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ISSN: 2395-0587
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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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