Samsung Televisions User Manual

MEPS − Televisions April 2005

A study produced for the Energy Efficiency and Conservation Authority by

Wise Analysis Ltd

Page 1 of 33

MEPS − Televisions April 2005

Preface

Introduction

New Zealand has a trade agreement with Australia, which requires that products
lawful for sale in Australia, originating from or through Australia, may be lawfully sold
in New Zealand and vice versa. New Zealand is therefore obliged to consider
implementing any action taken by Australia affecting the appliance and equipment
market.

The Australian Greenhouse Office (AGO) is committed to implement minimum
energy performance standards (MEPS) for televisions (TVs) with voluntary energy
labelling. Presently the intention is for MEPS and voluntary energy labelling to be
introduced in October 2006.

The report

The report provides a New Zealand perspective on Australian proposals to introduce
a MEPS and energy labelling scheme. It recommends that a MEPS and energy
labelling scheme for TVs should be implemented in tandem with Australia. The
MEPS would cover both on-mode and standby energy consum ption. The setting of
MEPS levels would be designed initially, as in Australia to enco urage the removal of
the 30% of worst performing TVs from the marketplace and to match the best
practice levels of our product source countries.

The total energy use of TVs is estimated to be 320 GWh per year. Savings of 20% of
this 320 GWh over the next 5-7 years are expected to be achievable using some
form of MEPS. Standby power is also a significant contributor to the overall TV
power use, and a reduction of some 30% could be achieved, with a long term goal of
reducing TV standby consumption from around 6W to less than 1W.

EECA’s intended course of action

EECA will release this scoping report and commission a regulatory impact stateme nt.
We will then consult with industry and other interested parties. After cons ideration of
industry feedback, a recommendation will be forwarded to Government regarding the
possible adoption of MEPS and voluntary labelling.

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A study produced for the Energy Efficiency and Conservation Authority by

Wise Analysis Ltd

MEPS − Televisions April 2005

Minimum Energy

Performance Standards −

Televisions

a study for the

Energy Efficiency and Conservation Authority

April 2005

produced by

Wise Analysis Ltd
P O Box 10-186
Wellington 6036
New Zealand

Disclaimer

While every attempt has been made to ensure the accuracy of the material in this report, the authors make no warranty as to the
accuracy, completeness or usefulness for any particular purpose of the material in this report; and they accept no liability for
errors of fact or opinion in this report, whether or not due to negligence on the part of any party.

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A study produced for the Energy Efficiency and Conservation Authority by

Wise Analysis Ltd

MEPS − Televisions April 2005

Minimum Energy Performance Standards −

Televisions

CONTENTS
Executive Summary
1 Introduction

1.1 Background

2 Product Description

2.1 General

2.2 Transmission Types

2.3 Television Types

2.4 Sources of Product

3 Market Profile

3.1 All Television Types

3.2 Wide-screen Televisions
Summary

4 Energy Consumption

4.1 Household Energy Consumption

4.2 Trends in TV Power consumption
Summary

5 Technology Scope for Energy Efficiency
6 Standards Development
7 Test Laboratory Capability
8 International Energy Efficiency Programs

8.1 Voluntary Programs

8.2 Mandatory Programs
Summary − Testing Standards and Energy Efficiency Programs

9 Economic Implications

9.1 Energy Cost Savings

9.2 Trans-Tasman Trade Agreement

9.3 Greenhouse Reduction Potential

10 Policy and Program Approaches to Improve Energy Efficiency

10.1 Information Programs

10.2 Labelling Programs

10.3 MEPS

10.4 Costs of MEPS

Summary - Policy and Program Approaches to Improve Energy Efficiency

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A study produced for the Energy Efficiency and Conservation Authority by

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MEPS − Televisions April 2005

11 Recommended Policy Options for New Zealand

11.1 General Policy Recommendations

11.2 MEPS

11.3 Labelling Scheme

11.4 Consultation
Summary

12 Implementation Program

13 Summary and Conclusions

References
Appendix A − Potential Stakeholders

List of Tables

Table 1: General comparison between New Zealand and Australia
Table 2: Estimated number of TVs in households for the year ended June 2004
Table 3: Penetration of Television Ownership – Australia & New Zealand
Table 4A: New Zealand annual TV market based on type
Table 4B: New Zealand annual TV market based on feature
Table 5: Energy usage against TV penetration
Table 6: Best practice for LCD TVs
Table 7: Average Set Top Box Power Levels
Table 8: Summary of Testing Standards and Energy Efficiency Programs
Table 9: Summary of program approaches/policy tools
Table 10: Proposed Implementation Plan for Recommendations

Note: Acknowledgement is made to NAEEEP document “Minimum Energy Perform anc e Standa rds” Rep ort No
2004/11 for use of Tables 8, 9 and 10.

List of Figures

Figure 1 − Chart of Television Set Numbers in New Zealand.
Figure 2 − Power Usage Figures for Televisions in New Zealand − BAU and MEPS.
Figure 3 − Savings in CO

Emissions − BAU and MEPS.

2

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A study produced for the Energy Efficiency and Conservation Authority by

Wise Analysis Ltd

MEPS − Televisions April 2005

GLOSSARY

AGO Australian Greenhouse Office
ANZ Australian and New Zealand
AS Australian Standard
AS/NZS Joint Australian and New Zealand standard
BAU Business as Usual
BRANZ Building Research Association of New Zealand

-e Carbon dioxide equivalent

CO

2

Comparative label A type of product label that indicates not only that the product meets specific

energy or environmental criteria, but allows comparison between products by

ranking.
CRT Cathode Ray Tube
DVD Digital Video Disk
DVB Digital Video Broadcasting
EECA Energy Efficiency and Conservation Authority
Endorsement label A type of product label that indicates a product meets specific criteria (i.e.

energy or environmental). The label does not allow comparison between

eligible products.
EER Energy Efficiency Ratio
EEI Energy Efficiency Index, a measure which indicates the efficiency of TVs in

both the On and Standby mode.
GEEA Group for Energy Efficient Appliances (Europe)
HDTV High-definition television
HEEP Household Energy End-use Project (BRANZ/EECA)
IRD Integrated receiver decoder
LCD Liquid Crystal Display
MCE Ministerial Council on Energy (Australia)
MEPS Minimum Energy Performance Standards
NAEEEP National Appliance and Equipment Energy Program (Australia)
NAEEEC National Appliance and Equipment Energy Efficiency Committee (Australia)
NFEE National Framework for Energy Efficiency (Australia)
NPV Net present value
Ownership The ratio of stock to the total number of households.
Penetration The proportion of households in which a particular appliance type is present

(irrespective of the number of units of that appliance in the household).
Saturation The number of specified appliances per household, for those households that

have the appliance.
SDTV Standard-definition television
Statistics NZ Statistics New Zealand
STB Set top box
TTMRA Trans-Tasman Mutual Recognition Agreement
TV Television
VCR Video cassette recorder

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A study produced for the Energy Efficiency and Conservation Authority by

Wise Analysis Ltd

MEPS − Televisions April 2005

Executive Summary

This report provides a New Zealand perspective on Australian proposals to introduce a MEPS
and comparative labelling scheme. It recommends that a MEPS and comparative labelling
scheme for televisions in New Zealand should be implemented in tandem with Australia. The
MEPS should cover both on-mode and standby energy consumption. The setting of MEPS
levels should be designed initially, as in Australia to encourage the removal of the 30% of
worst performing TVs from the marketplace, and to match the best practice levels of our
product source countries.

Since the scheme will probably now be voluntary, consultation with the importers and major
retailers will be necessary to ensure that there is no undue resistance to the scheme, to
maximise compliance and adherence to the principles of the scheme.

The most common form of television used in the residential sector in both New Zealand and
Australia is still the analogue colour TV using cathode ray tube technology. However the sales
volume of slimline televisions (LCD, plasma and rear projection) is increasing rapidly almost
doubling from 5.2 to 9.6% last year. The features offered by TVs now include 100 Hz picture
frequency, widescreen format, and stereo which all increase the power of the set. Another
significant change will be the introduction of digital television. Consumers with analogue sets
will have to purchase a set top box to convert digital broadcasts to analogue, although i

receiver decoder sets will come to market soon

.

ntegrated

New Zealand imports all of its TVs, and has done so since 1990-91, and Australia is also now
primarily an importer of televisions. The main source for New Zealand supply is China, with a
smaller number originating in Europe, Japan, and Korea.

The total number of TVs in New Zealand is estimated at 2,785,600, a 98% penetration. Of
these 590,200 are single TV households. The numbers of TVs currently sold each year is
currently 318,847 an increase of 25% on the previous year. The current economic life of
standard CRT style TVs is assessed as averaging 7 years.

The total energy use of TVs is estimated to be 320 GWh per year, which is of the order of 40%
of the annual energy increase for New Zealand of 800 GWh. Savings of 20% of this 320 GWh
over the next 5-7 years are expected to be achievable using some form of MEPS, and would
contribute significantly to lowering New Zealand’s energy growth profile. Standby power of
around 6W is also a significant contributor to the overall TV power use, and a reduction of

some 30% could be achieved, with a long term goal of less than 1W.

In Europe, there are a number of initiatives to encourage industry best practice through a
voluntary energy labelling scheme, which uses an Energy Efficiency Index. At least 20% of
analogue TVs already on the market in Europe comply with this index. Mandatory or
obligatory programs are the Japanese Top Runner program, and China is planning the
imminent introduction of a labelling and MEPS program within the next year. However
“business as usual” will also produce a natural reduction in energy usage for TVs of 2% per
year from savings due to design improvements by manufacturers.

It will be important to ensure that a New Zealand or Australasian MEPS scheme is compatible
with other national schemes that have a larger manufacturing or consumer base. It is
anticipated that contracts for TV purchase will have to include requirements for type testing
from overseas test laboratories and possibly labelling.

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A study produced for the Energy Efficiency and Conservation Authority by

Wise Analysis Ltd

MEPS − Televisions April 2005

The effect of the Trans-Tasman Mutual Recognition Agreement means that goods that are
acceptable for sale in one jurisdiction can legally be sold anywhere in Australia and New
Zealand. If Australia has a mandatory MEPS regime − which now seems unlikely − and New
Zealand does not, theoretically it would be possible to import non-compliant TVs to Australia
although the dangers are more apparent than real.

The introduction of a MEPS scheme would see annual energy savings increase from 8 GWh in
2006 to 29 GWh in 2025, with a cumulative saving in this period of 392 GWh. In addition
avoided power costs would save additional carbon charges with a net present value of the
cumulative savings till 2025 of $10.78 million.

The cost of applying MEPS would be largely absorbed by retailers and consumers, but could
attract annual administration costs of $100,000 with an NPV of $2.2 million. Compared with
the NPV of the electricity saved of $8.3 million, there is a substantial benefit cost ratio of
almost four. If the savings in carbon charges are included the benefits are almost doubled.

Although Australia originally aimed to introduce a combined MEPS/labelling scheme by 2006,
recent stakeholder feedback in Australia has opposed mandatory labelling, and it is now
unlikely to proceed, although voluntary labelling and MEPS will still go ahead. It would still
be advisable to keep our alignment with Australia, and it is recommended that New Zealand
introduce a similar scheme to whatever is finally agreed to in Australia.

Further consultation with the importers and major retailers will be necessary to ensure that
there is no undue resistance to the scheme, to maximise compliance and adherence to the
principles of the scheme. It should be possible to introduce such a MEPS and labelling scheme
by the end of 2006 if decisions and consultation begin as soon as possible.

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A study produced for the Energy Efficiency and Conservation Authority by

Wise Analysis Ltd

MEPS − Televisions April 2005

1 Introduction

1.1 Background

In November 2004 the Energy Efficiency and Conservation Authority commissioned Wise
Analysis Ltd to provide a review of the document “Minimum Energy Performance Standards −
Televisions”
Ltd. In particular this report was to “provide a New Zealand perspective to the differences
between the two countries with respect to:

• markets, including a quantitative discussion compatible with the section entitles

• available technologies

• economic implications (especially costs, and energy savings).”

As background to the Australian report, the Australian National Appliance and Equipment
Energy Efficiency Committee (NAEEEC) had tracked over three years the energy usage − in
particular standby power consumption − of appliances sold in retail outlets across Australia.
NAEEEC also had an intrusive survey of standby consumption in households, and had a
telephone survey done of 800 households to determine appliance ownership and usage. This
meaningful research data became the backbone of the Australian Government’s standby policy
development.

Leading on from this research, in 2002 the Australian Ministerial Council on Energy in 2002

released a policy document Money Isn’t all You’re Saving

Power Strategy 2002 – 2012. The strategy outlined the products and appliances that required
“immediate” or “subsequent” action in the standby power program, among which were
televisions
of use including on-mode and not just standby modes, might better meet the Australian
government’s efficiency goals. A report was thus commissioned to consider a range of policy
options, including mandatory measures like appliance energy rating labelling and Minimum
Energy Performance Standards (MEPS), to achieve that outcome. The report also investigated
the potential for energy and greenhouse savings through the use of a combination of policy
tools.

Much of the data in the Australian report, for example on power measurements could not be
independently verified, and has been taken as given. In addition the depth of demographic
information obtainable in New Zealand was also limited compared with Australia. However
the key to the study is not so much the starting data as the assumptions made as to future
growth of the stock of televisions, and it’s make up and changes to efficiency. The assumptions
made in this report are given later in 9.1.

A general comparison of the two countries is given in the following table:

1

which was prepared for the Australian Greenhouse Office by Energy Consult Pty

“Market Profile”

2

outlining Australia’s Standby

3

. Further research for NAEEEC4 suggested that a program that examined all modes

1

Minimum Energy Performance Standards: Televisions, NAEEEP Report 2004/11 (prepared for prepared for the Australian Greenhouse

Office

2

Money Isn’t All You’re Saving, Australia’s Standby Power Strategy 2002-2012, MCE

3

Where ever the term “televisions” appears in this report without further descriptive information, the term covers all television types,

including digital, wide screen, plasma, rear projection, CRT, etc.

4

Sustainable Solutions A Study of Home Entertainment Equipment Operational Energy Use Issues. NAEEEC 2003

A study produced for the Energy Efficiency and Conservation Authority by

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Wise Analysis Ltd

MEPS − Televisions April 2005

Table 1: General comparison between New Zealand and Australia

New Zealand Australia
Area
Population
GDP

268,000 sq km 7,682,300 sq km
4 million 20 million
$120 billion = A$105 billion $750 billion

Per capita GDP NZ$30,000 = A$26,000 A$37,000
Principal exports

Primary (rural) products (54%) Resources (45%), rural (30%)

On a purely population basis the ratio between Australia to New Zealand is thus approximately
fivefold.

2 Product Description

2.1 General

Analogue colour televisions using cathode ray tube (CRT) technology are currently the most
common form of television used in the residential sector in both New Zealand and Australia.
They are based on the European PAL system with free to air broadcasts using VHF and UHF
bands. There are also various pay TV broadcasts made using UHF via microwave, and satellite
and cable using digital technology (these usually go through a converter/decoder to product a
suitable analogue output).

The most significant change coming to television in both Australia and New Zealand since its
introduction in 1950s is the introduction of digital television which is currently being trialled in
Auckland, and was enabled in Australia in 2001 by legislation. Digital television was launched
in the five mainland metropolitan areas (Sydney, Melbourne, Adelaide, Perth and Brisbane) on
1 January 2002. In Australia, broadcasters are required to deliver a hybrid system of SDTV
with some HDTV programming where possible. Broadcasters in Australia must provide at least
20 hours of digital programs within two years of commencing. Trial digital TV broadcasts are
being made in Auckland.

For consumers, digital television means clearer, sharper pictures and a reduction in the
interference and ghosting that currently affect many viewers in built-up areas or where there is
hilly terrain. The change to digital television will also enable viewers to receive datacasting
and enhanced television services that may include subtitles, captioning, further information on
programming and a choice of viewing angles. No date for the ceasing analogue transmission
has been set in New Zealand, although 2008 has been quoted for Australia. To be able to watch
television, consumers with analogue sets will have to purchase a set top box (STB) which will
convert digital broadcasts to analogue.

The Television New Zealand 2004 annual report states that: “For New Zealand households to
convert to a fully digital environment there needs to be investment in new distribution
infrastructure as well as additional and enhanced services from television broadcasters. This
infrastructure will take at least a decade to implement.” This would put the date at which the
changeover to digital technology could occur at approximately 2014, although some service
could be introduced gradually before then.

Digital television signals can be transmitted in either standard definition or high definition.
Standard-definition television (SDTV) reportedly has improved reception capability when

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A study produced for the Energy Efficiency and Conservation Authority by

Wise Analysis Ltd