Market-based policies for demand side energy efficiency: A comparison of the New South Wales Greenhouse Gas Abatement Scheme and the United Kingdom's Energy Efficiency Commitment

Environmental and Planning Law Journal

Volumn 23, Issue 2, 2006, Pages 113-130

  Kearney, Tom ^a  

^a NONE

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EID: 77951734847     PISSN: 0813300X     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (118)

1. United Kingdom, Department of Trade and Industry, Energy White Paper: Our Energy Future - Creating a Low Carbon Economy (United Kingdom, 2003) p 11.
2. Australia, Energy Taskforce, Securing Australia's Energy Future (Canberra, 2004) p 107.
3. United Kingdom, House of Lords Science and Technology Committee, 2nd Report of Sessions 2005-06, Energy Efficiency (United Kingdom, 2005) Vol I, p 11.
4. United States, Energy Information Administration, online at http://www.eia.doe.gov/ (viewed 15 October 2005).
5. MacGill I and Outhred H, "Energy Efficiency Certificate Trading and the NSW Greenhouse Benchmarks Scheme", Draft ERGO Discussion Paper 0301 (University of New South Wales, 2003). Available online from http://www.ergo.ee.unsw.edu.au/(viewed 20 August 2005)
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7. MacGill and Outhred, n 5.
8. Sanders J and Clubb D, "White Certificates in UK" (Fedarene Working Group presentation, 19 May 2005) available online at http://www.fedarene.org/events/Fedarene_events/Energy_Efficiency_Strategies/Presentations/David_Clubb_WhiteCertificatesUK.pdf (viewed 24 March 2006).
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13. United States, Energy Information Administration, n 11.
14. Boardman B, "New Directions for Household Energy Efficiency From the UK" (2004) 32(17) Energy Policy 1923.
15. MacGill and Outhred, n 5.
16. A more full discussion of these factors is beyond the purpose of this essay. For a more detailed discussion of these factors see for example: Energy Futures Australia Pty Ltd, Mechanisms for Promoting Societal Demand Management (Independent Pricing and Regulatory Tribunal of New South Wales, 2002).
17. MacGill and Outhred, n 5.
18. MacGill and Outhred, n 5, p 22.
19. United Kingdom, Department of Trade and Industry, n 1, p 32.
20. White H and Norgard JS, "Equating Efficiency With Reduction: A Self Deception in Energy Policy" (2004) 15 Energy & Environment 991 at 995.
21. Boardman, in n 14 notes the difference between energy efficiency and energy conservation, and points out that European Union energy policy to date has generally focused on energy efficiency rather than energy conservation.
22. United Kingdom, House of Lords Science and Technology Committee, n 3, p 66.
23. United Kingdom, House of Lords Science and Technology Committee, n 3, p 67.
24. United Kingdom, Department of Trade and Industry, n 1, p 11.
25. New South Wales, Department of Energy, Utilities and Sustainability, Energy Directions Green Paper (New South Wales Government, 2004) p 34.
26. White and Norgard, n 19.
27. Bertoldi P, Rezessy S, Langniss O and Voogt M, "White, Green & Brown Certificates: How to Make the Most of Them?" (Paper published in the Summer Study Proceedings of the European Council For an Energy Efficient Economy, 2005) p 2. Available online at http://www.eceee.org/library_links/proceedings/2005/abstract/7203bertoldi.lasso (viewed 19 March 2006).
28. Langniss and Praetorius, n 5 at 208.
29. Bertoldi et al, n 26.
30. Bertoldi et al, n 26, p 1.
31. Langniss and Praetorius, n 5, pp 200-211.
32. Bertoldi et al, n 26.
33. MacGill and Outhred, n 5.
34. MacGill and Outhred, n 5, for more a more expansive comparison of the merits of baseline and credit schemes as opposed to cap and trade schemes.
35. Langniss and Praetorius, n 5.
36. Langniss and Praetorius, n 5.
37. Virtually all commentaries on market-based energy efficiency schemes deal with this issue. See for example the discussion contained in both MacGill and Outhred, and Langniss and Pretorius, n 5.
38. MacGill and Outhred, n 5.
39. Bertoldi et al, n 26.
40. Bertoldi et al, n 26.
41. MacGill and Outhred, n 5, p 16.
42. Langniss and Pretorius, n 5.
43. MacGill and Outhred, n 5, p 26.
44. Electricity Supply Amendment (Greenhouse Gas Emissions Reduction) Act 2002 (NSW), s 97A(i), available online at http://www.greenhousegas.nsw.gov.au/documents/syn56.asp (viewed 15 March 2006).
45. Electricity Supply (General) Regulation 2001 (NSW), available online at http://www.greenhousegas.nsw.gov.au/overview/legislative_framework.asp (viewed 20 August 2005).
46. New South Wales Government, Fact Sheet: Summary of the New South Wales Greenhouse Abatement Scheme (New South Wales Government, 2004), available online at http://www.greenhousegas.nsw.gov.au/documents/FS-Sch-Summary-01.pdf (viewed 20 August 2005).
47. Available at http://www.greenhousegas.nsw.gov.au/overview/legislative_framework.asp (viewed 20 August 2005).
48. The scheme also includes voluntary participants including large consumers of electricity, but present discussions do not include a consideration of these voluntary participants. See New South Wales Government, n 45.
49. New South Wales Government, n 45.
50. New South Wales Government, n 45.
51. New South Wales Government, n 45.
52. New South Wales Independent Pricing and Regulatory Tribunal, NSW Greenhouse Gas Abatement Scheme Compliance and Operation of the Scheme During 2004 (IPART, 2005) available online at http://www.greenhousegas.nsw.gov.au/documents/SchRep04.pdf (viewed 16 March 2006).
53. New South Wales Government, n 45.
54. For the 2004 compliance year the New South Wales Pool Coefficient was 0.906 - what this means is that on average 0.906 tonnes of carbon dioxide equivalent was emitted for every MWh of electricity produced in New South Wales in 2004. The 2004 Pool Coefficient increased from a figure of 0.897 in 2003, and it increased yet again to a figure of 0.913 in the 2005 compliance year. This increase is attributable to a move to a more accurate measurement approach and the Pool Coefficient is expected to continue to increase until around 2008 or 2009. Source: New South Wales Independent Pricing and Regulatory Tribunal, n 51.
55. Electricity Supply Amendment (Greenhouse Gas Emissions Reduction) Act 2002 (NSW), s 97B(1).
56. Greenhouse Gas Benchmark Rule (Compliance) No 1 of 2003 (NSW). Available at http://www.greenhousegas.nsw.gov.au/documents/syn60.asp (viewed 15 March 2005).
57. Greenhouse Gas Benchmark Rule (Compliance) No 1 of 2003 (NSW).
58. Greenhouse Gas Benchmark Rule (Demand Side Abatement) No 3 of 2003 (NSW), s 2. Available online at http://www.greenhousegas.nsw.gov.au/documents/syn64.asp (viewed 15 March 2006).
59. New South Wales Government, Fact Sheet: Creating NGACs From Demand Side Management (July 2004). Available online at http://www.greenhousegas.nsw.gov.au/documents/syn18.asp (viewed 16 March 2006).
60. New South Wales Government, n 58.
61. New South Wales Government, n 58.
62. The manner in which this measurement takes place is outlined in Greenhouse Gas Benchmark Rule (Demand Side Abatement) No 3 2003 (NSW), s 8.2. Available online at http://www.greenhousegas.nsw.gov.au/documents/syn64.asp (viewed 15 March 2006).
63. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 21.
64. In fact there considerable doubt as to whether all of this emission abatement is the result of the operation of the NGAS. Due to scheme design rules a significant proportion of NGACs created to date are in recognition of measures that were implemented before the scheme was established, thereby creating serious doubts over the additionality of the scheme.
65. Frew W, "Green Millions Squandered: Dirty Power Plants Making Millions Out of Green Scheme", The Sydney Morning Herald (14 September 2005) p 1.
66. MacGill I, Passey R, Nolles K and Outhred H, "The NSW Greenhouse Gas Abatement Scheme: An Assessment of the Scheme's Peformance to Date, Scenarios of its Possible Performance to 2012, and Their Policy Implications" Draft CEEM discussion paper for comment (UNSW, 2005). Available online at http://www.ceem.unsw.edu.au/documents/ceem_DP_050408_001.pdf (viewed 15 March 2006).
67. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 15.
68. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 50.
69. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 22.
70. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 22.
71. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 22.
72. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 22.
73. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 13.
74. Electricity Supply Amendment (Greenhouse Gas Emissions Reduction) Act 2002 (NSW), s 97A(i).
75. OFGEM and Energy Savings Trust, Review of Energy Efficiency Standards of Performance 1994-2002 (OFGEM, 2003) p 11.
76. Utilities Act 2000 (UK). Available online at http://www.opsi.gov.uk/acts/acts2000/20000027.htm (viewed 1 November 2005).
77. OFGEM and Energy Savings Trust, n 74.
78. OFGEM and Energy Savings Trust, n 74, p 12.
79. United Kingdom, Department of Environment, Food and Rural Affairs, Review of the Energy Efficiency Commitment 2002-2005 (Department of Environment, Food and Rural Affairs, 2005).
80. OFGEM, Energy Efficiency Commitment Update (OFGEM, 2002) p 1.
81. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 3(2)A. Available online at http://www.opsi.gov.uk/si/si2004/20043392.htm (viewed 22 October 2005).
82. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 3(2)A.
83. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 5(1).
84. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 5(1).
85. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 9.
86. The Electricity and Gas (Energy Efficiency Obligation) Order 2001 (UK), s 1(2). Available online at http://www.opsi.gov.uk/si/si2001/20014011.htm (viewed 22 October 2005).
87. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 1.
88. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 2.
89. 1 Terawatt = 1,000,000 Megawatts. See http://www.unitconversion.org (viewed 15 September 2005).
90. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 2(b).
91. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 2(a).
92. United Kingdom, House of Lords Science and Technology Committee, n 3, p 43.
93. United Kingdom, House of Lords Science and Technology Committee, n 3, p 43.
94. Electricity and Gas (Energy Efficiency Obligation) Order 2004 (UK), s 7.
95. United Kingdom, Department of Environment, Food and Rural Affairs, n 78.
96. Richardson BL and Chanwan KL, "Taxing and Trading in Corporate Energy Activities: Pioneering UK Reforms to Address Climate Change" (2003) 14 International Competition in Commercial Law Review 18.
97. OFGEM, A Review of the Energy Efficiency Commitment 2002-2005 (OFGEM, 2005) available online at http://www.ofgem.gov.uk/temp/ofgem/cache/cmsattach/12015_18105.pdf (viewed 15 March 2006).
98. OFGEM, n 96, p 9.
99. OFGEM, n 96, p 11.
100. OFGEM, n 96, p 11.
101. OFGEM, n 96, p 11.
102. United Kingdom, Department of Trade and Industry, n 1, p 13.
103. "10 Million Benefit From Efficiency" (2005) (Aug) Power UK
104. Sanders and Clubb, n 7.
105. Sanders and Clubb, n 7.
106. OFGEM, n 96.
107. OFGEM, n 96, p 11.
108. Bertoli et al, n 26.
109. Allianz Group and WWF, Climate Change & the Financial Sector: An Agenda For Action (Allianz Group, 2005) p 6.
110. Independent Pricing and Regulatory Tribunal of New South Wales, New South Wales Greenhouse Gas Abatement Scheme, Operation of the Scheme and Compliance During 2003 (IPART, 2004) p 17.
111. Bertoldi P, Rezesy S, and Burer MJ, "Will Emission Trading Promote End-Use Energy Efficiency and Renewable Energy Projects?" p 4, available online at http://energyefficiency.jrc.cec.eu.int/pdf/publications/ACEEE%202005%20paper%2014%20final.pdf (viewed 15 March 2006).
112. MacGill and Outhred, n 5, p 13.
113. While discussion so far has analysed the proportion of demand side energy efficiency activities implemented under the NGAS, energy efficiency at both the demand and supply sides has so far made up a small proportion of the abatement activities implemented to date under the scheme. For instance, during the 2003 compliance year total energy efficiency measures accounted for only 13.28% of NGACs created. This figure has been obtained from Passey R, MacGill I, Nolles K and Outhred H, "The NSW Greenhouse Gas Abatement Scheme: An analysis of the NGAC Registry for the 2003 Compliance Period", Draft CEEM discussion paper for comment (University of New South Wales, 2005).
114. MacGill I, Passey R, Nolles K and Outhred H, "The NSW Greenhouse Abatement Scheme: An Assessment of the Scheme's Performance to Date, Scenarios of its Possible Performance to 2012, and their Policy Implications", Draft CEEM discussion paper for comment (University of New South Wales, 2005) p 13.
115. New South Wales Independent Pricing and Regulatory Tribunal, n 51, p 12.
116. United Kingdom, Department of Trade and Industry, n 1, p 11.
117. Newtown P, "Saving Energy Should Be a Priority", Utility Week (4 November 2005) p 12.
118. United Kingdom, House of Lords Science and Technology Committee, n 3, p 43.