irjece:: cost analysis of energy efficient domestic refrigerators

ISSN: 2395-0587

International Research Journal of Electronics & communication Engineering www.irjece.com

Volume1, Issue 4 of May 2015

2015, IRJECE -All Rights Reserved Page No.- 8 -

Cost Analysis Of Energy Efficient Domestic Refrigerators

K.A. Abed1, M.A. Badr2, Enas R. Shouman3,

* Mechanical Engendering Department, **Information System Department National Research Centre, Cairo, Egypt

Abstract Energy saving and efficient energy appliances are the most highlighted subject in the present time, especially in Egypt due to the current energy crises. Air conditioners, refrigerators and freezers are major energy users in a household environment. Hence efficiency improvement of these appliances can be considered as an important step to reduce their energy consumption along with environmental pollution prevention. Without the information provided by labels, consumers and other end-users are often unable to make an informed decision about the true cost of a product, and manufacturers lack the incentive to improve the energy performance of it as there is no way for the market to recognize and value this aspect. Standards ensure that the worst performing products are removed from the market, while labels encourage consumers to purchase increasingly more efficient products. The objective of this study is to investigate energy consumption of refrigerators that have high demand in the Egyptian market, where, refrigerator is considered as basic domestic appliances. The study is motivated by the desperate need to save energy and improve the environment conditions. In the course of this study, detailed information about the current market for domestic refrigerators was gathered and analyzed to find factors influencing the penetration of energy efficient domestic refrigerators into national markets in Egypt. The results of this study may be considered as a marketing guide that helps diffusion of Energy Efficiency (EE) concept in, Egypt.

The study showed that implementation of energy efficiency standers for refrigerator is economically reliable. The consumers will pay higher purchase prices for appliances, but will get lower electricity bill. Also, on the average energy consumption of class (A) refrigerators are about 81% of class (B), 72% of class (C), 66% of class (D) and 40% of class (E).

Keyword energy efficiency energy saving domestic refrigerators- energy consumption

1. Introduction

In the recent years, both developed and developing countries have paid greater attention to improving EE as a result of the escalating prices of electricity and the growing demand for finite and diminishing fossil fuel resources. EE has now become one of the priority fields in the energy, economic and climate policies of many countries. In developed economies, the EE market is dominated by energy-efficient technologies and sustainable EE services (supply and demand) because of the specific EE policy and regulatory instruments developed and implemented. These instruments include awareness raising, information campaigns and capacity building of EE experts. Economies in transition (particularly Eastern European, most Asian and Latin America countries) have established a growing EE market. However, in some countries, the regulatory and policy framework for EE market formation has not been developed yet as these countries do not have a dedicated EE legislation, [1].

The continuous increase in standard of living and world population are pushing the worlds primary energy needs higher. Energy demand could increase up to 30% between 2010 and 2030, or 1.3% per year on average [2]. This relatively high growth in energy demand has been accompanied by a persistent failure to provide universal energy access to poor communities. The International Energy Agency (IEAs) latest estimate is that currently almost 1.3 billion people lack access to electricity, while 2.6 billion people rely on traditional biomass.

Energy efficiency is an option with high economic potential; under-exploited, worldwide. In a period of economic uncertainty and high energy prices, where energy bills are expected to rise and climate to worsen, energy efficiency is a cost effective and core policy objective. By curbing demand growth energy-importing countries can reduce energy imports or at least slow their rate of growth, putting downward pressure on energy prices and mitigating pollution. Ultimately, it can play a role in stimulating economic growth, [3].

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In 2010, USA spent roughly $574 billion on energy efficiency improvements across a range of sectors, including utilities, manufacturing, construction, appliances, and automobiles. It's about three and a half times the amount of money spent in 2010 on new infrastructure for energy production, according to the analysis. The actual "cost premium", or the additional cost to upgrade to more efficient technologies, was about $90 billion in 2010. That's a little over half of the $170 billion spent on infrastructure for energy production, [4].

China has issued the national energy efficiency standards of household refrigerators to promote high-efficiency refrigerator production and use. This study evaluated the impacts of the standards on the environment, manufacturers and consumers over a long-term period of 2003 2023. The study also analyzed the return of consumers investment in efficiency, based on lifecycle cost saving of the improved models. Results showed that the considered efficiency standards will potentially save a cumulative total of 5881180 TWh electricity, and reduce emission of 6291260 million tons of CO2, 4.008.04 million tons of SOx and 2.374.76 million tons of NOx by 2023, depending on sale share of models by efficiency, [5].

Malaysian authority is considering implementing minimum energy efficiency standards for refrigerator-freezer. An attempt to analyze costbenefit of implementing minimum energy efficiency standards for household refrigerator-freezers in Malaysia was presented. The calculations were based on growth of ownership data for refrigerators in Malaysian households. It is expected that efficiency improvement of refrigerators will give a significant impact in the future of electricity consumption in this country. Thus, the implementation of an energy efficiency standard for household refrigerator-freezers is economically justified, [6].

In Brazil energy efficiency standards for cold appliances was established in 2007. A specified single set of minimum energy performance standards (MEPS) for refrigerators, freezers and freezer- refrigerators was implemented without evaluating its impacts and estimating its potential electricity savings. The results showed that even considering the current market conditions (high discount rate for financing new efficient equipment) some MEPS options are advantageous for customers. The analysis demonstrated significant cost-effective saving potential from the society perspective that could reach 21TWh throughout the period of (20102030) which is about 25% of current residential consumption. The simulations proved a substantial economic savings to consumers and society. The actual societal benefits should increase if socio-economic externalities of the saved electricity were included, [7]. A simple replication of developed country appliance efficiency labels and standards is not completely feasible in Ghana, Africa. Yet by modifying this transformation model, it should be possible to achieve dramatic energy use reductions. As was true in developed countries in the previous two decades, refrigeration efficiency improvements provide the greatest energy savings potential in the residential electricity sector in Ghana. Authors estimated an average energy savings potential of 550 kWh/ refrigerator/year, and a monetary savings of more than $35/refrigerator/year, [8].

The energy efficiency (EE) standards and labeling (S& L) program for fridges in Egypt was one item of component 2 of the GEF/UNDP program "Energy Efficiency Improvement and Greenhouse Gases Reduction" (EEIGGR) with a duration from 1999 to 2007. EEIGGR was financed by GEF/UNDP and Egyptian government with a total budget of 5.9 M$. The overall components -2- issue" energy efficient market support" tackled the following:

(1) EE industry support, (2) EE standards and labeling, (3) EE codes for buildings, and (4) an EE centre. Regarding the results of one of these pre-studies, the residential sector in Egypt consumes 37% of total electricity consumption with an average annual increase of 8%. Within the use of appliances, the electricity consumption of fridges was estimated to cover 22%, [9].

2. Energy Consumption in Egypt

Investing how to reduce energy consumption remains the most cost-effective way for Egypt to meet its energy and climate objectives: it increases security of energy supply, increases competitiveness of Egypt industry by reducing energy costs and reduces the carbon intensity and increases the environmental sustainability of the Egypt economy. It also has the potential to increase local employment particularly important during the current economic recession and helps ensure that energy costs remain affordable for households in the context of rising primary energy costs and carbon prices, [10].

Figureure (1) indicates that there is a considerable growth in energy consumption. From this Figureure, it is clear that energy consumption increased from 104745 GWh in 2008 to about 240998 GWh in 2022 as expected. It means average energy consumption increased by about 8.7% annually. Also energy generated should be increased from 123065 GWh in 2008 to about 273068 GWh in 2022 as expected. This means average energy generated should be increased by about 5.49% annually to be suitable for energy consumption.

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Figureure 2 shows Egyptian peak power demand forecast up to 2022. It could be seen that, the peak power demand is expected to be increased from about 19640 MW in 2008 to about 43020 MW in 2022. Egyptian peak load and installed capacity (MW) during the period from 2003 to 2022 is illustrated in Figure. 3. The Figureure indicates that the average increase in peak load during this period (2003-2022) is about 6.17%.

Figure 1. Annual electric energy generated and consumption, [11]

Figure 2. Power demand peaks, [11]

Figure 3. Egyptian peak load and installed capacity (MW) during the period 2003 2022, [11]

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Also from Figure. 3 it is clear that the peak load in Egypt is increasing by an average of about 6.2% each five years. As refrigerators are the main domestic appliance in most of the households, it is most important to emphasize the crucial need of using more efficient refrigerators, which in turn depends on the above mentioned different factors that are related to the market, consumers, energy prices and energy policy.

2.1. Residential Sector Consumption in Egypt:

The considerable growth in household loads in comparison with industry and other purposes was due to the expansion of residential compounds and new communities in addition to the widespread use of domestic residential are shown in Figure. 4. EE and SL are the key mechanisms to promote energy efficiency, especially in relation to household appliances. They can also play an important role in making consumers aware of the importance of energy efficiency. Figurer 4 exhibits Egyptian energy consumption for different usage for years 2010/2011 and 2011/2012. From this Figurer it is clear that, residential sector represents the greatest portion of this energy consumption and increased from 41.5% in 2010/2011 to 41.7% in 2011/2012.

Figure 4. Egyptian energy consumption by sector, [10]

The residential sector accounts to almost 56664 GWh in 2012 and it is expected to increase by about 3% rate per year until 2030 according to the International Energy Association (IEA), [12]. The residential electricity consumption per capita is calculated to be 425 kWh which is considered to be rather low when compared to other European/OECD country averages which are currently at the order of 1500 kWh per capita per year. Approximately 98% of the population in Egypt has access to electricity.

2.2. Electricity Price in Egypt

Egypts electricity prices began to rise due to the gradual cutting down of the subsidy as part of the plan to reform Egypt's economy. Thus, electricity prices are expected to be almost doubled within the five years, [11]. Table 1 show the increasing tariff from 2008 to 2014.

Table 1. Household Tariff Structure since 2008-2014, [10] Monthly Consumption,

kWh* Price (Pt/KWh)

2008* Price (Pt/KWh)

2014* 1 50 5.0 7.5 2 51 200 11.0 14.5 3 201 350 16.0 24 4 351 - 650 24.0 34 5 651 - 1000 39.0 60 6 > 1000 48.0 74

To calculate an average price for the first five classes (up to 1000 kWh), a weight (Wi) is calculated to each class as follows:

Wi = Class width/ 1000 (1)

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From Table 1 the classes width are 50, 150, 150, 300 and 350, for classes 1, 2 3, 4 and 5 respectively.

Multiplying the weight by price of each class (Pi) a weighted price (W.Pi/kWh) is obtained.

W.Pi = Pi Wi Pt./ kWh (2)

Then the average value for the price of the kW, within a thousand kWh consumption range, is calculated as:

Av. P = W. P (3) The calculated average price is found to be 37.5 Pt (0.375 LE), based on 2014 electricity prices.

3. Energy NERGY Efficiency Standards and Labels

Energy efficiency standards are a set of procedures and regulations that prescribe the minimum energy performance of manufactured products. Energy efficiency labels are informative labels affixed to manufactured products indicating products energy performance and efficiency in a way that allows for comparison between similar products or endorses the products use. Standards and labels are effective policy tools for accelerating the penetration of energy-efficient technology into the marketplace, [13].

3.1. Significance of Energy Labels:

Standards and labels are meant to help the market recognize energy efficiency and act on it. Labels motivate manufacturers to improve the energy performance of their products. Households on a low income are often inclined to buy the cheapest product that is most probable consumes more energy raising their electricity bill. Hence, it is the Governments responsibility to implement standards and labeling programs that protect the poor from such expensive cheap products, at a limited cost, and protect manufacturers of highly efficient products from competitors saturating the market with these expensive cheap products". The implementation of standards and labels also results in the reduction of required investments in additional power plants and reduces total fuel consumption for electricity generation. The result is economic gains and environmental benefits.

3.2. Assessment of the EE and SL Program

A two- fold assessment of the EE and SL programs in MENA region was presented with the objective of producing knowledge and data on two levels, [14]:

1. Program design and implementation level: The program design aimed to identify success factor and barriers for the implementation of such program in the region, and to formulate general recommendation at the policy level

2. Market level: The aim was to assess the EE awareness and knowledge of the consumers' understanding of EE and purchase behavior through identification of:

a. The potential for substantial energy savings

b. An effective mechanisms for energy savings, reductions in greenhouse gas emissions as well as significant financial gains to consumers and society.

c. Changing the behavior of manufacturers rather than consumers only.

3.3. Types of Labels

Mainly, there are two types of energy consumption labels, [15]: Endorsement label

Indicates that product is the most emerging efficient models available on the market. Endorsement label may or may not be directly linked to comparative labels and /or be integrated and show on it

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Comparative label Comparative label shows the relative energy use of a product compared to other models available on the market.

Three subcategories of comparative labels are available, categorical, continues and information. The selected label format in Egypt is as follows:

o The label exhibits the refrigerator type, working environment, brand and model o The refrigerator capacity and equivalent volume are stated o Five horizontal graded bars of different colors o Starting from shorter green bar (A) and ending by longer red one (E) o Actual monthly energy consumption of the model is reported.

Table 2 exhibits monthly and annual average energy consumption of each class for domestic refrigerator and

Figureure.5 illustrates the energy label in Egypt for electric refrigerator.

Table 2. Monthly and Annual average energy consumption of domestic refrigerator Label Monthly average energy

consumption of domestic refrigerators, kWh

Annual average energy consumption of domestic refrigerators, kWh

A 60 720 B 60 < B 70 720 < B 840 C 70 < C 80 840 < C 960 D 80 < D 90 960 < D 1080 E 90 < E 100 1080 < E 1200

Capacity 438-465 liter

Capacity 381- 408 liter.

Capacity 550- 578 liter

Capacity 494-521 liter

Figure 6. Percentage of lifespan energy consumption; with reference to type (A) For different capacity of refrigerator

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Figure 5. Energy label used in Egypt for electric refrigerator 4. Methodology and Survey

4.1. Methodology

Cooling appliances are considered a basic item of household's electrical consumption; this research may be considered as a step towards:

Identifying approaches used for EE and SL in Egypt. Diffusing the concept of EE and SL in local manufacturing emphasizing the economic benefits of energy savings Motivating consumer awareness of the role of EE and SL in energy saving and its reflection on the cost of energy.

There are several factors that affect the diffusion of EE and SL. These have been identified and classified according to the following themes, [16]:

Factors related to the appliance market Factors related to energy price and country structure Factors related to consumers attitudes Factors related to policy

4.2. Data Collection

In the course of this study, detailed information about the current market for domestic refrigerators was gathered through a market survey using a questionnaire form then analyzed to define the criteria of customer preference and the factors influencing the penetration of energy efficient domestic refrigerators into national markets in Egypt. Detailed data of the tested and labeled refrigerators are also obtained from Newable and Renewable energy Authority (NREA) Energy Lab. These data include the refrigerator brand, model, capacity, equivalent volume and actual annual energy consumption.

4.3. Data Analysis

Market Survey data

The results of the interviews with sales personnel and customers (householders) were used to define the criteria of customer's preference. The main criteria considered in the decision of selecting a refrigerator found to be brand and price. Table 3 exhibits the customers criteria of preference.

Table 3. Criteria of customer' preference Criteria High income Low income % % Brand 55 21 Price 10 52 Model 12 20 Energy consumption 23 7

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Form table 3 it could be seen that for about 23% of high income of living customers interviewed, energy consumption is important. This means that for 77 % of the sample is not concerned about energy consumption. For low income sample the most important criterion is the price (about 52%). Most of those who are buying new fridges are seeking bigger size, better cooling performance and / or less electricity consumption.

Data obtained from NREA Energy Lab

The data were analyzed first to obtain an obvious comparison between energy consumption of different classes for the same refrigerator capacity, estimating percentage of lifespan energy consumption of each class with reference to type (A).

Then the efficiency of different models; in the same class, were compared based on the coefficient of energy efficiency (IEE). IEE is calculated according to the following steps.

Calculate the maximum permissible energy (Emax) according to the equation specified by the standards, [12].

Emax (kWh) = (0.57 AV) + 800 (4) where, AV is the equivalent volume of the refrigerator

Calculate the equivalent volume of the refrigerator (AV) AV= AVR +AVF Af (lit) (5)

Where: AVR is adjusting volume refrigerator, AVF adjusting volume refrigerator Af is the adjusting factor calculated as:

Af =

(6)

Where: tf is the standard reference temperature C Tm is the standard reference temperature for fresh food = 5C

o The energy efficiency coefficient (I EE %) is calculated using the equation : I EE % = (E a / E max) CCF (7)

Where: Ea is the measured actual energy consumption, kWh

CCF is correction coefficient for atmospheric conditions equal 1.15 Emax is the maximum permissible energy consumption

Economic feasibility of energy efficient refrigerator over lifetime span:

To study the economic feasibility energy efficiency, total cost should be calculated over the refrigerator lifetime (assumed as 20 years). The total 20 years- energy consumption of each class is multiplied by the weighted average electricity price (calculated in sec. 2.2). Then the total cost is the summation of the purchase price and energy consumption cost over refrigerator lifetime.

The comparison between total costs of different classes should be for the same storage capacity. Figure.7 represents the comparison between the electricity costs with the purchase cost of different energy classes over a typical lifespan of 20 years for nine sizes from 12to20 ft3

RESULTS:

The conducted market survey showed that:

About 77 % of the buyers consider brand and special offers, as the most important factor in selection decision, while 23 % consider warranty and energy consumption as the most important factor.

Almost 82 % of the customers had not seen the label and only 18% of them knew what it means.

The following Figureures will emphasize the importance of selecting energy consumption as the main criterion of preference for the customer decision of refrigerators type.

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Figure 7. Annual energy consumption Emax for different capacity of refrigerator

Figure 6. Shows percentage of lifespan energy consumption with reference to type (A) for different capacity of refrigerator.

From Figure 6. it is clear that the annual energy consumption of class (A) is almost 50% of class (D) consumption. Also, from Figure 6, it is clear that, the ratio of annual energy consumption and annual maximum permissible energy consumption for each class (Emax) may be considered as 50% approximately.

Figure 7. shows that the energy consumption of class (A) as a percentage of the consumption of each of the other classes. For example, for the refrigerator of 12 ft3 capacity, class (A) consumption is about 83% of class (B), 73% of class (C) and 68% of class (D). While for the refrigerator of 20 ft3 capacity, class (A) consumption is about 79% of class (B), 72% of class (C), 63% of class (D) and 40% of class (E).

Figure (8-a) and (8-b) illustrate the energy efficiency coefficient for different refrigerator models of 12 ft3 and 20 ft3 capacity, respectively, for the different energy consumption classes.

From Figure (8-a and 8-b) it could be seen that for the same brand different models have different IEE value ranges from 50 % to 69% for class (A) and ranges from 70% to 90% for class (C). It means IEE depended on models and capacity of the refrigerator.

Class (A) Class (C)

Figure.8-a. Energy efficiency Coefficient for different refrigerator models, 12 ft3

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Class (A) Class (C)

Figure. 8-b. Energy efficiency factor for different refrigerator models, 20 ft3

Where: (H) is Hitachi, (S) is Samsung, (W) is White Whale, (T) Toshiba and (L) LG Models.

Figure 9. Total cost of different energy efficiency classes over 20 years

In Figure (9), it is clear that the more efficient model has lower total cost as shown in class A. Otherwise, the total cost over refrigerators lifetime is higher for lower efficient models as shown in class E.

Conclusion It is essential to make better use of Egypt's energy resources due to the rapid growing energy demand, shortage of

power stations fuel and climate change challenges. In fact, Energy Efficiency has an important role in addressing energy security, environmental and economic objectives.

Detailed information about the current market for domestic refrigerators was gathered and analyzed to find factors influencing the penetration of energy efficient domestic refrigerators into national markets in Egypt. The study has shown that implementation of energy efficiency standards for refrigerator is economically reliable. The consumers will pay higher purchase prices for appliances, but will get lower electricity bill.

Based on the analysis of the collected data the following specific results are concluded:

1. Only 23% of the survey sample considers warranty and energy consumption as the most important factor while the majority targets the brand and special offers.

2. On the average, energy consumption of class (A) refrigerators, are about 81% of class (B), 72% of class (C), 66% of class (D) and 40% of class (E).

3. Although purchase price of class (A) refrigerators are more expensive than the others, class (A) refrigerators have the minimum total cost of over 20 years life time.

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http://www.greentechmedia.com/articles/read/report-u.s.-energy-efficiency-is-a-bigger-industry-than-energy-supply. [5] Jing Tao, SuiranYu, Implementation of energy efficiency standards of household refrigerator/freezer in China: Potential

environmental and economic impacts, Applied Energy 88 (2011) 18901905. [6] T.M.I. Mahlia, H.H. Masjuki, R. Saidur, M.A. Amalina, Costbenefit analysis of implementing minimum energy

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methodology for impact evaluation, Energy Policy, 2010. [8] Robert Van Buskirk, Essel Ben Hagan, Alfred Ofosu Ahenkorah, Michael A. McNeil, Refrigerator efficiency in Ghana:

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[10] Siply, Bayern LB: Lnder analyze gypten, (2007), http://www.bayernlb.de. [11]Plan Bleu, Regional Activity Centre, Mediterranean and National Strategies for Sustainable Development, Priority

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[14] www.clasponline.org. [15]http://english.alarabiya.net/en/business/2014/07/04/Minister-Egypt-raises-electricity prices-.html [16]Factors influencing the penetration of energy efficient electrical appliances into national markets in Europe, a report for

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