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NSW GGASScheme Summary
A presentation prepared by AGL
For further information:
Simon [email protected]
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› Retailers in NSW (and ACT) are required to reduce emissions to 7.27 tonnes per capita (95% of 1990 levels) from 2007
› Each retailers total allowable emissions is determined by market share of sales X overall emission target (based upon population X 7.27)
› Each retailer’s emissions are determined by multiplying the pool coefficient (emissions intensity of electricity sold in NSW) by sales
› If emissions are higher than their benchmark, retailers can purchase emission reduction certificates (NSW Greenhouse Gas Abatement Certificates - NGACS) to meet their benchmark
› A NSW Greenhouse Gas Abatement Certificate is equal to 1 tonne of abatement
› Once a national emissions trading scheme is established GGAS will be transitioned in the ETS
Overview
» AGL Energy
» March 2010
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Creating NGACs
› There are four main ways in which an NGAC can be created:
» lower emission generation (throughout the NEM except RECs)
» demand reductions (in NSW)
» abatement created by large users (who elect to manage their own benchmark) – use over 100 GWh of electricity at one or more sites in NSW, as long as one of the sites uses over 50 GWh
» carbon sequestration (i.e. trees planted in NSW)
» AGL Energy
» March 2010
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Creating Generation NGACs
› Four categories of generator
» Category A: generators that entered into PPAs with retailers before the scheme became mandatory. (This is to cease 1 July 2010)
» Category B: existing NSW coal fired generators
» Category C: other existing generators
» Category D: new (generally renewable) generation
› Two approaches can be used
» relative intensity entitles the generator to create NGACs for generators with an intensity below the pool coefficient
» efficiency improvement approach allows generators that improve their emissions intensity to create NGACs
› Generators cannot create NGACs for a MWh of generation used to create a REC
» AGL Energy
» March 2010
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Creating Generation NGACs
› Landfill and coal-mine methane are also entitled to create NGACs for ‘avoided methane’ releases
» coal-mine methane must be sourced from a site which is located within a coal-mine production lease (even if the mine has closed)
Energy Type Category A
(Phase out 1 July 2010)
Category B Category C Category D
Fossil fuel Relative intensity only
Efficiency improvement only
Either Either
Renewable Relative intensity only
Relative intensity only
Relative intensity only
Relative intensity only
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» March 2010
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Creating Demand-side NGACs
› Energy efficiency projects that modify existing consuming installations
› Energy efficiency projects that replace existing installations with other installations that consume less electricity
› Energy efficiency projects that install new installations that consume less electricity than other installations of the same type
› Fuel switching projects that substitute one source of energy for another
› On-site electricity generation that replaces supply from the National Electricity Market
» AGL Energy
» March 2010
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Key Administration Dates
Date Requirement
18 March Benchmark participants to submit their Annual Greenhouse Gas Benchmark Statements to IPART, with respect to compliance. Benchmark participants to pay any applicable Greenhouse Gas Abatement Penalty incurred for that compliance year by this date
20 June Last day for voluntary participants to surrender abatement certificates to the Scheme Administrator
30 June Last day for accredited abatement certificate providers to create the previous year's vintage certificates
31 August Elections to become a benchmark participant (as a large user or state significant development) must be submitted to IPART by this date
30 November Tribunal announces key scheme factors (NSW pool coefficient, electricity sector benchmark, total state electricity demand and total state population)
» AGL Energy
» March 2010
