The NSW Energy Savings Scheme – An Overview
Energy Savings Certificates (ESCs) are produced under the New South Wales Government’s Energy Savings Scheme (ESS). The Scheme seeks to encourage additional take-up of energy efficiency by providing added incentives for customers installing a range of approved energy efficiency products. The target started at approximately 0.4% of total electricity sales in 2009 and increases gradually to 4% in 2014.
ESCs can be created by retail electricity customers (i.e. the Original Energy Saver) in the residential, commercial and industrial sectors through a wide range of activities including lighting, heating and cooling, motors and drives, and refrigeration. Each ESC represents the equivalent of one tonne of CO2 avoided as a result of the recognised energy savings activity. If you are involved in implementing energy savings projects there is a good chance that the activity may be recognised under the methodologies allowed by the Scheme.
Under the requirements of the NSW Energy Savings Scheme, electricity suppliers must meet individual annual energy saving targets each year based on their electricity market share in NSW, or face a penalty per certificate for any shortfall. This obligation to acquire certificates drives the demand for ESCs, creates a market price for their supply and is designed to encourage certificates to be supplied by those activities that are the most cost-effective in delivering energy efficient outcomes.
The Green Energy Trading Advantage
Green Energy Trading is an Accredited Certificate Provider under the NSW Energy Saving Scheme (ESS) and is able to create Energy Saving Certificates (ESCs) for eligible Recognised Energy Saving Activities (RESAs) in Commercial Lighting. This allows Green Energy Trading to create ESCs when nominated to do so by the original energy saver. The quantity of certificates each installation can produce varies, depending on the size and nature of the system and its typical patterns of use and operation. Certificates can be created on a “deemed basis” (i.e. the lifetime savings are created upfront, generally for up to ten years) for the implementation of a range of commercial lighting activities.
Green Energy Trading will assist clients with the accreditation of their energy saving products and processes for eligible commercial lighting activities and create the ESCs associated with these activities. Some of the projects that Green Energy Trading has been involved with include lamp replacements (T8 with T5) and installations of lighting control systems.
Typically Green Energy Trading handles all aspects of the certificate registration process, including collation of compliant documentation, registration of certificates and the handling of records and files. Once all documentation is in order Green Energy Trading will pass the value of the certificates back to its client. The value of certificates reflects Green Energy Trading’s buyback price which reflects the wholesale market certificate price, less Green Energy Trading’s costs incurred in certificate processing and trading.
Green Energy Trading can consistently deliver competitive certificate value to its clients above in-house client processing. This is because Green Energy Trading has lower overheads through specialisation, has expertise in liaising with scheme regulators and has an in-depth understanding of market trends. Clients choose to work with Green Energy Trading for all of their certificate trading needs because we offer:
- Competitive ESC prices that move in line with the wholesale market, based on the ESC buyback price published on our pricing page.
- Efficient and compliant ESC creation using our specially designed and automated Certificate Management System, with numerous integrated efficiency and compliance checks to ensure that full audit trails are maintained and clients receive fast turnaround times.
- A dedicated Project Manager and support team, who will provide you and your customers with ongoing assistance to ensure understanding of the requirements of the scheme regulator and prompt processing of paperwork.
- In depth industry knowledge of the latest policy and regulatory developments, as well as metrics to forward analyse market trends to assist with any price lock-in/hedging requirements.
- Customised form completion material - our simplified paperwork is tailored to your needs, refined in line with consultation and meets the highest government requirements.
- Detailed activity and data reports, if required.
Please contact Green Energy Trading to discuss the opportunities for your business and how we can assist.