ERM Power Limited

10/14/2021 | Press release | Distributed by Public on 10/13/2021 19:32

Environmental Products

Federal schemes

Renewable energy certificates

The Renewable Energy Target

The Renewable Energy Target (RET) is an Australian Government scheme designed to reduce greenhouse gas emissions in the electricity sector and encourage the additional generation of electricity from sustainable and renewable sources.

The Clean Energy Regulator administers the Renewable Energy Target's two schemes[2] :

    1. The Large-scale Renewable Energy Target (LRET), which encourages investment in renewable power stations to achieve 33,000 gigawatt hours of additional renewable electricity generation by 2030, and
    2. The Small-scale Renewable Energy Scheme (SREC), which supports small-scale installations like solar photovoltaic (PV) panels, wind turbines, hydro systems, solar water heaters, and air source heat pumps. Small-scale technology certificates can be sold to recoup a portion of the cost of purchasing and installing the system.

The Renewable Energy Target works by allowing both large-scale power systems and the owners of small-scale systems to create LGCs and STCs, respectively, for every MWh of power​ they generate. (Note: any business that installs a large-scale renewable energy system and wishes to claim LGCs must apply for their systems to be accredited as a power station.)

Certificates are then purchased by electricity retailers, like Shell Energy, and submitted to the Clean Energy Regulator to meet the retailers' legal obligations under the Renewable Energy Target. This creates a market which provides financial incentives to both large-scale renewable energy power systems and the owners of small-scale renewable energy systems.

Shell Energy generates LGCs and STCs on behalf of our customers.

State-based schemes

Energy efficiency certificates

New South Wales Energy Savings Scheme

The Energy Savings Scheme (ESS), administered by the Independent Pricing and Regulatory Tribunal of NSW (IPART), provides financial incentives to install, improve or replace energy savings equipment and appliances in NSW businesses.

Financial incentives are in the form of tradeable certificates, called Energy Savings Certificates (ESCs).

Each ESC represents a saving of one MWh and can only be created by Accredited Certificate Providers (ACPs).

Shell Energy is an ESS Accredited Certificate Provider, and we support customers with the generation of ESCs for certifiable energy efficiency projects. In addition, as Scheme Participants in the ESS, we acquire and surrender ESCs from ACPs to meet our mandatory legislative obligations.

Victorian Energy Upgrades program

The Victorian Energy Upgrades (VEU) program, administered by the Essential Services Commission, helps Victorians reduce their energy bills and greenhouse gas emissions by providing access to discounted energy efficient products and services.[3]

The greenhouse gas savings associated with the installation of an energy efficient product and/or decommissioning of an inefficient product determines the number of Victorian Energy Efficiency Certificates (VEECs) that can be created. The level of incentive or discount received by businesses varies depending on the market activity and certificate price. Each certificate represents one tonne of CO2-e reduction.

Energy efficiency activities that create VEECs under the VEU program can be found on the Essential Services Commission website.

Shell Energy is an Accredited Provider in the VEU program, and we support customers with the creation of VEECs via eligible energy upgrade projects. In addition, as an energy retailer operating in the Victorian market, we are considered a Relevant Entity in the VEU program, so we acquire and surrender VEECs to meet our mandatory legislative obligations.

Carbon credits

Emissions Reduction Fund

Through the Emissions Reduction Fund (ERF), the Australian Government purchases lowest cost abatement in the form of Australian carbon credit units (ACCUs) from a wide range of sources, providing an incentive to businesses and landowners to proactively reduce their emissions.

A number of activities are eligible under the scheme and participants can earn ACCUs for emissions reductions. One ACCU is earned for each tonne of CO2-e stored or avoided by a project.

ACCUs can be sold to generate income, either to the government through a carbon abatement contract, or in the secondary market[4].

Shell Energy supports customers with the creation of ACCUs. The eligible projects you can choose to undertake as part of the Emissions Reduction Fund are called Methods. The Methods explain how to carry out a project and measure the resulting reductions in emissions. Methods can include activities such as commercial, industrial and aggregated energy efficiency, capture and combustion of landfill gas and agricultural waste, alternative treatment of organic waste capture and combustion of biogas from wastewater. Methods for the land sector include increasing soil carbon, reducing livestock emissions, expanding opportunities for environmental and carbon sink plantings, and reforestation[5].

We also supply additional carbon offsets to match customers' broader organisational decarbonisation goals.

International projects

Shell Energy can access reputable, verified international carbon credits for our customers. These are typically generated under the leading independent certification standards for verifying the activities of voluntary carbon credits projects, such as The Gold Standard and the Verified Carbon Standard of Verra.

As with other carbon credit schemes, these generate one carbon credit per tonne of CO2 equivalent stored or avoided for eligible activities.

Choosing the right scheme (or schemes) depends on where your operation is located, the activities that are undertaken, and your commercial and decarbonisation goals. Speak with one of Shell Energy's experts in environmental products to better understand how the products could work for you and help maximise the value of your energy projects.