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How Will Mandatory Energy Restrictions Impact the TV Industry?

With the California Energy Commission (CEC) proposing a mandatory energy restriction on TVs sold in California, the green aspects of consumer electronics have entered a new phase. The proposal could be adopted as early as November 2009, effecting TVs manufactured after January 1, 2011, and sold in California. On January 1, 2013 the allowed power consumption will again be lowered by over 30%.

The proposal basically follows the EnergyStar guidelines, which are goals that TV makers strive to achieve in a portion of their TV line. CEC wants to change these guidelines from goals to mandatory requirements. That has some TV makers nervous as they wonder how it will impact their business.

The CEC claims that TVs are accounting for 10% of the residential energy use or 2% of the gross electrical use in California, a non-trivial number. The CEC expects this number to increase, as larger and larger TVs are being sold worldwide. In an effort to support the overall energy savings goals of California, and therefore reduce or limit the CO2 emissions, limits on the power consumption of TVs sold in California are being proposed. In the current form of the proposal, larger sized TVs (above 57”) are currently not included in the proposal text and face no power restrictions.

Many industry groups in the CE space have argued that this measure will have a severe impact on the California economy through lost sales and ultimately, lost jobs. CEA stated during the first hearing in December 2008 that this legislation would lead to significant job losses, depending on how many TVs would have to be taken off the market (they assumed 10%-30%). From the retail perspective, this translates into a revenue loss of 44 million to 130 million annually. CEC counters this argument by saying that most of the TV manufacturers have stated that they can fulfill the proposed requirements by the proposed deadline. In addition, they believe that the rest of the US will adopt similar legislation making sales from outside of the state irrelevant. So who is right?

For newer technologies like OLED, 3D TV and Internet TV, these requirements have to be analyzed in more detail. For OLED, the requirements have to be fulfilled completely, but this should not cause any concern as more efficient products and larger sizes are expected to enter the market in years to come. For the other technologies, any additional electronics can be disabled and the measurements performed in 2D mode only. This could change however, after the IEC releases energy measurement guidelines for 3D TVs.

These and other environmental issues will be discussed in our upcoming Green Display Expo, October 27, 2009, Washington DC.

Full one-day conference registration is $425.00. Government employees receive a 20% discount.

For more information about the conference and to register, please go to www.greendisplayexpo.com.