Deriving emission credits from energy efficiency projects

Summary form only given. In 1997, the Ontario Power Generation emission-trading program identified the potential to create emission credits from energy efficiency savings-providing that there was a decrease in fossil emissions. Emission trading provides an economic incentive-of about 0.5 c/kWh to eligible energy efficiency projects. These credits are then used or sold at 90% of their face value. Ontario Power Generation volunteered to retire 10% for a net environmental benefit. Energy efficiency help in the creation of emission credits is providing operating flexibility within the fossil fleet in a cost effective manner. The program created 1.9 billion kWh annually and almost 50% will lead to emission credits. As the emission program evolves and gains acceptance in the market, the energy efficiency projects are expected to increase to above 80%. The presentation provides details as to how the energy efficiency emission credits are derived and certified for use in the program.