If you have answered yes to all of the above questions, the aggregated small energy users method may be suitable for your business. Read on for further information including eligibility and compliance details.
The aggregated small energy users method sets out the rules for projects that reduce emissions by reducing the energy use of a large number of households or small businesses.
The method does not prescribe activities that must be undertaken. This provides flexibility for participants to determine what goods and services are most appropriate for their project.
Goods or services that could be undertaken to reduce energy use include:
The method is based on a similar method in the New South Wales Energy Savings Scheme (Aggregated metered baseline method), however, there are some differences due to overall scheme design and coverage. Please see the method’s legislative requirements and the quick reference guide below for further information about the method.
You must read and understand the method and other legislative requirements to conduct an aggregated small energy users project and earn Australian Carbon Credit Units (ACCUs). This includes:
This quick reference guide provides basic information about eligibility criteria and obligations that must be met to earn ACCUs from an aggregated small energy users project. It includes specific links to the relevant legislation but should not be viewed as an alternative to reading the full legislative requirements. Additional information can also be found in the full method guide linked above.
Seven years – The crediting period is the period of time a project can apply to claim Australian carbon credit units.
Relevant section of the Act:
There are general eligibility requirements in the Act, which include:
In addition, the method requires that you:
Section 11 of the method also requires that specific information is included in a project application before the project can be considered eligible. You should ensure you refer to this section and provide all the required information in your application.
Relevant section of the Method:
The small energy users must be divided into two groups:
A project involves offering goods and services to the small energy users treatment group, such as households and small businesses, to help them reduce their consumption of grid electricity and natural gas. Goods and services offered could include:
Advice on defining the populations to include in your project, including how to determine the required size, can be found in the full method guide.
The method includes three different sub-methods for calculating abatement, each with different data requirements. You must decide which sub-method you will use before the initial selection for any populations in the project.
It is also important that you understand and manage your project in accordance with the restrictions on interactions with the control and treatment groups.
The difference between the amounts of energy used by the treatment group and the control group during your project is used to calculate the abatement. For the results to be statistically valid, each group normally needs to include thousands of small energy users.
Abatement is calculated from the difference in energy consumption, and therefore abatement, between the treatment group and the control group. If this difference is found to be statistically significant, the net abatement for the reporting period is then calculated. If it is not statistically significant, then abatement for that reporting period is zero.
The way in which abatement is calculated will vary depending on which sub-method (1, 2 or 3) is being used. Details on how to calculate abatement using each sub-method, as well as an example of the process for sub-method 1, can be found in the full method guide.
In addition to the reporting requirements of the Act and the Rule, Section 64 in the method sets out the information that must be included in the first and subsequent reports. For example, reports must contain descriptions of the populations used for control and treatment groups, and of the goods or services offered.
A reporting period may comprise either one measurement period or two one-year measurement periods (for two consecutive years). For each population, a measurement period is the time during which energy consumption is measured and emissions reductions are calculated. Measurement periods run for one year and must be wholly contained within a reporting period. You will therefore have to report either every one or two years.
Relevant section of the Rule:
Section 66 in the method includes one notification requirement:
In addition to the general monitoring requirements of the Act, Sections 70–73 in the method describes the specific monitoring requirements that a project must meet. This involves collecting data on the consumption of electricity, natural gas or both at sites in the control and treatment groups. The method includes a number of options for collecting this data, including using data that is already being collected for billing purposes.
If you have chosen to use other variables under sub-method 3, the method also includes requirements on how to monitor those variables.
In addition to the record-keeping requirements of the Act and the Rule, projects must also meet the specific record-keeping requirements set out in Section 68 of the method. The different types of records that must be kept include:
All projects receive an audit schedule when the project is declared and must provide audit reports according to this schedule. A minimum of three audits will be scheduled and additional audits may be triggered during a project. For more information on the audit requirements, see the Act, the Rule and the audit information on our website.
Specialist skills will be required to carry out the project. Section 15 of the method states that you must engage a statistician accredited by the Statistical Society of Australia Inc. when selecting sites for the control group and treatment group. Other specialist skills might include a qualified energy manager.
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