Bangkok--18 Nov--124 Communications
A report by theInternational Copper Association Southeast Asia (ICASEA)suggests that the harmonization of air-conditioner energy efficiency standards within ASEAN could boost trade in the region by as much as 4.55% and save a potential THB 21.5 billion in energy costs. The report was presented at the launch of ‘ASEAN SHINE’, an energy efficiency promotion program co-funded for 80% by the European Union and managed by ICASEA. The four-year project aims to elevate product performance in household appliances and harmonize energy efficiency standards.
John Schonenberger, Chief Executive Officer of European Copper Institute said “ASEAN is one of the world’s fastest growing markets, with GDP rising by over 5% per year according to the International Energy Agency. This rapid economic expansion highlights the pressing need to tap into the benefits that energy efficiency will provide in ensuring both energy security and long-term, sustainable growth across the ASEAN region.”
A successful implementation of ASEAN SHINE realizes higher market penetration of high energy efficiency products. Mr.AttilaNyitrai, Minister-Counsellor, Deputy Head of Delegation, European Union said, “Wider awareness and adoption of energy efficiency practices among manufacturers and consumers opens unlimited opportunities for European or foreign investors. The high adoption of high efficiency products raises credibility for the region and makes the region more attractive to overseas brands.”
Congruent to ASEAN Economic Community Goals
ASEAN SHINE is a four-year energy efficiency promotion program funded by the European Union and managed by ICASEA. The EU contributes 1,749,000 EUR (approximately 72 million baht) or 80% of the project’s total budget.The program matches the goals of ASEAN Economic Community (AEC) to transform ASEAN into a trade community with free movement of goods and strong foundation for knowledge transfer, especially in industries relating to energy efficiency.
Energy efficiency standards governing the rating of household air-conditioners and refrigerators vary from country to country in ASEAN. These standards are important guides to supply chain management and consumer purchasing decisions.
The AEC intends to deepen and broaden economic integration in the region to make ASEAN more dynamic and competitive.As product standards, quality assurance, accreditation and measurement are crucial in promoting energy efficiency, the harmonization of energy standards for household appliances falls within AEC parameters.
Increase Market Value by 4.55% per annum
Dr. Hardiv Harris Situmeang, Executive Director, ASEAN Centre for Energy said,“Based on the studies made, a successful harmonization of energy efficiency standards across the region will have positive effects in boosting the regional trade by as much as 4.55%.”
“Having a harmonized testing and labelling standard will solve this problem. The same model can be sold in multiple countries, which is much more cost efficient for the manufacturer. And on the other hand, consumers will benefit from the harmonization, as it will clear the confusion regarding different labelling standards in the region”, he added.
Industry experts recognized the potential of harmonization in encouraging intra-regional trade. Manufacturers will get a wider access to market as energy ratings would no longer be a constraint to trade.
Save USD716.4 Million in Energy Cost per annum
The market study discovered large potential savings to be reaped from the harmonization of air-conditioner energy efficiency standards within the ASEAN region.
Dr. TwarathSutabutr, Deputy Director-General, Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy Thailand,said,“The indicative potential for total energy saving per annum estimated to be5,373 GWh which translated to 21.5 billion baht or USD716.4 million, an amount that can relieve energy woes in growing markets such as Thailand, Indonesia, Vietnam, Philippines and Malaysia.”
“Harmonizing energy standards reaps huge savings and reduces greenhouse gases emission. In EU context, air-conditioners - with energye?fficiency ratio of 3.2 and above - areconsidered most energy e?fficient.The higher the ratio, the lowergreenhouse gas emitted and the lower it cost to operate in the long run”, he added.