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How to create white certificates from industrial projects Energy efficiency projects in industry are relatively common. Many industrial companies, however, are not realising the full dollar savings potential as they are not generating White Certificates -- such as Energy Savings Certificates -- that could be used to part-fund the project and reduce payback period. This article sets out the case for creating white certificates from industrial energy efficiency projects, and talks about how to choose the most appropriate methodology for calculating the quantity and value of ESCs available.

conocer gente joven online Generating Energy Savings Certificates (ESCs) from lighting upgrade projects is a relatively simple and well known method of reducing project payback period. It is relatively simple because the Energy Savings Scheme (ESS) rules allow for the use of a deemed approach when doing commercial lighting upgrades.  This deemed approach means that up to ten years’ worth of ESCs may be created at the time of the upgrade, offering an immediate cost saving on the installation. Because of this simplicity, the method has become popular; as a result there are now multiple Accredited Certificate Providers (ACPs) who are able to create ESCs from commercial lighting projects, including suppliers of lighting systems.

je recherche une fille serieuse Less common is the creation of ESCs from industrial energy efficiency projects on equipment such as air compressors, refrigeration systems, boilers and steam systems, process controls, etc. Partly this is because there are less ACPs with an accredited methodology to do this work, and partly because the contractors and customers are less aware that ESCs can be created from these activities. There are two primary methods of creating ESCs from an industrial energy efficiency project: (i) using the Metered Baseline Method (MBM) (comprising four sub-methods), and (ii) using the Project Impact Assessment Method (PIAM). 

rencontres maroc Metered Baseline Method (MBM) Users are encouraged to use the Metered Baseline Method when:

“Energy savings result in a significant reduction in site electricity consumption, and

Representative historical site electricity consumption data is available.”

In basic terms the MBM compares the energy use at the whole site before the energy efficiency project takes place (the baseline), to that afterwards. The difference between the two is the energy savings, and ESCs can be created based on this. 

Where changes to the site occur during the baseline period, or during the life of the project afterwards, other than the energy efficiency project, then the MBM is not recommended. 

The MBM has four sub-methods:

1. MBM – Baseline per unit of output calculations

This method should be used where electricity consumption is strongly linked to output from the site. Electricity per unit of output should be linear, albeit the site may have a baseload.

2. MBM – Baseline unaffected by output calculations

This method should be used where it can be shown that electricity consumption is not linked to output from the site (e.g. schools or hospitals).

3. MBM – Normalised baseline

This method should be used where variations in the baseline can be explained by the influence of variables such as ambient conditions, seasonal production trends, partial site closure, or variation in input characteristics.

4 MBM – NABERS baseline

Typically this would be used for offices, hotels and shopping centres. An approved NABERS rating must be obtained before the project occurs. 

Calculating the baseline

For each of the methods 1, 2 and 3 you need to (see Fig 1):

  • Define the baseline period
  • Define the measurement period Tb before implementation of the project
  • Define the measurement period Ta after implementation of the project

Tb should be representative of normal operating conditions and should consist of multiple measurement periods. A measurement period should be between one day and one year. 

Ta must be the same duration as Tb.

Once the measurement periods are set, the baseline calculated, and comparison made of the difference between the electricity consumption before and after the project, the “reduced electricity consumption” (MWh) is calculated. 

Energy savings (MWh) are then calculated by multiplying the reduced electricity consumption (MWh) by a “confidence factor” which reflects the uncertainty used in the calculations and variability of the baseline. In general the longer the measurement period, the lower the variability, the higher confidence factor and hence higher number of ESCs that can be created.

The number of ESCs are calculated after each measurement period Ta by multiplying the energy savings by the ESC conversion factor (currently 1.06). 

Finally, ESCs must be created by an Accredited Certificate Provider within 6 months of the end of the calendar year in which the Energy Savings activity takes place. 

Typical artefacts assessed and recorded as part of the documentation needed to generate ESCs might be:

  • Electrical single line diagrams
  • Meter class records
  • Calibration records
  • Recent audits or measurements
  • Projections of future electricity consumption

Example projects where the MBM may be applicable could be:

  • Boiler upgrades
  • Steam system improvements
  • Significant compressed air improvements
  • Waste heat recovery 
  • Major equipment upgrades

MBM - NABERS baseline for existing buildings 

If your building has a NABERS Baseline Rating (i.e. one that has been determined by a NABERS accredited assessor, and is also approved by the NABERS Administrator) this can be used as your existing baseline. 

The number of ESCs you are eligible to create is calculated by comparing your post-project NABERS rating to your NABERS Baseline Rating. 

ESCs can be created and sold up to 12 months following the end of the measurement period for the post-project NABERS rating. 

Project Impact Assessment Method (PIAM)

The PIAM is likely to be appropriate when:

  • “The energy savings are small compared to the overall site consumption
  • Unexplained variation in baseline energy consumption is high; or
  • Data for past electricity consumption at site is unavailable.”1

The basis of the PIAM is an engineering assessment of the savings from which calculations of the number of ESCs is made. ESCs are calculated based on forecast energy savings, and the methodology offers a variety of calculation methods.  

Firstly the PIAM offers the opportunity to forward create ESCs based on the predicted energy savings, multiplying the estimated amount by a “confidence factor” and a “discount factor” which declines from 1.0 in year one, to 0.2 in year five. Forward creation of ESCs is limited to the lesser of five years or the project life. 

A confidence factor of 1.0 would generally need to be supported by detailed monitoring over time. Lower confidence factors are used where engineering assessments cannot meet a high level of accuracy, or as determined by the Scheme Administrator.  

It is possible to create additional ESCs at the end of the deeming period if it can be proven that the energy efficiency project has delivered savings in excess of that proposed in the original ESC creation. 

Secondly the PIAM offers the opportunity to create ESCs on an annual basis after the energy savings occur. 

Typical artefacts assessed and recorded as part of the documentation needed to generate ESCs might be:

  • Equipment specification sheets
  • System or process diagrams
  • Hours of operation (shift records)
  • Metered data
  • Ambient conditions
  • Other relevant factors

Example projects where the PIAM may be applicable would be:

  • Installation of a variable speed drive (or drives)
  • A process control system change
  • Upgrade of an HVAC system in the office of a factory site
  • Lighting upgrade in an industrial facility
  • Most ‘replacement’ equipment, or equipment upgrades where the new equipment is more efficient than the old equipment. 

Our Services

Northmore Gordon is able to (i) advise on the best methodology for your site, (ii) conduct any metering, monitoring and verification, engineering assessments, or multi-variable regression analysis of production data and energy consumption in order to calculate the ESC value for a project, and (iii) arrange for an ACP to create and sell the ESCs, providing a financial return to the end customer. 


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