Project Impact Assessment Method

The Project Impact Assessment Method (PIAM) is a case-by-case approach for calculating savings from one-off energy savings projects. This method is most appropriate when:

The number of ESCs that can be created using PIAM is based on an assessment of the before and after energy consumption associated with the equipment, process, or system that is the subject of RESA.

The energy savings can be determined by various means, including by direct measurement or by an engineering assessment. The PIAM applies a Confidence Factor which reflects the accuracy and/or reliability of the data used to the calculate energy savings.

It is important to note that when using the PIAM approach, evidence is required to demonstrate that the RESA did not result in a decrease of service levels or output from a site or process.

Forward Creation

Using the PIAM approach, it is possible to make an up front assessment of estimated future savings.  The Rule allows Energy Savings Certificates to be created in respect of a RESA that has ongoing Energy Saving effects, as soon as the RESA is commenced. Up to 5 years of project savings can be brought to account at the commencement of the accreditation. However, discount factors will apply to any forward creation as listed in the table below and can be found in Schedule 5 Table 16 of the Rule.

As can be seen in the table below, the further in the future the savings are claimed, the higher is the discount.  Overall the discount has been calculated to recognise that 60 per cent of the energy savings claimed will be achieved at the end of the five year period.

Discount Factors for calculating forward creation of Certificates under the Project Impact Assesment Method

Year	Discount Factor
1	1.00
2	0.80
3	0.60
4	0.40
5	0.20

ACPs using this methodology can also opt to reconcile the discounted ESCs at the end of the creation period through the provision of evidence that project implementation has been sustained over the creation period.  This will require that the ACP retain records as evidence that the energy savings have been achieved.

The Scheme Administrator also reserves the right to require an audit of any additional ESC claim at this time to ensure the validity of any further savings.  This mechanism is designed to reward those ACPs who have maintained their RESAs and provides an incentive to do so.

For more detailed information please refer to the ESS Rule and the ESS Application Guide.