HARKFO – 2017EPEE-KRAIA Seminar

Mrs Andrea VoigtMrs Vanessa Chesnot

The European Partnership for Energy and the Environment (EPEE)

The programme

10.00 – 10.10 Welcome remarks and introduction on the

importance of cooperation between Korea and EU

KRAIA

10.10 – 10.25 Introduction into the EU energy policy context Andrea Voigt, EPEE

10.25 - 10.40 The EU Ecodesign rules and their impact on

manufacturers and importers of HVACR equipment

in the EU

Vanessa Chesnot, EPEE

10.40 – 10.50 Questions & Answers Moderated by Andrea Voigt

10.50 – 11.05 Overview on the EU F-Gas Regulation and what it

means for the HVACR industry

Andrea Voigt, EPEE

11.05 – 11.15 Questions & Answers Moderated by Vanessa

Chesnot, EPEE

11.15 Close of meeting KRAIA and EPEE

1. Small – medium – large size companies

2. Over 200,000 direct employees, over €30bn turnover

3. Production throughout Europe

4. Main Activities:

• Promote Energy Efficiency

• Ensure responsible refrigerant management

• Raise awareness on market surveillance

5. Use of all types of refrigerants

Who is EPEE?The full value chain. A true voice.

The EU energy policy context

Andrea Voigt, EPEE Director General

The Global Context

Source: IEA

Why do we talk about energy efficiency?

Source: IEA

The situation in Europe

Energy dependency rate, EU-28, 2004–14(% of net imports in gross inland consumption & bunkers, based on tonnes of oil equivalent)

59%26%

14%

Petroleum Products Gas Solid fuels Renewables

Net imports by fuel in 2014

Average dependancy rate on energy imports = 53.5% (2014)

Source: eurostatistics

2 ways to reduce the EU‘s energy dependancyRenewables & Energy Efficiency

Gross inland consumptionEU-28, 1990–2014 (% of total consumption)

34%

21%

17%

14%

13%

Petroleum products Gas Solid fuels Nuclear Renewables Waste

Gross inland consumptionTotal primary energy mix in 2014

Source: eurostatistics

Heating & Coolinghave a major role to play

• 50% of the EU‘s annual energyconsumption = nearly 80% ofthe gas demand

• Save 10% of the energy used byenergy efficient heating andcooling

• Save 135 million tonnes of CO2 by 2030

50%

10%

Source: EU Commission

The EU Clean Energy Package

Energy Performance of

Buildings

Energy Efficiency Directive

Renewable Energy Directive

Governance of theEnergy Union

ElectricityDirective

3 key EU Directives to boost energy efficiency

BuildingsEnergy

Performance ofBuildings

ProductsEcodesign

& Energy label

Supply & End-UseEnergy Efficiency

Directive

The EU Ecodesign Rules andtheir impact on manufacturers

Vanessa Chesnot, EPEE Ecodesign Expert

A focus on Ecodesign & Energy Label

A “push and pull effect” on the market

What Products?

Criteria for action:• Significant volume of sales and trade, indicatively

200.000 units per year

• Significant environmental impact

• Significant potential for improvement in terms of its environmental impact without entailing excessive costs

No (significant) negative impact on:• Functionality

• Health and safety

• Affordability

• Industry’s Competitiveness

From Light Bulbs to Rooftops …

• 24 Ecodesign & 12 Energy Labelling rules are already in place – including for components like fans…

• 11 product groups are under development

• 12 new product groups are in the studyphase

Expected energy savings are huge

166 Mtoe primary energy savings per year by 2020=> Annual primary energy consumption of Italy

Key Product Measures for HVAC & RSmall a/c < 12kW

To be revised in 2017

Hydronic heatpumps &

boilers < 400 kWTo be revised in

2017

AC > 12kWComfort Chillers, VRFs, Rooftops …

Commercial refrigeration

Work in progress

Professional refrigeration:

Condensing Units, Process Chillers …

• Different minimum energy requirements & timings per product. • Impacts manufacturing and placing on the EU market

Example: EU 206/2012 A/C <12kW

• Expected savings (all products):

Approx. 11 TWh / year

• Conformity assessment: technical

documentation self-declared by

manufacturers.

• Bonus: 10% lower MEPS for

refrigerants < 150 GWP

• Sound power requirements:

– 60/65 dbA: <6kW

– 65/70 dbA: 6kW - < 12kW

• Energy Label

Efficiency requirements

SEER<6kW

year

4.3

SEER≥6kW

SCOP

2013 2014

3.6

4.6

4.3

3.8

3.4

Tier 1 Tier 2

An evolving framework

Upcoming revisions: Small a/c < 12kW, Heat Pumps

New products in the pipeline: Refrigerated containers

Resource efficiency requirements (durability, recyclability, reparability, etc.)

New energy label

ConclusionIndustry supports Ecodesign & Energy Label

EPEE is actively involved in the development & implementation of the ecodesign and energy labelling measures for the product groups it covers

Objective: Increasing the overall energy efficiency of products

Example #1: Market Surveillance needs to be improved to reap the benefits of Ecodesign and Energy Labelling and to ensure a level playing field for industry.

Example #2:The Least Life Cycle Cost (LLCC) approach needs to be maintained. It ensures energy efficiency of products, while keeping the cost for consumers at a minimum and maintaining room for innovation and competition.

Example #3:Products in Products: Components such as fans and motors which are integrated in products that fall already under Ecodesign must not be regulated to ensure freedom for design and innovation.

Objective: Keeping the cost for consumers at a minimum

Objective: Maintaining room for innovation and competition

Overview on the EU F-Gas Regulation and what it means for manufacturers

Andrea Voigt

The Main Pillars of the new EU F-Gas rules:Reducing emissions. Moving to lower GWP solutions.

Containment &

Competence

Regular leakchecks

Certification and training of installers

Phase-Down

ConsumptionReduction of HFCs

Y 2020:-37%

Y 2030:-79%

GWP Limits

2015: GWP 150 Fridges & Freezers

2020: GWP 150Moveable A/C

2020: GWP 2500New Stat. Refr. Equipment & service, maintenance

2022: GWP 150Multipack refrigerationsystems >40kW (exceptcascades: GWP1500)

2025: GWP 750 Single split a/c < 3kg

Others

2015: Reporting obligations

2017: Traceability systems for pre-charged equipment

2015 – 2022: various reports

2050 EU Low Carbon Roadmap

PREVENT EMISSIONS REDUCE THE USE OF HIGH GWP HFCs CONTROL & MONITOR

The phase-down schedule: A step-by-step reduction of HFCs, based on CO2-eq

93%

63%

45%

31%

24%21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2018 2021 2024 2027 2030

Y2020 Y2022 Y2025

Entry into force of GWP limits

• HFCs to become less available, more expensive

• Push towards alternatives

The Principle of CO2-Equivalent

39.22t CO2-eq*

10 kg

GWP 3922

10 kg

GWP 1430

14.30t CO2-eq*

R-404A R-134a

*kg x GWP

CO2-eq reduction:• Reduce GWP• Reduce charge• Containment• Recovery

What are Quota?

100%93%

63%

2015 20182016

• Quota are expressed in CO2-equivalent.

• Not refrigerant specific.

• Amount of HFCs allowed to be placed on the EU market.

• This amount will be gradually reduced by the phase-down.

• Allocated to BULK HFC producers or importers.

CO2-eq. CO2-eq. CO2-eq.

Who Can Get Quota?

Can apply for quota:Bulk HFC producers or importersBulk = HFCs not contained in equipment

Can NOT apply for quotaPre-charged equipment manufacturers

Can NOT apply for quotaEU Importers of pre-charged equipmentNeed authorizations

The GWP Limits: The Main Target: Refrigeration

2015: GWP limits for HFCs with GWP > 150– Domestic refrigerators and freezers

2020: GWP limits for HFCs with GWP > 2500:

• New refrigeration equipment– Hermetically sealed refrigerators and freezers for commercial use– All stationary refrigeration equipment, except for < -50°C

• Existing refrigeration equipment (service & maintenance)– Except small equipment (<40t of CO2-eq), military, temp. < -50°C– Recycled/reclaimed HFCs > GWP 2500 can still be used until 2030

2022: GWP limits for HFCs with GWP > 150:

• New refrigeration equipment– Hermetically sealed refrigerators and freezers for commercial use– Large commercial refrigeration equipment (>40kW), except certain

cascade types

More to Come …

2020: GWP limits for HFCs with GWP > 150:

• Movable room air-conditioning appliances:– hermetically sealed equipment which is movable between

rooms by the end user that contain HFCs with GWP of 150 or more

2025: GWP limits for HFCs with GWP > 750:

• Single split air-conditioning systems– containing less than 3kg of fluorinated greenhouse gases

How to make it happen:The EPEE Gapometer

A 2-stage project to understand and monitor the phase down of HFCs in the EU

• Stage 1: EU Phase Down Roadmap (developed 2015)– to show how the challenging phase down targets can be met

– creating a good understanding of what actions must be taken

• Stage 2: Monitoring progress (ongoing)– market research to assess the actions being taken

– and to identify any significant “gaps” between required and actual progress

Core actions to achieve the EPEE roadmap

2. Actions for existing equipment

• leak prevention

• retrofit with low GWP alternatives

Existing Equipment

1. Actions for new equipment

• use lower GWP alternatives

• design for less refrigerant charge and low leakage

NewEquipment

3. Use of reclaimed refrigerant

• recovered from equipment at end-of-life

• recovered during retrofit of existing equipment

Reclaimed Refrigerant

Contributions from core actions

Cuts in MT CO2

NewEquipment

-36-64

Reclaimed Refrigerant

-24

-20

Existing Equipment

-30

-39

Cuts in MT CO2

-47

-15

-12

-51

-15

-15

-20

-14

Chillers

Transport

Commercial Refrigeration

Industrial Refrigeration

SACMobile AC

Non RAC

Contributions from main market sectors

Small hermeticCondensing unitsLarge packs

Example of roadmap scenario:Modelling assumptions

• early switch from R-404A to lower GWP alternatives

• small split air-conditioning: switch from R-410A to R-32 and HFC/HFO blends

• retrofit of R-404A systems affected by service ban

• significant efforts made to reduce leakage in large commercial refrigeration systems

• significant use of reclaimed refrigerants between 2017 and 2025

Existing Equipment

NewEquipment

Reclaimed Refrigerant

Commercial Refrigeration

R-404A is quickly phased out in new commercial refrigeration equipment

It is replaced with a range of different low GWP alternatives

R-404A

CO2

Lower Flammability blends

R-134a

Non-flammable blends (GWP 1400 – 2100)

% of total tonnes of refrigerant used in new equipment

NewEquipment

New small / mediumsplit air-conditioning equipment

NewEquipment

R-410A is phased out in new split air-conditioning

It is replaced with lower flammability refrigerants

R-410A

R-407C

R-32 and

R-32 / HFO blends

% of total tonnes of refrigerant used in new equipment

Leakage assumptions for 3 market sectors

By 2018 we need average leakage from commercial

refrigeration below 10%

Existing Equipment

Retrofit of R-404A bankExisting

Equipment

We need nearly half of supermarket packs retrofitted

by end 2017 – a tough challenge

Amount of reclaimed / recycled refrigerant

0%

20%

40%

60%

80%

100%

2015 2018 2021

Total AvailableMT CO2

Reclaim forecastMT CO2

79 MT

88MT

66MT

6%27% 31%

% of available reclaimed

Assumed reclaim rates can be improved if proper action is taken

If reclaim rate is doubled the impact on the required cuts will be very significant – an extra 20 MT CO2 cut in both years

But, significant new infrastructure required to support active reclaim industry

Reclaimed Refrigerant

• an early move away from R-404A in new systems is important

• introduction of a range of new lower GWP fluids for new equipment and products needs to be done quickly – but impact will probably be after 2018

• wider use of flammable refrigerants (both A3 and A2L) is vital

• early retrofit of R-404A is crucial

• leak prevention remains important – proper implementation of rules in the EU F-Gas regulation is key

• compliance with mandatory recovery rules is important

• setting up a good infrastructure for reclaim / recycling is crucial

• safety codes / legislation and training issues must be addressed

• the 2018 phase-down step cannot be achieved if everyone waits for bans

What does the roadmap scenario tell us?

Existing Equipment

Reclaimed Refrigerant

NewEquipment

Other issues

Conclusion

Achieving the EU climate and energy goals requires a holistic approach

Energy efficiency and renewable energies are key pillars

The HFC phase-down will contribute substantially to emission reductions ifit does not compromise energy efficiency

More needs to be done on standardization and training to achieve highestenergy efficiency and safety for users, installers and manufacturers

Contact details:

EPEE46 Avenue des Arts

1000 Brussels, Belgium

email: a.voigt@epeeglobal.orgWeb: www.epeeglobal.org

Twitter: @EPEESecretariat ; @AndreaVoigt2305

44

Thank you very much for your attention!