CTIP update application merit criterion adjusted
5th August 2013
Hot on the heels of the July 16 ‘re-profiling’ announcement AusIndustry have made changes to their review process when considering applications for funding.
Basically, the changes incorporate the anticipated carbon price of $6 per tonne of CO2 from mid 2014, and will now consider applications against that base-line when evaluating “Merit Criterion 1”; the cost of abatement in the proposal (the major evaluation criterion).
What this means:
Curiously, this has strengthened the likelihood of the most cost-effective energy efficiency initiatives being accepted for the period from now until 2018/19.
- AusIndustry are now being very careful about how the money is spent, according to their re-profiled timetable.
- As the program has now become more competitive, lower return energy efficiency opportunities, which would previously have received funding are much less likely to be funded now.
- Although making up a great share of successful applications to date, it is now less likely that single-item applications for Solar PV energy generation will be considered competitive. These solar-PV-only grant applications generally rank about $35 per tonne of CO2 abated.
- However, when packaged with energy efficiency, significant PV upgrades are more likely to be funded. For example, since the re-profiling, one of our clients has been successful with a CTFF application for 100kW of PV generation plus lighting and compressor energy saving actions. These have brought the carbon abatement cost down to around $18 per tonne; which is twice as competitive (half the cost per tonne of CO2 abated) as a PV only project would have been.
Is it possible to do Energy Efficiency at $6 per tonne?
AusIndustry is NOT saying that items have to be quite as competitive as $6 per tonne to be considered competitive although it is possible to achieve a capital investment of $6 / tonne of CO2 abated. Genesis Now has submitted one proposal for around $200K of subsidy, which will abate emissions at $5.50 per tonne over the asset life of the installed energy saving equipment. The improvements are all energy efficiency measures involving things like compressed air, lighting upgrades and motor and pump control improvements.
How do I know if our plans will be competitive?
- If you have ideas around energy efficiency, it is highly likely that we can work with you to develop a competitive application
- A simple telephone conversation with us will allow us to advise you on the competitiveness of your energy efficiency plans.
- When you involve us, we typically help you find additional “low hanging fruit” which bring the abatement cost down further.