10am - 12.00 Non-domestic fans 12.00 – 12.45 pm light lunch 12.45pm – 2.30 Small fans 2.30pm Afternoon tea

1. Consulting on our Product profiles: - the energy efficiency of fans • 10am - 12.00 Non-domestic fans • 12.00 – 12.45 pm light lunch • 12.45pm – 2.30 Small fans • 2.30pm Afternoon tea Structure per session: • Introduce yourselves & expectations (15m) • Lisa (15m): • NZ govt perspective for Energy Efficiency; the joint Au-NZ E3 program; role of product profiles; what happens next. • Ian McNicol (±45m): details in the Product Profile • Discussions (±45m)

2. Consultation: Investigating the Energy Efficiency of the New Zealand fan market. Lisa Sinclair – Product Advisor ✬ Please, make a Submission✬

3. NZ energy efficiency policies The joint Equipment Energy Efficiency program (E3 program) the role of product profiles what happens next.

4. NZ Government’s energy policies ✬ New Zealand Energy Strategy 2011-2021✬ NZ Energy Efficiency and Conservation Strategy 2011-2021

5. Energy policies cont… • Secure and affordable energy supply, to keep up with demand. • Environmentally responsible, low emissions energy system. • Targets for 90% renewable electricity by 2025, and 50% reduction of GHG by 2050. • Grow the economy… • ✬But… economic growth is strongly linked with increased energy use… • How to use less energy, but grow the market? • ✬ Get more efficient products, make the same energy go further.

6. EECA: Role is to promote… - renewable sources of energy - energy efficiency - energy conservation(use less, waste less)

7. EECAs tools relevant to fans… • E3 program (joint with Australia) ✬ today's topic • Business unit initiatives www.eecabusiness.govt.nz • eg: Fan systems audit standard – specifies/recognises fan efficiency as part of an efficient system.

8. E3 program • (Equipment Energy Efficiency Program) • Joint NZ-Australia since 2002, pro rata funding • Lays out a pathway for governments in NZ & Au to look at the energy efficiency trends of Energy Using Products. • identify issues/blockages. • intervene if necessary, for the common good… • Variety of voluntary and legal/mandatory tools to encourage more energy efficient equipment to be sold.

9. E3 prog cont… • To leverage more efficient equipment, NZ formally aligned with Australia in 2006 - ‘Australasian’ market destination. • Adopt Energy Efficiency Standards of major trading partners. - Minimum Energy Performance Standards (MEPS). - Mandatory Energy Performance Labelling (MEPL).

10. Don’t panic!

11. 1. Ministers’ permission to investigate a product Pathway to potential MEPS… we are here 2. Product Profile How’s the market doing? Show you our estimates – please help us refine them. Consult 3. E3 Committee may recommendmore scrutiny of options… About 3 years Voluntary- Best practise guides, training programmes, benchmarks etc Develop Standard (test method) Industry experts 4. Cost-Benefit Analysis(Regulatory Impact Statement) Consult 5. Ministers’ approval MEPS Commence

12. Role of product profiles ✬ What for? Snapshot of the product market in New Zealand and Australia. • ✬Helicopter view - blockages that hinder the widespread sale of the most energy efficient products. We need your help to get accurate market data– helps governments decide whether to intervene, and if so, what tools are best ? Why fans?Developed out of the Industrial products strategy (non-domestic fans) & refrigeration efficiency work (small fans) ✬Energy energy energy Energy energy energy Energy energy energy Energy ✬

13. Things that we might see in a market… • If Industry enforce their own high standards – eg FMAANZ code. • Or Aus & NZ surrounded by highly efficient items. • No need for MEPS regulations! But if there are blockages in the market such as… • Undercutting or dumping by less efficient but cheaper types: buyers are choosing products based on up front cost. • Split incentives – buyer is not the payer of a company’s energy bills. • Information overload/underload, or not considered. • Blinkered focus by businesses, competing just to ‘get by’. • It’s no-ones job to make it better – even if a company tries, they have no clout. ✬MEPS-MEPL can work in these instances. • To justify regulation, we look for high energy savings; an appropriate Standard; low cost of compliance; regulation won’t reduce competition etc • BUT regulation has to be simple to administer (could be an issue with small fans eg fans inside fridges that already comply with MEPS).

14. In NZ, MEPS or MEPL applied to 18 types of domestic, commercial & industrial products.

15. Heat pump efficiency MEPS works well for some products

16. What happens next? ✬ Make a Submission! regs@eeca.govt.nz 6 July✬ • We revise our modelling • Consider potential options • We put up a position paper to E3 committee. • if more analysis is needed, do a CBA • Consult again, submissions considered(Obtain minister’s permission to consult) • Revise modelling again • Adopt or adapt a standard, with help from industry reps • Put decision to ministers to vote • legislation change process (notify World Trade Organization, Gazette notice, etc…)

17. ✬ if MEPS / MEPL becomes law, they only apply to: products you want to continue importing or manufacturing, or new models you want to bring into the market. MEPS is only for new products at point of sale. The least efficient models will no longer be legal for sale. You will have to source or make slightly better models, than these lowest performers. All models within the scope of the Standard will have to pass the efficiency lab test (get a certificate). You will need to register your models (cost-free in NZ) through the Energyrating website, ± 2 hours admin time (we give training). A public list is made of appliances and their energy efficiency. If they are registered in Aus, you don’t have to re-register them here unless Aus decides to retire those registrations. E3 check tests a product’s actual efficiency vs claims. In NZ, give EECA your sales data after each year (admin time again) What MEPS / MEPL could mean for you: