Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
1.
1.1
1.2
1.3
2.
2.1.
2.2.
2.3.
3.
3.1.
3.2.
3.3.
Introduction ................................................................................................ 2
Purpose ........................................................................................................ 2
Existing methods .......................................................................................... 2
What is a project-based assessment? ......................................................... 2
Policy direction ........................................................................................... 4
Previous stakeholder feedback .................................................................... 4
Guiding principles ......................................................................................... 4
Which methods? ........................................................................................... 4
Proposed M&V Method details ................................................................. 7
Overview....................................................................................................... 7
Method scope ............................................................................................... 7
Roles and responsibilities............................................................................. 8
3.4.
4.
5.
Proposed process ...................................................................................... 10
Skills and capacity development ............................................................ 14
Submissions ............................................................................................. 15
5.1.
5.2.
5.3.
Summary of questions ................................................................................ 15
How to provide feedback ............................................................................ 17
Next steps .................................................................................................. 17
Appendix A: Diagrams ............................................................................................. 19
Appendix B: Glossary of terms ............................................................................... 23
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
The Victorian Energy Efficiency Target (VEET) is a market-based scheme that encourages households and businesses to reduce their energy consumption. When people make eligible energy efficiency improvements to their home or workplace through the scheme, they earn certificates. Every certificate represents one tonne of greenhouse gas emissions saved over the lifetime of the product installed. Certificates can then be sold to energy retailers, who must to meet an emissions savings target each year.
When the VEET scheme started in 2009, it was only available to households. The scheme was expanded to include businesses in 2012.
Energy efficiency measures currently available for business through the scheme use simple, deemed methods. This is limiting the opportunities for many businesses to benefit from VEET incentives for their potentially greatest energy savings.
To create more flexible benefits for business through the VEET scheme, the Victorian
Government is considering introducing new, project- based assessment methods. This follows setting new scheme targets for 2016-2020, designed to encourage increased energy efficiency through the scheme.
The purpose of this document is to set out options to introduce project-based assessments into the VEET scheme, and to seek the views of interested stakeholders. Feedback from submissions will be used to guide the creation and implementation of a new VEET regulation for project-based assessments.
Details for making a submission are provided on page 15.
To date, the VEET scheme has used standardised, deemed methods, which are administratively simple. Deeming refers to an approach whereby a standard calculation is used to determine the number of certificates awarded when a measure is implemented. The assumptions underpinning the calculation are based on existing research and market data.
For example, the number of certificates can be calculated from the weighted average energy savings from the upgrade against an average energy consumption baseline, using market data and assumptions of how the product is typically used. This approach may under- or overestimate energy savings for individual projects, but is accurate across the population. The main benefit is that the deemed savings from a given measure are known ahead of time, which makes the methods administratively simple and provides certainty of how many certificates can be created.
Project-based assessments award certificates for verified energy savings from individual projects. They are suitable for equipment or process upgrades which, for example, are highly customised or which may result in energy savings that are hard to accurately calculate ahead of time. The energy savings are deeply linked to how the systems or processes are used at their specific site.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
An example comparison of some differences in determining the energy savings for deemed
and project-based methods is shown in Table 1. These vary method to method.
Table 1: Simple comparison of how baseline and upgrade energy use could be determined for deemed and project-based activities.
Method type
Deemed
How the baseline energy use can be determined
Power consumption of the market average product multiplied by
Assumed operating hours
How the upgrade energy use can be determined
Power consumption of the efficient installed product multiplied by
Assumed operating hours
How the savings are determined
Upgrade energy use minus
Baseline energy use
Projectbased
Measured on site before the project is carried out
Measured on site after the project is carried out
Upgrade energy use minus
Baseline energy use
Due to the need for specific details about a business’s particular energy efficiency improvements, project-based assessments are more complex and therefore more costly, than deemed methods. However, they have the potential to generate much greater energy cost savings and greenhouse gas abatement, and support energy efficiency upgrades in a greater range of businesses.
The typical size of an implementation using a project-based assessment method varies widely. In the NSW Energy Savings Scheme (ESS), of all project-based assessments implemented to date, around 1,200 individual projects have created between one and 5,000 certificates each, and around 130 projects have created between 5,000 and 65,000 certificates, with most of these in the 5,000 to 25,000 certificate range.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
Some stakeholders and businesses have provided feedback on introducing project-based assessments into the VEET scheme during the VEET consultation in April and May 2015.
General views included:

Strong support for alignment of project-based assessment methods with those from energy efficiency schemes in other jurisdictions, particularly the NSW ESS

Stakeholders value the credibility and guaranteed savings demonstrated via measurement and verification (M&V) approaches

Assessors, who perform auditing, checking and recommendations for projects, should hold appropriate professional accreditation and be free of conflicts of interest.
Ultimately, our goal is to provide robust and accessible project-based assessment methods.
This should provide opportunities for a wide range of businesses to access VEET incentives to cut costs, improve productivity and reduce greenhouse gas emissions in Victoria, and to stimulate innovation and jobs.
The following principles will underpin our work to introduce project-based assessments to
VEET.

Striking the right balance between protecting the integrity of the scheme and minimising the costs of participating

Supporting the development of industry capacity to carry out projects

Providing transparent, coherent and streamlined guidelines and processes

Aligning with industry-standard approaches such as the International Performance
Measurement and Verification Protocol (IPMVP)

Aligning with similar schemes where possible to create consistency and reduce red tape.
We are considering a range of assessment methods. This will be a significant change for the scheme, so it will be a staged process. The first step is to introduce a new VEET Regulation that sets out the minimum criteria for VEET activities. The estimated timeline for these steps
is shown in section 5.3.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
Measurement and Verification Method
One method the VEET scheme could adopt is the Project Impact Assessment with
Measurement and Verification (PIAM&V) method from the NSW ESS 1 , or, in VEET, the
Measurement and Verification Method (M&V Method).
The M&V Method uses best-practice principles from the IPMVP to measure and model energy savings. It allows the products and services delivered by VEET approved businesses
(known as Accredited Persons or APs) to create certificates at multiple points (Appendix
Figure 1). Certificates may be forward-created for up to 10 years, based on an energy model
after the initial energy savings have been verified, and/or they can be created or topped up annually based on the verified energy savings to ensure that all of the energy savings are
recognised (Appendix Figure 2). The method is credible, robust and flexible.
This approach is similar to the Industrial Energy and Fuel Efficiency method available in the
Commonwealth Emissions Reduction Fund (ERF). But unlike the ERF method, it will allow the ability to forward-create certificates.
The M&V Method is likely to be most suitable for larger-scale projects and projects for which energy savings are able to be readily sub-metered.
1. Proposed M&V Method
 Do you envisage a market for the proposed M&V Method? Why/why not?
Other methods
Using the M&V Method may not be cost-effective for smaller projects, or projects where the energy savings are difficult to model or measure. Other project-based assessment methods will also be introduced into VEET. Options currently being considered include:
 A method that awards certificates for improvements to a building’s accredited NABERS
Energy rating, similar to the NSW ESS NABERS Metered Baseline method or the ERF
Commercial Building Energy Efficiency Method

An aggregated method for quantifying energy savings from large groups of small energy users using statistical analysis, similar to the NSW ESS Aggregated Metered Baseline method or the Commonwealth ERF Aggregated Small Energy Users method

Smaller-scale methods with less onerous M&V requirements, for upgrades to equipment such as heating, ventilation and air conditioning (HVAC) equipment.
1 For details of the PIAM&V method refer to the ESS website: http://www.ess.nsw.gov.au/Methods_for_calculating_energy_savings/Project_Impact_Assess ment_with_MV
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
2. Other proposed project-based assessment methods
 Do you envisage a market for these proposed methods? Why/why not?
 Are there any other project-based assessment methods which the
Department should consider as a priority? (note please make calls for new deemed methods separately)
More detailed stakeholder input on other new project-based assessment methods such as these will be sought at a later date.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
Once a business has identified the energy efficiency improvements it would like to make, the
M&V Method may be applied, taking the following steps:
1. Eligibility – the proponent applies to the Essential Services Commission (ESC) and confirms eligibility with the VEET scheme
2. Planning – an M&V Plan is prepared which defines the project
3. Baseline – the proponent measures and models baseline energy use, which later forms the basis of comparison to work out energy savings
4. Implementation – the project is implemented and commissioned
5. Reporting energy savings – the proponent works out the energy savings in comparison with the baseline energy use (that is how much power the business would have used without making the energy efficiency improvements)
6. Certificate creation – the savings are used to calculate the number of certificates.
The method allows certificates to be created at multiple points in time. Once the energy saving measures are in place energy consumption data is collected to predict the annual energy savings – based on the predicted savings, forward certificates can be created.
Alternatively, certificates can be created at the end of each year, based on measured and verified energy savings, taking into account any certificates which have already been forwardcreated.
The M&V Method would cover upgrades to equipment and changes to controls or processes which improve energy efficiency. Projects would need to ensure that changes maintain the same service levels as were provided previously (e.g. illumination levels, or ventilation rates), but there would be scope to adjust savings for projects which correct sub-standard service levels to acceptable levels.
If the M&V Method is adopted, it should be aligned with the technical requirements of the
PIAM&V method from the NSW ESS, with the following exceptions:

The M&V Method will allow both electricity and natural gas savings to be counted by considering the net impact on greenhouse gas emissions, similar to that used in the ERF.

Initially, the M&V Method will not include the option of calibrated simulation for obtaining energy models. We will consider including a simulation option in future with reference to the NSW experience in implementing this method.

Initially, the M&V Method will not include the option of a multiple site-sampling model - a model created by an AP to represent an energy efficiency measure, derived from a statistically valid sample of existing implementations 2 . For this to be possible, the energy efficiency measure must be relatively repeatable and homogeneous. The multiple sitesampling model allows the AP to spread the M&V costs over many implementations.
However, it is unlikely to be used before the general M&V Method has reached a
2 Not to be confused with sampling of multiple similar upgrades at a single site, in accordance with standard M&V practice; this will be an acceptable approach.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015 sufficient level of take-up. We will consider including a multiple site-sampling model option in future based on the NSW experience.
Project-based assessment methods are likely to require a broadening of some roles within
VEET, due to the specialised and more substantial nature of these projects.
Accredited Persons (APs)
To create a certificate under the VEET scheme, a person must be an AP under the VEET Act
(the Act). While APs do not necessarily carry out implementations – for example, they may subcontract installation or act only as aggregators – APs are responsible for the correct creation of certificates and compliance with the Act and Regulations. This will remain the case for project-based assessments.
As with any other VEET activity, APs will need to demonstrate competency to support their role in delivering the M&V Method.
3. APs
 What minimum qualifications and/or experience should an AP need in order to demonstrate capacity to deliver the M&V Method? E.g.:
Certified Measurement & Verification Professional (CMVP)
Certified Energy Efficiency Specialist /Leader (CEES/CEEL)
-
Relevant industry experience (please specify)
Other (please specify)
PBA Assessor
The PBA Assessor will provide independent third party assessments, working with the AP to ensure the correct implementation of the M&V Plan and the project. We expect that PBA
Assessor fees will be paid by the AP – that is by the business or organisation delivering the energy efficiency improvements to the business.
The PBA Assessor will be responsible for providing the ESC with expert advice on whether the project meets all the technical requirements. The PBA Assessor would provide recommendations at multiple points: at the M&V Plan stages, once the improvements are up and running, and when calculating savings. The PBA Assessor should be independent of the
AP and accountable to the ESC.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
4. PBA Assessors
 What minimum qualifications and/or experience should a PBA
Assessor possess in order to demonstrate capacity to provide assessments? E.g.:
-
Certified Measurement & Verification Professional (CMVP)
Certified Energy Efficiency Specialist /Leader (CEES/CEEL)
Relevant industry experience (please specify)
-
Other (please specify)
 How can the independence of the PBA Assessor be assured? E.g.:
Restrictions on who can be a PBA Assessor (please specify)
Contractual arrangements (please specify)
 Should APs be able to act as PBA Assessors if they are able demonstrate they don’t have a conflict of interest?
 Should an AP be able to choose their own PBA Assessor, or should PBA
Assessors be assigned by the ESC?
ESC
The ESC administers the VEET scheme. Its role includes:

Accrediting persons (businesses or organisations) who may create certificates

Monitoring and administering the registration, creation, transfer and surrender of certificates

Enforcing shortfall penalties on energy retailers who fail to meet their obligations

Auditing the registration and creation of certificates

Monitoring compliance with the Act and Regulations.
The ESC also publishes extensive guidelines, explanatory notes and other advice on the how to implement VEET activities. The ESC will produce guidelines for the M&V Method and other project-based assessment methods to support their successful delivery.
The ESC’s role is critical, not only in maintaining the integrity of the VEET scheme, but ensuring that project processes are well-defined and easy to follow.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
Participating businesses
Project-based assessment methods will assume that businesses have already identified their energy efficiency upgrade prior to registering the project with the ESC. A business may choose to deliver the project completely in-house (and hence become registered as an AP), or may engage an AP and M&V expertise externally.
A flow chart for the proposed process is included in the Appendix (Figure 3). This section
explains the steps. Your feedback is invited on each aspect of this proposed process.
Eligibility
After deciding to go ahead with a project, the AP registers the project with the ESC with eligibility information:

Eligibility of the entity to be an AP and demonstrate competency to carry out the method

Eligibility of the project to be carried out under the VEET scheme, by providing a description of the works and assessment of energy savings to be made, as compared to a market average – this is referred to as additionality 3 .

Other essential information, such as scheduling, budget, a first estimate of expected energy savings, and intention to use forward creation of certificates, annual top-up, or both.
The intention of this step is to provide a first point of contact with the ESC and advise on notional eligibility of the AP and project. However, this could feasibly be covered in the next step.
5. Eligibility
 Is it preferable that this information is provided later at the M&V Plan step?
 Are there any potential issues at this step with commercially confidential information, e.g. budget information? How could this be managed?
M&V Plan
At this step the PBA Assessor reviews the proposed project plan and provides recommendations to the ESC. The ESC, if satisfied, provide approval in principle and the project can start. ESC guidelines will detail exactly what information will need to be included
3 Additionality refers to whether a project creates emissions reductions which would not have occurred in the absence of the scheme. In the M&V Method, additionality is demonstrated where the project is accredited prior to implementation, and new equipment installed is more energy efficient than the market average product.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015 in an M&V Plan. We expect requirements will be generally in line with the IPMVP framework.
The information provided to the ESC would form a key part of the supporting evidence required to apply to create certificates.
This step is necessary to provide a business with a good understanding of what the ESC will require, before significant project investment is made.
The content required within the M&V Plan at this stage may include:

Definition of the project, measurement boundary and interactive effects

Identification of the expected baseline and reporting periods (dates and duration)

Definition of the metering and other record-keeping or measurement

Outline of the format and content to be provided for operational verification

Outline of the format and content for reporting energy savings at forward creation or topup

Identify roles, protocols and responsibilities for quality assurance, taking measurements, and dealing with unexpected circumstances such as site changes, outages or lost data

Inventory of equipment and conditions relevant to the measurement boundary

Identify any known future disruptions or changes relevant to the measurement boundary

Other information.
The M&V Plan is reviewed by the PBA Assessor, who will recommend to the ESC whether it meets the ESC guidelines. If satisfied, the ESC will provide approval in principle and the proponent may proceed with creating the baseline model and implementing the project. At this stage, the ESC will not confirm the number of certificates, as this is yet to be determined.
6. M&V Plan
 What information should be required in the M&V Plan, and what should be able to be provided later? Please refer to the proposed content listed in this section, as well as the PIAM&V method and IPMVP framework.
Baseline model
The baseline model describes the energy consumption of the site before the energy efficiency measures are put in place. It is the basis from which energy savings will be calculated and an essential part of the supporting evidence required to create certificates. The PBA Assessor reviews the baseline model and provides a recommendation to the ESC of whether it meets the ESC guidelines.
The baseline model can be reviewed and approved after a project has started implementation. But a business can choose to wait until their baseline model is approved before starting work, in order to reduce risk.
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Project-based assessments in the Victorian Energy
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Implementation and operational verification
Once M&V Plan has been endorsed and baseline period data has been collected, project implementation can start. On completion, verification may be required to confirm the new equipment is operating correctly and as intended. This verification will depend on the specifics of the project.
For many VEET existing activities, the ESC requires evidence, such as geotagged and dated photographs, to demonstrate compliance. Similarly, project-based activities will also require evidence. For example, a single spot measurement demonstrating equipment is working as expected, or for more complex projects, a commissioning report with multiple points of verification or measurements over a longer period.
7. Operational verification
 How can proponents demonstrate that the implementation has been installed correctly and is operating as intended? E.g.:
Measurements
Commissioning report
Site inspection
Geotagged and dated photographs
Reporting energy savings
Reporting period measurements are used to calculate the energy savings in relation to the baseline once implementation is complete. Energy savings can be calculated two different ways:
 Compare an operating energy model of a ‘normal year’ against the baseline to estimate up to 10 years of energy savings and forward-create certificates

Compare energy measured over one year against the baseline to verify the energy savings for that year for top-up or annual certificate creation.
Forward creation is a key feature of the method as it allows certificates to be created ahead of time, and these can be used to offset capital costs prior to most of the savings having been realised.
Businesses can also apply for a top-up or annual certificate creation. This means that it is possible to claim additional certificates if there has been a shortfall between the forwardcreated certificates and the eventual energy savings. It is possible to forego forward creation and apply for certificates annually, up to a maximum of 10 years.
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
A savings report will be required whenever forward creation or top-up/annual creation occurs.
The report must follow the format agreed in the M&V Plan and document any checking and adjustments to the savings calculations.
The PBA Assessor will review the savings reports for compliance with the ESC guidelines and agreed format, and will make the appropriate recommendation to the ESC. The savings report is the final essential part of the supporting evidence for the project acceptance application.
8. Reporting energy savings
 Is 10 years an appropriate length of time to allow top-up or annual certificate creation to continue? Why/why not?
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
M&V is a new and growing field in Australia requiring specialised skills.
According to the Energy Efficiency Council (EEC), there are currently 150 Certified M&V
Professionals (CMVPs) in Australia, up from only eight, three years ago 4 . CMVP training and certification is provided by the EEC in collaboration with the Efficiency Valuation Organisation and the Association of Energy Engineers (USA).
The EEC also provides an accreditation system for Certified Energy Efficiency Specialists
(CEES) and Certified Energy Efficiency Leaders (CEEL) for the commercial building sector 5 .
These certifications recognise individuals who have developed knowledge and capabilities to lead and manage integrated building retrofit projects.
Feedback to date from some stakeholders has been that industry capacity to deliver M&V methods is generally low, and expertise is concentrated among a small group of practitioners.
A mature market for M&V services is likely to remain relatively specialised.
The NSW Office of Environment and Heritage (OEH) has made available a day-long training course for the PIAM&V method. The course is targeted at technology suppliers, project developers, EPC service providers, energy consultants, ACPs and OEH panel members 6 . A similar training course, or other support for capacity development, could be provided in
Victoria.
9. Skills and capacity development
 What training or capacity development needs are needed to support businesses using the M&V Method in Victoria?
4 http://www.eec.org.au/node/286
5 http://www.efficiencycertification.org.au/
6 http://www.environment.nsw.gov.au/business/piamv-training.htm
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
1.
Proposed M&V Method
 Do you envisage a market for the proposed M&V Method? Why/why not?
2.
Other proposed project-based assessment methods
 Do you envisage a market for these proposed methods? Why/why not?
 Are there any other project-based assessment methods which the
Department should consider as a priority? (note please make calls for new deemed methods separately)
3.
APs
 What minimum qualifications and/or experience should an AP need in order to demonstrate capacity to deliver the M&V Method?
E.g.:
Certified Measurement & Verification Professional (CMVP)
Certified Energy Efficiency Specialist /Leader (CEES/CEEL)
-
Relevant industry experience (please specify)
Other (please specify)
4.
PBA Assessors
 What minimum qualifications and/or experience should a PBA
Assessor possess in order to demonstrate capacity to provide assessments? E.g.:
Certified Measurement & Verification Professional (CMVP)
Certified Energy Efficiency Specialist /Leader (CEES/CEEL)
-
Relevant industry experience (please specify)
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
-
Other (please specify)
 How can the independence of the PBA Assessor be assured? E.g.:
Restrictions on who can be a PBA Assessor (please specify)
Contractual arrangements (please specify)
 Should APs be able to act as PBA Assessors if they are able demonstrate they don’t have a conflict of interest?
 Should an AP be able to choose their own PBA Assessor, or should
PBA Assessors be assigned by the ESC?
5.
Eligibility
 Is it preferable that this information is provided later at the M&V
Plan step?
 Are there any potential issues at this step with commercially confidential information, e.g. budget information? How could this be managed?
6.
M&V Plan
 What information should be required in the M&V Plan, and what should be able to be provided later? Please refer to the proposed content listed in this section, as well as the PIAM&V method and
IPMVP framework.
7.
Operational verification
 How can proponents demonstrate that the implementation has been installed correctly and is operating as intended? E.g.:
-
Measurements
Commissioning report
Site inspection
Geotagged and dated photographs
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
8.
What training or capacity development needs are needed to support businesses using the M&V Method in Victoria?
Submissions may be emailed to energysaver.incentive@ecodev.vic.gov.au
.
Please use the subject
:
Project-based assessments VEET consultation 2015
Alternatively they may be provided in writing:
Project-based assessments in the Victorian Energy Efficiency Target (VEET) scheme
Energy Policy and Programs
Department of Economic Development, Jobs, Transport and Resources
GPO Box 4509
Melbourne VIC 3001
Please see website for submission closing date: energyandresources.vic.gov.au/esi
Key milestones in the introduction of project-based assessments are currently scheduled as follows:

Stakeholder consultation on the proposed Regulation:

Finalise project-based assessment Regulation:

ESC guideline for M&V Method published:

M&V Method introduced into VEET:

Other project-based assessments introduced:
Late 2015
Early 2016
Mid 2016
Mid 2016
Mid 2016 onwards
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Project-based assessments in the Victorian Energy
Efficiency Target (VEET) scheme – October 2015
Department of Economic Development, Jobs, Transport and Resources
1 Spring Street Melbourne Victoria 3000
Telephone (03) 9208 3333
October 2015
© Copyright State of Victoria,
Department of Economic Development, Jobs, Transport and Resources 2015
Except for any logos, emblems, trademarks, artwork and photography this document is made available under the terms of the Creative Commons Attribution 3.0 Australia license.
This document is also available in an accessible format at energyandresources.vic.gov.au/esi
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Project-based assessments in the
Victorian Energy Efficiency Target (VEET) scheme – October 2015
Implement the project
Top up certificates
Model energy savings and
forward-create certificates for up to 10 years
Top up certificates
Measure baseline period energy use
Baseline period
Figure 1: Indicative M&V Method certificate creation timeline.
Operational verification
Collect sufficient operating energy use data for model
Year 1 Year 2
Forward-created certificates Top-up certificates created at end of year n
100
80
60
40
20
0
1 2 3 4 5 6
Year (n)
7 8 9 10
Figure 2: Example annual certificate creation. All forward-created certificates (red) are created after the first reporting period; top-up certificates (green) can be awarded annually.
Repeat up to 10 years
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Register
Project-based assessments in the
Victorian Energy Efficiency Target (VEET) scheme – October 2015
M&V Plan –
Approval in
Principle
Review M&V
Plan
Review Baseline
Model
Essential Services Commission
Accept Baseline Model
Accept Operational Verification
Accept Savings
Calculations
PBA Assessor
Review Savings
Calculations
Final ESC
Endorsement
Apply to register the project
Submit M&V
Plan
Submit
Baseline
Model
Participating Business and/or AP
Submit
Operational
Verification
Carry out the activity
Create
Operating
Model
Apply for
Forward
Creation
Apply for Top-
Up/Annual
Creation
Figure 3: Indicative M&V Method roles and administrative milestones (subject to revision by ESC to reflect administrative requirements). ESC certificate registration, audit and compliance processes not shown.
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Project-based assessments in the
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Accredited persons (APs): A business, organisation or entity approved by the Essential
Services Commission (ESC) to delivery energy efficiency improvements to homes and/or businesses.
Annual certificate creation : refers to creation of certificates after energy savings have occurred, and calculated by subtracting the modelled baseline energy consumption with the measured energy consumption.
Baseline energy model : an algorithm, based on energy consumption measured during the baseline period, used to predict how much energy would have been used in the absence of the implementation.
Baseline period : the period of time over which baseline energy consumption data is collected. This period precedes the implementation date.
Deemed method : a method for calculating certificates whereby the value of the certificates is the estimated lifetime greenhouse abatement from implementing a specific energy efficiency measure, with energy savings calculated with reference to a business-as-usual (BAU) baseline.
Forward certificate creation : refers to creation of certificates after sufficient operating energy consumption data is available to create an operating energy model, but before most of the energy savings have occurred. Forward certificate creation can be used to create certificates for up to 10 years after the implementation date.
Implementation : the energy efficiency project being carried out. The implementation is carried out at a single site and may comprise equipment replacement, new equipment or process improvement, or a combination.
Interactive effects : changes to site energy consumption which occur as a result of the implementation, but are outside of the measurement boundary.
Measurement and verification (M&V) : the process of using measurements to reliably determine actual savings resulting from an energy efficiency project.
Measurement boundary : a notional boundary drawn around energy end uses to segregate those relevant to energy savings than those not. All energy uses within the measurement boundary must be measured or estimated.
Multiple site sampling model : an approach within the NSW Energy Savings Scheme which allows an energy model derived from sampling several implementations over multiple sites to be created and used in determining savings.
Normal year : one year of independent variable data, such as weather data or production output, which is representative of a typical year. This data is used in an operating energy model to predict future energy savings for forward certificate creation.
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Project-based assessments in the
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Operating energy model : an algorithm, based on energy consumption measured during the reporting period, used to predict how much energy would be saved in a normal year and calculate the number of forward-created certificates.
Operational verification : verification that an implementation is installed and operating properly, involving inspection, testing and/or data analysis.
Project-based assessment : a type of method for creating energy efficiency certificates where the number of certificates is measured and verified for that specific project.
Reporting period : the period of time over which energy data is measured and collected following the implementation date. Data collected during the reporting period is used to compare against the baseline and calculate savings.
Simulation : an approach to estimating energy savings which uses software to estimate a building’s energy use based on dynamic independent variables, such as weather, schedules and occupancy.
Top-up certificate creation : refers to creation of certificates after the energy savings have occurred, quantified using M&V and taking into account certificates which have already been created. Top-up creation can be used to create certificates for up to 10 years after the implementation date.
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