**3. Energy efficiency indicators**

Analyses of energy efficiency usually include taking several placements of systems indicators and later grouping and evaluating them together. However, their effectiveness is always subject to the stipulation, particularly regarding, data quality and reliability, as well as availability [13]. Placement of indicators shows that there are 4 groups of energy efficiency indicators.


Specific energy consumption (SEC) reduction is defined as the improvement of energy efficiency (EE) by industrial players. SEC is one of the EE indicators as it gives a ratio of energy consumption to the beneficial output (physical) of a process. SEC also can serve as an energy intensity indicator, especially for single processes that generate one single product. The fifth group with addition to Patterson's definition is environmental EE indicators. They are special for measuring energy related specific emission which is direct to environmental issues. However these indicators only allow for the comparison of the efficiency of processes which require the same end use service. It is a very evident that the energy quality problem is a fundamental problem across all energy efficiency indicators when trying to compare process with different quality inputs and outputs [8, 14].

#### **3.1. Management of energy efficiency indicators**

Energy efficiency indicators, while functioning to provide information about EE consumption and its end results, also function to compare and provide benchmarks for present and future technologies. Benchmarking is quite a tedious process, where external influences that affect economic, financial and other non-includable parameters have to be excluded from the judgment [15]. The influence of external factors tends to dynamically increase which can easily frustrate assessments [13]. According to [8] the main problems with EE indicators are.

i. Inhomogeneous data,

82 Energy Efficiency – The Innovative Ways for Smart Energy, the Future Towards Modern Utilities

Analyses of energy efficiency usually include taking several placements of systems indicators and later grouping and evaluating them together. However, their effectiveness is always subject to the stipulation, particularly regarding, data quality and reliability, as well as availability [13]. Placement of indicators shows that there are 4 groups of energy

i. Thermodynamic: This group of indicators relies on the measurement of data by thermodynamic science applications while simple ratios and more complicated

ii. Physical-thermodynamic: A much-improved version of thermodynamic units. However, the output is measured as a physical quantity. The purpose of using a physical approach is to measure severing parameters in terms of passenger miles or

iii. Economic-thermodynamic: Another hybrid version of energy efficiency indicators where the input is still being measured in terms of thermodynamic units. The output

iv. Economic: A measure of this indicator defines changes in energy efficiency by the

Specific energy consumption (SEC) reduction is defined as the improvement of energy efficiency (EE) by industrial players. SEC is one of the EE indicators as it gives a ratio of energy consumption to the beneficial output (physical) of a process. SEC also can serve as an energy intensity indicator, especially for single processes that generate one single product.

market values. Both input and output are in terms of the market prices.

measures are used to measure the actual energy usage of an ideal process.

meanwhile is measured according to market prices.

**Figure 2.** General layout of energy flow

efficiency indicators.

tones of product.

**3. Energy efficiency indicators** 


The evaluation of EE indicators heavily depend on the transparency of the data collected and calculation of indicators. In order to reach this 3 targets are identified as follows [9].


#### **3.2. Energy efficiency labels and standards**

Energy efficiency standards and labels usually come together. Standards are technical settings of energy efficiency, while labels provide guidelines to consumers to select more efficient appliances when they make a purchase [16].

#### *3.2.1. Labels*

Energy efficiency labels are educational labels that are affixed to explain the energy performance of manufactured products, and to give the consumer the necessary data for making knowledgeable purchases [16]. According to [17] there are three kinds of labels.

i. Endorsement Labels: Fundamentally given according to products that meet specified criteria.

ii. Comparative labels: Allows a customer to evaluate product performance against similar products using discrete categories of performance or a continuous scale.

Tools and Solution for Energy Management 85

manufacturers must achieve in each and every product, specifying the energy

iii. Class-average standards: Specifying the average efficiency of a manufactured product, allowing each manufacturer to select the level of efficiency for each model so that the

Products covered under National Commission on Energy Policy (NCEP) as shown in Table 1. In normal condition heating and cooling consumed more energy utilization compare to others and in some case it contributed to nearly 80% of energy bill [23]. The standard which was implemented includes those set by the legislation as well as standard adopted by DOE through rulemaking. The impact cover primary energy savings and water saving, net

Room Air Conditioners

Clothes Washers

Water Heaters Faucets, Showerheads Toilets/Water Closets, Urinals

Refrigerator Freezers

Televisions

Direct Heating Equipment Residential Furnaces, Boilers Mobile Home Furnaces Swimming Pool Heaters

Clothes Dryers, Dishwashers

Fluorescent Lamps and Ballasts Incandescent Reflector Lamps High-Intensity Discharge Lamps

Kitchen Ranges and Ovens

Distribution Transformers Small Electric Motors

The steps to developing energy efficiency labels and standards are shown in Figure 4. These

i. First step is to decide whether and how to implement energy labels and standards. A government's decision whether or not to develop an energy-efficiency labeling or

Residential Central Air Conditioners and Heat Pumps

Commercial Unitary Air Conditioners and Heat Pumps

performance but not the technology or design details of the product; and

overall average is achieved.

Heating and Cooling

Cleaning & Water

Food Preservation and Cooking

**Table 1.** Products covered by energy efficiency standard

*3.2.4. Developing labels and standards programs* 

steps are described in the following paragraph.

Lighting

Other Products

*3.2.3. Products covered by energy efficiency standards* 

present value of customer benefits and estimated reduction in CO2.[24]

iii. Information-only labels: Provides data on a product's presentation.

Energy labels can stand alone or balance energy standards [18, 19]. They provide information that allows consumers to select efficient products. The effectiveness of energy labels is very dependent on how they present information to the consumer. The sample of European label is shown in Figure 3a where it will tells you about the energy efficiency of electrical appliances. Grade A++ is now the most efficient, and Grade G is the least efficient. While Figure 3b shows energy label used in Malaysia where the number of star reflect the most efficient.

**Figure 3.** Energy Efficiency label (a) European Energy Level and (b) Malaysia energy level

#### *3.2.2. Standards*

There are several definitions of energy efficiency standards. According to Greg at all [20] an energy standard is defined as a minimal requirement for efficiency, or the measured energy consumption for the household appliance. Duffy [21] stated that the energy efficiency standards are government mandated standards that define minimum levels of efficiency or maximum levels of energy consumption and that must be met by all products sold in the particular authority.

However definition given by McMahon and Turiel [22] which points out the energy efficiency standard as the prescribed energy performance of a manufactured product, sometimes keeping out the manufacture of products with less energy efficiency than the minimum standards. There are three types of energy-efficiency standards.


manufacturers must achieve in each and every product, specifying the energy performance but not the technology or design details of the product; and

iii. Class-average standards: Specifying the average efficiency of a manufactured product, allowing each manufacturer to select the level of efficiency for each model so that the overall average is achieved.

#### *3.2.3. Products covered by energy efficiency standards*

84 Energy Efficiency – The Innovative Ways for Smart Energy, the Future Towards Modern Utilities

iii. Information-only labels: Provides data on a product's presentation.

most efficient.

*3.2.2. Standards* 

particular authority.

products using discrete categories of performance or a continuous scale.

ii. Comparative labels: Allows a customer to evaluate product performance against similar

Energy labels can stand alone or balance energy standards [18, 19]. They provide information that allows consumers to select efficient products. The effectiveness of energy labels is very dependent on how they present information to the consumer. The sample of European label is shown in Figure 3a where it will tells you about the energy efficiency of electrical appliances. Grade A++ is now the most efficient, and Grade G is the least efficient. While Figure 3b shows energy label used in Malaysia where the number of star reflect the

There are several definitions of energy efficiency standards. According to Greg at all [20] an energy standard is defined as a minimal requirement for efficiency, or the measured energy consumption for the household appliance. Duffy [21] stated that the energy efficiency standards are government mandated standards that define minimum levels of efficiency or maximum levels of energy consumption and that must be met by all products sold in the

However definition given by McMahon and Turiel [22] which points out the energy efficiency standard as the prescribed energy performance of a manufactured product, sometimes keeping out the manufacture of products with less energy efficiency than the

i. Prescriptive standards: Requiring that a particular feature or device be installed (e.g.,

ii. Minimum energy-performance standards (MEPS) : Prescribing minimum efficiencies (or maximum energy consumption usually as a function of size or capacity) that

(a) (b)

minimum standards. There are three types of energy-efficiency standards.

insulation) or not installed (e.g., pilot lights) in all new products;

**Figure 3.** Energy Efficiency label (a) European Energy Level and (b) Malaysia energy level

Products covered under National Commission on Energy Policy (NCEP) as shown in Table 1. In normal condition heating and cooling consumed more energy utilization compare to others and in some case it contributed to nearly 80% of energy bill [23]. The standard which was implemented includes those set by the legislation as well as standard adopted by DOE through rulemaking. The impact cover primary energy savings and water saving, net present value of customer benefits and estimated reduction in CO2.[24]



#### *3.2.4. Developing labels and standards programs*

The steps to developing energy efficiency labels and standards are shown in Figure 4. These steps are described in the following paragraph.

i. First step is to decide whether and how to implement energy labels and standards. A government's decision whether or not to develop an energy-efficiency labeling or

standards-setting program is complex and difficult. Many factors determine whether such a program is beneficial in any particular country.

Tools and Solution for Energy Management 87

For developing policy-relevant indicators in the residential sector, the following data are

ii. Main activity variables for the sector, including number of households and residential

iii. Information on the stock and efficiency not only of large appliances, but also of small

Energy efficiency labels and standards work best in combination with other energy policies designed to shift the market toward better energy efficiency. It is important that consumers receive a consistent message on energy efficiency. Collective efforts from everyone, including government policy makes an energy efficient economy together with an array of policy instruments that can influence manufacturing, supply, distribution product purchases, and operation maintenance of energy consuming products in our society. When working effectively, these policy instruments accelerate the penetration of energy efficiency technology throughout the market. Energy efficiency labels and standards are considered by many researchers such as Mahlia [17] to become the main of a country's energy efficiency portfolio.

Energy efficiency label and standards can be applied to any product that consumes energy. The national benefits of labels and standards applied to the most prevalent and energy intensive appliances. The benefits from labels and standards for less common or less energy

The first mandatory minimum energy efficiency standards were introduced as early as 1962 in Poland, for a range of industrial appliances. The French government set standards in 1966 and 1978 and other European countries introduced legislation mandating efficiency information labels and standards through the 1960s and 1970s. Mandatory labeling programs have developed in parallel with standards. In 1976 France introduced mandatory labeling followed by Japan, Canada, and USA. A report by [23] show that the ENERGY STAR program of the USA Department of Energy was able to verify product performance and also could identify product that do not meet these standard. In China when the Ministry of Constructions issued a revised energy design standard for new heating JGJ 26- 95, an increase of 50% of energy saving was achieved [26]. The labels and standard are being

**4. Constraints in implementation the energy management practice** 

The administrative personnel may feel that finding previous energy bills and equipment manuals is extra work. If the future data (bill) on electricity and oil is obtained from normal

iv. Information on heating and cooling degree-days to adjust for weather conditions

i. Energy consumption by major end-uses and by energy sources;

*3.2.5. Labels and standards relationship to another energy program* 

appliances given their growing importance; and

*3.2.6. Labels and standards of energy efficiency scope* 

updated continuously worldwide [27-29]

intensive products are often too small to justify the cost [27].

required [25]:

floor area;


**Figure 4.** Steps in developing energy efficiency labels and standards

For developing policy-relevant indicators in the residential sector, the following data are required [25]:

i. Energy consumption by major end-uses and by energy sources;

86 Energy Efficiency – The Innovative Ways for Smart Energy, the Future Towards Modern Utilities

such a program is beneficial in any particular country.

and conduct audits themselves.

ensure that a standard is achieved.

monitor, and enforce compliance.

standards-setting program is complex and difficult. Many factors determine whether

ii. Second step: Develop a testing capability. Testing by manufacturers and private laboratories need to be accredited and recognized. Government costs are reduced and product-marketing delays are avoided if governments rely mainly on private testing

iii. Third and fourth steps: Design and implement a labeling program, and analyze set standards: label requirements can be established in a variety of ways, usually involving consumer research as important part of the process. A label can provide a single rating or large number of data, and energy performance measurement of competing products. iv. Standard setting: a standard can be set to eliminate the less efficient models currently on the market. And to encourage importers and local manufacturers to develop the most economically efficient products, several types of analyses should be conducted to

v. Fifth step: Maintain and enforce compliance: After the label design process is mandated or a standard is set, those responsible for the labeling and standard setting must certify,

vi. Sixth step: Evaluate the labeling or standards setting program: If a government is to maintain an energy efficiency labels and standards program over the long run it will have to monitor the programs performance to gather guidance for adapting the program changing circumstance and to clearly demonstrate to funding agencies and the

public so that expected benefits are actually being achieved.

**Figure 4.** Steps in developing energy efficiency labels and standards


#### *3.2.5. Labels and standards relationship to another energy program*

Energy efficiency labels and standards work best in combination with other energy policies designed to shift the market toward better energy efficiency. It is important that consumers receive a consistent message on energy efficiency. Collective efforts from everyone, including government policy makes an energy efficient economy together with an array of policy instruments that can influence manufacturing, supply, distribution product purchases, and operation maintenance of energy consuming products in our society. When working effectively, these policy instruments accelerate the penetration of energy efficiency technology throughout the market. Energy efficiency labels and standards are considered by many researchers such as Mahlia [17] to become the main of a country's energy efficiency portfolio.

#### *3.2.6. Labels and standards of energy efficiency scope*

Energy efficiency label and standards can be applied to any product that consumes energy. The national benefits of labels and standards applied to the most prevalent and energy intensive appliances. The benefits from labels and standards for less common or less energy intensive products are often too small to justify the cost [27].

The first mandatory minimum energy efficiency standards were introduced as early as 1962 in Poland, for a range of industrial appliances. The French government set standards in 1966 and 1978 and other European countries introduced legislation mandating efficiency information labels and standards through the 1960s and 1970s. Mandatory labeling programs have developed in parallel with standards. In 1976 France introduced mandatory labeling followed by Japan, Canada, and USA. A report by [23] show that the ENERGY STAR program of the USA Department of Energy was able to verify product performance and also could identify product that do not meet these standard. In China when the Ministry of Constructions issued a revised energy design standard for new heating JGJ 26- 95, an increase of 50% of energy saving was achieved [26]. The labels and standard are being updated continuously worldwide [27-29]
