The Greenhouse Gas Reduction Scheme (GGAS) recognises abatement from on-site generation activities in NSW, under the Demand Side Abatement (or DSA) Rule.  DSA is a reduction in greenhouse gas emissions resulting from actions taken on the customer side of an electricity meter (ie the ‘demand side’).

Eligible Demand Side Abatement projects

Under GGAS, project proponents undertake on-site generation (DSA activities) to create NSW Greenhouse Abatement Certificates (NGACs). The on-site electricity generation essentially replaces supply from the National Electricity Market leading to demand side energy efficiencies.

DSA projects (with the exception of on-site electricity generation projects claimed under the previous voluntary scheme) must be implemented in NSW after 1 July 1997 for fossil fuel projects of <30MW, and after 1 January 1997 for projects using renewable energy sources.

Ineligible Demand Side Abatement projects

The DSA Rule excludes certain activities from making NGACs, such as:

• those which can create certificates under another Rule
• activities which reduce electricity consumption by reducing the economic benefit from the use of the electricity
• Green Power purchases (or purchases of similar products)
• activities to reduce losses in electricity transmission or distribution networks, and
• installation of solar water heaters for which Renewable Energy Certificates can be created.

Applications for accreditation

In the DSA Rule, the person entitled to create certificates is called ‘the Abator’. In general, the Abator is the owner of the on-site generation plant or the person registered as the Generator with the Australian Energy Market Operator (or AEMO - formerly NEMMCO) for the plant. Where projects were claimed under the previous voluntary scheme by an electricity retailer, referred to as ‘Electricity Sales Foregone’, this allows the retailer to qualify as the Abator.

The person eligible as the Abator may choose to give written permission to someone else to create NGACs on their behalf. This process is called ‘nomination’ and there are standard words in the Guide to Applying - DSA to use when gaining nomination.

While the benefit of the nomination flows to the nominated Abator, so does the responsibility. The nominated Abator must ensure the DSA project is properly implemented and must keep records of this.

Before applying for accreditation, the project proponent needs to:

• establish that their project is eligible
• establish that they are the Abator for the project (either original or nominated)
• correctly apply the Generation Emissions Method (which also references the Generation Rule)
• generate enough data and records to apply that method
• contact the Independent Pricing and Regulatory Tribunal (IPART) for more detailed guidance.

Once these steps have been completed, the project proponent should submit the Application Form – DSA along with the application fee and the appropriate documentation outlined in the Guide to Applying – DSA.

Calculation of the number of certificates from DSA projects

DSA on-site generation projects will vary greatly depending on the technologies used and the size of the project. The Abator must apply the Generation Emissions Method of the DSA Rule in calculating how many certificates their DSA project will create.

For further description of how to this calculation methodology, please see the Guide to Applying - DSA. Project proponents are encouraged to contact IPART prior to submitting an application.

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