The European Negotiated Agreement to Improve Motor Efficiency

Abstract

The European Union is pursuing a number of measures to improve end use equipment efficiency through a variety of policy instruments. One of the most effective policy options to achieve market transformation is minimum efficiency performance standards (MEPS). However, after the difficulties and controversy following the adoption of legislation for MEPS for domestic refrigerators/freezers, a new policy instrument, i.e. the negotiated agreements by manufacturers, has been used to achieve market transformation. Based on the positive experience made in two agreements, one for washing machines and one for TVs and VCRs, the European Commission and CEMEP, the European association of motor manufacturers, have negotiated a new agreement for electric motors.

This paper describes the proposed motor agreement, the expected energy savings of about 6 TWh, and the advantages and disadvantages of the motor agreements compared to mandatory MEPS, in the view of the Commission and the motor manufacturers. The paper concludes that the negotiated agreement could be a viable policy option, which allow flexibility in the implementation of the efficiency targets and therefore the adoption of cost-effective solutions for manufacturers. The main question that remains to be answered is whether the negotiated agreement can deliver the results in the long term compared to what could be achieved through legislation.