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Life cycle cost analysis of energy efficiency design options for refrigerators in Brazil

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Abstract

The purpose of this paper was to present the results of a life cycle cost analysis concerning the purchase and operation of a more efficient popular refrigerator model compared with a baseline design in Brazil. The summarized results may be useful for organizations working to promote sustainable energy development. This paper specifically focuses on refrigerators, since their energy consumption is predicted to constitute over 30% of the total average domestic electricity bill in Brazilian households. If all new Brazilian refrigerators had an energy efficiency at the level consistent with the least life cycle cost of ownership, it would result in an annual savings of 2.8 billion dollars (US$) in electricity bills, 45 TWh of electricity demand, and 18 Mt of CO2 emissions, with a respective payback period of 7 years which is less than half the average estimated lifetime of a refrigerator. The analysis was conducted following the guidelines of similar analyses available from the US Department of Energy and the Collaborative Labeling and Appliance Standards Program.

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Notes

  1. The European and Brazilian models that have been used for comparison purposes have similar refrigeration system, same sizes, and are even the same brand. The major discrepancy is only the total gross capacity, i.e., 255 l in the European and 240 l in the Brazilian model.

  2. Some physical dimensions of the base case are 1,528-mm height, 619-mm width, and 691-mm depth. A hermetic compressor is used, which has a cooling capacity of 425 Btu/h (125 W), a displacement of 4.23 cc/rev, and an energy efficiency rate of 1.07 kcal/Wh, assembled for low back pressure applications. The electrical specification comprises an operating voltage range of 90–140 V supplied by a single-phase 60-Hz grid.

  3. PROCEL operates by funding or co-funding energy efficiency projects, such as, research and development (R&D), education and training, testing, labeling, standards, demonstration, and others. The program works on both increasing end-use efficiency and reducing losses in electricity generation, transmission, and distribution systems, though the latter diminished greatly after the liberalizing reforms of the 1990s. PROCEL cooperates with state and local utilities, state agencies, private companies, universities, and research institutes.

  4. The validation of the ERA refrigerator model (one door) was done by comparing the electricity consumption of 28.14 kWh/month obtained from ERA with the consumption of 28.1 kWh/month declared by the refrigerator manufacturer. As seen, the error for electricity consumption from simulation and manufacturer was within 1%. An experimental test in a specialized laboratory was also carried out in accordance with the ISO7371 test procedures and the measured consumption was with 28.35 kWh/month. The technical input data table for ERA is based on overall information about the cabinet and the main elements’ dimensions such as, evaporator and condenser. Specific data on characteristics of materials, insulation thermal resistivities, in addition to internal temperatures and refrigeration cycle information, were also necessary.

  5. Tax incentives for these technologies could encourage manufacturers to introduce new products and stimulate them to convey technical data for the appliance standards steering committee.

  6. This is an assumption made by the authors based on life expectancy of appliances as reported in the 23rd annual portrait of the US appliance industry. The life expectancy for standard refrigerators is within the range of 10 to 18 years (MrAppliance 2003).

  7. The greenhouse effect is the process in which the emission of infrared radiation by the atmosphere warms a planet’s surface.

  8. Greenhouse gases are the gases present in the atmosphere that reduce the loss of heat into space and therefore contribute to global temperatures through the greenhouse effect.

  9. The fourth line was obtained through an engineering/economic approach.

References

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Acknowledgments

The authors would like to thank the International Energy Agency/Climate Technology Initiative (IEA/CTI), the International Energy Initiative (IEI), the Environmental Protection Agency (EPA), and the São Paulo Research Council (FAPESP) for their financial support.

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Correspondence to Edson Adriano Vendrusculo.

Appendix 1

Appendix 1

This appendix is provided for background purposes and is based on the CLASP—Energy-Efficiency Labels and Standards: A Guidebook for Appliances, Equipment, and Lighting (Wiel and McMahon 2001). It is a EU analysis done in 1993. However, a more complete and up-to-date one done in 2001 (the “Cold II” study) is available and should be preferred (Waide 2001).

Energy efficiency standards

Three types of energy efficiency standards are described in the CLASP—Energy-Efficiency Labels and Standards: A Guidebook for Appliances, Equipment, and Lighting (Wiel and McMahon 2001): prescriptive standards, minimum energy performance standards (MEPS), and class average standards, any of which could be either mandatory or voluntary.

  • Performance standards prescribe minimum efficiencies (or maximum energy consumption) that manufacturers must achieve in all products manufactured after a certain date. These standards specify the energy performance, but not the technology or design specifications of the energy-efficient product.

The two most widely used analytical approaches for standards setting are: statistical analysis of current products and engineering/economic analysis of future possibilities. These approaches, and others, can be used in combination and are not mutually exclusive.

Statistical approach

Figure 8 shows a statistical analysis performed by the Group for Efficient Appliances (GEA) for three-star refrigerator–freezer models available in EU countries. Four lines are shown in this figure; they represent the average energy use obtained through a regression analysis of all of the data points, a 10% energy savings line, a 15% energy savings line, and a long-term standards line.Footnote 9 After the regression line is calculated, the least energy-efficient model is found and replaced with a model of higher efficiency. The number of models stays constant. The energy savings for the higher efficiency model is calculated, and energy savings are aggregated until the total reaches the goal (10%, 15%, etc.). Then, the resulting data points are used to derive a new regression line.

Fig. 8
figure 8

Statistical approach as applied to European Union refrigerator–freezers

Economic/engineering approach

An engineering analysis is first carried out for each product class within a product type to estimate manufacturing costs for improving efficiency compared to a baseline model. Installation and maintenance costs are also calculated. The engineering analysis can be described in seven steps: (1) select appliance classes; (2) select baseline units; (3) select design options for each class; (4) calculate efficiency improvement for each design option; (5) combine design options and calculate efficiency improvements; (6) develop cost estimates (include installation and maintenance) for each design option; (7) generate cost efficiency curves.

The expected costs of manufacturing, installing, and maintaining each design option must be estimated, including the ability of the after-market service sector to effectively maintain the performance of high efficiency equipment. In some cases, manufacturer costs are very difficult to obtain and it may be necessary to go directly to retail prices; this is a feasible approach if all the designs under consideration already exist in the marketplace.

Energy efficiency standard in North America

Once the engineering analysis is complete, it is customary to analyze the economic impact of potential efficiency improvements on consumers by analyzing consumer payback period and LCC. Figure 9 shows the LCC analysis results for two sets of US standards for a top-mount, auto-defrost refrigerator–freezer.

Fig. 9
figure 9

LCC analysis results for two sets of US standards for a top-mount, auto-defrost refrigerator–freezer (Wiel and McMahon 2001)

The minimum LCC (where the consumer receives the most benefit) occurs around 450 kWh/annum. The minimum LCC is not always chosen for a new standard because many other factors must be considered. For instance, options below 470 kWh/annum were rejected for use in a proposed standard because increased insulation thickness would make these refrigerators too wide to fit into fixed spaces in some existing kitchens, assuming that internal volume remains constant as insulation thickness increases.

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Vendrusculo, E.A., Queiroz, G.d.C., Jannuzzi, G.D.M. et al. Life cycle cost analysis of energy efficiency design options for refrigerators in Brazil. Energy Efficiency 2, 271–286 (2009). https://doi.org/10.1007/s12053-008-9034-6

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