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City of Sydney SGA Leadership Network Overview of the Energy Saving Scheme

City of Sydney SGA Leadership Network Overview of the Energy Saving Scheme. Gareth Huxham B.E. Mphil Energy Smart Strata gareth@energysmartstrata.com.au. A pdf of tonight's presentation will be available on our website www.energysmartstrata.com.au. What is the Energy Saving Scheme.

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City of Sydney SGA Leadership Network Overview of the Energy Saving Scheme

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  1. City of Sydney SGA Leadership NetworkOverview of the Energy Saving Scheme Gareth Huxham B.E. Mphil Energy Smart Strata gareth@energysmartstrata.com.au A pdf of tonight's presentation will be available on our website www.energysmartstrata.com.au

  2. What is the Energy Saving Scheme The ESS is a NSW-based energy efficiency scheme. It commenced in 2009. Provides a financial incentive to reduce energy usage and carbon emissions. The ESS is modelled on, and supersedes, the previous NSW Greenhouse Gas Reduction Scheme. Electricity retailers are obligated to buy and surrender Energy Savings Certificates (ESCs). An ESC represents 1 MWh of electricity saved through a RecognisedEnergy Savings Activity (RESA).

  3. ESC costs to end users (you)

  4. ESC costs to end users (you) The site consumed 304 MWh pa, ESSs costs were $627 Ex GST pa @ 0.2057c/kWh

  5. ESC costs to end users (you)

  6. ESC savings 1 ESC = 1 MWh. ESC market price ~= $13. ESC price you received ~= $10. So saving 1 MWh pa, over 10 years = 10 ESCs = $100. ESC price is currently low.

  7. Can your project generate ESCs? • What activities are excluded? • activities that reduce production or service levels, including safety levels • activities not implemented at a site or sites in an ESS jurisdiction • activities that are unlawful to carry out • installing T5 Adaptor kits or retrofitting LED linear lamps • activities undertaken to comply with any statutory requirement • Network Service Provider projects that would otherwise have passed a regulatory investment test  • the purchase of Green Power, as the benefit is already accounted for by the energy retailer • activities that reduce energy consumption by increasing consumption of non-renewable fuels (other than gas) to provide equivalent goods or services • activities that are eligible to create tradeable certificates under the Renewable Energy (Electricity) Act 2000 (Cth) • activities that increase the efficiency of gas consumption and result in flaring of gas • activities that generate electricity where the electricity is exported to the electricity network or the generating system has a nameplate rating of 5 MW or higher • fuel switching activities that lead to a net increase in greenhouse gas emissions (applicable to clauses 7A, 8.5, 8.6 and 8.7 of the ESS Rule) • activities that are implemented prior to an Accredited Certificate Provider’s accreditation date for that Recognised Energy Saving Activity (RESA)

  8. Can your project generate ESCs? • What activities are excluded? • Installing T5 Adaptor kits or retrofitting LED linear lamps • Solar power (i.e. activities that can generate SRECs / STCs). • All other energy saving projects may be eligible to create ESCs, such as: • Installing VSDs on condenser water pump and cooling tower fans. • Chiller upgrade. • CO control system for car park ventilation. • Building Management System (BMS). • HVAC optimization. • All lighting upgrades (aside from T8 to T5 converters and LED tube retrofits). • Voltage optimization / reduction.

  9. How are ESCs created? • An ESC is generated through a Recognised Energy Savings Activity (RESA). • ESCs are created and sold by Accredited Certificate Providers (ACPs). ACPs are accredited by IPART. • 1 ESC = 1 MWh of saved energy. • To calculate how many ESC we can generate we need to know how: • How much electricity will we save each year? • Over how many years will we achieve these savings? • And most importantly:Are you sure about that?... • Under a Metered Baseline Method (Baseline Unaffected by Output): • Electricity Savings = Reduced Consumption x Confidence Factor x Regional Network Factor • Confidence Factor = 1 – (Baseline Variability / Baseline) • The confidence factor reflects the degree of uncertainty in the calculations, information and assumptions used in the energy model. • In order to calculate energy savings we need to employ a calculation methodology

  10. Calculation methodologies There are 13 calculation methodologies. • Aggregated metered baseline • Business appliances • Commercial lighting • High efficiency motors • Home energy efficient retrofits • Metered baseline methods • NABERs Baseline • Power Factor Correction • Project Impact Assessment Method (PIAM) • Project Impact Assessment Method with Measurement and Verification (PIAM M&V) • Public Lighting Method • Removal of Old Appliance • Sale of New Appliances

  11. Calculation methodologies There are 13 calculation methodologies. • Aggregated metered baseline • Business appliances • Commercial lighting • High efficiency motors • Home energy efficient retrofits • Metered baseline methods • NABERs Baseline • Power Factor Correction • Project Impact Assessment Method (PIAM) • Project Impact Assessment Method with Measurement and Verification (PIAM M&V) • Public Lighting Method • Removal of Old Appliance • Sale of New Appliances

  12. Calculation methodologies There are 3 calculation methodologies relevant to residential strata: • Commercial lighting • Metered baseline method • Project Impact Assessment Method with Measurement and Verification (PIAM&V)

  13. Metered baseline method • Measure a baseline of energy usage, measure future energy usage and determine energy savings. • May be used where: • Energy savings result in a significant reduction in site energy consumption that is readily identifiable through metering • Historical site energy consumption data is available • There are 3 calculation sub-methods: • Baseline per Unit of Output • Not applicable to residential strata • Baseline Unaffected by Output • Applicable where energy usage is not affected by external variables. • E.g. residential strata without centralized AC. • Normalised Baseline: • Applicable where energy usage is affected by external variables. • E.g. Residential strata with centralized AC.

  14. PIAM&V • Summary of PIAM&V • Employs measurement and verification techniques to predict and then verify energy saving. • A baseline energy model and an operating energy model are developed and compared. The confidence factor depends on how well these correlate. • Allows energy savings to be calculated (deemed) for up to 10 years. • i.e. able to forward create ESCs. • Discounting is applied to the calculated energy savings based on the quality of the measured data and how well it fits with predicted energy models. However can ‘top-up’ if energy savings are greater than those initially calculated. • Types of energy models • Estimate of mean • Regression analysis • Computer simulation • Sampling method

  15. MBM or PIAM&V?

  16. Additional benefits of ESCs Conducting the ESC calculation methodology is an outcome it itself. It provides a critical evaluation of the impact of a large scale energy saving projects. I.e. checks whether the equipment is operating as expected and is having the expected outcomes.

  17. Flow chart to identify ESC calculation methodology

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