Scheme Description Eligibility and Additionality Baseline setting coverage The NSW The ESS Additionality is For the penalty South Energy penalty scheme tested at both the scheme, liable Wales Savings covers eligibility stage entities are Energy Scheme (ESS) electricity and in the required to Savings began 1 July consumption. baseline their Scheme 2009 and was Liable entities measurement individual energy (ESS) designed to are: stage. savings target. encourage This starts at lowest all holders For the approximately energy of eligibility 0.4 per cent of efficiency electricity criteria, ACPs total electricity activities and retail activities, sales in 2009, reduce energy increasing licenses in certificates and consumption NSW benefits must: gradually to without certain four per cent in reducing electricity not be 2014 and then production generators undertaken in remaining levels or constant until that supply order to service quality. directly to comply with 2020. It was retail a statutory developed as a customers requirement Liable entities complementary in NSW (regulatory have met measure to the market additionality) individual energy proposed customers not have been savings target for national carbon in NSW a compliance previously pricing who created from year if the energy mechanism purchase the same savings and was their attributable are energy modelled on a electricity savings or equivalent to (or component of directly from other exceed) their the from the schemes, to individual energy National avoid savings target. Abatement Electricity Rule under Market. not have a For the offsets GGAS. negative component, there Exemptions effect on are three The scheme may be granted production or baselines provides by the minister service levels methods to incentives for for have an calculate electricity and emissions retailers and trade-exposed date on or reductions: certain industries. after 1 July parties to 2008—no Deemed improve their For the credit for Energy energy early action. complementary efficiency. offsets component, Additionality is installing or ACPs are also tested via replacing
Scheme Description Eligibility and coverage Additionality Baseline setting South Wales Energy Savings Scheme (ESS) The NSW Energy Savings Scheme (ESS) began 1 July 2009 and was designed to encourage lowest energy efficiency activities and reduce energy consumption without reducing production levels or service quality. It was developed as a complementary measure to the proposed national carbon pricing mechanism and was modelled on a component of the Abatement Rule under GGAS. The scheme provides incentives for electricity retailers and certain parties to improve their energy efficiency. The ESS penalty scheme covers electricity consumption. Liable entities are: all holders of electricity retail licenses in NSW certain electricity generators that supply directly to retail customers in NSW market customers in NSW who purchase their electricity directly from the National Electricity Market. Exemptions may be granted by the minister for and trade-exposed industries. For the complementary offsets component, ACPs are Additionality is tested at both the eligibility stage and in the baseline measurement stage. For the eligibility criteria, ACPs activities, certificates and benefits must: not be undertaken in order to comply with a statutory requirement (regulatory additionality) not have been previously created from the same energy savings or from other schemes, to avoid not have a negative effect on production or service levels have an date on or after 1 July 2008—no credit for early action. Additionality is also tested via For the penalty scheme, liable entities are required to their individual energy savings target. This starts at approximately 0.4 per cent of total electricity sales in 2009, increasing gradually to four per cent in 2014 and then remaining constant until 2020. Liable entities have met individual energy savings target for a compliance year if the energy savings attributable are equivalent to (or exceed) their individual energy savings target. For the offsets component, there are three baselines methods to calculate emissions reductions: Deemed Energy installing or replacing