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Energy Savings Scheme (ESS) Update | Commercial Lighting Amendments | 1 Nov 2018

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NSW Energy Savings Scheme Update

ESS Commercial Lighting Requirement Changes – Effective November 1, 2018

A summary for the ESSThe NSW Energy Savings Scheme (ESS) provides financial incentives to install, improve or replace energy savings equipment and appliances in NSW households and businesses. The ESS was established in 2009. Financial incentives are in the form of tradeable certificates, called energy savings certificates (ESCs). Generally, householders and businesses who fund energy savings activities transfer the right to create ESCs to Accredited Certificate Providers (ACPs) in return for a discount on the cost of the energy savings activity.  The MWh savings from the project determines the number of ESCs that can be created. The ESS works by allowing ACPs to create and register ESCs for energy savings that are supported with appropriate evidence. ESCs are then purchased each year by mainly electricity retailers operating in NSW to meet their share of a legislated annual energy savings target. Rule change effective from November 1, 2018.  Any existing activities must be registered with IPARTIndependent Pricing and Regulatory Tribunal prior to the 1st of November in order to claim the existing ESCAn energy savings certificate (ESC) is a tradeable certificate created under Division 7 of Part 9 of the Electricity Supply Act 1995. Each ESC represents one notional megawatt hour (MWh) of energy. quantities.

Wattly has provided a quick list one-page summary BCA Quick List Summary and table below.

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What NSW Energy Savings Scheme (ESS) rule change is described in this Northmore Gordon update, and when did it take effect?

The update describes ESS commercial lighting requirement changes effective from November 1, 2018.

What is the Energy Savings Scheme (ESS) and when was it established?

The NSW Energy Savings Scheme (ESS) provides financial incentives to install, improve or replace energy savings equipment and appliances in NSW households and businesses. It was established in 2009.

How do financial incentives work under the ESS?

Financial incentives are provided in the form of tradeable certificates called energy savings certificates (ESCs). Householders and businesses who fund energy savings activities transfer the right to create ESCs to Accredited Certificate Providers (ACPs) in return for a discount on the cost of the energy savings activity. The MWh savings from the project determines the number of ESCs that can be created.

Who purchases ESCs and why?

ESCs are purchased each year mainly by electricity retailers operating in NSW to meet their share of a legislated annual energy savings target.

What must happen for existing ESS activities to claim existing ESC quantities under this rule change?

Any existing activities must be registered with IPART (Independent Pricing and Regulatory Tribunal) prior to November 1, 2018, in order to claim the existing ESC quantities.

What is the new cap on Nominal Lamp Power (NLP) for High-Intensity Discharge (HID) lamps used indoors under the November 2018 ESS commercial lighting amendment?

There is now a cap on the Nominal Lamp Power (NLP) for High-Intensity Discharge (HID) lamps—such as Mercury Vapor Lamps and Metal Halide Lamps—used in indoor spaces at 400W. Lamps with a higher NLP can only be claimed at 400W.

Are outdoor HID lighting fittings subject to the same 400W cap as indoor fittings?

No. Outdoor fittings on the external faces of buildings can be claimed at the full wattage, unlike indoor fittings which are capped at 400W.

What was the purpose of manipulating asset lifetime values in the November 2018 ESS commercial lighting update?

According to the update, asset lifetime values were manipulated to stimulate growth in underserved areas. A discount rate was applied to most metro installs to promote more regional installs, while car parks and certain types of factories were given increased values to stimulate more installs in both metro and regional areas.

Who published this ESS commercial lighting update and when?

The update was published by Northmore Gordon on October 11, 2018, under the Government Scheme Updates category.

Did any organization other than Northmore Gordon provide supporting materials referenced in this update?

Yes, the page notes that Wattly provided a quick one-page summary (BCA Quick List Summary) along with an accompanying table referenced in the update.

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