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Industrial electricity and fuel efficiency

26 August 2016
​​ERF

The industrial electricity and fuel efficiency method sets out the detailed rules for implementing and monitoring offsets projects that reduce emissions of greenhouse gases associated with the consumption of electricity and/or fossil fuels in the industrial sector. It provides a high-level, activity-neutral framework where participants calculate abatement from industrial energy (i.e. electricity and fuel) efficiency activities. This approach provides flexibility for participants to determine what activities are most appropriate for each site.

Projects established under this method may include replacement or modification of boilers or heating, ventilation and air conditioning (HVAC) systems, improving control systems and processes, waste heat capture and re-use, improving the efficiency of crushing or grinding equipment on mining sites, replacing low efficiency motors, fans and pumps with high efficiency versions, installing variable speed drives (VSDs), improving compressed air processes, and fuel switching.

Participants who may use the method include owners or operators of (large-scale) energy intensive equipment. Well-designed projects undertaken under the method could potentially lower energy costs and improve productivity, while lowering emissions.

This method includes two sub-methods which provide options for calculating the emissions abated by an implementation. Sub-method 1 calculates the total amount of abatement over a reporting period by comparing modelled baseline emissions levels with project emissions calculated from measurements of fuel and/or electricity. Sub-method 2 calculates the total amount of abatement delivered by comparing project emissions from an operating emissions model to baseline emissions from a baseline emissions model.

Method variations

Section 114 of the Carbon Credits (Carbon Farming Initiative) Act 2011 (the Act) allows for methods to be revised and varied. This is to ensure methods continue to operate as originally intended. Variations to methods are developed and drafted by the Department of the Environment. Information on draft methods and method variations is available on the Department of the Environment’s website.

The Clean Energy Regulator recommends making yourself familiar with proposed method variations relevant to your project should they arise, and how any changes between the original method and the varied method may affect your project plan.

Method

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