Assessing the Impact of ASEAN's Harmonised Minimum Efficiency Performance Standards on AC Manufacturers

Abstract

The residential sector in ASEAN is highly dependent on cooling as a primary energy use along with cooking, making up about 82% of the sector’s demand in 2050. Air conditioner (AC) is one of the cooling appliances in ASEAN that will drive energy demand growth in ASEAN. Consequently, this surge in demand also contributes significantly to the region’s CO2 emissions. Recognizing the impact of AC utilisation, energy efficiency in AC is considered the most effective way to propose energy savings and environmental impacts. In order to improve energy efficiency in AC, ASEAN has committed to stringent Minimum Energy Performance Standards (MEPS) by achieving a target for a Cooling Seasonal Performance Factor (CSPF) of 3.7 by 2023 and 6.09 by 2025. However, an update of MEPS across the ASEAN region has key two challenges: Firstly, the financial investment required by manufacturers; and secondly, the development and evolution of AC technology. This study aims to utilise Techno-Economic Assessment (TEA) to evaluate the impact of increased MEPS on AC manufacturers in the ASEAN region, with MEPS levels forming the framework for the TEA. The findings from this study offer valuable insights to manufacturers and policymakers, particularly regarding the impact of increased MEPS on AC manufacturers.