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Glossary

ABARE
Australian Bureau of Agriculture and Resource Economics
Abatement Certificate
A certificate represents one tonne of carbon dioxide equivalent (tCO2-e) of greenhouse gas emissions, the release of which into the atmosphere was avoided, or which was removed from the atmosphere by the activity in respect of which it was created.
Abator
The person contractually liable for the energy consumed in the installation or site that is the subject of a greenhouse abatement activity, or the person nominated to be the abator in respect of greenhouse abatement activity by written agreement. This particularly applies for demand side abatement activities.
Abatement Certificate Provider
A person accredited by the Scheme Administrator under one of the Greenhouse Gas Abatement Rules in respect of an abatement activity.
ACCC
Australian Competition and Consumer Council
Accreditation
Authorisation given by the Scheme Administrator to an abatement certificate provider to create abatement certificates in respect of a specified activity, once eligibility against the Greenhouse Gas Benchmark Rules is satisfied.
Attributable Emissions
Determined for each benchmark participant each year by multiplying the total electricity purchased (at the transmission node ie from NEMMCO plus any other purchases adjusted to the transmission node) by the NSW pool coefficient, less
any abatement certificates (ie NGACs and, if appropriate, LUACs) surrendered and RECs taken into account.
Australian Building Greenhouse Rating Scheme
The Australian Building Greenhouse Rating (ABGR) Scheme is one acceptable
methodology to use to normalise baselines for new or existing office buildings, after adjusting for any Green Power purchases. Generally a new office building must exceed a minimum 4 star rating before any NGACs may be created.
Baselines
The required level of activity undertaken, or the degree of greenhouse intensity which must be bettered, by an accredited abatement certificate provider before it is permitted to create abatement certificates.
Benchmark Participant
A person who is required or has elected to comply with a greenhouse gas benchmark.
CAAA
Clean Air Act Amendments, which formed the basis of the
Sulfur Dioxide Trading Scheme in the United States.
Carbon Sequestration
The process of removing carbon from the atmosphere and storing it within an eligible planted forest in NSW.
Carbon Sequestration Rule
Greenhouse Gas Benchmark (Carbon Sequestration) Rule No.5 of 2003
CCGT
Combined Cycle Gas Turbines
Carbon Dioxide Equivalent (CO2-e)
Carbon dioxide equivalent of greenhouse gas emissions means the mass of carbon dioxide measured in tonnes that has the same global warming potential
as the unit mass of the gas emissions. Each abatement certificate represents one tonne of carbon dioxide equivalent abated.
CO2
Carbon dioxide
Compliance Rule
Greenhouse Gas Benchmark (Compliance) Rule No.1 of 2003
Compliance Year
The period 1 January to 31 December of each year, for which benchmark participants must report compliance by 18 March in the following year.
Confidence Factor
Under the DSA Rule and the Large User Rule, the type of engineering assessment of reduced energy consumption undertaken determines the level of accuracy for the calculation of abatement certificates and hence the confidence factor. The more accurate the calculation, the higher the confidence factor, and
the more NGACs that can be created for a given level of estimated abatement.
Consumer Price Index (CPI)
Under the Scheme, the greenhouse penalty is adjusted each year by the consumer price index (CPI – All Groups Index), on and from 1 July in each year.
Deemed End User Purchases
The total of the exempt sales of a Mandatory Benchmark Participant to an Elective Benchmark Participant multiplied by the DLF listed in Table 7 of the
Compliance Rule.
Deemed Retailer
An accredited abatement certificate provider that is an electricity retailer to which the electrical output of a Category A generating system is allocated pursuant to a Power Purchase Agreement to which the retailer is a party (see definition for Emissions Workbook).
Default Abatement Factor
Used to calculate the number of abatement certificates that may be created from the installation of common equipment such as compact fluorescent lamps, AAA rated showerheads, refrigerators and certain electric motors.
Demand Side Abatement
Activities that reduce emissions by reducing electricity consumption through increased efficiency of electricity consumption, eligible on-site electricity generation, and substitution of sources of energy for electricity or substitution of
electricity for other sources of energy.
Distribution Loss Factor (DLF)
The distribution loss factor is the value of the electrical losses calculated for various points in the electricity distribution network.
DSA Rule
Greenhouse Gas Benchmark (Demand Side Abatement) Rule No.3 of 2003.
DUOS
Distribution Use of System Charges, which is the fee
structure set by State jurisdictions for the provision of
distribution services supplied to each customer class
Efficiency Improvement Approach
A method used under the Generation Rule to measure greenhouse gas emission reductions. Can be used by certain types of generators that make improvements in the efficiency of electricity production (and thereby reduce their
emission intensity).
Elective Benchmark Participant
An eligible large customer or a person engaged in carrying out a State significant project, who has chosen to manage its own greenhouse gas benchmark, and whose election is in force.
Electricity Sector Benchmark
Total allowable greenhouse gas emissions from the electricity sector in NSW calculated by multiplying the Total State Population by the State Greenhouse Gas Benchmark per head of population for that compliance year. The Electricity Sector Benchmark is announced by the Tribunal prior to each compliance year (by 30 November each year).
Embedded Generator
An embedded generator or an embedded generating system means a generating system that is connected to the distribution network as defined in the National Electricity Code.
Emissions Workbook
The document entitled Greenhouse Gas Emissions from Electricity Supplied in NSW: Emissions Workbook published by the Ministry of Energy & Utilities in October 2000.
Exempt Sales
The total electricity sold to an elective benchmark participant by another mandatory benchmark participant during the Compliance Year.
Fugitive Emissions
Greenhouse gases that are discharged into the air as a result of the extraction, transport or production of fossil fuels. Fugitive emissions also include greenhouse gas emissions from landfill sites, sewage treatment works and some industrial processes.
Generation Rule
Greenhouse Gas Benchmark (Generation) Rule No.2 of 2003
GHG
Greenhouse gases
Greenhouse Gas
A generic term for gases such as carbon dioxide, methane, nitrous oxide, perfluorocarbon or sulphur hexafluoride, as defined in the Act and the Regulation.
Greenhouse Gas Abatement Program (GGAP)
An environmental initiative administered by the Commonwealth Government’s Australian Greenhouse Office to reduce Australia's net greenhouse gas emissions by supporting activities that are likely to result in substantial emission reductions or substantial sink enhancement.
Greenhouse Gas Benchmark
This is the individual target which must be met by benchmark participants each compliance year and represents their individual share of the overall emissions target for NSW (the Electricity Sector Benchmark).
Greenhouse Gas Benchmark Rules
These set out how benchmark participants will measure their compliance and how accredited abatement certificate providers are to calculate the number of certificates that they are entitled to create. The Rules are amended from time to time by the Minister for Energy. The most current
version of the Rule should be used when calculating entitlements or for compliance.
Greenhouse Penalty
The amount a benchmark participant is liable to pay (subject to CPI adjustments) per tonne of carbon dioxide equivalent in respect of excess emissions if they fail to comply with their greenhouse gas benchmark.
Greenhouse Shortfall
The difference between a benchmark participant’s attributable emissions and its individual greenhouse gas benchmark; if the greenhouse shortfall does not exceed ten per cent of a benchmark participant’s greenhouse gas benchmark for that year, it may be carried forward to the following year (except in 2007) and a penalty will not apply.
IPPs
Independent Power Producers
ITA
Interim Trading Arrangements
Large Customer
A customer under an electricity supply contract, other than a retail supplier, who uses 100 GWh or more of electricity at a single site or uses 100 GWh or more of electricity at more than one site, at least one of which uses 50 GWh or more of electricity in NSW.
Large User Rule
Greenhouse Gas Abatement (Large User Abatement Certificate) Rule No.4 of 2003
Loss Factor
The value of electrical energy losses incurred in the conveyance of electricity over a distribution or transmission system.
LUAC
A Large User Abatement Certificate; a non-tradeable certificate in the NSW Greenhouse Gas Abatement Scheme.
MRET
The Mandatory Renewable Energy Target (MRET) Scheme. Introduced by the Commonwealth government through the Renewable Energy (Electricity) Act 2000, the MRET places a legal liability on wholesale purchasers of electricity to proportionately contribute towards the generation of an additional 9,500GWh of renewable energy per year by 2010.
National Electricity Market Management Company (NEMMCO)
The body corporate responsible for the administration and operation of the wholesale national electricity market in accordance with the National Electricity Code.
National Greenhouse Gas Inventory (NGGI)
As part of commitments under the United Nations Framework Convention on Climate Change (UNFCCC), Australia, through the Australian Greenhouse Office, has produced an annual listing of national greenhouse gas emissions since 1990 known as the National Greenhouse Gas Inventory.
NEC
National Electricity Code, the body of rules covering
commercial activity in the National Electricity Market
NECA
National Electricity Code Administrator
NEM
National Electricity Market. The wholesale and retail markets
in electricity in the interconnected grids of Victoria, New
South Wales, South Australia and Queensland. Tasmania is
also likely to participate, although interconnection with the
mainland grid is still to be decided
NEMMCO
National Electricity Market Management Company
NGAC
A Greenhouse Abatement Certificate; a tradeable certificate in the GreenhouseGas Abatement Scheme.
NGAC
New South Wales Greenhouse Abatement Certificate
Office of the Renewable Energy Regulator (ORER)
The Commonwealth Regulator of the Mandatory Renewable Energy Target
Scheme.
Penalty Unit
Each unit is currently $110; it is defined in Section 17 of the Crimes (Sentencing Procedure) Act 1999.
Pool Coefficient
The average emissions per unit of electricity delivered at transmission nodes for all generating systems supplying the notional NSW pool, as determined in accordance with the Compliance Rule; this factor is announced by the Tribunal by 30 November each year.
PPA
Power Purchase Agreement
REC
Renewable Energy Certificate. In Australia it is the equivalent of 1 MWh of electricity either produced from renewable energy resources or displaced from non-renewable energy resources.
RECLAIM
The Regional Clean Air Incentives Market
Relative Intensity Approach
A method used under the Generation Rule to measure greenhouse gas emission reductions. Can be used by generators that produce electricity of lower emission intensity than the pool coefficient.
REM
Redding Energy Management
Renewable Energy Certificate (REC)
A Commonwealth certificate surrendered under the Mandatory Renewable Energy Target (MRET) Scheme that may be brought to account against a benchmark participant’s benchmark in the NSW Greenhouse Gas Abatement Scheme, based on NSW sales.
Renewable Power Percentage (RPP)
Under the Commonwealth MRET scheme, NSW retailers must surrender RECs to ORER each year equivalent to a certain percentage of the electricity sold.
Retail Supplier
A mandatory benchmark participant under the Greenhouse Gas Abatement Scheme. Includes all holders of an electricity retail licence in NSW.
RTWG
Renewables Target Working Group, consisting of key State
Government, industry and community stakeholders, with the
responsibility for investigating possible implementation
mechanisms for the renewable energy target.
Scheme Administrator
The body administering functions such as accrediting abatement certificate providers, verifying abatement activity and maintaining a registry of certificates; this is IPART, in the first instance.
Scheme Registry
An online registry of Abatement Certificate Providers and Abatement Certificates.
SFE
Sydney Futures Exchange
Specific Abatement Project (SAP)
A specific project in which a change to an industrial process results in an identifiable and measurable reduction in greenhouse gas emissions, as defined under the Large User Rule.
State Significant Development
A development that the Minister for Planning has determined is of State or regional significance.
SO2
Sulfur dioxide
Total Electricity Purchased
This is the total amount of electricity purchased from NEMMCO, measured at transmission nodes, and embedded generators, measured at the point of generation, by all benchmark participants for use in NSW through the compliance year. For a detailed description of the calculations, see Clause 7 of the Compliance Rule.
Total State Electricity Demand
The projected electricity consumption in NSW, as determined in accordance with the Compliance Rule; this factor is announced by IPART by 30 November each year.
Total State Population
The projected total number of persons in NSW, as determined in accordance with the Compliance Rule, this factor is announced by IPART by 30 November each year.