation of
Energy Efficiency Standards and Labeling (BRESL) Project. United Nations Development Program and
Global Environment Facility. November 2012.

ENERCON, 2013. Draft MEPS and Labeling for Electric Fans.


http://www.enercon.gov.pk/images/NewsPDF/draft_meps_and_label_for__fans.pdf

ENERCON, 2014. Latest Campaign - The National Energy and Conservation Centre, Ministry of Water &
Power, Government of Pakistan.
http://www.enercon.gov.pk/index.php?option=com_phocagallery&view=category&id=1&Itemid=51

Unido, 2012. Setting Up Electrical Testing Laboratory in a Developing Country. United Nations Industrial
Development Organization (UNIDO).
http://www.iec.ch/about/brochures/pdf/conformity_assessment/Setting_up_an_electrical_testing_laborat
ory.pdf

MWP, 2013. National Power Policy - 2013. Ministry of Water & Power, Government of Pakistan.
http://www.ppib.gov.pk/National%20Power%20Policy%202013.pdf

PSQCA, 2014. Pakistan Standard and Quality Control Authority (PSQCA) Website.
http://www.psqca.com.pk/. February 2014.

13.15.10 Philippines

DOE, 2014. Philippine Department of Energy Website. http://www.doe.gov.ph/. February 2014

DOE, 2014. Philippine Department of Energy. Personal Communication. February 2014

DTI, 2014. Department of Trade and Industry Website. http://www.dti.gov.ph/. February 2014

13.15.11 Singapore

EMA, 2014. Electricity Market Authority Website. www.ema.gov.sg. February 2014

NEA, 2014. National Environment Agency Website. http://app2.nea.gov.sg/. February 2014

SPRING, 2014. Standards, Productivity and Innovation Board Website. http://www.spring.gov.sg/.


February 2014

13.15.12 Sri Lanka

SLSEA, 2007. Sri Lanka Sustainability Authority Act No.35 of 2007. Sri Lanka Sustainable Energy Authority
(SLSEA).
http://www.documents.gov.lk/Acts/2007/Sri%20Lanka%20Sustainable%20Energy%20Authority%20-
%20Act%20No.%2035/Act%20No.%2035-E.pdf

SLSEA, 2012. National Energy Management Plan (EnMap 2012-2015). Sri Lanka Sustainable Energy
Authority. 2012

April 2014 186


Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

SLSEA, 2014. Sri Lanka Sustainable Energy Authority Website. http://www.energy.gov.lk/. February 2014

SLSI, 2011. Sri Lanka Standard 1600:2011 – Sri Lanka Standard Energy Efficiency Rating for Electric
Ceiling Fans with Regulators. Sri Lanka Standards Institution. 2011

SLSI, 2014. Sri Lanka Standard Institute Website. http://www.slsi.lk/. February 2014

13.15.13 Thailand

BRESL, 2012. TWG Feasibility Study Report on Enhancing Regional Harmonization for the BRESL
Products. Electric Fans Asia: Barrier Removal to the Cost-Effective Development and Implementation of
Energy Efficiency Standards and Labeling (BRESL) Project. United Nations Development Program and
Global Environment Facility. November 2012.

BRESL, 2013. Lessons Learned Report on Energy Standards & Labeling (ES&L) Implementation in
Thailand. Barrier Removal to the Cost-Effective Development and Implementation of Energy Efficiency
Standards and Labeling (BRESL) Project. February 2013. UNDP/GEF

DEDE, 2013. Department of Alternative Energy Development and Efficiency (DEDE) Website
http://www.dede.go.th/

EGAT, 2014. Label No.5 Website. http://labelno5.egat.co.th/. Electricity Generating Authority of Thailand

EGAT, 2014. Personal Communication with the Demand Side Implementation Division at the Electricity
Generating Authority of Thailand. February 2014

TEI, 2014. Thai Green Label Website. http://www.tei.or.th/greenlabel/. Thailand Environment Institute

13.15.14 Viet Nam

BRESL, 2012. TWG Feasibility Study Report on Enhancing Regional Harmonization for the BRESL
Products. Electric Fans Asia: Barrier Removal to the Cost-Effective Development and Implementation of
Energy Efficiency Standards and Labeling (BRESL) Project. United Nations Development Program and
Global Environment Facility. November 2012.

BRESL, 2014. Personal Communication with Mr. Hoang Viet Dung, Project Coordinator for Barrier
Removal to the Cost-Effective Development and Implementation of Energy Efficiency Standards and
Labeling (BRESL) Project in Viet Nam. February 2014

VNEEP, 2014. Viet Nam National energy Efficiency Programme (VNEEEP). http://vneec.gov.vn/

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14 A NNEX III – S URVEY OF E LECTRIC F AN M ARKET


IN S OUTH A SIA AND S OUTHEAST A SIA

14.1 Survey Findings


A total of thirty (30) electric fan manufacturers/suppliers in South Asia and Southeast Asia were surveyed
as indicated in Table 13-8. The survey questionnaire is included in Annex IV.

Overall, there is a relatively even spread of responses from manufacturers/suppliers of different types of
fans as shown in the Figures below – with and without weighted average based on annual production. All
companies, except two, manufacture more than one type of electric fan and nineteen (21) companies
manufacture all four main types – Table, Pedestal, Wall and Ceiling Fans.

Figure 14-1: What types of electric fans are manufactured/supplied by your company?

Figure 14-2: What types of electric fans are manufactured/supplied by your company? –
Weighted Average based on Annual Production

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According to Figure 14-3, majority of the manufacturers/suppliers consider their pedestal and desk type
fans as their best-selling appliances and to lesser extent their wall fans. Ceiling fans are generally
considered low selling products with exception for manufacturers/suppliers in India and Pakistan were
they are on par with pedestal and walls fans. The results are similar using a weighted average approach
based on annual production (Figure 14-4).

Figure 14-3: Ranking of best-selling and lowest selling electric fan types

Figure 14-4: Ranking of best-selling and lowest selling electric fan types - Weighted Average
based on Annual Production

Approximately 51% of manufacturers/suppliers surveyed sell their electric fans through dealerships and
distributors (Figure 14-5). A smaller percentage use hypermarket/supermarkets (36%) and only eight
(8) companies use direct sales (13%). However, using a weighted average approach based on annual
production, approximately 61% of manufacturers/suppliers use dealers and distributors, while only 2%
use direct sales.

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Figure 14-5: How do you distribute your electric fans to residential customers?

Figure 14-6: How do you distribute your electric fans to residential customers? - Weighted
Average based on Annual Production

Approximately 27% of manufacturers surveyed have an annual production below 200,000 units,
particularly manufacturers based in the Philippines. The largest manufacturers surveyed (above 1 million
units per year – 33% of the manufacturers surveyed) are based in India, Indonesia, Thailand and Viet
Nam.

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Figure 14-7: How many electric fans does your company produce annually?

In terms of components required to build an electric fan, only three companies surveyed manufacture all
the components required to assemble an electric fan and all of these are based in Viet Nam. The motors,
capacitors, timers, steel sheets and switches are generally sourced outside the country, particularly from
the People’s Republic of China and to a lesser extent from Taiwan and Viet Nam.

The people responsible for responding to the survey from each company, mostly CEOs and managers
(53%), were asked about their compliance with safety standards and 77% were able to state the
international and/or national safety standards applicable and 60% knew the national/international
performance standards applicable. This probably shows that performance standards required in each
country are not in place and/or manufacturers are not aware of these standards as well as safety
standards.

The manufacturers/suppliers were asked if they had testing facilities for electric fans in their company, to
which 81% responded affirmatively and 60% of these stated their laboratories were accredited.
However, not all respondents were sure whether their appliances were being tested in external
laboratories and if these were or not accredited.

As shown by Figure 14-8, irrespective of electric fan type and based on manufacturer/supplier
statements, majority of electric fans are expected to have a lifetime between 2 to 10 years with
exception of three ceiling fan manufacturers which claimed a lifetime of 14 years or more. Using a
weighted average approach based on annual production, the indication is that life time of electric fans
will be between 5 and 7 years, except for ceiling fans which range more from 5 to 10 years (Figure
14-9). This indicates that ceiling fans are made or expected to have a longer lifetime than other fan
types.

In addition, according to all the manufacturers surveyed, they estimate households will have an average
of 4 electric fans per household. In Indonesia and Philippines, the average is 3 electric fans per
households, 4 in Thailand and 5 in India and Viet Nam.

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Figure 14-8: What is the average expected lifetime (in years) for your electric fans?

Figure 14-9: What is the average expected lifetime (in years) for your electric fans? -
Weighted Average based on Annual Production

The manufacturers/suppliers were asked about their view on market barriers and large majority felt that
the most significant barrier was by far the lack of government support to encourage investment in
production and design of energy efficient electric fans (Figure 14-10). The second rated barriers were
high purchase price of energy efficient electric fans and lack of energy efficiency awareness among
customers.

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Figure 14-10: What is your view on the market barriers for energy efficient electric fans in
your country?

The manufacturers/suppliers felt modern design and low cost are critical factors for customer satisfaction
and decision making when purchasing an electric fan, much less so than energy efficiency (Figure
14-11).

Figure 14-11: What is your view on the future/key trends for electric fans that will impact
your customer's satisfaction?

Most manufacturers/suppliers felt there are substantial opportunities to improve efficiency of electric fans
through energy efficiency electric motors and efficient blade designs. The efficiency improvements
through better controls system and lighter materials are slightly less substantial (Figure 14-12).
However, as shown in Figure 14-13, manufacturers/suppliers seem to have limited capability to

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improve the energy efficiency of motors as most of these motors are sourced from the PRC and some
from Viet Nam. This indicates that manufacturers of electric motors need to be targeted when aiming at
improving energy efficiency. However, new blade design and to a lesser extent control system design is
an area that the most manufacturers feel they have the capability of doing themselves. This could
include smart controls and timers to reduce energy use and lighter materials used for blade manufacture.

Figure 14-12: Which of these do you see as potential improvement on electric fan efficiency
within your company in the near future?

Figure 14-13: How do you rate your company's capability to design and manufacture of
energy efficient electric fans?

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Task 2 – Survey of National and Regional Electric Fan Markets

14.2 Survey Participants


Table 14-1: List of Electric Fan Manufacturers/Suppliers Surveyed according to Country
Country India1 Indonesia Pakistan Philippines Thailand Viet Nam

1. Anchor Electricals 1. PT Aditya Sarana 1. General Fan Company 1. Akari Lighting & 1. Accord 1. Binh Dong
Pvt.Ltd. Graha (PVT.) Ltd. Technology Corp. Electromechanical
2. Wanavit
Private Company
2. Bajaj Electricals Ltd. 2. PT Denpoo Mandiri 2. Asahi Electrical Manufacturing Co. Ltd.
Indonesia Manufacturing (Hatari) 2. Electronics and
3. Crompton Greaves
Corporation Photo-Electric Co., Ltd
Ltd. 3. PT Kencana Gemilang 3. Kang Yong Electric
3. Collins International Public Company Limited 3. Hai Phong
4. Havells India Ltd. 4. PT Maspion
Trading Corporation (Mitsubishi) Electromechanical Joint
Manufacturers / Suppliers / Importers

5. Khaitan Electricals 5. PT Panasonic stock company


4. Excellence Appliance 4. Panasonic2
Limited Manufacturing Indonesia
Technologies Inc. 4. Hanoi Ching Hai
6. Metro Ortem Limited 6. PT STAR COSMOS Electric work Co., Ltd
5. KDK Kipcol
7. Orient Fans 5. Hiep Thanh
6. Kitchen Beauty
Manufacturing and
8. Polar Industries Ltd. Marketing Corp.
Trading private
9. Usha International Ltd. 7. Northern Islands Co., company
Inc.
10. Vardhman Industries 6. Lien Hiep
8. Panasonic Manufacturing and
Manufacturing Trading Co., Ltd
Philippines Corporation
7. South Fan
Corporation
8. Tan Tien Senko Co.,
Ltd
9. Thong Nhat
Electromechanical
Limited Company
10. Yen Anh
Manufacturing-Trading-
Service Co., Ltd
1 - Through the Indian Fan Manufacturers' Association; 2 – Panasonic did not fill in the survey and provided only their view on the potential market size for electric fans in
Thailand

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15 A NNEX IV - S URVEY Q UESTIONNAIRE


The United Nations Environment Programme (UNEP) represented by its Regional Office for Asia and the
Pacific based in Bangkok, Thailand, hired the International Institute for Energy Conservation (IIEC) to
undertake a Study and Assessment of Electric Fan Markets in South and Southeast Asia. The
study will cover all ASEAN member countries,1 as well as Bangladesh, India, Pakistan and Sri Lanka.

The purpose of this survey is to collect information from Electric Fan Manufacturers to be
used by UNEP and policy makers in each country in order to design proper measures to
promote energy efficient electric fans in each country. The report will be available upon
request from UNEP in June 2014.

We would appreciate your valuable feedback through this survey. Your


experience is a critical component in shaping and improving energy
sustainability in your country. Please note that your contact information
and responses will remain strictly confidential, and will not be sold or
otherwise provided in any way to a third party.

The survey should take no more than 10 minutes to complete. As a


gesture of our appreciation, each respondent will receive a USB Flash
Drive, which will be sent to your given address within 30 days of survey
submission. Please complete the survey no later than January 31,
2014 (GMT+7).

The survey is provided in the subsequent pages. Annex VI includes examples of the types of electric
fans applicable to the residential sector referred to in this survey.

Please kindly fill in the survey below, including your complete contact details including email and
telephone number, and return to us at dmorgado@iiecasia.org

OR via fax to +66 2 261 8615

If you have any questions or comments regarding the survey, please e-mail Mr. David Morgado
(dmorgado@iiecasia.org) or Mr. Sommai Phon-Amnuaisuk (sphonamnuaisuk@iiecasia.org) at the
International Institute for Energy Conservation (IIEC)

1
Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet
Nam

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Section I – Market Survey for Electric Fans


1.1 What types of Electric Fans are manufactured/supplied by your company (Annex VI)?

Pedestal Fan / Stand Fan  Yes  No

Ceiling Fan Yes  No

Wall Fan  Yes  No

Desk Fan / Table Fan  Yes  No

Other types (pls. specify)_________________________________________________________________

1.2 On a scale from 1 to 3, please rank the following models of your fans (Annex VI).
1 representing best-selling/fastest moving, and 3 representing slowest moving.

1 2 3
Types of Electric Fans Not Manufactured/ Supplied

Pedestal Fan / Stand Fan

Ceiling Fan

Wall Fan

Desk Fan / Table Fan

Others (pls. specify____________)

Others (pls. specify____________)

Others (pls. specify____________)

1.3. How do you distribute your electric fans to residential customers?

1.3.1 Direct Sales  Yes  No

1.3.2 Dealers/Distributors  Yes  No

1.3.3 Hypermarts/Supermarkets  Yes  No

1.3.4 Others (please specify)_________________________________________________

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1.4. In your view, who are the leading Electric Fan Manufacturers/Brands in your country?

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

___

1.5 How many fans does your company produce annually?


 < 200,000 units  200,001-400,000 units  400,001-600,000 units

 600,001-800,000 units  800,001-1,000,000 units  1,000,001 - 2,000,000 units

 2,000,001 - 4,000,000 units  4,000,001 - 6,000,000 units  6,000,001 - 8,000,000 units

 8,000,001 - 10,000,000 units  > 10,000,001 units

1.6 Are all parts/components of the fans supplied by your company locally manufactured?

 Yes

 No, please answer the following questions:

1.6.1 What are the parts and components that you import?

________________________________________________________________________
_

1.6.2 What country(ies) do you import these parts/components from?

________________________________________________________________________
_

1.7 Is there any electric fan suppliers/manufacturers organization/association in your


country?

 Yes, please answer the following questions:

1.7.1 Please indicate the name of the Electric Fan Organization/Association in your
country.
________________________________________________________________________
_

1.7.2 Is your company a member of this group?  Yes  No (If “No”, skip to 1.8)

1.7.3 If “Yes”, since when? ____________

 No

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1.8 Which national and international electric fan Safety Standards does your company
follow?

1.8.1 Please indicate the International Standard number

 IEC 60335-1 Household and similar electrical appliances - Safety - Part 1: General
requirements

 IEC 60335-2-80 Safety of household and similar electrical appliances - Part 2: Particular
requirements for fans

 IEC 60342-1 Safety requirements for electric fans and regulators - Part 1: Fans and regulators
for household and similar purposes (withdrawn by IEC)

Others, please specify___________________________________________________

1.8.2 Please indicate the National Standard number

1.9 Which national and international electric fan Performance Standards does your company
follow?

1.9.1 Please indicate the International Standard number

 IEC 60879 Performance and construction of electric circulating fans and regulators

 IEC 60385 A.C. electric fans and regulators (withdrawn by IEC)

Others, please specify___________________________

1.9.2 Please indicate the National Standard number

________________________________________________________________________

1.10 Do you have testing facility(ies) for electric fans in your company?

 Yes, please answer the following question:

1.10.1 Have the testing facility(ies) been accredited?  Yes  No

 No, please answer the following question:

1.10.2 Please specify the name(s) of the testing facility(ies) that your company uses.

________________________________________________________________________
_

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1.11 What is the average expected lifetime (in years) for your electric fans?

Indicate the life expectancy of each product type by placing a cross (x) in each row

Not
2-4 5-7 8-10 11-13 14-16 17-19 20+
Types of Electric Fans Manufactured/
(years) (years) (years) (years) (years) (years) (years)
Supplied

Pedestal Fan/Stand Fan

Ceiling Fan

Wall Fan

Desk Fan/ Table Fan

Others (pls. specify:

1.12 What is the average number of electric fans per household in your country?

 1 unit  2 units  3 units  4 units  5 units  6 units  7 units  8 units

 9 units  > 10 units

1.13 What is your view on the market barriers for energy efficient electric fans in your
country?

Indicate your view by placing a cross (X) in each row

1 2 3 4 5

Market Barriers
(Strongly (Somewhat (Neutral) (Somewhat (Strongly
Disagree) Disagree) Agree) Agree)

Lack of energy efficiency awareness


among purchasers concerning the
savings potential of efficient electric
fans

Lack of government policies to


encourage consumer choice of more
energy efficient appliances

High purchase price of energy


efficient electric fans

Lack of government policies to


mandate energy efficient standards

Lack of government measures to


encourage investment in production
and designing of energy efficient
electric fans

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1 2 3 4 5

Market Barriers
(Strongly (Somewhat (Neutral) (Somewhat (Strongly
Disagree) Disagree) Agree) Agree)

Others (pls. specify____________)

Others (pls. specify____________)

1.14 What is your view on the future/key trends for electric fans that will impact your
customer’s satisfaction?

Indicate your view by placing a cross (X) in each row

1 2 3 4 5
Key Trends that Will Impact
Customer Satisfaction (Strongly (Somewhat (Neutral) (Somewhat (Strongly
Disagree) Disagree) Agree) Agree)

Low Unit Price

Energy Efficient Model

Compact Design (small)

Modern Design

Others (pls. specify__________)

Others (pls. specify__________)

Others (pls. specify__________)

1.15 Which of these do you see as potential improvement on electric fan efficiency within
your company in the near future?

Indicate the potential of each improvement area by placing a cross (X) in each row

1 2 3 4 5

Potential Improvements
(Impossible) (Unlikely) (Somewhat (Possible) (Highly
Possible) Possible)

Electric Motor (e.g. using high


efficiency motor)

New Blade Design

Use Better Materials (e.g. lighter


materials)

Better Control Systems

Others (pls. specify__________)

Others (pls. specify__________)

Others (pls. specify__________)

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1.16 How do you rate your company’s capability to design and manufacture energy efficient
electric fans?

Indicate the level of capability by placing a cross (X) in each row

1 2 3 4 5
Level of Capability
(Very Poor) (Poor) (Satisfactory) (Good) (Excellent)

High Efficiency Motor Design

New Blade Design

Design and Selection of Materials

Design of Control Systems

Others (pls. specify__________)

Others (pls. specify__________)

Others (pls. specify__________)

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SECTION II: Contact Information


As a gesture of our appreciation, each respondent will receive a USB Flash Drive, which will be sent to
your given address within 30 days of survey submission.

Please ensure that your valid contact details including email address are provided

First Name: _____________________________________

Surname: _________________________________________

Position: ___________________________________________________

Company Name: ______________________________________________________

Address: ________________________

Country: __________________________

Telephone Number (including international country code): ____________________

Mobile Telephone Number (including international country code): ____________________

Email: ________________________________

Thank you for your time and availability to answer this survey

Please return survey responses via e-mail to dmorgado@iiecasia.org

OR via fax to +66 2 261 8615

If you have any questions or comments regarding this survey, please e-mail
them to

David Morgado (dmorgado@iiecasia.org) or Sommai Phon-Amnuaisuk


(sphonamnuaisuk@iiecasia.org)

at the International Institute for Energy Conservation (IIEC)

Note: Our local or designated focal person in your Country may visit your office for further
clarifications on the survey completed.

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16 A NNEX V - S RI L ANKA E NERGY E FFICIENCY


R ATING FOR E LECTRIC C EILING F ANS WITH
R EGULATORS – D ETERMINATION OF
P ERFORMANCE G RADING

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

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Study and Assessment of Electric Fan Markets in South and Southeast Asia United Nations Environment Programme (UNEP)

17 A NNEX VI - T YPES OF E LECTRIC F ANS FOR THE


R ESIDENTIAL S ECTOR

PEDESTAL FAN / FLOOR FAN / STAND FAN


2 in 1 type
with “Petal type” blade with “Banana type” blade
(adjustable type)

CEILING FAN
Orbit type/Oscillating Fan Open type Open type with light

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WALL FAN
with “Petal type” / “Banana type” blades

DESK FAN / TABLE FAN


with “Petal type” / “Banana type” blades

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OTHER TYPES OF FANS


Round with “Banana Tower Fan type
type” blade Box Fan type
(with crossflow fan)

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18 A NNEX VII – C OMPUTATION OF E LECTRIC F AN


O WNERSHIP IN R ESIDENTIAL H OUSEHOLDS
Computations of number of electric fans per household (diffusion) in a country at a given point in time in
this report are undertaken using the bottom-up mathematical model developed by Lawrence Berkeley
National Laboratory (LBNL). The bottom-up model is primarily based on an empirical relationship
observed between appliance ownership and macroeconomic household variables such as household
income. The diffusion equation is given below:

Where:

DiffC is the average number of fan per household for the country C

 is the saturation level

IC is the household income given by GDP divided by the number of households in the country

Ec is the electrification rate (%)

CDDC is the average number of Cooling Degree Days per year (%)

inc is the diffusion parameter for income

elec is the diffusion parameter for electrification

CDD is the diffusion parameter for cooling degree days

Diffusion parameters for fans used in this report are given in the table below.

Table 18-1: Diffusion Parameters for Fans

Source: Potential Global Benefits of Improved Ceiling Fan Energy Efficiency, LBNL, October 2012

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