1. KIM Yungrae 26 June 2007 Korea’s Appliance Efficiency Programs Performance Improvements during the First 15 Years and a Vision for the Future

2. Korea’s Appliance Efficiency Programs 1. Korea’s Energy Situation  World’s 10 th largest energy consumer - 7 th oil consumer Korea import 97% of energy - Korea $US84 billion on energy import in 2006 ’80 ’90 ’06 unit : % 96.8 87.9 73.5 ’80 ’90 ’06 84.0 10.9 6.7 unit: bil. USD 27.2% of total import

3. Korea’s Appliance Efficiency Programs Energy Consumption Breakdown  Industrial sector is 55% at energy consumption - Oil 44%, Nuclear power 16%, LNG 13% Final : Industrial 55%, Transport 21%, Household/Commercial 22% Oil (44.4%) LNG (13.3%) Anthracite Coal (2.1%) Bituminous Coal (21.9%) Nuclear Power (16.1%) Hydro Power, etc. (2.3%) Industrial (55.2%) Transport (20.8%) Household / Commercial (21.6%) Public, etc. (2.4%)

4. Korea’s Appliance Efficiency Programs MOCIE (Korean Government) MOCIE (Korean Government) KEMCO (Under MOCIE) KEMCO (Under MOCIE) New & Renewable Energy Industry Transport Building Appliance Climate Change Mitigation Energy Efficiency & Conservation MEPS Energy Label Rebate VA Energy Audit ESCO Soft Loan Indication Mileage Hybrid car Certification CDM Hydrogen/fuel cell Photovoltaic Wind RD&D 15 Department, 12 Branches 1 Affiliate (New & Renewable Energy Center) 2. Korea’s Energy Efficiency Policy

5. Korea’s Appliance Efficiency Programs High-efficiency Appliance Certification Program e-Standby Program Energy Efficiency Label and Standard Program (including MEPS)  Voluntary (since 1996)  LED traffic lights, Motors, Pumps, etc (34 items)  Voluntary (since 1999)  TVs, STBs, PCs, Printers, etc (21 items)  Mandatory (since 1992)  MEPS & 5-grade labeling  Refrigerators, Air conditioners, Automobiles, etc (20 items) Energy Standards & Labeling 3. Energy S & L Overview

6. Korea’s Appliance Efficiency Programs  Energy Efficiency Label and Standard Program (including MEPS) - Mandatory indication of energy efficiency grade from 1 to 5 Number one is the best in Korea - MEPS below 5 grade - Target products Refrigerators, Freezers, Kimchi refrigerators, Air Conditioners, Washing machines, Drum washing machines, Dish washers, Dish driers, Coolers, Rice cookers, Vacuum cleaner, Electric fans, Air Cleaners, Incandescent lamps, Fluorescent lamps, CFLs, Ballasts, 3 Phase Electric Motors, Gas Boilers, Automobiles Korea Energy Label & Standard(1) (Now) New Label (from 2008)

7. Korea’s Appliance Efficiency Programs Korea Energy Label & Standard(2)  High-efficiency Appliance Certification Program - Certification by KEMCO - Voluntary - High efficiency certificate - Government purchase - Target products 3-phase Induction motors, Pumps, UPS, Transformers, Vending machines, Windows, Industrial gas boilers, Oil burning water boilers, T-5 fluorescent lamps, LED traffic lights, 26mm32W fluorescent lamps, Ballasts for 26mm32W

8. Korea’s Appliance Efficiency Programs Mandatory (from 2010) Products failing standby specification Korea Energy Label & Standard(3)  e-Standby Program - Core program to reduce standby power <1W - Voluntary (Mandatory from 2010) - “Energy Boy” label (or Warning label from 2010) - Government purchase - Target products TVs, VCRs, Audios, DVD players, Set top boxes, Microwave ovens, External power supplies, Computers, Monitors, Printers, Fax machines, Copiers, Scanners, Multifunction devices, Bidets, Energy saving & controlling devices, Door phones, Cordless phones, Radios, Modems Voluntary (Now) Products satisfying standby specification or

9. Korea’s Appliance Efficiency Programs CFL Electric Motors Inverters Vending Machines Rebate Transformers Pumps Appliances Supporting Rebate Ballast Lighting Equipment  Support consumers and installers

10. Korea’s Appliance Efficiency Programs CategoryKorea Developed Countries Refrigerator (600L) 43.4 kWh/month65.4 kWh/month Air Conditioner (6000W) 3.72 EER2.62 EER Washing Machine (10kg) 14.1 Wh/kg29.0 Wh/kg 4. Performance Improvements

11. Korea’s Appliance Efficiency Programs Refrigerators  Power consumption is reduced 60% - kWh/L per year : 1.750 (1996) – 0.707 (2006) MEPS & energy efficiency grade label (Mandatory) - 60%

12. Korea’s Appliance Efficiency Programs Air Conditioners  Energy efficiency ratio go up 15% - EER : 2.974 (1996) – 3.417 (2006) MEPS & energy efficiency grade label (Mandatory) 15%

13. Korea’s Appliance Efficiency Programs Benchmarking Energy Performance  Air conditioners indicative sales-weighted EERs Source : www.apec-esis.org

14. Korea’s Appliance Efficiency Programs e-Standby Program  96 millions of energy boy products supplied - From 1999 to 2006 TVs, VCRs, Audios, DVD players, Set top boxes, Microwave ovens, External power supplies, Computers, Monitors, Printers, Fax machines, Copiers, Scanners, Multifunction devices, Bidets, Energy saving & controlling devices, Door phones, Cordless phones, Radios, Modems Energy Boy Label (Voluntary) Market Share Energy Saving

15. Korea’s Appliance Efficiency Programs 5. Market Transformation Plan CategoryPresentFor the future Electric motors (3-phase) General motors High efficiency motors Lighting equipment Incandescent bulbs general lights CFLs LED lights Standby power >1W products<1W products Energy efficiency grade label

16. Korea’s Appliance Efficiency Programs Importance of Electric Motors  Electric motors (3-phase) 40% of Power Consumption in Korea CategoryPowerValueProportion Total power Generation in Korea 332,413 GWh$US 20.94 billion100% Consumption by electric motor (3-phase) 132,965 GWh $US 8.38 billion 40% The importance of 3-phase motors in energy conservation Motors, lightings and the others including electric heating equipments Accounts for 60%, 20%, 20% of total domestic power consumption respectively. 70% of total induction motors are 3-phase and consume 40% of total power consumption.

17. Korea’s Appliance Efficiency Programs Rebate MEPS Agreement Sum of capacity (million HP) Dissemination (%) High Efficiency Motors Certification MEPS (Minimum Energy Performance Standard)? Energy efficiency standard for energy conservation at the root through. Prohibition of manufacturing and marketing of low efficiency products. The penalty can go up to 20 thousand US dollars

18. Korea’s Appliance Efficiency Programs  Phase out for Incandescent bulbs - MEPS and high efficiency grade label standard Energy Efficiency Label and Standard Program  Rebate for CFLs - Target product Certified CFLs(15W, 17W, 20W) by KEMCO - for consumers - USD $2 per CFL MEPS Replace from Incandescent to CFL Heat 75% Light 25% 15-20W Heat 95% Light 5% 60-100W Rebate

19. Korea’s Appliance Efficiency Programs 15/30 LED Project  Increase dissemination of LED to 30% by 2015 - 4 million TOE of energy saving Advancement in R&D and market environment will be reflected in promotion policy for LED - High-efficiency Appliance Certification & Rebate

20. Korea’s Appliance Efficiency Programs  Declare of 1W, Prime Minister : ”the government will offer full assistances----by 2010, the standby power of all electronic product shall be reduced to below 1W” (Energy Saving Promotion Rally, 2004.11.12)  Korea is 3th country with 1W Policy - after USA(2001), Australia(2002) - Korea comply IEA’s “1W Initiative” All products <1W by 2010 1-watt Plan on Standby Power

21. Korea’s Appliance Efficiency Programs Korea’s Scenario for <1W by 2010 Policy Tools for <1WStandbyProducts MEPS<0.5W (No load) External power supplies Warning label (e-Standby Program) or <1W (Off or Passive standby) TVs, VCRs, Audios, DVD players, Bidets, Sep top boxes, Microwave ovens, Cordless phones, Door phones, Modems, Computers, Monitors, Printers, Fax machines, Copiers, Scanners, Multifunction devices, Home gateways, Energy saving & controlling devices 1 grade label (Energy Efficiency Label and Standard Program) <1W (Off or Passive standby) Washing machines, Dish washers, Drum washing machines, Air Cleaners, Rice cookers, Air conditioners, Electric Fans, Home networked appliances (<3W)  Mandatory policy to reduce standby power

22. Korea’s Appliance Efficiency Programs New Energy Efficiency Grade Label  New energy efficiency grade label start from 2008 Electric Motors, Gas Boilers Refrigerators, Freezers, Kimchi refrigerators, Air Conditioners, Washing machines, Drum washing machines, Dish washers, Dish driers, Coolers, Rice cookers, Vacuum cleaner, Electric fans, Air cleaners, Incandescent lamps, Fluorescent lamps, CFLs, Ballasts, Automobiles Energy Efficiency Label and Standard Program (Mandatory)

23. Korea’s Appliance Efficiency Programs Thank you If you have any question, please e-mail to yrkim@kemco.or.kr