Pakistan Sustainable Energy Series Supporting The Manufacture in Pakistan of High-Quality DC Fans Supporting The Manufacture in Pakistan of High-Quality DC Fans ACKNOWLEDGMENTS This report is based on work and analysis carried out by Ibrar Hussain Khattak (Consultant) over a number of years and under various different World Bank Group activities. The lead authors are Ermeena Malik (Consultant) and Ibrar Hussain Khattak (Consultant), with project oversight and additional editing by Oliver Knight (Senior Energy Specialist). Peer review was carried out by Leo Blyth (Consultant), and World Bank staff members Ivan Jacques (Senior Energy Specialist) and Jonathan Cooney (Senior Carbon Finance Specialist). This report is part of a series of deliverables on sustainable energy commissioned by the World Bank under the Pakistan Sustainable Energy Program (P169313), a multiyear technical assistance program in support of the Government of Pakistan. Funding for the work described in this report was generously provided by the Energy Sector Management Assistance Program (ESMAP) and the Lighting Pakistan program previously implemented by the International Finance Corporation (IFC), part of the World Bank Group. Copyediting services were provided by John Steinhardt, and design services were provided by The Word Express. The World Bank would like to thank the representatives from the fan cooling industry and relevant government counterparts for their close collaboration and engagement, including provision of background information and data, participation in meetings, and efforts to increase the efficiency of fans in Pakistan. Copyright © 2022 THE WORLD BANK. All rights reserved. 1818 H St NW, Washington, DC 20433, USA Telephone: +1-202-473-1000 Internet: https://worldbank.org RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes if full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: +1-202-522-2625; e-mail: pubrights@worldbank.org. All images remain the sole property of their source and may not be used for any purpose without written permission from the source. ATTRIBUTION Please cite the work as follows: World Bank. 2022. Supporting The Manufacture in Pakistan of High-Quality DC Fans. Pakistan Sustainable Energy Series. Washington, DC: World Bank. DISCLAIMER The World Bank does not guarantee the accuracy of the data included in this work and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Front and back cover photos courtesy of Ibrar Hussain Khattak/World Bank. CONTENTS Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi Defining National Minimum Quality Standards for DC Fans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi Strengthening National Testing Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi Facilitating Technology Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Promoting R&D Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Providing Business Development Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.  DC Fan Manufacturing in Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1  Manufacturing Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.2  Product Quality and Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.3  Product Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3.  Interventions to Support the DC Fan Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.1  IFC Lighting Pakistan Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.1.1.  The lack of testing facilities for DC fans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.1.2. Deficiencies in international testing standards for DC fans . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.2  World Bank Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.3  Outcomes and Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.3.1  R&D collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.3.2  Quality assurance standards and procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.3.3  Testing capacity improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.3.4  Business Development opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.3.5.  Technological improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4.  Conclusions and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 4.1  Government Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 4.2  Domestic Fan Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Development Finance Institutions and Project Implementation Organizations . . . . . . . . . . . . 15 4.3  iii Annex A: Consultative Workshop Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Background and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Presentations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Annex B: Pakistan Focused Off-Grid Fan Test Method . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Test Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Test Ssequence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Test Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Tables Table 2-1: Pakistani DC fans: size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Table 2-2: Pakistani AC versus DC fans: performance compared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Table 2-3: Pakistani versus imported fans: prices compared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Table 3-1: Pakistani DC fans: testing performance, durability and safety . . . . . . . . . . . . . . . . . . . . . . . . . 11 Table 3-2: Pakistani DC fans: required energy performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 iv Supporting The Manufacture in Pakistan of High-Quality DC Fans ABBREVIATIONS AND ACRONYMS AC Alternating Current AC-DC Alternating Current–Direct Current BLDC Brushless DC (motor) CLASP Collaborative Labeling and Appliance Standards Program DC Direct Current DFI Development Finance Institution EMTL Electrical Measurement & Test Laboratory ESCO Energy Services Company ESMAP Energy Sector Management Assistance Program FDI Fan Development Institute GoP Government of Pakistan IEC International Electrotechnical Commission IFC International Finance Corporation KfW Kreditanstalt für Wiederaufbau LEIA Low Energy Inclusive Appliances MEPS Minimum Energy Performance Standards NEECA National Energy Efficiency and Conservation Authority PCB printed circuit board PCSIR Pakistan Council for Scientific and Industrial Research PEFMA Pakistan Electric Fan Manufacturers Association PKR Pakistani Rupee PMIC Pakistan Microfinance Investment Company PRIME PMIC-KfW Renewable Energy Initiative through Microfinance PSQCA Pakistan Standards and Quality Control Authority R&D Research and Development SED Sindh Energy Department SEEP Super-Efficient Equipment Program SHS Solar Home System S&L Standards and Labeling SSEP Sindh Solar Energy Project TÜV Süd South Germany Technical Inspection Association USD United States Dollar v EXECUTIVE SUMMARY D irect current (DC) space-cooling fans are widely recognized for their superior energy efficiency and better overall performance compared to alternating current (AC) fans. In general, DC motors consume up to 70 percent less power than AC alternatives, and operate—more quietly—at a lower voltage. The energy efficiency advantage of DC fans is especially relevant for Pakistan, where electric fans are the prevalent technology for space cooling. Starting in 2018, the World Bank implemented several initiatives in collaboration with the fan industry and other stakeholders in Pakistan to address as a matter of urgency various issues that limit the domestic market and hold back the export of locally manufactured DC space-cooling fans. In the near term, support to DC fan manufacturing would directly impact the outcomes of off-grid electrification in Pakistan implemented through the World Bank and others development finance institutions, potentially incentivizing the purchase of more than 200,000 DC space-cooling fans. Moreover, improvements in the quality of Pakistani DC fans will increase the international competitiveness of local fan manufacturers and open up long-term export opportunities. This report provides an overview of the broad range of assistance delivered to the domestic fan man- ufacturing industry and describes the impact and outcomes of the various interventions. These range from international collaboration on research and development (R&D), to setting and defining quality standards for DC fans that are International Electrotechnical Commission (IEC) compliant, to building capacity in the private sector for technological improvements. DEFINING NATIONAL MINIMUM QUALITY STANDARDS FOR DC FANS Pakistan has adopted national standards for AC fans consistent with IEC standards (PS:1 2010); how- ever, there are currently no similar standards applicable to DC fans. Test methods for performance, durability and safety of DC fans for off-grid applications are also needed. With the assistance of the Collaborative Labeling and Appliance Standards Program (CLASP) and in consultation with key industry stakeholders, minimum performance standards were recommended for DC fans and test pro- cedures specified for the evaluation of metal-bodied DC fans made in Pakistan. The minimum energy performance standards defined through World Bank assistance (detailed in this report) provide the technical basis for the government of Pakistan to adopt national standards for DC fans through the Pakistan Standards & Quality Control Authority (PSQCA) and the National Energy Efficiency and Conservation Authority (NEECA). STRENGTHENING NATIONAL TESTING FACILITIES The capacity of the Electrical Measurement & Test Laboratory (EMTL) at the Pakistan Council for Scientific and Industrial Research (PCSIR) was enhanced through a comprehensive audit of testing vi Supporting The Manufacture in Pakistan of High-Quality DC Fans methods and staff training. The technical teams of leading DC fan manufacturers were also trained to improve their understanding of the newly adopted DC fan test procedures and minimum energy performance requirements. FACILITATING TECHNOLOGY IMPROVEMENTS Industry specialists in Pakistan collaborated with the Collaborative Labeling and Appliance Standards Program (CLASP) to identify motor design improvements that could improve the energy efficiency of DC fans and address the airflow concern. Brushless motors were also identified as key to improving the efficiency of domestically produced DC fans. As a result, two leading fan manufacturers, Khursh- eed Fans and Tamoor Fans, imported machinery to manufacture brushless DC motors. PROMOTING R&D COLLABORATION Several domestic manufacturers were invited to participate in an R&D activity with Metropolitan Fans, a leading Chinese manufacturer of DC space-cooling products. The World Bank also facilitated a collaboration between Pakistan-based Harness Energy and Metropolitan Fans to develop an ener- gy-efficient, brushless DC pedestal fan in 2020. PROVIDING BUSINESS DEVELOPMENT SUPPORT DC fan manufacturers were introduced to private sector companies providing off-grid solar solutions in Pakistan through energy-access programs. Domestic fan manufacturers are also kept informed on the progress of large energy-access programs to help them anticipate market demand and incentiv- ize investment in quality improvement. Leading solar home system (SHS) suppliers in Pakistan have started packaging quality-verified, domestically manufactured DC fans with their solar systems. Executive Summary vii RECOMMENDATIONS T his report sets out a series of recommendations and next steps to build on the World Bank Group’s engagement with the fan industry in Pakistan. With the implementation of these rec- ommendations, the country’s market for DC fans will grow significantly and domestic manufacturers will also be able to capture a larger share of the growing international market for DC space-cooling products. Government Entities: Conduct a thorough technical assessment of phasing out AC fans to determine market impacts and inform future strategies for transforming the space-cooling fan market, adopt national quality and performance standards for DC fans, and provide support to the industry to tran- sition to DC fans. Explore the potential for a commercially-driven DC fan exchange or rebate program targeting consumers. Domestic Fan Manufacturers: Engage with the government to achieve a rapid transition from AC to DC fans, invest in R&D and product development to improve energy efficiency and satisfy future requirements, and seek out export opportunities for DC fans. Development Finance Institutions and Project Implementation Organizations: Implement the performance standards recommended in this report to build the market for DC fans and support gov- ernment efforts to transition from AC to DC fans with a comprehensive standards and labeling (S&L) program implemented through the National Energy Efficiency and Conservation Authority (NEECA). viii Supporting The Manufacture in Pakistan of High-Quality DC Fans 1. INTRODUCTION D irect current (DC) fan technology is widely recognized to be more energy efficient and deliver bet- ter overall performance than that of alternating current (AC) powered fans. In general, DC motors consume up to 70 percent less power, operate at a lower voltage and with less acoustic impact than traditional AC models.1 The energy efficiency advantage of DC fans is especially relevant for Pakistan, where electric fans are the prevalent technology for space cooling. The widespread adoption of DC fan technology in the country could provide energy savings to grid-connected consumers in addition to facilitating the roll- out of off-grid electricity access technologies to rural households, where appliance efficiency translates directly into cost savings. The improved energy efficiency would also help reduce overall energy use and greenhouse gas (GHG) emissions, thus contributing to Pakistan’s climate change commitments. And finally, given the extensive experience of fan manufacturing in Pakistan, domestic manufacturers have the potential to export high-quality DC fans to global markets. In Pakistan, demand for DC space-cooling fans is driven by rising electricity tariffs, grid power inter- ruptions (scheduled and unscheduled), and a growing market for solar energy solutions such as solar home systems (SHS). Although imported DC fans dominated the domestic market for several years, customers were not satisfied with the lightweight, plastic fabrication (typically less durable than the typical metal-bodied AC fans sold in Pakistan) and low air delivery of imported DC models. Domestic fan manufacturers responded by producing a variety of DC fan models, fabricated with metal bodies and designed for higher airflow. Over the past few years, domestically manufactured DC fans have consistently gained market share, becoming the fastest growing segment of the domestic DC appli- ance industry. The Pakistan Electric Fan Manufacturing Association (PEFMA) expects a 10 percent increase in annual sales of DC and AC-DC fans over the next few years. In the near term, a DC fan powered by a 150 W solar panel is a suitable space-cooling solution for off-grid customers and electricity consumers in areas where the grid is weak and electricity supply is unreliable. The projected growth in sales of DC fans is therefore commensurate with the expected rise in demand for solar panels of 150 to 200 W in off-grid and weak-grid areas, with both trends reinforcing each other. Ongoing energy-access projects in Pakistan are expected to be a key driver for growth in DC fan manufacturing, for example: ■ The World Bank is financing a Government of Sindh project that provides partial grants to 200,000 households for purchase of SHS from a list of eligible suppliers, for which the minimum system requirement includes provision of a DC fan. Component 3 of the Sindh Solar Energy Project (SSEP) allocates USD 30 million for SHS grants and targets households in priority dis- tricts in Sindh with low or no access to electricity, located mostly in rural areas. ■ The German development bank, Kreditanstalt für Wiederaufbau (KFW) and the Pakistan Microfinance Investment Company (PMIC) are implementing a program to deploy high-quality SHS and other off-grid solar products in Pakistan; the PMIC-KfW Renewable Energy Initiative through Microfinance (PRIME) program has earmarked roughly €15 million for on-lending to 1  https://theceilingfans.info/best-dc-motor-ceiling-fan-reviews/#t-1650352214008. 1 microfinance providers and technology companies selling PicoPV, multi-light and plug-n-play SHS packaged with DC fans that comply with Lighting Global quality standards. The program aims to provide financing for more than 250,000 solar products over five years. Starting in 2018, the World Bank Group implemented several initiatives to improve the quality and performance of DC fans manufactured in Pakistan by engaging directly with the domestic fan man- ufacturing industry, recommending quality standards for metal-bodied DC fans and improving the capacity of local testing facilities to provide high-quality certification for DC space-cooling products. This report presents the findings and outcomes of these initiatives and includes a number of rec- ommendations to strengthen domestic DC fan manufacturing for both domestic consumption and export. The World Bank Group support for DC fan manufacturing has helped advance the understanding of DC fan technology and position the domestic industry to take advantage of growing demand for energy-efficient fans in domestic and international markets. The report is aimed at public and private stakeholders associated with the fan industry, including government agencies, development finance institutions (DFIs), the domestic fan manufacturing industry and SHS companies in Pakistan. The findings of the report will also inform ongoing energy-access initiatives, including the SSEP. 2 Supporting The Manufacture in Pakistan of High-Quality DC Fans 2.  DC FAN MANUFACTURING IN PAKISTAN T he electric fan manufacturing industry in Pakistan has existed for over 70 years with nearly all production concentrated in two large fan manufacturing clusters located in the cities of Gujrat and Gujranwala, Punjab province. In 2020, 550 fan manufacturers in Pakistan produced eight million AC electric fans with a combined value of USD 150 Million. The product lines of these manufacturing firms include ceiling, pedestal, table, bracket, exhaust, and louver fans. Domestic fan manufacturers produced the first DC fan models in 2013. According to the Pakistan Electric Fan Association (PEFMA), there were 140 to 150 manufacturers of DC fans in the country in 2021, producing two million units annually. Supported by taxes imposed on imported DC fans, the market share of domestically manufactured DC fans has grown steadily from 10 percent in 2013 to 97 percent in 2020. Leading imported brands available in the domestic market include Sogo, Osaka and Carro Fans. 2.1  MANUFACTURING CAPACITY The DC fan industry is located mostly in two large fan manufacturing clusters in Gujrat and Gujran- wala (plus rather limited quantities produced in Lahore and Karachi). The industry is highly segmented and largely unregulated, producing three types of DC fans for the domestic market: ■ DC fans for a DC power source only: These are used exclusively with solar panels or automo- bile batteries; they typically contain brushed motors; ■ DC fans for AC and DC power sources: This type of fan includes a printed circuit board (PCB) and a permanent magnet that enables the fan to operate on either AC or DC. Known in the local market as “AC-DC fans”, they are manufactured using brushless DC (BLDC) motors; and ■ DC fans for an AC power source: Also known as “DC Inverter fans” in the local market, these fans operate using AC power. These fans are typically built using BLDC motors. Most domestically manufactured, low-cost DC pedestal fans are built using brushed motors that consume relatively more power than brushless (BLDC) motors. By contrast, all DC ceiling fans are manufactured using BLDC motors. The quality and durability of domestically manufactured DC fans is generally low and, unlike many other types of domestically manufactured appliances, DC fans do not carry a product warranty. However, the quality of domestically manufactured AC-DC fans is consid- erably better than DC fans and unlike DC fans, leading manufacturers have been offering a one-year warranty. In the medium term, the sale of local DC fans is projected to grow at approximately 10 percent annually.2 The DC fan industry in Pakistan is organized in three tiers: ■ Tier 1 – Large, established manufacturing firms in the formal sector, including Al-Ahmad, GFC, Khursheed, Royal, Starco, Super Asia and Tamoor Fans. Collectively, tier 1 fan manufacturers command roughly 60 percent of market share; 2  PEFMA. 3 ■ Tier 2 – Relatively lesser known manufacturers in the formal sector including Belvin, Indus, Pal- ace and Volta Fans. This group meets another 25 percent of market demand; and ■ Tier 3 – A large number of very small manufacturers in the informal sector hold the remaining roughly five percent of market share. DC fans of various types currently comprise approximately 10 percent of all fan sales in Pakistan. In 2021, roughly 90 percent of those DC fans were AC-DC ceiling fans while DC pedestal fans made up the remaining 10 percent of sales. 2.2  PRODUCT QUALITY AND SPECIFICATIONS Air delivery, price and product durability are the three primary considerations for consumers in Paki- stan and retailers generally recommend a particular make or model on that basis. Because the body and blades of imported DC fans are of plastic and produce a lower airflow, consumers perceive these models to be less durable and inferior to domestically manufactured DC fans that are fabricated entirely of metal and produce a higher airflow. Unlike imported DC fans, domestically manufactured fans are available in the same size and specifications as locally produced AC fans, leading to very high acceptance of the DC technology among domestic consumers. Size and performance specifications of locally produced DC fans are provided in Table 2.1. TABLE 2-1: PAKISTANI DC FANS: SIZE Type and Diameter Sweep Size (mm) DC pedestal fans 18 inches 450 20 inches 500 24 inches 600 DC ceiling fans 56 inches 1,400 AC-DC ceiling fans 56 inches 1,400 AC-DC pedestal fans 24 inches 600 In Pakistan, the two most popular DC units in this context are an18-inch diameter DC pedestal fan for use with a DC power source (typically used with solar panels or car batteries in an off-grid setting) and an AC-DC ceiling fan with a 56-inch diameter. The power consumption of a domestically manufactured 18-inch DC pedestal fan is 36–48 watts and the fan produces about 77 cubic meters per minute (m3/ min) of air delivery, less than half the 210 m3/min produced by a locally manufactured 24-inch AC ped- estal fan. In comparison, a 56-inch AC-DC ceiling fan (connected to an AC or DC power source) typically consumes about 55 watts at full speed and produces nearly the same air delivery as an ordinary AC ceil- ing fan. Imported DC pedestal fans of 12–16 inches in diameter consume less energy than domestically manufactured DC fans but their air delivery is only 25–44 m3/min. 4 Supporting The Manufacture in Pakistan of High-Quality DC Fans Table 2.2 below provides a comparison between the performance of popular AC and DC fan models manufactured in Pakistan: TABLE 2-2: PAKISTANI AC VERSUS DC FANS: PERFORMANCE COMPAREDa Power Service Value consumption Air delivery (m3 per minute per Type (watts) (m3 per minute) watt) Price (PKR) AC ceiling fan, 56-inch 80 to 90 250 3.125 to 2.78 4,500 to 9,200 diameter DC ceiling fan, 56-inch diameter (AC-DC type) AC supply 55 250 4.55 5,500 to 10,500 DC supply 40 245 6.125 AC pedestal fan, 24-inch 125 210 1.68 7,000 to 2,000 diameter DC pedestal fan 24-inch diameter (AC-DC type)b AC supply 90 210 2.33 7,500 to 9,800 DC supply 64 190 2.96 a Representative market prices for 2022. Size specification for AC and DC ceiling fans: 56 inches diameter. Size specification for AC and DC pedestal fans: 24 inches diameter, 600 mm sweep size. b The performance data for the AC-DC pedestal fan was provided by Royal Fans for a model currently under development by the company and was not verified independently by the World Bank. The product was expected to be launched in the Pakistan market by the end of 2021. The 245 to 250 m3/min maximum air delivery of an AC-DC ceiling fan is only slightly less than that of an AC ceiling fan of the same size. Similarly, both DC ceiling fans and pedestal fans manufactured domes- tically are far more efficient than their AC counterparts. An AC-DC ceiling fan running on DC delivers nearly twice the service value of an AC ceiling fan (measured in cubic meters of air per minute per watt, as shown in the table above). 2.3  PRODUCT PRICING Based on a formal survey of DC fan prices in Pakistan conducted in 2018 by the Collaborative Labeling and Appliance Standards Program (CLASP) under their Low Energy Inclusive Appliances (LEIA) pro- gram for Pakistan’s off-grid fan market, product prices range from PKR 3,300 (USD 17) for a small DC pedestal fan to PKR 6,500 (USD 33.5) for an AC-DC ceiling fan. Table 2.3 provides indicative prices for standard models of imported and domestically manufactured DC fans. 2.  DC Fan Manufacturing in Pakistan 5 TABLE 2-3: PAKISTANI VERSUS IMPORTED FANS: PRICES COMPARED Price Specifications PKRa USDb Imported fans DC pedestal fan (12 inches to 16 inches) 5,800 to 6,300 30 to 32 DC ceiling fan (56 inches) 5,800 to 6,500 30 to 34 Domestically manufactured fans High-quality DC pedestal fan (18 inches) 4,000 to 6,500 21 to 34 High-quality DC ceiling fan (56 inches) 4,500 to 6,000 23 to 31 High-quality AC-DC ceiling fan (56 inches) 5,500 to 10,500 28 to 54 Low-quality DC pedestal fan (18 inches) 3,000 to 4,000 15 to 21 Low-quality DC ceiling fan (56 inches) 4,000 to 4,500 21 to 23 Low-quality AC-DC ceiling fan (56 inches) 5,000 to 5,500 26 to 28 a Representative market prices in Pakistan for 2022. b Assumed currency conversion rate: 1 USD = 193.74 PKR. 6 Supporting The Manufacture in Pakistan of High-Quality DC Fans 3.  INTERVENTIONS TO SUPPORT THE DC FAN INDUSTRY T he World Bank Group’s support to the domestic DC fan manufacturing industry came about as a result of the International Finance Corporation’s (IFC) Lighting Pakistan Program.3 Lighting Paki- stan promoted high-quality certified solar energy solutions to off-grid regions through a network of pre-approved technology and financing partners. The technical specifications of the typical SHS equip- ment provided under the program in Pakistan were only compatible with imported DC fans. However, program beneficiaries (off-grid communities in Pakistan) were dissatisfied with the performance and quality of imported DC fans and instead demanded domestically manufactured DC fans with better air delivery that were perceived to be more durable due to their metal fabrication. Since the equipment suppliers associated with Lighting Pakistan were unable to source certified imported DC fans with the same airflow specifications as domestically manufactured DC fans, IFC decided to collaborate with the domestic industry to improve the quality of DC fans manufactured in Pakistan and implement a system for quality assurance and certification that would enable domestic fan manufacturers to meet local demand and potentially supply their products to a growing global market created by DFI-financed SHS projects in other countries. The support to the domestic DC fan manufacturing was delivered in two phases, described in more detail below. 3.1  IFC LIGHTING PAKISTAN PROGRAM In 2018, with the support of PEFMA, the IFC began a series of engagements with local manufacturers in Gujrat and Gujranwala to map the DC fan manufacturing process in Pakistan and identify barriers to technology improvement and quality certification. With funding provided by the National Energy Efficiency and Conservation Authority (NEECA), sample DC fans from two companies were tested at the Electrical Measurement & Test Laboratory (EMTL) located at the Pakistan Council for Scientific and Industrial Research (PCSIR) in Lahore. The test results were shared with solar equipment suppliers associated with Lighting Pakistan and a few domestically manufactured DC fan models were pack- aged with SHS systems to run a field pilot. The two main findings from the IFC’s engagement with the fan sector are described below. 3.1.1.  The lack of testing facilities for DC fans To meet the demand for quality assurance tests and certification from AC fan exporters in the country, the Pakistan Standards and Quality Control Authority (PSQCA) developed and implemented quality standards for AC electric fans. However, similar standards or testing procedures for DC fans were not available near the local manufacturing facilities in Gujrat and Gujranwala. The standard tests conducted for AC fans included procedures for measuring air delivery, power input and energy efficiency values adapted from IEC 60879:1986, however tests for ingress protection, safety and durability were not being conducted. 3  Formore information on IFC’s Lighting program, see: https://www.ifc.org/wps/wcm/connect/news_ext_content/ ifc_external_corporate_site/news+and+events/news/lighting+pakistan. 7 The EMTL testing laboratory had a limited capacity and understanding of the procedures and stan- dards for testing DC space-cooling fans in accordance with the relevant IEC test methods for ingress protection (IP), safety, and durability. There was an urgent need to identify the right way to perform ingress protection (IP) tests on DC fans manufactured in Pakistan and train the laboratory staff accordingly. 3.1.2. Deficiencies in international testing standards for DC fans In addition to the lack of local capacity for testing DC fans, IFC also identified a deficiency in the test methods and Minimum Energy Performance Standards (MEPS) for DC fans supported by CLASP, the leading international organization for appliance energy efficiency policies and market acceleration ini- tiatives. Because the MEPS and test methods developed by CLASP were designed for DC fans with plastic bodies and blades, modifications were required for testing metal-bodied DC fans manufactured in Pakistan. 3.2  WORLD BANK SUPPORT Following the end of the IFC Lighting Pakistan program in 2018, the World Bank utilized funding pro- vided by the Energy Sector Management Assistance Program (ESMAP) to build on IFC’s collaboration with DC fan manufacturers and continue the implementation of key measures to strengthen the DC fan industry. At the start of this second phase of support to DC fan manufacturers, the World Bank directly addressed the two main findings of the IFC program (described in 3.1 above): internationally established test procedures and testing standards for DC fans were modified to suit the specifica- tions of locally manufactured, metal-bodied fans; and, a new set of test standards and procedures was compiled for implementation in Pakistan. Similarly, the testing infrastructure was strengthened through a comprehensive staff training program and round-robin testing (described in Sections 3.3.2 and 3.3.3 below). As part of this process, the World Bank team identified several immediate issues that needed to be addressed to improve the quality of domestically manufactured DC fans: ■ Brushless motors were key to improving the efficiency of DC fans. However, domestic fan man- ufacturers were only using brushless motors in DC and AC-DC ceiling fans, while all DC pedestal fans (which are particularly important for the SHS market) were manufactured with brushed motors; ■ The CLASP test methods required some modification to be useful for the specifications of domestically manufactured metal-bodied DC pedestal and ceiling fans; ■ The EMTL laboratory in Lahore would need to build its capacity to perform ingress protection, safety and durability tests on DC fans; ■ Most DC fan manufacturers in Pakistan were unfamiliar with IEC standards for electrical appliances; ■ There was little coordination between fan manufacturers and solar technology providers, a key target market for DC fans, or between manufacturers and government authorities for setting standards and specifications, such as PSQCA and NEECA; and 8 Supporting The Manufacture in Pakistan of High-Quality DC Fans ■ Domestic fan manufacturers were generally unaware of large energy-access programs in Paki- stan that were expected to create significant near-term demand for quality DC fans. Raising awareness about this potential market opportunity could encourage innovation in the industry and incentivize domestic fan manufacturers to invest in manufacturing upgrades to improve their DC space-cooling product lines. The World Bank team began advocacy and outreach in October 2019 to raise awareness about the quality of DC fans manufactured in Pakistan and identify industry partners to address these issues. In collaboration with PEFMA, the World Bank organized a half-day consultative workshop on ‘Support- ing Development of Energy-Efficient Fans for the Off-Grid Market’ in Gujrat in November 2019. The workshop included 36 participants from 10 manufacturing companies based in Gujrat and Gujranwala and several other stakeholders including representatives of PEFMA, Pakistan Microfinance Investment Company (PMIC), PCSIR, off-grid solar technology suppliers and the Fan Development Institute (FDI), and Intertek, a British product testing and certification company. A detailed report on the consulta- tive workshop is included in Annex A. 1. The workshop helped identify priority areas to focus the support extended by the World Bank to DC fan manufacturers: 2. Support the national laboratory at PCSIR in Lahore to establish and adopt minimum energy performance standards for DC fans manufactured in Pakistan; 3. Identify key technical capacities required to develop and produce energy-efficient DC fans in Pakistan that are compliant with international quality and performance standards; and Establish immediate and long-term measures needed to innovate, improve quality and increase the efficiency of domestically manufactured DC fans. With support from the World Bank, domestic fan manufacturers and PCSIR were able to implement several initiatives to address the issues curtailing market growth. From international collaboration for research and development (R&D), to setting and adopting IEC-compliant quality and energy perfor- mance standards for DC fans manufactured in Pakistan, to building capacities in the private sector for technological improvements, the program produced quantifiable improvements to the quality of domestically manufactured DC fans as summarized below. 3.3  OUTCOMES AND IMPACT 3.3.1  R&D collaboration In 2018, the World Bank facilitated a visit to Gujrat by representatives from Metropolitan Fans, a lead- ing Chinese fan manufacturing company that was awarded the Global LEAP Award in 2017. Prominent fan manufacturers from Pakistan—including GFC, Khursheed, Royal, Starco, and Tamoor Fans—were identified to meet with Metropolitan fans and discuss potential R&D collaboration. The collaboration would focus on designing and developing a DC motor for use in DC ceiling and pedestal fans, fabricated to meet the local market requirements in Pakistan. In addition to developing a workable prototype, the collaboration would also familiarize Pakistani fan manufacturers with industry best-practices and pro- mote technological innovation. 3.  Interventions to Support the DC Fan Industry 9 After the initial meeting in Gujrat, representatives from Tamoor and Starco Fans visited Metropoli- tan Fans’ manufacturing facility in China and collaborated with the technical staff there to develop sample DC motors. Starco used these prototypes for internal R&D and successfully developed a DC pedestal fan based on the technology developed through that collaboration. Starco’s model was tested at the EMTL testing facility and showed a marked improvement in efficiency compared to standard DC fans produced by Starco and other local manufacturers. Harness Energy Limited—a Pakistan-based solar energy company that received funding from UK Aid and IKEA Foundation for developing an efficient solar-powered cooling fan for use in rural areas— collaborated with Metropolitan fans to develop an energy-efficient, brushless DC pedestal fan. The World Bank team also facilitated meetings between Harness Energy and other leading local and international DC fan manufacturers, enabling Harness Energy to import sample brushless DC motors and conduct R&D locally. As a result, Harness Energy has developed a DC pedestal fan with brushless motor that meets the performance standards for DC fans recommended by the World Bank team (included in table 3.2 below). The pedestal fan is currently being tested with Lighting Global approved SHS units installed in rural areas in Pakistan. 3.3.2  Quality assurance standards and procedures To determine whether EMTL had the required capacity to test DC fans produced in Pakistan for compli- ance with IEC standards, a list of procedures, certifications and equipment used at EMTL were shared with CLASP for review. The review found EMTL was accredited for testing DC fans against IEC standards, however the facility was only testing air delivery, power input, and energy efficiency against values adapted from IEC 60879:1986 and did not have the required capacity to test for safety and durability of fans, specified in IEC 60335-2-80. New test methods for performance, durability and safety of DC fans for off-grid applications were also needed. A set of test methods initially developed by CLASP to inspect performance, durability and safety of DC fans used in off-grid and weak-grid settings were shared with several local and inter- national stakeholders including SHS suppliers, leading local fan manufacturers, the National Energy Efficiency and Conservation Authority (NEECA) and representatives from EMTL. The CLASP test methods were based on existing international testing standards of the IEC, commonly used to mea- sure energy performance of fans used in grid connected spaces. Following a comprehensive review, these test methods were modified to meet the evaluation require- ments of domestically manufactured DC fans, fabricated with metal bodies. For instance, the “drop test” was excluded from the test methods since this procedure is more suited to plastic body, light- weight, table and small pedestal fans. A procedure to determine whether a low-voltage discon- nect–reconnect circuit feature (also known as the LVD/LVR feature) or similar automatic shutdown mechanism was also excluded from the domestic standards. That was because no domestically man- ufactured DC fan model includes batteries and all Lighting Global approved SHS units have a built-in feature for low-voltage disconnect–reconnect. The final test procedures and energy performance requirements recommended by the World Bank for DC fans manufactured in Pakistan are included in Tables 3.1 and 3.2. These standards have been incorporated by the government of Sindh into the SSEP and will apply to all DC fans supplied under that initiative. The energy performance require- ments in Table 3.2 are derived from the globally accepted performance standards for space-cooling fans devised by CLASP. 10 Supporting The Manufacture in Pakistan of High-Quality DC Fans Table 3-1: Pakistani DC fans: testing performance, durability and safety Test Procedures Standard Specifications Procedure for measuring air delivery, power IEC 60879:1986: Performance and Construction of Electric input, and energy efficiency Circulating Fans and Regulators. Procedure for evaluating drop resistance IEC TS 62257-9-5:2018 : Recommendations for small and physical ingress protection renewable energy and hybrid systems for rural electrification— Part 9-6: Integrated system—Selection of stand-alone lighting kits for rural electrification. Procedure for inspecting fan blades and IEC 60335-2-80: Household and similar electrical appliances. guards Safety. Particular requirements for fans. Table 3-2: Pakistani DC fans: required energy performance Type of Fan Airflow Efficiency (Acceptable variation) DC pedestal fans 2.27 m3/min/W (+/– 5%) DC table fans 2.8 m3/min/W (+/– 5%) DC ceiling fans 6.66 m3/min/W (+/– 5%) 3.3.3  TESTING CAPACITY IMPROVEMENTS The capabilities of EMTL staff were continuously enhanced through appropriate training and feedback. With CLASP’s assistance, several models of domestic and imported DC fans were tested at the Hong Kong laboratory of TÜV Süd (Technischer Überwachungsverein Süd, the Technical Inspection Associa- tion) and the test results shared with the EMTL team for comparison. The technical teams of leading DC fan manufacturers were also trained to improve their understanding of the newly adopted DC fan test procedures and minimum energy performance requirements. DC fan test methods designed for Pakistan are included in Annex B. To ensure the reliability of the testing facilities in Pakistan, CLASP was engaged to have DC fans cer- tified by EMTL retested at TÜV Süd in Hong Kong. The test results showed an efficiency improvement of 92 percent in DC pedestal fans and 32 percent in DC ceiling fans. The results also indicated that fan manufacturers that claimed to meet the IP20 criteria were in reality not compliant.4 Manufactur- ers were instructed to place warning labels on models that are not IP20 compliant. 3.3.4  Business development opportunities DC fan manufacturers were introduced to private-sector companies dealing with off-grid solar solutions in Pakistan. DC fans tested at EMTL and found compliant with the World Bank guidelines were packaged 4  An IP20 rating means the product is ‘touchproof’ (that is, it can be safely handled without risk of injury or electric shock), and will be resistant to (or inaccessible to) dust or objects that are over 12mm in size. 3.  Interventions to Support the DC Fan Industry 11 with SHS units installed in off-grid areas by leading solar companies. Learnings from field testing were shared with DC fan manufacturers to enable further improvements in design and quality. Domestic fan manufacturers were regularly informed of developments in large energy-access pro- grams such as PRIME and SSEP to help the fan industry anticipate market demand and incentivize local manufacturers to invest in quality improvement and innovation. As a direct result of these ini- tiatives, leading SHS suppliers are currently packaging quality-verified DC fans with their SHS units. 3.3.5.  Technological improvements Several leading fan manufacturers including GFC, Starco and Tamoor Fans had their 16- and 18-inch pedestal fan models tested at EMTL using World Bank recommended performance standards described in Section 3.3.2 above. GFC and Tamoor Fan also tested their 18-inch DC ceiling fan at EMTL. The test results found all models produced by the three companies to be compliant with the quality and perfor- mance standards for DC fans specified in this report. In 2020, during a second round of consultations between SHS suppliers and fan manufacturers, SHS suppliers reported a perception among retailers and consumers that domestically produced DC ped- estal and ceiling fans, compliant with local quality standards, rotate at a lower speed and move less air than uncertified DC fan models manufactured in Pakistan. Industry specialists in Pakistan collabo- rated with CLASP to identify motor design improvements that could enhance the energy efficiency of DC fans and address the airflow concern. To respond to the market demand for high airflow DC fans, manufacturers were urged to adopt brushless DC motors in pedestal fans.5 As a result, two leading fan manufacturers, GFC and Tamoor, imported machinery to manufacture brushless DC motors. It is expected that with the introduction of the new technology, the power consumption of an 18-inch DC pedestal fan will be reduced to less than 18W at full speed or roughly half the power consumption of a standard DC pedestal fan currently available in the local market. DC motors are already being used in AC-DC ceiling fans but not in DC pedestal fan models used more 5  Brushless commonly in districts that are off-grid (with low or no access to electricity). 12 Supporting The Manufacture in Pakistan of High-Quality DC Fans 4.  CONCLUSIONS AND RECOMMENDATIONS T he market for space-cooling fans in Pakistan is currently growing at 10 percent annually and demand is expected to grow more rapidly as economic conditions in the country improve. Since fans are the most common space-cooling appliance used in Pakistan (and the second most common electric appliance after lighting), enhancing the energy efficiency of fans should be a priority for the government. This can be achieved through widespread adoption of DC fan technology in local manu- facturing and implementing market transformation policies such as energy efficiency standards and information labels for fans. Recognizing the importance of improving the energy efficiency of fans and encouraging wider adop- tion off the more efficient DC fan technology, the IFC and the World Bank have together implemented several interventions to support local manufacturing capacity and at the same time to lay the ground- work for Pakistan to implement energy efficiency standards and labels for electric fans. This report summarizes the achievements of these interventions: identification of the main barriers to the man- ufacture of DC fans in Pakistan; facilitating collaboration between local and international manufac- turers; establishing energy performance standards for metal-bodied DC fans; defining test procedures appropriate for locally manufactured DC fans; improving testing infrastructure in the country; and creating business development opportunities for local DC fan manufacturers. In the near term, support to DC fan manufacturing would directly impact the outcomes of off-grid electrification in Pakistan implemented through development finance institutions, potentially incen- tivizing the purchase of more than 200,000 DC space-cooling fans. However, improvements in the quality of locally manufactured DC fans will also increase the international competitiveness of local fan manufacturers, creating long-term opportunities to increase fan exports from Pakistan. This report makes a series of recommendations to build on the World Bank Group’s engagement with the fan industry in Pakistan and maximize the impact of the results achieved so far. The rec- ommendations are divided into three sets, each aimed at a key stakeholder group: i) government entities; ii) the domestic fan manufacturing industry; and iii) public or private organizations (includ- ing DFIs) involved in the implementation of electricity access projects. With the implementation of these recommendations, Pakistan could realize significant energy and GHG savings from improved energy efficiency, the domestic market for DC fans would be able to grow significantly, and domestic manufactures would capture a larger share of the growing international market for DC space-cooling products. 4.1  GOVERNMENT ENTITIES ■ Conduct a comprehensive review of the implications of phasing out AC fans – It is clear that DC fans (including AC-DC models for grid-connected customers) are superior to AC fans in terms of energy efficiency and performance, and (with some support) should be cost-compara- ble. Hence it is recommended that NEECA conducts a thorough technical analysis of the impli- cations of phasing out AC fans, including the impacts on manufacturers and consumers. The 13 results of the impact analysis could then be used to determine the stringency of any follow-on actions required to transform the market for space-cooling fans in Pakistan. ■ Explore the potential for a commercially-driven DC fan exchange or rebate program target- ing consumers – To help drive the adoption of DC fans and achieve immediate energy efficiency savings, an exchange or rebate program could be launched that would allow consumers to trade in their inefficient AC fans for an AC-DC alternative. This could be implemented by an energy services company (ESCO) through a “super-ESCO” model whereby a public or private company provides the new AC-DC fan on an instalment basis, with the consumer paying back through their electricity bill. This approach can be highly effective because consumers are able to leverage their monthly energy savings. ■ Adopt national performance standards for DC fans – There is currently a Pakistan National Standard for AC fans consistent with IEC standards (PS:1 2010). This report provides the technical basis for the government of Pakistan (GoP) to adopt similar national standards for DC fans through PSQCA and NEECA. It is recommended that any standards issued by the govern- ment mandate only the most efficient, brushless DC fans. ■ Enforce testing standards and certification – Once adopted, minimum performance stan- dards for DC fans will need to be enforced by the government at both federal and provincial levels, through initiatives such as mandatory testing and labeling. It is recommended that com- pliance efforts are focused on fan manufacturers and imports. Testing capacity may need to be strengthened in the public and private sectors to enable compliance with government-mandated testing. ■ Provide support to the industry to transition to DC fans – Examples exist of govern- ment-funded programs such as the Super-Efficient Equipment Program (SEEP) in India, that incentivize the production of efficient, high-quality fans. The GoP should consider providing sim- ilar fiscal and financial incentives to fan manufacturers to support the transition costs relating to a switch from AC fans to highly efficient DC fans. This could be in the form of match funding grants or credit lines. 4.2  DOMESTIC FAN MANUFACTURERS ■ Engage with the government to achieve a rapid transition from AC to DC fans – It will be important for the fan industry to play a proactive role in developing and implementing regula- tions and ensuring compliance. ■ Invest in R&D and product development to improve energy efficiency and satisfy future requirements, including: ■ Replace brushed motors with BLDC motors – DC fans in Pakistan are typically made with brushed motors that are less energy efficient, but less expensive than the brushless ones. However, in recent years, the price of brushless DC motors has decreased signifi- cantly, and brushless motors are becoming increasingly common in appliances. Brushless motors are preferred for the efficiency they deliver: for instance, using a brushless motor in a space-cooling fan can reduce energy consumption by an estimated 50 percent compared to an AC fan operating at the same speed. Hence to meet the policy recommendations outlined, manufacturers would need to transition to brushless motors; ■ Improve fan blade design – Optimal blade design requires a balance between multiple objectives including maximization of air speed, uniform air speed along the fan radius, and 14 Supporting The Manufacture in Pakistan of High-Quality DC Fans maximization of airflow coverage. Improving fan blade design has been shown to improve fan efficiency. Improvements to fan blade design can be implemented by aerodynamic attachments for conventional blades and decreasing the ‘angle of attack’ through the use of twisted, tapered blades; ■ Increase the amount of active material and improve the quality of magnets – DC fans have motors that rely on permanent magnets in order to attract and repel a rotor around the axis using electronic switching. The quality of magnets therefore, has a significant impact on fan performance. Similarly, increasing the amount of active material such as lamination steel and copper increases efficiency by improving the magnetic quality of the rotor and the windings. Reducing the air gap between the stator and the rotor in ceiling fans increases efficiency by increasing the magnetic torque induced by windings on the rotor. Using standard grade aluminum for a die cast rotor improves efficiency by reducing the weight of the rotor; and ■ Provide additional product features – Remote control, multiple speed options and room occupancy sensors enhance the energy efficiency of space-cooling fans and are increasingly impacting procurement decisions. ■ Seek out export opportunities for DC fans – If Pakistan becomes a leader in DC fan manu- facturing there is strong potential to export high-quality fans to other markets, including coun- tries in Africa where there is high demand for off-grid fans. DEVELOPMENT FINANCE INSTITUTIONS AND PROJECT 4.3  IMPLEMENTATION ORGANIZATIONS ■ Immediately implement the performance standards recommended in this report to build the market for DC fans – Energy-access, efficiency and other energy projects funded by the GoP and development finance institutions (DFIs) should immediately implement the energy performance standards for DC space-cooling fans specified in this report. This will help grow the DC fan market while government regulatory efforts are under development. ■ Support government efforts to transition from AC to DC fans – Development finance institutions have implemented appliance market transformation programs in regional countries that could inform a similar effort in Pakistan. In particular, DFIs could assist NEECA in devel- oping regulations and establishing the institutional and programmatic framework required to develop and implement a comprehensive standards and labeling (S&L) program for fans. Typi- cal program requirements for S&L schemes such as providing adequate testing infrastructure, label design, standard setting, establishing and implementing a compliance regime, conducting impact evaluation and designing and implementing complementary incentives to S&L could be addressed through DFI support. 4.  Conclusions and Recommendations 15 ANNEX A: CONSULTATIVE WORKSHOP REPORT Report of the Consultative Workshop on ‘Supporting Development of Energy-Efficient Fans for the Off-Grid Market in Pakistan.’ Organized by: The World Bank And Pakistan Electric Fan Manufacturers Association (PEFMA) With the support of the Energy Sector Management Assistance Program (ESMAP) on Wednesday 20th November 2019 Venue: Akbar’s Kinara Hotel, Gujrat, Pakistan BACKGROUND AND OBJECTIVES The World Bank, in collaboration with Pakistan Electric Fan Manufacturers Association (PEFMA) and with funding provided under a grant from the Energy Sector Management Assistance Program (ESMAP), organized a half-day consultative workshop on ‘Supporting Development of Energy-Efficient Fans for the Off-Grid Market’ in Gujrat on November 20th, 2019. The workshop drew 36 participants from fan manufacturing companies in Gujrat and Gujranwala, PEFMA, Pakistan Microfinance Investment Com- pany (PMIC), PCSIR Lab, off-grid solar suppliers, and Intertek lab. The main objectives of the consultative workshop were to: ■ Brief the fan manufacturers and other stakeholders on the energy-access component of Sindh Solar Energy Project (SSEP), a World Bank financed project being implemented by the Sindh Energy Department (SED); ■ Discuss proposed system specification, quality and performance standards for solar home systems; ■ Share proposed test methods, quality and performance requirements for DC fans; ■ Understand the technical capacity of the fan industry to develop DC fans that meet the higher efficiency and performance thresholds; and 16 Supporting The Manufacture in Pakistan of High-Quality DC Fans ■ Identify the market support needed in the short and long term for achieving innovation, quality, and efficiency in DC fan manufacturing. PRESENTATIONS In his welcoming remarks, the Chairman of PEFMA, Malik Izhar Ahmed Awan, provided an overview of the fan manufacturing industry in Pakistan and lauded the efforts of local fan manufacturers in minimizing the share of imported fans to less than three percent. He expressed his association’s full commitment to working with the World Bank and other stakeholders for building capacity of the local fan industry to achieve higher quality and performance standards. This was followed by presentations by Oliver Knight, Senior Energy Specialist, World Bank, and Ibrar Khattak, Consultant, World Bank, on the energy-access component of SSEP and the technical and performance requirements for DC fans under this project. Proposed Pakistan-focused DC fans test methods, based on IEC test methods, were also shared with the participants. DISCUSSION The presentations were followed by a general discussion on the barriers and opportunities for local fan manufacturers in the off-grid market. The key takeaways from the consultative session are: ■ The large fan manufacturers, capturing more than 80 percent of the DC fans market in the country, have the capacity to lead innovation, and the smaller ones are likely to follow. The consensus was that the industry would respond if there is a clear market demand for such products; ■ The larger manufacturers have individually invested in research and development (R&D) which has given them an edge. On the whole, however, the industry has been deprived of any system- atic engineering upgrade to improve fan quality and characteristics. R&D has not only been limited on the engineering side but also on the design and product development side; ■ The fan industry has been using brushed motors in their DC pedestal fans and brushless DC motors in ceiling fans but now a few market leaders in DC fan manufacturing have started R&D in replacing those DC non-brushless motors in pedestal fans with the brushless motors. Some have already imported the required equipment and have started developing DC brushless motors in their manufacturing facilities. A few other leading fan manufacturers are also keen on moving to brushless motors; ■ Innovation and R&D require rapid turnaround testing which is not possible due to the lack of a testing lab in the vicinity of the fan manufacturing industry. The only nearby accredited lab is in Lahore and it usually takes 1–2 months to test a fan and costs USD 250 for each test; ■ The Fan Development Institute (FDI), which was established for developing fans and design- ing new products, lacks skilled staff and equipment to deliver its objective. Fan manufacturers showed interest in upgrading the FDI lab so that rapid turnaround testing, to support innova- tion of new products and technologies, can be carried out for a minimal fee—where the need is different to certification testing; Annex A: Consultative Workshop Report 17 ■ Most of the large fan manufacturers are aware of certification and testing requirements. There is a need to provide technical support to the second- and third-tier manufacturers so that they can meet quality requirements for certifications; ■ There is a recognized need to arrange training on IEC standards and testing procedures for the technical teams of the fan manufacturers, PCSIR lab authorities, and industry specialists from engineering universities. This would also be useful in terms of discussing and finalizing the stan- dard specifications for different components of DC fans, including cable, wiring, stand, blades, knob, base, magnet, printed circuit board (PCB), and so forth; ■ Large fan manufacturers have an informal R&D capacity inside their factories for developing various components of DC fans such as rotors, stators, and DC motors. However, they require support for developing capacity to manufacture two components that are still imported, namely magnets and PCB; ■ Besides setting up standards for performance, safety and durability, the participants strongly recommended that standards should be specified for wire/cable, steel sheets, blades, guards, base, magnet, and PCB used in the manufacturing of a DC fan; ■ Imported fans are often less robust than domestic fans, for example using composite materials rather than metal components. Moreover, the air blow capacity and coverage of domestic fans are considered better than most imported models; ■ The fan manufacturers would benefit from market support to connect with local and interna- tional SHS suppliers; ■ The manufacturers noted that they would like to begin to provide LED lights and other consumer products for the off-grid market if there is demand; ■ There was some interest in an award scheme aimed at recognizing SHS suppliers that source a high percentage of domestic products; and ■ Finally, and most importantly, the consensus was that the industry would respond to the demand created by SSEP and other initiatives, but only if they have visibility and certainty that the demand already exists, or is imminent. NEXT STEPS The World Bank team will work on incorporating the feedback and suggestions received during the workshop into the product standards and specifications for SHS suppliers under SSEP. Moreover, the team will consider extending support to fan manufacturers in providing training in new technologies and innovation in DC fans and in developing the R&D business case for submission to CLASP and other such forums, depending on the availability of grant funding. More importantly, the World Bank will work with SED, PMIC and other stakeholders to ensure continued engagement with the manufac- turers and the provision of timely information on SSEP and other energy-access projects so that all are ready to meet the market demand. 18 Supporting The Manufacture in Pakistan of High-Quality DC Fans ANNEX B: PAKISTAN FOCUSED OFF- GRID FAN TEST METHOD Version 3 (May 5, 2020) SCOPE This document establishes methods to measure the performance, quality, and durability of fans intended to be used with off-grid energy systems (e.g., stand-alone solar home systems, mini-grids). The following test conditions are defined for the evaluation of product suitability for use in off-grid applications: ■ Nominal conditions; ■ Voltage fluctuation conditions, which simulate performance during over-voltage and under-voltage conditions; and ■ Harsh environment exposure conditions, which simulate exposure to high temperature and humidity environments. Procedures are adapted from IEC 60068-2-78: Environmental testing – Part 2–78: Tests – Test Cab: Damp heat, steady state (2012). The following test procedures are then defined for the evaluation of product performance under the above test conditions: ■ A procedure for measuring air delivery, power input, and energy efficiency value adapted from IEC 60879:1986: Performance and Construction of Electric Circulating Fans and Regulators; ■ A procedure for evaluating drop resistance and physical ingress protection adapted from IEC TS 62257-9-5:2013: Recommendations for small renewable energy and hybrid systems for rural electrification—Part 9-6: Integrated system. Selection of stand-alone lighting kits for rural electrification; ■ A procedure for inspecting fan blades and guards adapted from IEC 60335-2-80: Household and similar electrical appliances. Safety. Particular requirements for fans. DEFINITIONS Ceiling type fan A propeller-bladed fan having two or more blades and provided with a device for suspension from the ceiling of a room so that the blades rotate in a horizontal plane. Table type fan A propeller-bladed fan having two or more blades and intended for use with free inlet and outlet of air. It may be a table fan or bracket-mounted fan for wall, surface, or ceiling mounting. 19 Pedestal type fan A propeller-bladed fan having two or more blades mounted on a pedestal of fixed or variable height and intended for use with free inlet and outlet of air. Air delivery Quantity of air delivered in a given time under specified conditions. Energy efficiency value The air delivery (in cubic meters per minute) divided by electrical power input to the fan (in watts) at the voltage and frequency specified for the test. Fan Size The diameter of the circle traced out by the extreme tips of the fan blades, measured in millimeters. TEST CONDITIONS Test setup The product shall be set up for testing using the power cable included in the product package. ■ If a DC cable is provided with the product, use the DC cable and a DC power supply for testing. ■ If only an AC/DC converter is provided with the product, use the AC/DC converter and an AC power supply for testing. The type of power cable and power supply used during the tests shall be documented in the test report. Nominal conditions Nominal conditions are defined as follows: Parameter Value Input voltage Nameplate voltage (e.g. 12 VDC) +/– 2% Temperature 25oC +/–5oC Relative humidity 20% to 80% Voltage fluctuation conditions Over-voltage conditions are equivalent to Nominal conditions, except that Input voltage is increased by 15% from Nameplate voltage. 20 Supporting The Manufacture in Pakistan of High-Quality DC Fans Under-voltage conditions are equivalent to Nominal conditions, except that Input voltage is decreased by 15% from Nameplate voltage. Harsh environment exposure conditions Harsh environment exposure conditions are equivalent to Nominal conditions, except that products are exposed to 40°C temperature and 95% relative humidity for a minimum of 24 hours prior to testing.6 TEST SEQUENCE The following sequence should be followed when carrying out the tests: 1. Conduct overall quality inspection (5.1). 2. Measure air delivery (5.2) and power input (5.3) in nominal conditions. 3. Measure air delivery (5.2) and power input (5.3) in over-voltage conditions. 4. Measure air delivery (5.2) and power input (5.3) in under-voltage conditions. 5. Expose fan to harsh environment conditions (3.4). 6. Measure air delivery (5.2) and power input (5.3). 7. Conduct physical ingress protection test (5.4). 8. Conduct drop test (5.5). TEST PROCEDURES 5.1  Overall quality inspection 5.1.1 Inspect product components (including but not limited to enclosure, blades, bearings, wiring, fittings, switches, and connections) for quality and workmanship and note any visible defects. 5.1.2 Inspect the fan blade guard in accordance with Clause 20.101 of IEC 60335-2-80 and Clause 20.2 of IEC 60335-1 to assess whether fan guards are secured and can prevent contact between a solid object (for example, a finger) and dangerous moving parts. 5.1.3 Inspect other safety measures for quality and workmanship and note any obvious hazards. 5.1.4 Take photographs of product packaging and any documentation included with the product: product specification sheets, product installation instructions, user manuals, and warranty information. 5.1.5 Take photographs of the product, including front view, side view, and nameplate. 6  Per IEC 60068-2-78: Environmental testing – Part 2-78: Tests – Test Cab: Damp heat, steady state. Annex B: Pakistan Focused Off-Grid Fan Test Method 21 5.1.6 Review the product packaging and nameplate to verify that the following information is clearly visible: manufacturer name, product name, model number, input voltage, rated air delivery, energy efficiency value, fan size, fan speed, number of blades, number of regulator speeds, date of man- ufacture, and conformity with standards. 5.1.8 Document findings in test report. 5.2  Air delivery 5.2.1 Ensure the fan is in its as-shipped condition. 5.2.2 If the fan includes an oscillating mechanism, ensure that it is disabled for air delivery testing. 5.2.3 Prepare the product for testing in accordance with Clause 9.2 (Limits of error of electrical mea- suring instruments) and 9.3 (Test voltage and frequency) of IEC 60879, with the exception of any required test conditions as specified in Section 3 of this test method. 5.2.4 Measure air delivery in accordance with Clause 9.4 (Test for air performance) of IEC 60879. 5.2.5 Document findings in test report. 5.3  Power input 5.3.1 Ensure the fan is in its as-shipped condition. 5.3.2 If the fan includes an oscillating mechanism, ensure that it is enabled for power input testing. 5.3.3 Prepare the product for testing in accordance with Clause 9.2 (Limits of error of electrical measur- ing instruments) and 9.3 (Test voltage and frequency) of IEC 60879, with the exception of any required Test conditions as specified in Section 3 of this test method. 5.3.4 Measure power input in accordance with Clause 9.6 (Measurement of power input) of IEC 60879. The regulator, if provided, shall be set at the highest speed position. 5.3.5 Document findings in test report. 5.4  Physical ingress protection 5.4.1 Ensure the fan is in its as-shipped condition. 5.4.2 Visually inspect the product for protection against ingress of solid foreign objects to determine whether the product meets IP20, IP30, and IP40 requirements, in accordance with Clause 13 (Tests for protection against solid foreign objects indicated by the first characteristic numeral) of IEC 60529:1989+AMD1:1999+AMD2:2013 CSV. 5.4.3 Take photographs of IP testing and document findings in test report, e.g., IP numbers, whether each is a pass or fail, and if fail, describe points of failure. 22 Supporting The Manufacture in Pakistan of High-Quality DC Fans 5.5  Drop test (only applicable to table and pedestal fans) 5.5.1 Ensure the fan is in its as-shipped condition. Test samples shall be minimally altered (ideally unal- tered), fully functional, and have sufficient charge to check for functionality throughout the test. 5.5.2 For table fans, prepare and conduct the drop test from a height of 1 m in accordance with Clause W.4.1 (Drop Test) of IEC 62257-9-5. For pedestal fans, prepare and conduct the drop test from a level surface without elevation. 5.5.3 Document findings in test report. Annex B: Pakistan Focused Off-Grid Fan Test Method 23