NSW Energy Savings Scheme (ESS)
Currently under NSW Energy Savings Scheme there is a significant financial reward and incentive for organisations to invest in energy saving activities. The Scheme provides a structure for the creation of energy savings certificates (ESCs) for any approved Recognised Energy Saving Activity (RESA). An ESC is equivalent to 1 tonne of carbon dioxide (equivalent) which is equal to 1.06 Megawatt hours of energy.
ESC = TCO2eq, = 1.06xMWh
EO Lighting is an Accredited Certificate Provider (ACP) under the scheme and can provide all necessary administration and management for the creation and sale of ESCs created from your project. The scheme is designed to increase opportunities to improve energy efficiency by rewarding organisations who undertake eligible projects that either reduce electricity consumption or improve the efficiency of energy use via financial incentives.
The ESS is administered by the Independent Pricing and Regulatory Tribunal (IPART). Under the Scheme, Energy Savings Certificates (ESC’s) are created when a company or organisation cuts their electricity use or helps their customers cut their electricity use. The company can then sell these certificates to electricity retailers (known as Scheme Participants under the scheme) who have an annual target number of certificates they have to acquire or create.
ESCs are created by Accredited Certificate Providers (ACPs) when they are responsible for activities that reduce electricity consumption or increase efficiency of electricity consumption. These activities are known as Recognised Energy Savings Activities (RESAs).
By nominating EO Lighting as your Energy Saver using our approved Nomination Form, this enables our company to create and own ESCs on your behalf. We will then trade and sell any ESCs created and pay you the proceeds from the sale. All ESCs are recorded in the ESS Registry.
Under the Scheme, EO Lighting has a strict requirement to meet accreditation application requirements including assessments, compliance to ESS rules and RESAs and record management suitable for independent audits and verification by the Scheme Administrator. ESCs cannot be created until completion of the project and proof of the energy saving activity are received.
More detailed Information on the Scheme can found at www.ess.nsw.gov.au
ESCs fluctuate in price on the open market, however, are currently trading between $21 to $32 per certificate. There are application and registration fees associated with each ESC. As an ACP, we carry out or manage the recognised energy savings activity (RESA) then calculate the MW/h energy savings from the RESA, register the certificates on the Registry and pay the certificate administration fee.
Once the certificates are registered, we can trade directly with electricity provider or via a broker. Typically these are traded in minimum 5,000 certificate lots. We then pay our customer the proceeds from the trade less the registration and administration fees. As an example of the value of ESCs applied to a project: Existing Lighting: 100 x T8 1200mm 36 watt fluorescent tubes | Upgrade Lighting: 100 x EO SMD T8 1200 20 watt LED tubes | Building: Typical air-conditioned office environment | Operating Hours: Mon to Fri, 5 days a week (approx 3,000 hours per annum) | ESCs created: 103 | If the net value of each ESC after administration and selling fees is $22.00, then in this example: 103 x $22 = $2,266 ex GST. This credit value of $2,266 ex GST is paid to our customer after completion of the RESA, registration and trade of certificates.
High efficiency energy saving products such as LEDs are considered emerging technology under the Scheme and require Certificates of Suitability issued by the NSW Department of Fair Trading and acceptance by IPART. EO Lighting has a suite of products that have undergone this stringent approval process and are eligible to create ESCs. Please check our product data information to view which products comply or contact your nearest authorised Electrical Wholesaler or EO Lighting direct.
The following chart outlines the process by which our customers nominate our company Summit LED Energy Australia Pty Ltd t/as EO Lighting under the Scheme and allow us to create Energy Savings Certificates (ESCs) for lighting upgrades at customers premises.
For more information or detailed explanation of the NSW Energy Saver Scheme (ESS) and how you can benefit, please contact your EO Lighting representative on 02 9653 9909
Victorian Energy Efficient Target (VEET)
The Victorian Energy Efficiency Target (VEET) Scheme is a Victorian Government initiative promoted as the Energy Saver Incentive. It was established under the Victorian Energy Efficiency Target Act 2007 (the Act) and commenced on 1 January 2009. It is legislated to continue in three-year phases until 1 January 2030.
The purpose of the VEET Scheme is to reduce greenhouse gas emissions, encourage the efficient use of electricity and gas, and to encourage investment, employment and technology development in industries that supply goods and services which reduce the use of electricity and gas by energy consumers. The Scheme operates by placing a liability on large energy retailers in Victoria to surrender a specified number of energy efficiency certificates every year. Energy retailers with a liability under the Scheme are known as Relevant Entities. Relevant Entities are able to create certificates directly, or purchase certificates in a competitive market, or both. Each certificate represents a tonne of greenhouse gas abated and is known as a Victorian energy efficiency certificate (VEEC). For the first three-year phase of the Scheme (2009-11), the Scheme target is 2.7 million VEECs per annum, increased to 5.4 million VEECs per annum during the second three-year phase, starting on 1 January 2012. It is legislated to continue in three-year phases until 1 January 2030. EO Lighting has a full range of LED lights approved by the Essential Services Commission (ESC) which can be used to create Victorian Energy Efficiency Certificates (VEEC’s) under both Schedule 21 and/or Schedule 34. For more information on the Scheme, please visit www.veet.vic.gov.au. For more information or detailed explanation of the Victorian Energy Efficiency Target (VEET) and how you can benefit, please contact your EO Lighting representative on (02) 9653 9909.