CERT implementation

Charles Hargreaves11 December 2007

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Overview

• Drivers for the changes

• Changes from EEC2

• Overview of the tools

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Key drivers for changes in accreditation of measures

• The Government’s objectives for the installation of measures

• Changes in the market and the rate of market transformation

• Ease the administration burden for both the suppliers and Ofgem

– But the system that is implemented needs to be robust

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Broadening the scope of activity

• In EEC1 and EEC2 the suppliers could only be accredited for improvements in Energy Efficiency

• In CERT suppliers will be accredited with the promotion of– Improvements in energy efficiency– Microgeneration measures– Demonstration action aimed at determining the energy saving

from new measures

• In addition they will be incentivised to – deliver certain measures to the Priority Group

The incentives make up a small fraction of the overall target, the bulk of the target will be met with standard energy/carbon saving measures

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Estimation and determination of a reduction in carbon emissions

• The CER target is in lifetime tonnes of CO2 as opposed to lifetime discounted energy savings in EEC2

Carbon saving = energy saving * carbon coefficient * lifetime

• Most measures will be assessed on an ex ante basis, but it will be possible to get accreditation of measures on an ex post basis

• Carbon savings for insulation and heating measures will be accredited based on the property type and the number of bedrooms

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Measures - insulation

Ofgem intends to remove the distinction in savings between fuel types for insulation measures

• Professionally installed loft insulation – the variation in categories is proposed to be removed;

carbon savings will be accredited from less than 60mm and 60mm and above

– The range of final thicknesses would remain the same as in EEC2 (200mm, 250mm and 270mm)

• DIY loft insulation – Marketing plan is proposed to be used to demonstrate

additionality• Cavity wall insulation

– Average carbon savings would be accredited in line with Defra’s model

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Measures - heating

The distinction between fuel types will be maintained for heating measures

• Boilers– as the market is already transformed, we consider that it is no longer

appropriate to accredit the saving for replacing a B-rated boiler with an A-rated boiler

– However, the replacement of D-rated exceptions to the Building Regulations with an A-or B-rated boiler can be accredited

• Fuel switching– Suppliers need to demonstrate how their promotion will lead to an

increase in the uptake

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Measures - appliances• As the cold appliance market is nearly transformed, it is no longer appropriate to

accredit savings based on the difference between the market average and A-rated appliances.– only A+ and A++ appliances are accredited based on the difference between

the market average and the consumption of A+ and A++ appliances

• The fridgesaver mechanism will continue to operate.

• Consumer electronics – to ensure additionality, we will consider market penetration of the efficient models. This will be assessed on a case by case basis.

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Measures - lighting

• The government has an aspiration to phase out GLS lamps.

• In line with Defra’s model we will to increase the lifetime attributed to CFLs from 6,000 hours to 10,000 hours

• The distinction between medium/high and low use will be removed and one carbon saving would be accredited to all CFLs, including promoted through the retail route

• Halogens and diachroics will be accredited separately

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Assessment and reporting

• Assessment procedures– The assessment procedures and processes for CERT will be similar to those

for EEC2

• Quarterly reporting – The procedures for quarterly reporting will also be similar

– However, to enable more robust reporting, suppliers will be required to provide more detail on the number of measures installed

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The Priority Group flexibility mechanism

• Priority Group flexibility schemes will submitted in the same way as other activity

• The eligible measures promoted will get an ‘uplift’

• The savings including the uplift are capped at 5% of CERT target

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Eligible measures for PG flexibility activity

Solid wall insulation Ground source heat pumps

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Innovation in CERT

• 2 routes: – Market transformation (new to the programme eg

microgeneration)

– Demonstration (new tech. or delivery of savings)

• Market transformation will work in a similar way to Innovation in EEC2

• Demonstration will allow the suppliers to trial new measures and will be accreditable in relation to the money spent

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Demonstration action

• ‘A Demonstration action is an action that may reasonably be expected to promote a reduction in carbon emissions’

• Trialling a technology

• Trialling the consumer reaction to a technology

• Trialling consumer reaction to better information

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The scheme submission spreadsheet

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EEC2 Supplier progress

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20

40

60

80

100

120

140

160

180

Carry Over PG Achieved PG

PG target without carryover Carry Over nPG

Achieved nPG nPG target without carryover

PG trend Total trend

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