Appendix B: summary of features of Australian schemes
New South Wales
Victoria
Scheme
NSW Energy Savings Scheme (ESS)
Victorian Energy Efficiency Target
Scheme (VEET)
Objectives
-
To create a financial objective to
reduce the consumption of
electricity by encouraging energy
savings activities
-
Reduce greenhouse gas emissions
-
Encourage the efficient use of
electricity and gas
-
Assist households and businesses
to reduce electricity consumption
and electricity costs
-
-
Complement any national scheme
for carbon pollution reduction by
making the reduction of greenhouse
gas emissions achievable at lower
cost
Encourage investment, employment
and technology development in
industries that supply goods and
services which reduce the use of
electricity and gas by consumers.
-
Reduce the cost of, and the need
for, additional energy generation,
transmission and distribution
infrastructure.
Target Type
State-wide energy saving target.
Measured as percentage of total retail
electricity sales.
Target Level
State-wide greenhouse gas abatement
target.
Measured as megatons of avoided
GHG emissions.
Starts at 0.5 per cent of liable NSW
electricity sales in 2009, increases to 5
per cent by 2014.
VEET operates in 3 year phases.
NSW Government estimates that by
2014, 8.5 million megawatt hours of
electricity will be saved
(8.5 MtCO2-e).
-
Phase One (2009 – 2011):
Target is 2.7 MtCO2-e avoided per
year.
Phase Two (2012 – 2014):
-
Target is 5.4 MtCO2-e avoided per
year.
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South Australia
Australian Capital Territory
Residential Energy Efficiency Scheme (REES)
Energy Efficiency Improvements Scheme
(EEIS)
*Note: the EEIS legislation has recently been passed by
the ACT parliament and the scheme is scheduled to
commence on 1 January 2013.
-
Improve energy efficiency and reduce
greenhouse gas emissions within the
residential sector
-
Assist households prepare for likely energy
price increases from emissions trading
-
Reduce total energy costs for households,
particularly low-income households.
-
Encourage the efficient use of electricity
and gas
-
Reduce greenhouse gas emissions
associated with stationary energy use in
the Territory
-
Reduce household and business energy
costs
-
Increase opportunities for priority
households to lower energy use and
costs.
Two targets:
Annual greenhouse gas reduction target.
-
Energy efficiency activities (measured as
avoided greenhouse gas emissions)
Expressed as a percentage of total electricity
sales-related emissions in the ACT.
-
Energy audits for priority group (low-income)
households.
REES runs in 3 year phases. Targets have been
set for each year of two phases.
Proposed targets (as a percentage of total
electricity sales):
The energy reduction targets (in ktCO2-e avoided)
are:
2013: 7%
2014: 13%
2009: 155
2012: 255
2010: 235
2013: 335
2011: 255
2014: 410
2015: 14%
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New South Wales
Victoria
Sub-targets
No sub-target
No sub-target
Fuel coverage
Electricity only
Electricity and gas
Obligated
Parties
Electricity retail suppliers, direct
suppliers of electricity and market
customers who purchase their
electricity directly from the National
Electricity Market.
Electricity and gas retailers who supply
to more than 5,000 customers in
Victoria.
Trading
Yes, between registered participants.
Yes, between registered VEET
certificate account holders.
Certificates
Yes – Energy Savings Certificates
(ESCs or ‘eskies’).
Yes – Victorian Energy Efficiency
Certificates (VEECs)
Banking
Yes, unlimited.
Yes, though a banked certificate
cannot be older than 6 years from the
date of the installation activity.
Target level
(cont)
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South Australia
Australian Capital Territory
The energy audit targets (expressed as number of
audits delivered) are:
2009: 3,000
2012: 5,667
2010: 5,000
2013: 5,667
2011: 5,000
2014: 5,667
35% of an obligated retailer’s annual energy
reduction target to be achieved in priority group
households.
Obligated parties (Tier 1 only) must derive a
specified proportion (initially 25%) of energy
savings from low-income households.
Electricity and gas
Target base considers electricity-related
emissions only. However, savings can be
made in other fuel sources, including gas.
Electricity and gas retailers who supply more than
5000 residential customers in SA.
Obligated parties are:
-
‘Tier 1 retailers’; electricity suppliers with
electricity sales of at least 500 GWh to
ACT customers in a compliance year and
at least 5,000 customers.
-
‘Tier 2 retailers’; a retailer that is not a tier
1 retailer.
Tier 2 retailers may elect not to undertake
energy savings and instead pay a fee of $37
per tonne of CO2-e.
Trading of energy credits amongst obligated
energy retailers is permitted.
Transfer of credits between obligated parties
is permitted if approved by the Administrator.
No certificates.
No certificates.
Yes, obligated parties may ‘bank’ their eligible
activity to meet target for subsequent years if in
excess of current target.
Yes, obligated parties may ‘bank’ their eligible
activity to meet their target for the coming
year if in excess of current target.
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New South Wales
Victoria
Borrowing
Limited – obligated parties may carry
forward to the next year a shortfall of
up to 10% of their liability for a given
year.
None.
Sectors where
activity can be
undertaken
Residential, commercial and industrial
sectors
Initially the residential sector, extended
to the business sector in December
2011.
Methodologies
used
Deeming, calculation, and combination.
To date, deeming only, proponents
have been invited to submit potential
project-based methodologies for further
consideration by government.
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South Australia
Australian Capital Territory
Limited – obligated parties may carry forward to
the next year a shortfall of up to 10% of their
liability for a given year.
Limited – obligated parties may carry forward
to the next year a shortfall of up to 10% of
their liability for a given year.
Residential sector only.
Residential sector and commercial (smallmedium enterprises) sector.
To date, deeming only.
Deeming. Project-based assessment is
available upon application by retailers or
other interested parties.
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