The changes to the 2023 Energy Savings Scheme Rule commenced on 14 April 2023. This included new eligible fuels and revisions to make the Rule more understandable.
Key Changes in the ESS Rule
Updated Energy Savings Equations
The new ESS Rule introduces changes to energy savings equations, most notably the movement of the Regional Network Factor to Equation 1 from various other equations and methods. This change affects the calculation of ESCs, making it essential to update your internal systems accordingly.
Revised Co-payment for Refrigerated Cabinets
The IHEAB co-payment for refrigerated cabinets has been reduced from $250 to $200. This reduction in the co-payment will have a direct impact on the cost of implementing energy-efficient measures, potentially making it more financially viable for businesses to participate in the program.
Introduction of New Eligible Fuels
The ESS Rule now includes new eligible fuels, such as Biomass, Biofuels, Biogas, Diesel, and Onsite Renewables. This addition expands the scope of projects eligible for ESC creation, providing new opportunities for organisations to participate and contribute to carbon reduction.
Non-Routine Events (NREs) and Adjustments (NRAs)
A new process has been introduced to allow for Non-Routine Events (NREs) and Adjustments (NRAs) in the Project Impact Assessment with Measurement and Verification (PIAM&V) process. The introduction of specific requirements for accounting for Non-Routine Events ensures transparency and standardisation in handling unforeseen circumstances during project implementation.
Updated Recognised Energy Savings Activity (RESA) Criteria
The RESA criteria have been refined to focus on reducing the consumption of non-renewable fuels and exclude activities that increase Gas consumption. Adhering to the updated RESA criteria will be crucial to ensure that your projects qualify for ESCs.
New NABERS Building Types
With the addition of new NABERS building types for warehouses and cold storage, the range of buildings eligible for NABERS sub-method ESC creation has expanded. Organisations operating in these sectors now have more opportunities to participate in the scheme.
Minor Changes to Activity Definitions
Minor changes have been made to the Home Energy Efficiency Retrofit (HEER) and Installation of High-Efficiency Appliances for Business (IHEAB) activity definitions. Staying updated on these changes will be essential to ensure compliance with the revised requirements.
Getting Ready for the Changes
Review and Update Internal Processes
Start preparing your business now by reviewing and updating your processes, documentation, and systems as required. Ensure that your internal systems no longer include the Regional Network Factor in the Electricity Savings used for certificate creation.
Updated Clauses and Definitions
Thoroughly understand the changes in clauses 5.3, 5.4, 7A, and 8 of the ESS Rule, as well as the new definitions introduced for PIAM&V and NABERS methods. Update your M&V Plans, reports, and M&V Professional reports to reflect the new definitions and terms.
New Eligible Fuels
If you want to utilise the new eligible fuels for your projects, you will need to apply for an amendment to your existing accreditation or apply for a new accreditation after 14 April 2023. Be sure to use the updated PIAM&V and MBM application forms that include the new Eligible Fuels.
Understand clause 7A.5B and the NRE-A Requirements for identifying non-routine events and making non-routine adjustments. Apply these requirements to projects where non-routine events are identified to ensure accurate ESC calculation.
By staying informed and implementing the necessary changes, your business can capitalise on the opportunities presented by the 2023 ESS Rule change.