How the scheme works
The Energy Savings Scheme creates incentives for organisations to implement energy saving activities. Find out about how the scheme works.
The Energy Savings Scheme reduces electricity consumption in NSW by creating financial incentives for organisations to invest in energy savings projects. Energy savings are achieved by installing, improving or replacing energy savings equipment.
The scheme involves various parties who work in this way:
- Organisations identify energy savings projects that they can implement. Those projects reduce electricity consumption by installing, improving or replacing energy savings equipment.
- After identifying energy savings projects, organisations can participate voluntarily by becoming an Accredited Certificate Provider. For smaller projects, organisations might choose to work with an existing Accredited Certificate Provider rather than becoming an Accredited Certificate Provider themselves.
- After becoming accredited, Accredited Certificate Providers implement energy savings projects and create energy savings certificates. Energy savings certificates represent the energy savings that have been made and are equivalent to one tonne of CO2e emissions.
- Accredited Certificate Providers sell energy savings certificates, usually to Liable Entities. Liable Entities are mandatory participants in the scheme. Liable Entities (described as 'Scheme Participants' in the legislation) include electricity retailers and other parties.
- Liable Entities surrender energy savings certificates to meet their targets as required by legislation.
Financial incentives are achieved by Accredited Certificate Providers through the sale of energy savings certificates.
The scheme’s policy and legal framework
The Energy Savings Scheme is governed by NSW legislation. It places a mandatory obligation on Liable Entities to obtain and surrender energy savings certificates, which represent energy savings. The development of the policy framework is the responsibility of the Office of Environment and Heritage and the Department of Trade and Investment, Regional Infrastructure and Services.
Energy Savings Scheme Fact Sheet145.09KB PDF FileThis document provides an overview of the Energy Savings Scheme. It includes general information about the scheme structure, targets and activities.