Key Drivers for Energy Efficiency in the Digital Home

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1 Key Drivers for Energy Efficiency in the Digital Home March 20, National Symposium on Market Transformation Douglas Johnson, Sr. Director, Technology Policy, CEA

2 Presentation Overview CEA and consumer electronics Trends and energy use Position and approach Initiatives Role of technology

3 Consumer Electronics Association (CEA) U.S. industry association with more than 2,100 members Represent entire range of CE industry $140 billion in annual sales in U.S. Public policy, standards, market research, training, promotion, and International CES

4 Consumer Electronics Televisions and set-top boxes Video recorders and players Home audio and home theater products Portable audio and video products Desktop and notebook computers and computer accessories Video games Mobile phones and accessories PDAs and handhelds In-car information, communication and entertainment products Cameras and camcorders Cordless telephones and accessories Home networking and home office products

5 Average Number of CE Products per U.S. Household Source: CEA Sales and Forecasts, 12/06

6 CE Industry Growth Revenue in Billions $98.4 $105.6 $116.3 $128.9 $145.7 $ Source: CEA Sales and Forecasts, 12/06

7 Consumer Electronics Market is dynamic, highly competitive and characterized by rapid innovation, significant time-to-market pressures, rapid rates of market penetration, and rapid transition from one technology to another. Products are vastly different by design, function, consumer use and performance than residential, industrial and commercial appliances and equipment.

8 Trends Major industry trends which naturally drive, support and sustain the energy efficiency of electronics (and other industry sectors): - Convergence - Miniaturization - Transition from analog to digital technology - Innovation

9 Energy Efficiency Energy efficiency is an important design consideration for CE products. CEA believes that practical solutions to advance energy efficiency are best reached through a public/private partnership and thorough analysis which balances energy consumption with consumer demand for greater product functionality.

10 CEA Energy Efficiency Initiatives Research and analysis Public policy Industry standards Consumer education Events

11 Energy Use Many estimates of CE electricity consumption rely upon data developed in the late 1990s. In its recent adoption of mandatory limits, California Energy Commission relied extensively upon assessments of CE energy consumption developed in the late 1990s.

12 Energy Use Same values used in California Energy Commission analysis have been repeated in other reports (e.g. ACEEE s 2006 report, Leading the Way: Continued Opportunities for New State Appliance and Equipment Efficiency Standards). The U.S. Energy Information Administration, a leading source of U.S. energy consumption data, also presently relies heavily upon data developed in the late 1990s to estimate the electricity consumption of many CE products and miscellaneous electric loads.

13 Energy Use Many CE products have changed dramatically over the last decade, as have their energy consumption characteristics (e.g., due to technological change and the success of the Energy Star program). CEA engaged TIAX to study and report current energy consumption for CE products (completed January 2007).

14 Objectives of CEA- Commissioned Study Current analysis (2006) Focus on key equipment types (16 products that account for approximately 90% of residential CE energy consumption) Excluded digital TV for now (test procedure being completed) Peer-reviewed publicly available final report Goal: Good data for all variables

15 Bottom-up Calculation of Energy Consumption Annual Usage, by Mode Power, by Mode Unit Electricity Consumption, by Mode Mode Active T active x P active = UEC active Unit Electricity Consumption Residential Stock Annual Electricity Consumption Sleep T sleep x P sleep = UEC sleep M = UEC X S = AEC Off T off x P off = UEC off Note: Modes illustrative, actual modes vary by device

16 Energy Use Consumer Electronics Excluding DTV, residential CE consumes 11% of residential electricity Other Lighting Space Cooling Consumer Electronics* Space Heating Refrigeration Water Heating Clothes Dryer Freezer Cooking 3% 2% 5% 11% 9% 8% 8% 15% 17% 21% *Excluding Digital TVs 0% 5% 10% 15% 20% 25% Percent of Residential Electricity Consumption

17 Energy Use Consumer Electronics and 4% of total U.S. electricity. Commercial 35% Other Residential 32% Industrial 28% Residential CE 4.0% Transport 0.7% *Excluding Digital TVs 0% 10% 20% 30% 40% Percent of Residential Electricity Consumption

18 Energy Use Consumer Electronics Annual Residential CE Electricity Consumption Total = 147 TWh (excluding DTV) Television - Analog PC - Desktop Other STB - Cable STB - Satellite Monitors Compact Audio Cordless Phone VCR DVD Player PC - Notebook Video Game HTIB TAD STB - PVR 7% 6% 5% 4% 3% 3% 3% 2% 2% 1% 0.6% 0.3% 11% 14% 36% *Excluding digital TV 0% 5% 10% 15% 20% 25% 30% 35% 40% Percent of Residential CE Energy Consumption

19 Key Trends Affecting CE Energy Consumption Higher installed base for many devices (Many new devices, e.g., HTIB, DVD, DTV; installed base of key equipment types is about twice that circa 1997) Apparent greater usage of TVs and PCs (Increased accuracy from usage surveys) Increase in active mode power draw for several devices (Analog TVs, PCs) Decrease in active mode power draw for monitors Decrease in standby mode power draw for many devices (Large portion have met Energy Star criteria)

20 Study Conclusions CEA funded a high quality study to independently quantify residential CE energy consumption Residential CE, excluding DTV, accounts for 11% of residential U.S. electricity consumption and 4% of total U.S. electricity consumption

21 Study Conclusions The current estimate for residential CE energy consumption is higher than prior studies More refined assessment than prior studies, particularly for usage Dramatic growth in installed base, e.g., PCs, monitors, set-top boxes, DVD players Active power draw varies with device type: up for TVs and PCs, decrease for monitors Standby mode generally decreased with exception of set-top boxes Full report is available on CEA s website, CEA to complete DTV analysis in spring 2007

22 Energy Use Consumer Electronics The TIAX study demonstrates the effectiveness of voluntary energy efficiency programs.

23 Key Drivers for CE Market Transformation Technological innovation and successful, voluntary, market-oriented programs such as Energy Star are the key drivers transforming the consumer electronics marketplace and delivering more energy efficient products to consumers and businesses over time.

24 Other Market-Oriented Drivers Government procurement Retailer initiatives Consumer demand

25 Market Transformation To transform the market and deliver more energy efficient products to consumers and businesses over time, the CE industry has supported: - Successful market-oriented programs such as Energy Star - Industry-led standards setting activities at the national, regional and international levels - Consumer education

26 Voluntary, Market-oriented Programs and Initiatives Incentive programs like Energy Star Voluntary codes like EU Code of Conduct Industry standards, which policy makers and other stakeholders can influence to save energy while protecting innovation and consumer choice Consumer education

27 Energy Star Voluntary, market-driven and international Government-industry partnership Captures broad range of consumer electronics Strong participation by manufacturers Well-recognized by consumers Competitive incentive for energy savings

28 Energy Star Designed to recognize products that are in the top 25% for energy efficiency. New criteria are phased in gradually. Over time, the Energy Star program leads the market toward higher efficiency levels. Consideration of active power in addition to standby power.

29 Energy Star Electronics are an Energy Star success story ENERGY SAVED 2005 (BILLION KWH) EMISSIONS AVOIDED 2005 (MILLION METRIC TONS OF CARBON EQUIVALENT) Consumer Electronics Residential Appliances Residential Office Equipment Lighting Heating and Cooling Commercial Appliances Office Equipment Commercial Lighting Other Source: United States Environmental Protection Agency s ENERGY STAR 2005 Annual Report

30 Energy Star: Threats to Future Success Prior to action by the California Energy Commission, no state government or agency had taken the voluntary Energy Star program criteria and made them mandatory for the market. CEC s action will fundamentally alter dialogue between industry and EPA on Energy Star specifications.

31 Industry Standards Market-oriented Strong industry participation Credible and flexible Open to all stakeholders Performance neutral International

32 Industry Standards: CEA American National Standards Institute (ANSI) accreditation More than 70 committees, subcommittees and working groups

33 Industry Standards Recent industry standards projects for energy efficiency: - Standards developed by CEA Video Systems Committee R4 : CEA-2013-A (Digital STB Background Power Consumption); and CEA (Digital STB Active Power Consumption Measurement) - International industry standard for measuring TV power consumption (IEC TC 100 and TC 110 working groups)

34 Consumer Education The CE industry has developed consumer tips for saving energy with electronics, available at

35 Consumer Education

36 Consumer Education

37 International CES New International CES Innovations award for eco-design Energy efficient products and technology on display Conference session on energy efficiency

38 Global Industry Position Support voluntary, market-oriented programs and initiatives, including industry-led standards, which highlight and sustain energy efficiency in the electronics industry; Continue to work cooperatively with governments in the development of energy efficiency initiatives that complement and support voluntary approaches and continued innovation, expanded consumer choice, and enhanced product functionality; Oppose government-imposed approaches that stifle innovation, reduce consumer choice, and limit product features and services.

39 Best Way to Approach Energy Efficiency in CE Industry Appliance energy efficiency standards are not appropriate for electronics. Better alternatives exist which are already working to save energy, such as the international Energy Star program. Voluntary programs are the right approach for supporting energy efficiency in the ever-changing consumer electronics industry.

40 Technology As An Energy Savings Solution Volumes in the CE industry drive semiconductor innovation that allow more efficient appliances and product controls. Information technology and telecommunications products allow teleworking and remote access to information and entertainment, both of which save fuel and reduce greenhouse gas emissions. Home networking products help save energy by providing increased control over home heating, cooling and lighting systems.

41 Opportunities for Collaboration Support and defense of voluntary approaches: - Incentive programs, voluntary codes Industry-led standards Product-specific initiatives: STBs Consumer education Research and analysis International CES and other events

42 Contact Doug Johnson Consumer Electronics Association (CEA)

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