Energy Project Financing : Resources and Strategies for Success

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Appendix B 337


Emission trading will be facilitated if the following energy report-
ing methods are considered when designing the savings determination
process:



  • Electrical savings should be split into peak period and off peak
    periods, and ozone season non-ozone season when NOx or VOCs
    are involved. These periods will be defined by the relevant trading
    program.

  • Reductions in purchases from the electrical grid should be divided
    into those due to load reduction and those due to increased self-
    generation at the facility.

  • Savings should be separated into those that are ‘surplus’ or ‘ad-
    ditional’ to normal behavior and those that are simply ‘business
    as usual’ or needed to comply with existing regulations. These
    terms will be defined by the relevant trading program. For ex-
    ample, where equipment minimum efficiency standards limit the
    efficiency of new equipment on the market these standards may
    form the reference case for determining tradable credits derived
    from energy savings.

  • Segregate energy savings at each site if a project spans a power
    pool’s boundary line, or if emission quantities may be outside an
    air shed of concern.

  • Segregate fuel savings by fuel or boiler type if different emission
    rates apply to each combustion device.


4.8 BASELINE ADJUSTMENTS (NON-ROUTINE)
Conditions which vary in a predictable fashion are normally
included within the basic mathematical model used for routine adjust-
ments, described in Chapter 3.4. Where unexpected or one-time changes
occur they may require non-routine adjustments, normally called simply
Baseline Adjustments.
Examples of situations often needing Baseline Adjustments are:
i) changes in the amount of space being heated or air conditioned, ii)
changes in the amount or use of equipment iii) changes in environ-
mental conditions (lighting levels, set-point temperatures, etc.) for the

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