Promoting Energy Efficient Room Air Conditioners (PEERAC)

The Challenge

In 2007, China consumed 265,480 million tons of coal equivalents of energy and in the process generated 6,300 million tons of energy-use related CO2 emissions. From 2000 to 2007, energy consumption grew 9.8 per cent annually. Heating, Ventilation and Air Conditioning (HVAC) account for the highest energy consumption among the end user in the Commercial and Residential (C&R) sectors, contributing 60-65 per cent. About 10 per cent is for air conditioning.  

Demand for air conditioning both in the commercial and residential sectors is increasing, driving up sales of room air conditioners (RACs), particularly in the residential sector. This increase in the number of RACs in use in China is contributing a significant amount to China’s increasing energy-related emissions.

The Response

In response to global energy issues, and in conjunction with the country’s aim to reduce GHG emissions to help mitigate climate change, China is trying to cut its energy consumption. The goal of the project is to contribute to this reduction of GHG emissions with a targeted intervention on the RAC industry in China’s residential and commercial sectors.

The  project is comprised of three substantive components:

  1. AC Compressor (ACC) Efficiency Upgrades;
  2. RAC Efficiency Upgrades;
  3. Energy Efficient (EE) RAC Promotion.


The project has facilitated efficiency upgrades to older units and promoted EE RACs in the domestic market since its inception. Progress towards the three project outcomes is on schedule, suggesting the timely achievement of the intended outcomes by the end of project. At national level, upgrades of RAC/ACC efficiency serve China’s 12th five-year plan for energy saving and emission reduction directly. At global level, achievement of the project outcomes contributes to climate mitigation.

  • ACC efficiency has been increased by 13 per cent over the project baseline (2.67 per cent), exceeding the 2012 periodical target. Participating ACC manufacturers are meeting their responsibilities in developing high-efficiency products, with full confidence of achieving project goals in efficiency improvement by the project’s end.
  • RAC efficiency has also been increased by 23 per cent over the project baseline (2.67 per cent), exceeding the 2012 periodical target.
  • A number of consumer education and Public Relation events have been held, yielding impressive public engagement with the project’s goals. Preliminary work on enhancing national EE labelling for RACs has been carried out, aiming to improve information availability and consumer awareness.
  • As an important tool for disseminating information about EE RACs and promoting the purchase of EE RACs, the PEERAC project website has been designed and is under construction. 


Who finances it?

Donor               Amount


US$ 6,263,000
US$ 21,350,600

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