Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department

Top Runner Program

Tadashi Mogi

Director of Energy efficiency and conservation division, METI

November 8, 2012

Hotel Nikko, Tokyo Japan

IEA-4E

0

Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department

Contents

1

１．Summary of Energy Conservation ２．The Top Runner Program ３．The Labeling Program ４．Improvement of Efficiencies by The Top Runner Program ５．Future of The Top Runner Program ６．Conclusion

Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department 2

１．Summary of Energy Conservation

3

Energy consumption structures trends in Japan

Final energy consumption has increased about 1.4 times since 1973, whereas the Real GDP increased about 2.3 times in the same period.

Energy consumption of industrial sector has leveled out, but the significant increase of energy consumption has been observed in the consumer sector (commercial & residential sector).

0

100

200

300

400

500

600

0

50

100

150

200

250

300

350

400

450

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: Comprehensive Energy Statistics and Annual Report on National Accounts.

(Petroleum equivalent in million tons)

Transportation sector

Consumer sector

Industrial sector

(JPY trillion) Final energy consumption 1973→2010 1.4 times

Transportation

1973→2010 1.9 times

Consumer

1973→2010 2.5 times

Industrial

1973→2010 0.9 times

23.7%

33.6%

42.7%

Real GDP 1973→2010

2.3 times

4

Energy Conservation Efforts of Japan after Oil Crises

Japan has improved energy efficiency by about 40% since 1970s with continued efforts for energy conservation by both public and private sectors.

“Energy Conservation Law” was introduced in 1979, and “Top Runner Program” started in 1999 under this law.

0.600

0.700

0.800

0.900

1.000

1.100

1.200

1.300

1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Source）Total Energy Statistics by ANRE/METI

Primary energy use per real GDP of Japan （Oil converted Mt /1 trillion yen）

about 40% improvement

Energy Conservation Law Top Runner Program

5

Energy Conservation Law

Industrial sector Consumer sector Transportation sector Commercial sector Residential sector

Regulatory measures

Annual reports to the government by business operators with 1,500 or more kl/yr energy consumption

15,000 manufacturing plants & business operators Reduction efforts of 1% per year

Energy efficiency standards for the buildings and houses (300m2 or more)

Top runner standards for the household appliances and equipments to automobiles, 23 items

Account for about 70% of household energy consumption

Energy Conservation Law covers the energy usage from the industry and commercial & residential to transportation.

The law has 1) the framework which require the business operators annually to measure and report their

energy usage to the government, 2) the energy efficiency standards for the buildings and houses, and 3) the “Top Runner” program which is applied to the household appliances and equipments to

automobiles.

Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department 6

２．The Top Runner Program

7

Overview of The Top Runner Program

“Top Runner Program” is the mandatory program, which encourages the competition among the companies by setting the energy efficiency targets based on the most energy‐efficient product on the market.

It was first introduced in 1999 to strengthen the energy conservation measures after the Kyoto protocol was set. (Before then, Japan had implemented the energy efficiency standards based on the average‐efficient products.)

Having started with 11 items including automobiles and air conditioners, it added 7 more items in 2002, 3 more items in 2005, and 2 more items in 2009.

These 23 items were selected mainly from high energy‐consuming appliances and equipments based on the following requirements. (a) Appliances and equipments that are used in large quantity in Japan (b) Appliances and equipments that consume considerable amount of energy when in use

(c) Appliances and equipments that has potential efficiency improvement in the future “Top Runner” efficiency standards for 3 to 10 years ahead in each product category are set based on the most energy‐efficient product on the market.

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Regulated appliances & equipments

1. Passenger cars 2. Freight vehicles 3. Air conditioning units/systems 4. Television sets 5. Video tape recorders 6. Lighting equipment 7. Copiers 8. Computers

17. Vending machines 18. Transformers 19. Electric rice cookers 20. Microwave ovens 21. DVD recorders 22. Routers 23. Switching devices

9. Magnetic disc devices 10. Electric refrigerators 11. Electric freezers 12. Heating stoves 13. Gas cooking appliances 14. Gas water heaters 15. Oil water heaters 16. Electric toilet seats

The following 23 automobiles, appliances and equipments are subject to Top Runner Program.

(As of October 31th, 2012)

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*1. Estimated by the Institute of Energy Economics, Japan (IEEJ), based on the Agency for Natural Resources and Energy's FY2009 Residential and Commercial Sector Energy Data Survey (10,040 valid responses) and Supplementary Survey concerning Appliance Use(?) (1448 valid responses)

*2. This survey is based on tabulation and analysis of each energy source, with values unified and converted on megajoule (MJ) basis. Electric power in secondary conversion value.

Gas water heaters, 23.7%

Gas cooking appliances, 8.3%

Electric refrigerators, 6.8%

Lighting equipment, 6.4%

Gas heating stoves, 5.4% TV sets, 4.3%

Oil water heaters, 4.1%

Air conditioning units, 3.5%

Electric toilet seats, 1.8%

Computers, 1.2% Rice cookers, 1.1%

Microwave ovens, 0.9%

Network devices, 0.5% DVD recorders, 0.4%

Gas heating stoves, 0.3%

Videotape recorders,

0.3% Oil fan heaters, 6.2%

Electric water heaters, 2.6%

Ecocute, 1.8%

Dish washer/dryers, 1.8%

Washing machine/dryers, 1%

Electric carpet, 1%

Electric cooking appliances (IH), 0.7%

Solar heating, 0.2%

Other electric appliances,

11.7%

Other heating equipment ,

4.2%

Appliances & Equipments covered by the Top Runner Program

７０％ is covered by the program

2009, Energy consumption level per household 34,905MJ/Year

“Top Runner” standard is implemented to about 70% of the energy consumption in household.

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Basic concept on how to set the target efficiency standard

Category

Target standard value

Energy efficiency

Top

Poor

Efficient

Evaluating the potential technological development toward the target year

All energy efficiency data in a certain category on the market are collected in cooperation with industries.

The value of the most energy‐efficient product called “Top Runner” is identified in the collected data. Top Runner Program uses this value as a base value.

Target year is determined by giving consideration to the manufactures’ product cycle , social demand and so on.

Target standard value is determined by evaluating the potential technological development toward the target year.

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The case : vehicle fuel efficiency standard

Selection of top­runner vehicles in FY1997

（light­weight vehicles） ex：SUZUKI・ALTO

（standard­weight vehicles） ex：TOYOTA・COROLLA

（heavy­weight vehicles） ex：MITSUBISHI・PAJERO

（578 to 702 ） （1,016 to 1,265 ） ～ ～ （2,266 to 2,515 ） Vehicle weight (kg)

top­runner vehicles （20.2 )

Fuel efficiency (km/L)

top­runner vehicles （15.8 ）

top­runner vehicles （6.0 ）

Evaluation of fuel efficiency improvement factors

Engine improvement Driving system improvement Reduction of driving resistance, etc.

Establishment of Fuel efficiency standard values in FY2010

（1,016 to1,265 ）

top­runner vehicles （15.8 ）

target fuel efficiency value （16.0 ）

（standard­weight vehicles） ex：TOYOT・COROLLA

Vehicle weight (kg)

Fuel efficiency (km/L)

Target fuel efficiency of the middle‐class vehicle in FY2010 was raised to 16.0 km/l from 15.8 km/l top‐runner in FY1997 with evaluating the potential technical improvement.

12

Target value (energy efficiency standard)

Criterion (product category)

Target year

Judgment method on achievement of the target value

Measurement method

Labeling

Basic structure of Top Runner Standards

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Implementation and Enforcement cycle of Top Runner Program

Decision

to designate

the new item

for Top Runner

Set

(or revise)

standards

Conduct survey In the year after targeted fiscal

year

Review

standards

Make recommendations, public disclosure, or issue orders

Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department 14

３．The Labeling Program

Energy‐Saving Label; •for 18 items excluding the passenger vehicle and the equipments for commercial use •The manufacturers are required to display this label on their products or their catalogues.

Uniform Energy‐Saving Label; •for 5 consumer products (Air conditioner, TV, refrigerator, lighting, electric toilet seat) •The retailers are requested to display this label at their shop.

Example of Energy-Saving Label (displayed by the manufacturer)

Example of the Uniform Energy-Saving Label (displayed by the retailer)

(Uniform Energy-Saving Label)

Labeling Program

Target year: FY 2010

Annual electric power consumption

Energy-saving standard achievement rate

Energy-saving standard achievement rate

Annual electric power consumption

Target year: FY 2010

year

year

Example of refrigerator

15

Label to show the fiscal year of the version

5-Star Rating

Expected annual electricity charge (¥)

Energy-Saving Label

Label to show non-fluorocarbon logo for refrigerators not using CFC

Labeling list

Program Product

Energy-Saving Labeling Program

Uniform Energy-Saving Label

Air conditioning units/systems

Electric refrigerators

Electric freezers

Lighting equipment

Electric toilet seats

Television sets

Computers

Magnetic disc devices

Passenger cars

Freight vehicles

Vending machines

Heating stoves

Program Product

Energy-Saving Labeling Program

Uniform Energy-Saving Label

Gas cooking appliances

Gas water heaters

Oil water heaters

Transformers Electric rice cookers

Microwave ovens

Videotape recorders

DVD recorders

Copiers

Routers

Switching devices

16

Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department 17

４．Improvement of Energy‐Efficiency by Top Runner Program

18

1174 1220

1241

1212 1157

1048 1028

1028 9975

966 924

884

870

600

700

800

900

1000

1100

1200

1300

12.3

12.1

12.4 12.9

13.2

13.5

14.0

14.6

14.7

15.0

15.1 15.5

15.7 16.5

17.8 18.3

8

10

12

14

16

18

20

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

48.8% improvement

ＦＹ

30% improvement

Improvement of Energy‐Efficiency by Top Runner Program(1)

[Passenger cars] [Air conditioners]

Transition in fuel economy of average new cars Fuel economy (km/L)

(Note) Fuel economy values for the 10­15 mode. (Note) Wall mounted cooling and heating units with cooling capacity of 2.8kW­class model; simple average values for a representative model of energy conserving­type products.

ＦＹ

Electric power consumption for period Electric power consumption for period (kWh)

19

Product name Improvement in energy efficiency (performance data)

Breakdown

Air conditioning units (room air conditioners) 67.8％（FY1997→2004 (industry fiscal year)） COP （3.01→5.05）

Electric refrigerators 55.2％（FY1998→2004） Annual power consumption (647.3kWh/year →290.3kWh/year)

Electric freezers 29.6%（FY1998→2004） Annual power consumption (523.8kWh/year →369.7kWh/year)

Gasoline-engine passenger cars 22.8%（FY1995→2005） Fuel efficiency （12.3km/l→15.1km/l）

Diesel-engine freight vehicles 21.7%（FY1995→2005） Fuel efficiency （13.8km/l→16.8km/l）

Vending machines 37.3%（FY2000→2005） Annual power consumption (2617kWh/year →1642kWh/year)

Fluorescent lighting 35.7%（FY1997→2005） Lumen/watt （63.1lm/W→85.6lm/W）

Computers 99.1%（FY1997→2005） Watt/mega calculation （0.17→0.0015）

Magnetic disc devices 98.2%（FY1997→2005） Watt/gigabyte （1.4→0.0255）

Copiers 72.5%（FY1997→2006） Electric power consumption （155Wh→42.7Wh）

Electric toilet seats 14.6%（FY2000→2006） Annual power consumption (281kWh/year →240kWh/year)

Gas water heaters (gas boilers & gas bath water heaters) 5.5%（FY2000→2006） Thermal efficiency （77.7%→82.0%）

Gas cooking appliances (cooktop burners) 15.7%（FY2000→2006） Thermal efficiency （48.3%→55.9%）

Gas heaters 1.9%（FY2000→2006） Thermal efficiency （80.9%→82.4%）

Oil heaters 5.4%（FY2000→2006） Thermal efficiency （78.5%→82.7%）

Television sets (LCD & plasma TV) 29.6%（FY2004→2008） Annual power consumption (179.7kWh/year →126.5kWh/year)

DVD recorders (noncompliant with terrestrial digital broadcasting)

40.9%（FY2004→2008） Annual power consumption (66.0kWh/year →39.0kWh/year)

Microwave ovens 10.5%（FY2004→2008） Annual power consumption (77.2kWh/year →69.1kWh/year)

Electric rice cookers 16.7%（FY2003→2008） Annual power consumption (119.2kWh/year →99.3kWh/year)

Improvement of Energy‐Efficiency by Top Runner Program(2)

Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department 20

５． Future development of Top Runner Program

21

Future development of Top Runner Program

Top Runner Program is being expanded to the equipments for commercial use.

1)New items under the enforcement procedure( the draft standards were already set)

Commercial refrigerators, Heat pump type hot water boilers, printers

2)New items under discussion

Commercial refrigerated cabinet, LED lighting, 3‐phase induction motors

The bill to expand Top Runner Program to the building materials such as windows, insulators, bathroom & kitchen facilities is now under diet session.

Commercial refrigerated cabinets LED lighting Three phase induction motors

Insulator

Windows

＜既存ストック住宅・建築物のリフォーム例＞

樹脂サッシ 複層ガラス

高断熱窓【窓の交換】

既存天井・外壁の断熱材を撤去し、敷込断熱施工（注）を行う。

（注）敷込断熱施工：高密度で高性能のマット状の断熱材をはめ込む工法

【天井・外壁の断熱改修交換】

冷暖房用

冷暖房用

＜既存ストック住宅・建築物のリフォーム例＞

樹脂サッシ 複層ガラス

高断熱窓【窓の交換】

既存天井・外壁の断熱材を撤去し、敷込断熱施工（注）を行う。

（注）敷込断熱施工：高密度で高性能のマット状の断熱材をはめ込む工法

【天井・外壁の断熱改修交換】

冷暖房用

冷暖房用

＜既存ストック住宅・建築物のリフォーム例＞

樹脂サッシ 複層ガラス

高断熱窓【窓の交換】

既存天井・外壁の断熱材を撤去し、敷込断熱施工（注）を行う。

（注）敷込断熱施工：高密度で高性能のマット状の断熱材をはめ込む工法

【天井・外壁の断熱改修交換】

冷暖房用

冷暖房用

＜既存ストック住宅・建築物のリフォーム例＞

樹脂サッシ 複層ガラス

高断熱窓【窓の交換】

既存天井・外壁の断熱材を撤去し、敷込断熱施工（注）を行う。

（注）敷込断熱施工：高密度で高性能のマット状の断熱材をはめ込む工法

【天井・外壁の断熱改修交換】

冷暖房用

冷暖房用

Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department 22

６． Conclusion

23

Conclusion

The energy‐efficiencies of the household appliances and equipments have been drastically improved since the Top‐Runner Program was first introduced in 1999.

In order to pursue the further energy conservation, the coverage of the Top‐Runner Program will be reviewed and expanded to the new field, such as the equipments for commercial use and building materials.

Top‐runner Program has the following characteristics;

• Realistic but high target standard which the manufactures can reach by using available technologies

• Target year with enough lead time for technological innovation and consideration for product development cycle

• Simple but informative labeling that promote the consumers’ understanding for better energy‐efficiency products

• Flexibility;

‐The path to achieve the target until the target year depends on the corporate decision.

‐Unlike MEPS, less efficient products under the target value could be sold if many more efficient products above the target value were sold.

Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy Energy Conservation and Renewable Energy Department 24

Thank you!