EU Rejects High-Efficiency Motors for Some Fixed-Speed Application Ranges

Overview

Based on the latest European Union (EU) minimum energy performance standards (MEPS), the EU rejects High-Efficiency Motors  IE2) for some fixed-speed application ranges. 

Phase Two of the EU ErP (Energy-related Products) Directive that went into effect early last year mandates that IE3 Premium Efficiency motors must now be used for fixed-speed applications in the 7.5kW to 375kW (10HP to 500HP) power range. For now at least, IE2 motors equipped with variable frequency drives (VFDs) can still be used for variable speed applications.  This will no longer be the case in 2017.  (In North America, all motors, whether fixed or variable speed, across most power ranges have required the equivalent NEMA Premium rating since December 2010.)  Obviously, these new energy efficiency requirements have ramifications for motor suppliers and end users alike. 

Minimal Initial Impact Expected

Premium Efficiency motors typically cost 15 to 20 percent more than equivalent IE2 (High Efficiency) motors.  However, according to ARC Advisory Group research, only a relatively small percentage (approximately 15 percent) of industrial applications in the EU fall within the affected power range.  Thus, for now at least, the cost impact for users and associated revenue growth for motor suppliers in that region should be minimal.

Rewinding Often Appears More Attractive than Replacement

IE3 motors cost approximately 15 to 20 percent more than the equivalent IE2 motors. However, initially at least, ARC expects the supplier revenue gains resulting from Phase Two’s IE3 initiative to be minimal due to the relatively small volume of motors effected in this power range.  ARC estimates that these account for less than 15 percent of units sold into the region in any given year. The majority of the installed base of fixed-speed motors in this power range are likely to be IE1 (Standard Efficiency) motors at best.  These are typically the most expensive motors to replace, making them good candidates for rewinding, rather than replacement.  As a result, suppliers often only sell a few thousands units in any given year.

The region’s current economic woes are expected to continue and will inevitably result in tighter MRO budgets for new plant equipment, including higher-efficiency motors that comply with the 2015 ErP Directive. Several rewinds of a 75kW motor over its lifetime is more favorable to MRO budgeting than replacing with a brand new fixed-speed IE2 motor, much less an IE3 motor.  For variable speed motors, users would also have to add in the cost of the VFD for variable-speed operations.

However, despite the lower initial cost of rewinding as opposed to replacing a motor, since a rewound motor may not be as energy-efficient as a new motor (even one with the same efficiency rating), users should include the total lifetime costs into the ROI equation.  This includes the incremental electricity costs over five, ten, or more years.

2017 and Beyond

In 2017, Phase Three of the ErP Directive will become active, affecting motors in the more popular 0.75kW to 7.5kW (1 HP to 10 HP) power range.  ARC estimates that these account for approximately 11 million units sold into the EU in any given year.  In addition, unlike Phase Two, Phase Three will also require new motors for variable speed applications to meet the IE3 requirements.  In other words, the 2017 Directive will affect a much larger group of motors and will therefore have more impact on users and suppliers.

What’s more, ARC has observed higher turnover in the installed base for the affected power range compared to the Phase Two-affected group, with a much larger percentage of these motors running pumps, fans and compressors and destined for variable speed operation and/or S1 (continuous) duty cycles. As a result, ARC expects to see increased demand for low-powered VFDs in the EU beyond 2017.

On the MEPS horizon is the Lot 30 Proposal, which could go into effect in 2020 in the EU. Currently in the draft stages in CEMEP’s (European Committee of Manufacturers of Electrical Machines and Power Electronics) Stockholm head office, the proposal outlines a more comprehensive transition to Premium Efficiency in the EU and covers the 0.75kW to 375kW (1 - 500HP) power range. The proposal also suggests greater inclusivity of duty cycles including S2 and S3, and eliminates any remaining loopholes or exemptions contained in the previous MEPS. If the Lot 30 Proposal comes to fruition, it would transform the EU into a Premium Efficiency motor market that rivals North America and China.

Recommendations for Users

The close succession of phases of the EU MEPS that began in 2011 and may possibly extend through 2020 has confused many industrial motor consumers.  Many users may be unaware of the new restrictions they face when deciding to upgrade their factory and field machinery to higher efficiencies. Loopholes and exemptions that existed in the MEPS (which are now being closed via amendments) have further complicated the consumers’ decision-making process for upgrading machinery.

ARC Advisory Group has the following recommendations for users in regulated motor markets:

• A 1 percent efficiency gain can result in tens of thousands of dollars saved on energy costs over the lifetime of the motor, greatly reducing the payback period of the motor. When purchasing thousands of motors at a time, the 1 percent efficiency gain escalates the savings into tens of millions of dollars.
• Users should perform duty cycle audits for motors on all automated operations in the factory and field to assess if and where an upgraded motor fleet could yield significant energy cost savings.
• With the Lot 30 Proposal having a high likelihood of being implemented in 2020, the ErP Directives are moving the EU closer to being a Premium Efficiency market like North America, China, and Japan.  For variable speed applications, upgrading now to a IE2+VFD motor/drive topography will provide a more cost favorable option compared to an even more expensive upgrade to a IE3+VFD motor/drive topography after 2020.
• If the upfront cost of upgrading to higher efficiency motors is not a limiting factor, users can help “future-proof” their operations against rising energy costs by replacing low-efficiency motors with IE4 permanent magnet synchronous motors (PMSMs) where applicable.  Even when paired with a VFD, these motors typically have an even shorter payback period than an IE2 or IE3 motor.

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Keywords: ErP Directive, PMSM, MEPS, Variable Frequency Drive, IE2, IE3, Premium Efficiency, High Efficiency, Permanent Magnet Synchronous Motor, ARC Advisory Group.