Things Looking Up for Energy Efficiency Certificates
Sourceable, April 12, 2015
Nationally, the first reverse auction round of the $2.5 billion Emissions Reduction Fund (ERF) will come on April 15/16 this year. Up until late last year, there was deep market scepticism as to whether the legislation would ever pass, and if did, whether anyone would participate. There is still scepticism and controversy over elements of the auction process and price transparency.
However, at national road shows over the last few weeks, the Clean Energy Regulator (CER, the ERF administrator) has maintained that they are confident that they have enough new projects registered and will not exercise their option to disclose the benchmark price (or cap) for the first auction.
The 212 currently registered projects are all based on methods adapted from the Carbon Farming Initiative – including projects from land use, agriculture and landfill. The only energy efficiency methodology released so far has been the commercial building method. This is adapted for the ESS and allows proponents to use improvement in NABERS ratings to demonstrate savings. However, a measurement and verification based method, adapted from the NSW ESS has been consulted on and is expected to been released shortly, and more are understood to be in development.