3 August 2006
Scheme Administrator to review aspects of some energy efficiency giveaway projects.
The Greenhouse Gas Reduction Scheme may accredit projects which involve the installation, sale or giveaway of specified energy efficient products. These projects use the Default Abatement Factors (DAF) Method of the Demand Side Abatement Rule. The Rule allows accredited projects to create certificates based on the calculated lifetime greenhouse gas abatement from the installation of these products.
The assumed abatement, or DAF value, is discounted where the products are sold or given away rather than being directly installed, to take account of the possibility of non installation. This is determined by the Installation Discount Factor (IDF). The Rule allows the Scheme Administrator to apply a discount of 0.9 if products are sold and 0.8 for products that are given away. The Rule also gives the Scheme Administrator some discretion to approve an alternative value.
Given the experience now gained with these projects, the growth of projects involving giveaways and data collected concerning installation rates from giveaways, the Scheme Administrator has indicated that it proposes to review the Installation Discount Factors. Based on its research, the Scheme Administrator is considering resetting the Installation Discount Factor for projects involving the bulk distribution of energy efficient products, such as compact fluorescent light globes and AAA-rated showerheads, to 0.4, effective from 1 October 2006. The Scheme Administrator will consult with affected and interested parties prior to making its final decision.
The Scheme Administrator is taking steps to ensure that genuine abatement continues and that the integrity of the Greenhouse Gas Scheme is maintained. Where accredited parties can verify actual installation of products, no discounting of abatement is applied.
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