The ESS is a voluntary the market-based participants in baselines end-user penalty scheme the scheme and measurement equipment and requires are eligible to methodologies. such as electricity create and sell For instance, lighting and retailers to when using the commercial or ‘energy meet savings Project Impact industrial individual certificates’ Assessment equipment annual energy related to method, with more savings targets energy savings evidence is efficient ones. based on their in commercial, required to It measures electricity residential and demonstrate that the lifetime market share in industrial the energy (deemed) NSW. The sectors. savings project savings of an retailers and did not result in energy other parties Eligible a decrease of savings captured in the activities relate service levels or project scheme are output from a upfront at the to the referred to as modification, site or process. time of installation, project ‘Liable Entities’. replacement and removal of Metered Obligations for end-user liable entities equipment for under the the purposes of energy use scheme can be improving met by energy before the surrendering efficiency. activity is offsetting Excluded implemented activities (the baseline) ‘energy with that after savings include energy certificates’ or generation the activity. by paying a (i.e., solar or This penalty for the methodology shortfall. is based on electricity systems), For 2014, the and consumption energy savings of a whole scheme shortfall that are not facility or penalty rate is linked to the discrete part of a facility. set at $25.97 national grid. per certificate Project Impact and is adjusted The offsets for inflation scheme allows annually. aggregators to smaller projects on a the ‘aggregate’ The offset savings from a facility number of their impact certificates can
The ESS is a market-based penalty scheme and requires electricity retailers to meet individual annual energy savings targets based on their electricity market share in NSW. The retailers and other parties captured in the scheme are referred to as ‘Liable Entities’. Obligations for liable entities under the scheme can be met by surrendering offsetting ‘energy savings certificates’ or by paying a penalty for the shortfall. For 2014, the scheme shortfall penalty rate is set at $25.97 per certificate and is adjusted for inflation annually. The offset certificates can voluntary participants in the scheme and are eligible to create and sell ‘energy savings certificates’ related to energy savings in commercial, residential and industrial sectors. Eligible activities relate to the modification, installation, replacement and removal of end-user equipment for the purposes of improving energy efficiency. Excluded activities include energy generation (i.e., solar or systems), and energy savings that are not linked to the national grid. The offsets scheme allows aggregators to ‘aggregate’ the savings from a number of the baselines measurement methodologies. For instance, when using the Project Impact Assessment method, evidence is required to demonstrate that the energy savings project did not result in a decrease of service levels or output from a site or process. end-user equipment such as lighting and commercial or industrial equipment with more efficient ones. It measures the lifetime (deemed) savings of an energy savings project upfront at the time of project Metered energy use before the activity is implemented (the baseline) with that after the activity. This methodology is based on electricity consumption of a whole facility or discrete part of a facility. Project Impact smaller projects on a facility their impact
CCA_CFIStudyPublicReportHTMLAppendixA.docx