On 30 May 2014, the Minister for Resources and Energy and the Minister for Environment jointly released amendments to the Energy Savings Scheme Rule of 2009 (the ESS Rule).
The previous Rule will be updated in two stages:
Energy Savings Scheme (Amendment No. 1) Rule 2014:
This Rule commenced on 1 June 2014 and amends the Energy Savings Scheme Rule 2009.
The main change is that the implementation of T5 adaptors, and retrofit linear LED lamps, are no longer eligible for ESC creation from 1 June 2014.
If these technologies were implemented for projects that were completed on or before 31 May 2014, then ESCs can still be created until 30 September 2014.
Energy Savings Scheme (Amendment No. 2) Rule 2014
This Rule commences on 1 July 2014 and replaces amendment No. 1 as mentioned above. Note, that there are a number changes in this Rule that won’t come into effect until 1 October 2014 including household insulation upgrades and the Project Impact Assessment Method based on Measurement and Verification.
It is important to note that activities implemented prior to 1 July 2014 under the old Rule are still eligible to generate ESCs until 30 September 2014 based on the old Rule, with the exception of T5 adaptors and linear LED retrofit lights implemented on or after 1 June 2014.
Below is a summary of the major changes that are relevant to Demand Manager’s customers and accreditations.
- Demand Manager is to be nominated by the End User to create ESCs on or priror to the date of implementation of a project. In other words, a signed Nomination needs to have been completed prior to the completion of a project;
- Demand Manager is to be accredited for a Recognised Energy Saving Activity prior to the implementation date of a project;
- Before ESCs are created for a project, Demand Manager must provide general data to IPART for review (e.g. implementation date and address, ACP details, cost to the End User, business classification).
- Commercial Lighting
- The purchaser (Energy Saver) has to pay a net amount of at least $5 (excluding GST) per MWh (= 1 ESC) of Energy Savings related to the lighting upgrade, as evidenced by a tax invoice;
- An Energy Saver is the person who purchases or leases the goods and services that enable the relevant Energy Savings to be made, provided that they directly benefit from the ongoing End-Use Services provided;
- Emerging Lighting Technologies (ELTs) must meet product and minimum performance requirements as yet to be published by IPART;
- The maximum Nominal Lamp Power that can be claimed for pre-upgrade halogen ELV downlights is 35W, even if an original lighting technology was in fact 50W;
- Upgrades that only involve the implementation of lighting controls can only forward create ESCs for a maximum of 5 years;
- The current process for claiming extended operating hours (EOH) will cease to exist from 1 July 2014. For projects completed on or after this date, which involve “permanent” upgrades, EOH can be claimed based on area type or building class in which the lights are implemented.
Examples of default hours for some area/building types are:
- Common areas in strata plan buildings 7.000 hours
- Offices 3,000 hours Restaurants 5,000 hours
- Maintained emergency lighting 8,500 hours
- Manufacturing (not all) 5,000 hours
- Undercover car parks 7,000 hours
Demand Manager is currently working on a tool to simplify the identification of the appropriate hours of operation for its customers. More information on this is to follow shortly.
- Data centres are now eligible for the creation of ESCs in addition to offices, hotels and shopping centres
- The Baseline NABERS rating can either be based on a historical NABERS rating, providing that this rating is no more than 7 years prior to the current rating, or based on a pre-defined benchmark as outlined in the Rule;
- Historical NABERS ratings are adjusted on an annual basis by 0.15 star increments per year
- Baseline electricity consumption is adjusted to reflect the same breakdown of energy consumption as the current ratin
Project Impact Assessment Method
- The existing PIAM method may only be used for projects implemented on or before 30 June 2015, providing that Demand Manager is accredited to do so on or before 30 September 2014;
- The PIAM&V method, commencing on 1 October 2014, requires a higher level of accuracy/detail in regards to determining energy savings. This typically means longer measurement periods before and after the upgrade depending on the type of technology implemented;
- Under the PIAM&V method ESCs can be created upfront for a longer period of time (total of 4.5 years, as compared to 3 years under the old Rule).
If you have any questions about the Rule change, then please contact Demand Manager for further information.