Individual energy savings targets
9 Individual energy savings targets
The individual energy savings target of a scheme participant for a year is the amount (expressed in units referred to as notional megawatt hours) calculated as follows—
Step 1
Multiply the total value of all liable acquisitions made by the scheme participant during that year (expressed in megawatt hours) by the energy savings scheme target for the year (the megawatt hours target).
Step 2
Multiply the megawatt hours target by the energy conversion factor for that year.
If the result obtained at the end of Step 2 includes a fraction of a notional megawatt hour, the fractional amount is to be rounded up or down to the nearest whole notional megawatt hour (and, if the amount to be rounded is half a notional megawatt hour, is to be rounded up).
Note.
For example, if a scheme participant has liable acquisitions in the year 2016 of 75,050 megawatt hours, to calculate the scheme participant’s individual energy savings target under subclause (1)—
Step 1 requires the 75,050 megawatt hours to be multiplied by 0.07 (the energy savings scheme target for 2016), resulting in a megawatt hours target of 5,253.5, and
Step 2 requires the figure of 5,253.5 to be multiplied by 1.00 (the energy conversion factor for 2016), resulting in an individual energy savings target of 5,253.5 notional megawatt hours.
The result is then rounded up to 5,254 in accordance with subclause (2).
The scheme participant has an individual energy savings target for the year 2016 of 5,254 notional megawatt hours.
The scheme participant can meet this target by surrendering energy savings certificates to the Scheme Regulator in accordance with this Part. Since each certificate has a value of 1 notional megawatt hour (see clause 31), the scheme participant can meet this target by surrendering 5,254 certificates.
Energy savings certificates may be created in respect of activities that involve the consumption of a recognised form of energy. Certificate conversion factors are applied to the actual energy savings of end users resulting from an energy saving activity to produce energy savings expressed in notional megawatt hours for the purposes of energy savings targets. See Division 7.
Consequently, the number of notional megawatt hours of individual energy savings targets of scheme participants will not be the same as the number of actual megawatt hours saved by end users as a result of energy saving activities for which energy savings certificates are created.
This Act’s bill:Explanatory memorandumSecond reading speech
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