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Market Analysis of China Energy Efficient Products

The market for domestic appliances in China has flourished in recent years due to increases in personal income, the speed of urbanization, and the population’s desire to improve their quality of life. Without policy intervention to reduce the amount of energy consumed by these products, their projected electricity consumption will rise from 591 TWh per year in 2012 to 748 TWh per year in 2020, and to 821 TWh per year in 2030. This represents a 39% increase within 18 years.

In a unique perspective that combines market research and policy analysis, Market Analysis of China Energy Efficient Products (MACEEP) identifies where China’s appliance energy efficiency policies are not keeping pace with emerging technologies or rapid market shifts, and  estimates potential energy savings under different policy scenarios.

The analysis covers nine domestic appliances: fixed and variable speed air conditioners, induction cookers, copy machines, monitors, refrigerators, rice cookers, televisions, and washing machines. Among others, MACEEP offers the following conclusions and recommendations for Chinese policymakers:

  • China could save 1,057 TWh of electricity  – roughly equivalent to the annual carbon emissions from 15.5 million passenger vehicles – by 2030 simply by raising the energy efficiency of all nine products to that of the most efficient models currently available.
  • Adopting relatively simple revisions to the energy efficiency requirements for induction cookers, monitors, refrigerators, rice cookers, and washing machines would result in immediate energy savings of at least 269 TWh cumulatively by 2030.
  • A large proportion of products in China’s market already qualify for energy efficiency Tiers 1 and 2 of the China energy label. Restricting Tiers 1 and 2 to only the top 5% and 10% of energy efficient products in the market, respectively, will encourage the encourage the development and purchase of new high-performance products.
  • The number of products that qualify for China’s national appliance subsidy program is too high to effectively promote the development and adoption of higher efficiency products. The study recommends only providing subsidy report for products at Tier 1 or higher.

MACEEP is the first third-party analysis of China’s appliance market, drawing on independently-collected public data. The project team presented the analysis and associated policy recommendations to the China National Institute of Standardization (CNIS) in May of this year.

This study was a collaboration between CLASP, Top10 China, and the China Sustainable Energy Foundation, with significant support from Jeffcott Associates and Kevin Lane Oxford Ltd.

 

Document Links:
Market Analysis of China Energy Efficient Products - Full Report (English)
Market Analysis of China Energy Efficient Products - Extended Executive Summary (English)
Policy Recommendations to China National Institute of Standardization (Chinese)