A sectoral approach is taken to grid-connected electricity generators because the electricity sector behaves more like a single entity, where the output produced is centrally coordinated to meet demand in real time.
A sectoral baseline will apply collectively to grid-connected generators until it is exceeded. Once the sectoral baseline is exceeded, individual baselines will apply to each generator.
The sectoral baseline only applies to electricity generators connected to designated electricity networks, which comprise Australia’s five main electricity grids: the National Electricity Market, the South West interconnected system, the North West interconnected system, the Darwin to Katherine network and the Mount Isa-Cloncurry supply network.
The sectoral baseline is set at 198 million tonnes CO2-e, based on electricity sector’s emissions from 2009–10 to 2013–14. As part of the annual
National Greenhouse and Energy Reporting data publication, the Clean Energy Regulator will publish total scope 1 emissions from grid-connected generators to assist the sector to prepare for the sectoral baseline under the safeguard mechanism.
The sectoral baseline will be in place until the sector’s aggregated emissions exceed the baseline. After this point, electricity generation facilities will be required to comply with their own individual facility baseline, which will apply in the financial year after which the Clean Energy Regulator publishes the reported exceedance.
A reported baseline will be made for all eligible grid-connected electricity generators by 1 September 2016. Electricity generators will have access to the same baseline adjustment and emissions management options as facilities in other sectors. Electricity generators are not eligible under the
initial calculated baseline or
inherent emissions variability criteria, and will not be able to extend their calculated baseline or benchmark baseline duration to five years.
Any electricity generation facility that is not a grid-connected electricity generator will be treated as any other facility with a baseline emissions number.
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