The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...

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The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
The Energy ‘blind-spot’
The Cooling Sector in India
                Karan Mangotra

Thursday, 21 February 2019   Paris
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
Electricity Consumption in India: Cooling Perspective
                     Demand Growth, yoy, Total Demand and Different Sectors & End-Uses,
                                                 2017-2030
               30%                                                                                  26%
               25%
% growth yoy

               20%
               15%
                                                                                10%
               10%                     6%                  7%
               5%
               0%
                             Total demand            Commercial and       Air conditioning    Electric vehicles
                                                    residential sectors
70-80 GW connected load is only due to Space Cooling and consumed
about 126 TWh in 2017
                     Climate Change
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
Electricity Consumption in India: Cooling Perspective

        Electricity consumption in residential             Consumption pattern in a commercial
                       buildings                                        Building

                 18%                                                 10%
                                        Lighting
                             28%
                                        Fan                                                 Lighting
            7%
                                        Refrigerati on         31%                          HVAC
                                        Air-conditioning                     59%            Others
            13%
                                        Others
                       34%

Ø Penetration of ACs in Residential sector is low

   Climate Change
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
Room Air Conditioning: Overview
                                                                   Challenge
           260                                                   160
           240                                                                               K Current
                                                                                                  F     Market
Millions

                                                                 140
           220                                                                                 (2017): 6.4mn units

                                                                       GW
           200                                                   120
           180
           160                                                   100                         e a
           140
           120
           100
                                                                 80
                                                                 60
                                                                            Survying Stock
                                                                                             y Fixed
                                                                                                  c speed split ACs
                                                                            Annual Sale
            80                                                                                 dominance (88%)
            60
            40
                                                                 40
                                                                 20
                                                                            Peak load             t
            20
             0                                                   0
                                                                                               1.5s and 1 TR ACs
                 2016-17
                 2017-18
                 2018-19
                 2019-20
                 2020-21
                 2021-22
                 2022-23
                 2023-24
                 2024-25
                 2025-26
                 2026-27
                 2027-28
                 2028-29
                 2029-30
                 2030-31
                 2031-32
                 2032-33
                 2033-34
                 2034-35
                 2035-36
                 2036-37
                 2037-38
                 2038-39
                                                                   Opportunity                 predominantly used
                                   8%                      Room AC                             CAGR of 12% from
                                                           Chiller System                      2014-2019
                                         42%
                                   30%                     VRF System
                 8%                                        Packaged DX
                            3%             9%              Fan
                  Climate Change
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
India Cooling Action Plan

Climate Change
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
Need for a Cooling Action Plan

•     Convergence between domestic policies to enhance EE while lowering GWP
      of refrigerants

•     Prioritise “access to cooling” as a development goal
            • Framework involving the entire spectrum of energy consumption
              segments during HFC transition
            • Innovative implementation or business model to deliver efficient,
              affordable and low-GWP cooling together

•     International collaboration for testing and standards among other things

•     Need for a long term strategy for cooling sector with clearly defined indicators

Climate Change
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
India Cooling Action Plan (ICAP)

MoEFCC constituted committee under the chairmanship of Secretary
(MoEFCC) to prepare India Cooling Action Plan (ICAP). The draft was
released on International Ozone Day, 2018.

The Plan integrates a long term vision (20 years) on cooling needs for the
country, also dovetailing energy efficiency with refrigerant transition and
horizon technologies in different sectors.

Subsequently, MoEFCC constituted 7 thematic working groups for the
development of relevant sectoral documentation – space cooling, RAC, R&D,
production, servicing, transport sector and cross cutting policy regulations.

Climate Change                                                   Slide No. ( 7 of 7)
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
ICAP: Institutional Framework

      Ministry of Environment, Forest and Climate Change (MoEFCC) Steering
                                   Committee
                                     Ozone Cell (Nodal Agency)

                                        Advisory Committee

                      Space Cooling &
                                                   Transport       Servicing
Thematic                Cold chain
 tracks                  R&D and                                  Cross cutting
                                               RAC technologies
                        Production                                Regulations

     Climate Change                                                  Slide No. ( 8 of 7)
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
Constitution of Steering and Advisory Committees
                                             1.   Secretary, MoEFCC (Chair)
                                             2.   Ozone cell (NOU)
                                             3.   BEE (Govt.)
                                             4.   EESL (ESCO)
                                             5.   TERI (Think Tank)
  Steering Committee                         6.   Industry Association: RAMA
                                             7.   CSE (Think Tank)
                                             8.   CEEW (Think Tank)
                                             9.   NCCD (Govt.)
                                             1.   Joint Secretary, MoEFCC (Chair)
                                             2.   Ozone cell
                                             3.   TERI
 Advisory Committee                          4.   ESSCI
                                             5.   Industry Association: RAMA, REGMA
                                                  SIAM, ACMA, RASSS , ISHRAE
                                             5.   CEEW
                                             6.   IICT (Lab)
                                             7.   AEEE
Climate Change                                                                  Slide No. ( 9 of 7)
The Energy 'blind-spot' The Cooling Sector in India - Karan Mangotra Thursday, 21 February 2019 - OzonAction ...
India Cooling Action Plan: Role of Thematic Leads

•   Thematic leads were entrusted with the task of leading the analysis and writing the chapters for
    different thematic tracks

•   Sector-wise refrigerant demand & energy demand in cooling in BAU and ambitious scenarios have
    been analysed. Also, analysed the key barriers and opportunities to implement the ICAP.

•   Provide recommendations on a 3 pronged basis, namely: Regulatory Frameworks, Incentives &
    Business Models, Institutional creation & strengthening.

•   Finally, an action plan for short (2017-22 years), medium (till 2027) and long term (till 2037-38)
    interventions will be prepared, highlighting potential risks and mitigation strategies for intervention
    plans.

      Climate Change                                                                       Slide No. ( 10 of 7)
Cooling Demand in India: ICAP findings

             1500
                                                                           Cold Chain
Million TR

             1000
              500                                                          Transport Air-
                                                                           Conditioning
                0
                       2017-18     2022-23     2027-28    2037-38          Refrigeration
                          Sector-wise growth in Cooling Demand

                    Cooling    Cooling demand growth – 8 times

                    Sector     Highest gainer – Space Cooling (11 times)
                    Growth     Refrigerant demand – 5 to 8 times

   Climate Change                                                               Slide No. ( 11 of 7)
Way Forward

•      Draft ICAP has been released and comments have been sought from
       various stakeholders & public at large

•      Synergize the inter-ministerial level policy actions in the cooling sector

•      Preparation of the sub-sectoral level implementation plan

•      Initiate actions to integrate the existing policy framework & institutional
       structure to maximize the climate benefit

    Climate Change                                                            Slide No. ( 12 of 7)
Ministry of Environment Forest and Climate Change (MoEFCC)
                                                                          Empowered Steering Committee
ICAP: Proposed Implementation
                                             Chaired by: Secretary, MoEF&CC Members: Secretaries of related Ministries (Finance, Chemicals & Petro
                                             Chemicals, Industrial Development, Commerce, Petroleum and Natural Gas, Science and Technology, DG-
                                                                                 CSIR, etc), Nominated experts
                                                                Steering Committee for Implementation of ICAP
                                              Chairperson: Additional Secretary, MoEF&CC Members: Representatives of related Ministries (Power,
                                                Road Transport & Highways, Agriculture, Industrial Policy & Promotion), Representatives of State
          Framework

                                             Governments, Representatives of Industry Associations (RAMA, REGMA & RASSS), R&D and Civil Society
                                                                                          Institutions
                                                                            Implementation Coordination Joint
                                       BEE                                    Secretary, MoEF&CC (Ozone)                                 NCCD

                                 MSDE NSDC                                                                                                Industry/
                                                                                                                                           Industry
                                   ESSCI
                                                                                        Ozone Cell                                       Associations
                                  CSIR, R & D                                                                                             State
                                  Institutions                                                                                         Departments

                                                   State Agriculture                                                    Energy Agency
                                                     Department                      Urban Local Bodies

                                Climate Change                                                                                         Slide No. ( 13 of 7)
Standards and Labelling Program in
              India

Climate Change                Slide No. ( 14 of 7)
Standards and Labeling Program for Air Conditioners

• Star rating is mandatory for room air conditioners since 2010
• BEE is the nodal agency for the program
• Mandatory ratings for fixed speed RACs till 2017 and mandatory star rating for
     Inverter ACs w.e.f. 2018
• BEE introduce the Indian Seasonal Energy Efficiency Ratio (ISEER) to rate RAC
     efficiency
• Testing of equipment is done as per IS 1391 (Part 1 &2)
• ISEER is calculated based on ISO 16358

Climate Change                                                         Slide No. ( 15 of 7)
Star Labeling: Legislative Overview

                               Mandatory Appliance
                                                           Split AC
                           Standard: IS 1391:1992

                           Section 14(b): S.O.180(E)
                           dated 12.01.2009
                                                           Window AC
                           Section 14 (a): S.O. 181 (E)
                           dated 12.01.2009

                           Regulation: No.2Parameter
                             Star Labeling  /11(5)/03-
                           BEEEnergy
                               dated 06.07.2009
                                     Efficiency Ratio
  Higher is Better
Climate Change                                              Slide No. ( 16 of 7)
Star Rating levels upgradation for split AC

  2006-2011                     2012-2013           2014-2015              2016-2017                 2018-2019

    Star 1                         Star 1             Star 1                 Star 1                     Star 1

    Star 2                         Star 2   From January
                                                   Star 2 2018               Star 2                     Star 2

    Star 3                         Star 3             Star 3                 Star 3                     Star 3

    Star 4                    • All
                                  Star 4Room ACs ratedStar 4 based on StarISEER
                                                                              4                         Star 4

    Star 5                        Star 5          Methodology
                                                      Star 5             Star 5                         Star 5
         Star Level        Min•EERMandatory
                                         Max EER   labeling forStarInverter
                                                                   Level       AC
                                                                                Min ISEER              Max ISEER
         Star 1          • Merger
                               2.70     of fixed
                                             2.89 speed andStarinverter
                                                                   1        AC 3.10
                                                                                  label                    3.29
         Star 2                 2.90        2.99
2016-

                                                          2018-
                                                                  Star 2               3.30                3.49
 17

                                                           19
         Star 3                 3.10        3.29                  Star 3               3.50                3.99
         Star 4                 3.30        3.49                  Star 4               4.00                4.49
         Star 5                 3.50         -                    Star 5               4.50                  -

        Climate Change                                                            17          Slide No. ( 17 of 7)
Standards and Labelling Program: Impact

                        Standards Upgradation Trajectory
                5
                4
  EER/ISEER

                3
                2
                1
                0
                       2011          2012          2014          2018
              Star 1    2.3           2.5           2.7           3.1
              Star 5    3.1           3.3           3.5           4.5

Climate Change                                                          Slide No. ( 18 of 7)
Change in Labels: EER to ISEER

                            Jan 2018

Climate Change                                    Slide No. ( 19 of 7)
Increase in Penetration of Inverter ACs in India (2014-present)

7000000
6000000                            5,741,229         5,379,099
5000000           4,676,022
4000000                                                      22,61,672
3000000
                                                                      1,475,506
2000000                                                                       13,23,660
1000000                                   7,02,652
                          25,006
      0
                      2015-16          2016-17           2017-18       2018-19 (till
                                                                        present)
                     Fixed Speed Room ACs        Variable Speed Inverter AC

 Climate Change                                                               Slide No. ( 20 of 7)
Innovative Business Models

Climate Change                   Slide No. ( 21 of 7)
Using Scale to our advantage
              Demand Aggregation and Bulk Procurement
Procurement of large quantities of equipment to obtain
lower price per unit and achieve economies of scale

Using Scale to Our Advantage

Improved penetration of energy-efficient products in the
market

Enhancement in Capacity of Industry and other
stakeholders such as Service persons and Technicians

Reduced energy consumption across multiple sectors

 Climate Change                                            Slide No. ( 22 of 7)
Financial Price Hump for Energy Efficient Equipment

Climate Change                                                         Slide No. ( 23 of 7)
LED bulbs: A Bulk Procurement Success Story

•     Unnat Jyoti Affordable LEDs for ALL (UJALA) scheme
•     Energy Efficiency Services Limited (EESL) has procured 33,01,03,499 LED bulbs till date
•     GoI launched the UJALA Dashboard - http://www.ujala.gov.in/
•     Obtained reduction in prices of LED bulbs from € 3.85 to € 0.47 in 6 successive tenders

                                  LED bulb - price (INR)
400
        310      255
200                    204
                                110     81      72       64      55
  0                                                                      38    LED bulb - price (INR)
           4

           5

           6
         14

         15

         16
          4

          5

          6
          4

          5

          6
          4

          5
         14

         15

         16
      l -1

      l -1

      l -1
        -1

        -1

        -1
        -1

        -1

        -1
     v-1

     v-1
     p-

     p-

     p-
     n-

     n-

     n-
    ay

    ay

    ay
    ar

    ar

    ar
   Ju

   Ju

   Ju
 Se

 Se

 Se
 No

 No
  Ja

  Ja

  Ja
 M

 M

 M
 M

 M

 M
Climate Change                                                                           Slide No. ( 24 of 7)
Bulk procurement of Air Conditioners: Accelerating towards super-efficiency

                                                              >ISEER
•   EESL procured 100, 000 super-efficient Acs for              5.2
    Commercial &Residential sectors

•   First of its kind bulk procurement initiative
                                                                              Super-
•   Lowest Price bid obtained through tender: €435
                                                              1.5 TR         Efficient
•   Bid winners from Industry                                                   AC
     –   R410A– 60, 000 units

     –   R290– 40, 000 units

•   Promotion of low-GWP refrigerants – RC 290               Inverter
                                                             room AC
    (Propane)

          Climate Change
Lessons Learned

                      • Important to determine procurement
   Critical Mass        size based on in-depth market research

  Importance of
                      • Inputs from stakeholders is crucial for
   stakeholder          the initiative
   consultation

 Consideration for
                      • Each appliance is different, therefore
  Equipment size        strategies should be different
   and features

Importance of low
                   • Low cost of equipment is critical in
     costs for       developing nations
Developing nations

 Climate Change
Thank You
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