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Many countries are looking at the potential of raising appliance standards for air conditioners and other equipment. But the extra cost to consumers, the cost to design a testing lab required for enforcement, and the cost of an appropriate consumer information campaign are major barriers. QT has submitted a methodology to the UNFCCC - definitely outside the box - that will provide carbon credits to help finance the costs of implementing a real appliance standard. These costs primarily include the construction of the state-of-the-art testing laboratory for appliances. Testing labs are critical for the enforcement of mandatory appliance standards. QT estimates that the introduction of higher-efficiency air conditioners will reduce CO2 emissions in Ghana by 7 million tons over 10 years and help reduce strain on Ghana's overstressed power grid.
About a year ago, the Ministry of Energy approved a new air conditioner standard that would prohibit the sale of room air conditioners with an EER rating below 2.88. Based on extensive survey data, the average efficiency is about 2.54 (watts of cooling/watt of electricity or watts/watt). The current proposal makes clear, however, that the standard would not be mandatory until a testing lab is established. A staffed testing lab would allow the Ghana Standards Board to randomly test units and therefore make the standard enforceable. Currently, there is no money available for the estimated $1.5 million for a testing lab. The concept is to use carbon finance to provide the funding needed to build and operate the lab, thus ensuring the least efficient air conditioners are dropped from the market.
The need: The Ghanaian economy has experienced steady growth since 1995. Real GDP grew at an average annual rate of 4.7% from 1995-1997, but drought-induced power shortages in 1998 hampered industrial and service sector outputs and limited GDP growth to 2.0%, with rolling blackouts frequent into 2000. This demonstrated the vulnerability of Ghana's economy to energy shortages, which would be alleviated by a mandatory air conditioner standard. Air conditioning use is rising rapidly as more homes and businesses purchase room units. By implementing an enforceable standard, analysis from Lawrence Berkeley National Laboratory shows that consumers will save about $64 million in annual electricity bills..
Finally, a new standard would quickly free up about 13 MW of generating capacity and, according to the LBNL analysis, will be saving the equivalent of a 150MW generating plant by 2014. By 2021, this standard alone will be saving about 950GWh per year, freeing up nearly 250MW of generating capacity that can be used for other productive purposes.
Savings if the 2.8 EER standard is adopted or if an even stricter standard is adopted:
 
The Opportunity: The Ghana Standards Board already agreed in principle to joint standards development with Nigeria. The Nigerian Standards Bureau provided input for the passage of the Ghana AC standard. Ghana intends to collaborate with other ECOWAS countries on future standards through the Ghana Standards Board. Ghana and Nigeria alone account for an estimated 65% of all trade in West Africa and therefore have the potential of providing leadership and market-pull for other countries in the region. If Ghana adopts the mandatory standard and has the testing facility available, Nigeria might also adopt the standard, having the potential for significant replication.
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