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PROMOTION OF HIGHER EFFICIENCY

ROOM AIR CONDITIONERS IN MYANMAR: 

NATIONAL POLICY ROADMAP 

FOR HARMONIZATION OF ENERGY 

PERFORMANCE STANDARD 

FOR AIR CONDITIONERS

This report has been produced as part of the ASEAN-SHINE program. ASEAN-SHINE is an initiative implemented by the International Copper Association, in partnership with UNEP, SIRIM, RCEE, EEI and IIEE. 

Program ID

Grant amount   1,749,099.90 EUR

Contract ref.     DCI-ASIE 2012/291-458

Name of beneficiary  European Copper Institute

Partners

-  United Nations Environment Programme 

-  Division of Technology, Industry and Economics (DTIE), Energy Branch

-  International Copper Association Southeast Asia

-  Electrical and Electronics Institute

-  SIRIM QAS International

-  Integrated Institute of Electrical Engineers

-  Research Center for Energy and Environment

Contact person

                              Pierre Cazelles

                              Director – Partnerships Asia

                              International Copper Association China

                              Email:pierre.cazelles@copperalliance.asia

Program implementation team

Technical Advisor

            Funding                            Steering Committee

Promotion of higher efficiency room air conditioners 

National Policy Roadmap for Harmonization of Energy 

Performance Standard for Air Conditioners

^_MYANMAR

December 2016

Financial support

Disclaimer: This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.

Table of Contents

 I.      Background                                                                                                                 03

I.  BACKGROUND

The Regional Policy Roadmap to harmonize air conditioning standards in ASEAN countries by 2020, was endorsed by the 33^rdASEAN Ministers on Energy Meeting in a Joint Ministerial Statement “Powering ASEAN towards a Greener Community” on 7 October 2015 in Kuala Lumpur, Malaysia.^[1]  

The overall objective of the Regional Policy Roadmap is to mitigate energy demand and greenhouse gas emissions of the countries in the region by pushing to increase the market share of energy efficient air conditioners.In that regards, the Regional Policy Roadmap is in line with the aspirational goal of reducing energy intensity in ASEAN by 20% by 2020 as a medium-term target, and 30% by 2025 as a long-term target (based on the 2005 levels) stated in the ASEAN Plan of Action for Energy Cooperation (APAEC) 2016-2025.^[2]  Specifically, the APAEC within its Programme Area No.4 on Energy Efficiency and Conservation stipulates an outcome-based strategy aimed at “Harmonization and Promotion of Energy Efficiency Standards and Labelling on various kinds of energy-related products”, with targeted products listed as air-conditioning and lighting.

This National Roadmap has been developed to support and guide country-level actions with the broad objective to implement the recommendations of the Regional Policy Roadmap aimed at facilitating market transformation towards more energy efficient air conditioners. 

To this end, the Regional Policy Roadmap sets the following targets for the ASEAN region:

1.   Minimum Energy Performance Standards

 Adopt technology neutral and mandatory MEPS at minimum EER 2.9W/W and CSPF 3.08 W/W for all air conditioners below 3.52kW by 2020. Review of MEPS every 5 years. 

2.   Testing and evaluation methods

Adopt ISO 5151-2010 by 2016 as a uniform testing standard for air conditioners. Plan for future revisions of ISO 5151-2010.

Evaluate and report both Energy Efficiency Ratio (EEF) and Cooling Seasonal Performance Factor (CSPF). Consider adoption of the CSPF method as a uniform testing standard using ISO 16358 by 2020. Consider transition to CSPF as common metrics for fixed-speed and inverter units. 

3.   Testing infrastructure and mutual recognition agreements Harmonize certification and accreditation for testing labs (five ASEAN nations already follow ISO/IEC 17025).

Establish framework for round robin testing and evaluation process for testing facilities by 2020 (capacity building, improvement and further alignment of testing procedures).

Develop Mutual Recognition Agreements on recognition of testing standards and testing results reports for air conditioners.

4.   Monitoring, verification and enforcement (MV&E)

Establish or strengthen an efficient national system for MV&E.

Establish coordinated regional monitoring, reporting and verification regime in ASEAN.

Set up Regional Product Database as a tool to support exchange of product information and non-compliance alerts, and to coordinate verification activities.

II.   NATIONAL DEVELOPMENT POLICY FRAMEWORK AND RATIONALE       FOR THE NATIONAL ROADMAP

Establishment of the national standards for energy performance for electrical appliances, and for air conditioners specifically, is an important strategy to mitigate energy consumption in the country that aims to ensure economic growth and improvement of the quality of life, at facilitating market transformation towards more energy efficient air conditioners. 

1. Overall development policy framework:

The National Comprehensive Development Plan (2011-30)(NCDP) is at the core of Myanmar’s long-term development planning process. In line with the NCDP, the present roadmap will support prosperity by helping reduce energy losses and reduce social and environmental costs associated with appliances use. The roadmap further supports the adoption of best available technologies, thus contributing to Myanmar’s integration into the global economy.

2. Specific policy framework for environment and climate change:

The 1994 National Environment Policy aims “to establish sound environment policies, utilization of water, land, forests, mineral, marine resources and other natural resources in order to conserve the environment and prevent its degradation”. Following on this policy, the Environmental Conservation Law was enacted on 30 March 2012 with the view to “enable to manage and implement for decrease and loss of natural resources and for enabling the sustainable use beneficially”^[3]. Consistent with the 1994 policy and the 2012 law, the National Policy Roadmap for Harmonization of Energy Performance Standard for Air Conditioners will help to improve electricity consumption from households. This improvement will in turn have positive impacts on environment conservation and resources preservation.

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3. Development rationale for the national roadmap

Currently the per capita electricity consumption in Myanmar is estimated at the level of 180 kWh per year. But as the living standards in Myanmar improve, and as the country sets further objectives to improve incomes and quality of life of the population, demand for electrical appliances and electricity is rapidly increasing. The residential and commercial sectors (the latter includes public sector) are the 2^ndand the 3^rdlargest consumers of electricity in the country – 32% and 20% of the total electricity use in 2013 respectively. Electricity consumption by the residential and commercial sectors already saw 2- and 3-fold increase over the period of time from 2000 till 2013.^[4]  Additionally, the current electrification rate of around 34% and the existing plans to achieve the electrification rate of 87% by 2030^[5]indicate that the demand for electricity in the residential sector will increase significantly in the coming years.^[6]  Moreover, the forecasted growing use of appliances will increase the load on the existing power distribution infrastructure with the risk to impact the reliability of energy services provision. 

Almost 71% of electricity power generation comes from hydropower and 22% is produced with natural gas.^[7]Both natural gas and electricity are important tradable goods, which are exported to the neighboring countries for foreign exchange earnings. There are plans to maintain and increase exports of electricity and natural gas, which makes domestic electricity demand management critical to the national economic development.^[8]Also, the significant reliance on hydropower for power generation makes electricity supply less reliable during the dry season.

Air conditioners in general are characterized by high level of energy consumption. Currently their use in Myanmar is limited, but given the predominant climate conditions in the country and the increasing demand for electrical appliances, their use is likely to increase in the coming years. As of now, the use of air conditioners is mostly concentrated in the cities. The primary users of air conditioners are commercial and government sectors, with the residential use also gradually increasing. 

Myanmar does not have domestic manufacturers of air conditioners. All the air conditioners currently sold in Myanmar are imported from outside: China (50%), Singapore (22%), Thailand (16%), Japan (0.3%), India (0.1%).⁹Given that an air conditioner is an appliance that has high price and long life-expectancy, allowing imports of air conditioners with poor energy performance will lock-in the resulting higher electricity demand for years to come.

III.  NATIONAL POLICIES ON ENERGY, ENERGY EFFICIENCY AND CONSERVATION

In the area of energy, energy efficiency and conservation, there are a number of policies that are currently in place or in the process of development and adoption. The below table indicates how this National Roadmap fits within their framework and contributes to the achievement of their objectives: 

1.  Coherence of the NRM with Myanmar energy policy framework 

Coherence of the NRM with Myanmar energy policy framework (continued)

¹⁰ Myanmar Energy Master Plan. Presentation by Jim Liston, Principal Energy Specialist, Nay PyiTaw Resident Mission Asian Development Bank. 9 March 2016.

2.   Energy rationale for the national roadmap

The national policies above reflect that there is clear vision at the national level of the importance and the potential benefits of pursuing measures on energy efficiency and conservation. They establish a general supportive policy and institutional framework for taking these measures further into the implementation stage. However, the regulatory framework in Myanmar is still characterized by the lack of standards and regulations on energy performance, labeling requirements for the appliances and any other regulatory mechanisms to enforce compliance. Development of some of these regulations is in general terms stipulated within the abovementioned policy documents.

There are no domestic state-owned or third-party testing laboratories in the country to check the energy performance of air conditioners, and there are no unilateral or multilateral (mutual recognition agreements) provisions for recognition of energy performances testing results from the accredited laboratories in the region.

All the air conditioners available in Myanmar are imported. However, countries that supply air conditioners to the domestic market already have established energy performance standards for air conditioners and are continuing to review them towards stricter requirements, notably through the ongoing regional effort to harmonize standards for testing methods (ISO 5151 and ISO 16358) for air conditioners in ASEAN, as well as the objective of increasing MEPS (Regional Policy Roadmap). As there are no domestic energy performance standards and import regulations in Myanmar for air conditioners, this leaves the domestic market vulnerable to imports of air conditioners that are within the lower range of energy performance. Given that an air conditioner is an appliance that has high price and long life-expectancy, allowing imports of air conditioners with poor energy performance will lock-in the resulting higher electricity demand for years to come. 

The National Roadmap proposes policy measures in accordance with the specific national context as described above, and the challenges it creates. It is also in line with the priorities set within the existing EE&C policy framework, including the National Energy Efficiency and Conservation Policy, Strategy and Roadmap for Myanmar, albeit focusing specifically on the air conditioners.

IV.  DEFINITION

The National Roadmap has been developed to support and guide country-level actions with the broad objective to implement the recommendations of the Regional Policy Roadmap to harmonize air conditioners standards in ASEAN countries by 2020, which is aimed at facilitating market transformation towards more energy efficient air conditioners. It targets all air conditioners (fixed-speed and inverter) with the cooling capacity of and below 3.52kW.

V.   VISION

The Vision of the National Roadmap is: 

“Progressively mitigate demand for electricity and significantly increase the share of high energy performance air conditioners in Myanmar through adoption of regionally harmonized Minimum Energy Performance Standards and development of an appropriate regulatory framework for their enforcement, with the long-term goals of: 

• Improving national energy security and energy export potential;
• Mitigating stress on the electricity grid from increased load of new electrical appliances and improving reliability of energy services to the consumers; 
• Mitigating stress on resources used for power generation (notably water)
• Protecting domestic market from imports of air conditioners with poor energy performance; 
• Increasing comfort and reducing electricity bills for the users of air conditioners.”

VI.   GOALS AND TARGETS

In line with the Vision above and with the goals set in the Regional Policy Roadmap, while taking into account the national context and development priorities set in the national policies, the National Roadmap sets the following targets and goals: 

1.   Minimum Energy Performance Standards

By 2020, adopt regionally harmonized technology neutral and mandatory MEPS at minimum EER 2.9W/W and CSPF 3.08 W/W for all air conditioners below 3.52kW by 2020 Review of MEPS every 5 years. 

2.   Effective compliance mechanism

      Adoption of the testing and evaluation methods:

By end of 2017 adopt ISO 5151-2010 as a uniform testing standard for air conditioners, and adjust import regulations accordingly.

By 2020, adopt CSPF method of ISO 16358 as a uniform testing standard for all fixedspeed and inverter units, and adjust import regulations accordingly.

      Recognition of the testing results from accredited laboratories in the third countries:

By 2018, adopt provisions on recognizing testing results from laboratories certified and accredited based on ISO/IEC 17025.

Participate in development and adoption of the regional Mutual Recognition Agreement on recognition of energy performance testing standards and testing results reports for air conditioners from properly certified and accredited testing laboratories.

3.   Monitoring, verification and enforcement (MV&E)

By 2020, establish and operationalize an efficient national system for MV&E.

Participate in establishing a coordinated regional monitoring, reporting and verification regime in ASEAN.

VII.  ACTIONS AND MEASURES

The overall responsibility of the National Roadmap implementation lies with the Ministry of Industry, and specifically with its Energy Efficiency and Conservation Division (EECD/MOI), which is part of the Energy Management Committee and the Energy Development Committee responsible for energy policy formulation in Myanmar. Other Ministries and entities that will support the implementation of the National Roadmap within the scope identified by their mandates and other relevant policies are the Ministry of Electric Power, the Ministry of Energy, the Ministry of Science and Technology, the Ministry of Electricity and Energy, Ministry of Education, Ministry of Commerce and Ministry of Finance.

Before the core implementation of the roadmap can start, preparatory activities are recommended to facilitation the actual implementation of the roadmap. These preparatory activities are listed below:

Preparatory activities:

Following the preparatory activities listed above, the actual implementation of the National Policy Roadmap for Harmonization of Energy Performance Standard for Air Conditioners will take place. In line with the goals and targets of section VI, the recommended strategy builds upon four pillars as follows:

• Minimum Energy Performance Standards 
• Effective compliance mechanism 
• Monitoring, verification and enforcement (MV&E) 

In addition, recommendations for supporting policies to promote products with better energy performance are added in order to ensure the embedding of the roadmap into relevant national legal frameworks.

1.   Minimum Energy Performance Standards

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2.   Effective compliance mechanism

National Roadmap Targets:

      Adoption of the testing and evaluation methods:

By end of 2017 adopt ISO 5151-2010 as a uniform testing standard for air conditioners, and adjust import regulations accordingly.

By 2020, adopt CSPF method of ISO 16358 as a uniform testing standard for all fixedspeed and inverter units, and adjust import regulations accordingly.

      Recognition of the testing results from accredited laboratories in the third countries:

By 2018, adopt provisions on recognizing testing results from laboratories certified and accredited based on ISO/IEC 17025.

Participate in development and adoption of the regional Mutual Recognition Agreement on recognition of energy performance testing standards and testing results reports for air conditioners from properly certified and accredited testing laboratories.

While establishment of an accredited testing laboratory in the country requires high investment, the country can adopt policies that will allow benefiting from the testing lab infrastructure that already exists in the region through recognition of the testing results from other countries and through participation in the regional Mutual Recognition Agreements. Efforts are already underway to establish a multilateral MRA in ASEAN region. However, since it may take some time, the country will benefit from adopting provisions on unilaterally recognizing testing results from certified and accredited laboratories in the third countries (suppliers of air conditioners) as the initial step to ensure effective compliance mechanism. 

Some key activities recommended for developing an effective compliance mechanism are presented in the table on next page.

Recommended actions for the establishment of an effective compliance mechanism for air conditioners in Myanmar

3.   Monitoring, verification and enforcement 

National Roadmap Targets:

By 2020, establish and operationalize an efficient national system for monitoring, verification and evaluation.

Participate in establishing a coordinated regional monitoring, reporting and verification regime in ASEAN.

Participate in the establishment of a Regional Product Database as a tool to support exchange of product information and non-compliance alerts, and to coordinate verification activities.

Recommended monitoring, verification and enforcement actions 

(continued)

4.   Supporting policies to promote products with better energy performance Embedding of the roadmap into relevant legal frameworks:

Embedding of the roadmap into relevant legal frameworks:

VIII.  INSTITUTIONAL AND ORGANIZATIONAL ARRANGEMENTS