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Industrial electricity and fuel efficiency

18 December 2015
​​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

Method variation

The method must be read in conjunction with the method variation.

The variation amends sections 5, 11, 13, 51 and 53 of the method.

  • The amendments to sections 5 and 11 ensure that coverage of biomass is consistent with the Renewable Energy Target.
    • These amendments are supported by amendments to the associated application and reporting requirements set out in sections 13 and 53.
  • The amendment to section 51 includes two additional decay coefficients to ensure that decay factors can be calculated where a participant  chooses to delay the start of their crediting period.

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