Energy Credits – What are they and how do I get them

On Sep 5, 2017 by ghadmin.

The Energy Efficiency Obligation Scheme (EEOS) is being implemented pursuant to the Energy Efficiency Directive 2012, Article 7. The Directive imposes a legal obligation on Member States to achieve new savings each year from 1 January 2014 to 31 December 2020 of 1.5% of the annual energy sales to final customers of all energy distributors and all retail energy sales companies by volume, averaged over the most recent three-year period prior to 1 January 2013. The target is cumulative, which means that it is based on incremental annual savings that deliver a total volume of savings at the end of the obligation period in 2020.

Therefore, Energy suppliers and obligated parties need to meet their annual targets so are now buying the energy credits from your energy savings (kWhr). If you have a project that will generate verifiable energy saving credits, you can sell these credits to energy suppliers and obligated parties. The obligated Energy Suppliers then apply the energy savings towards their yearly targets, reducing overall energy consumption and carbon emissions.

Finally, energy saving credits can come from electricity, natural and propane gas, oil and solid fuel. Always remember that under the terms of the Energy Efficiency Directive obligated parties can only purchase energy credits for projects that will happen. They cannot purchase energy credits from completed projects.

What Projects create energy credits?

Any project that will result in your business permanently reducing your overall energy consumption, they can include; (Whenever the phrase “More Efficient” is used in any energy using equipment proposal = energy credits are available)

– Lighting upgrades – generally to LED – where most energy credit action has been focused over the past few years

– Central heating improvements – new, more efficient boilers/plant for producing heating and hot water

– HVAC systems – more efficient

– New motors and drives – Variable Speed Drives

– New equipment that includes increased energy efficiency – ovens, fans

– Leisure Centres – new/replacement heat exchangers, pool covers, more efficient filtration systems

– Controls – BMS upgrade, installing metering & Monitoring

– Insulation – pipes, walls, windows, roofs, etc.

– Human Resources – in-house energy management programmes that train staff to use less energy

How do I make a claim?

You must be able to verify the saving using the methodologies set by the Sustainable Energy Authority of Ireland (SEAI)

Outside of lighting this will require some form of metering and generally the support of an energy consultant (Contact GHP.ie for more information)

What is it worth?

The real saving when implementing an energy efficiency project are the cost savings that will follow – these could be for the life of the equipment. Energy Credit Payments are really a bonus which can either make the investment show a better ROI or could be used to fund additional energy efficiency improvements.

A guide price is 1.8c per kWh of a fossil fuel reduction and 4.5c per kWh for an electricity project reduction.  (Boiler Improvement led to a 250,000 kWh reduction in consumption = c. €4,000 payment net of application costs – a 200,000 kwh electricity reduction created by installing more efficient pumps would be worth a c. €8,000 payment net of application costs)

I am planning some energy equipment upgrades/replacements – what should I do next?

Contact us before you start and we will work with you to maximise your energy credit payment.  maurice@greentradingcompany.ie

 

 

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