Baseline Identification and Price Sharing

Here’s a summary of some talks we had, to keep everybody up to date. It seems that our AC project is facing two principal challenges:

1. It will be difficult to establish the emission baseline, i.e. to estimate the energy consumption of the ACs installed in absence of our project. How much an AC consumes depends not only on the technology used, but also (and I may suggest, even more) on the size and shape of the room, window size, orientation and insulation, wall insulation, outside temperatures, neighbours, etc. It might be possible to use the actual consumption data we get after we built in the deluxe ACs, and then ‘extrapolate’ consumption levels by factor x to what they would be like with regular equipment. The factor x could be obtained from a labelling scheme used to provide consumers with information about the energy efficiency of electronic products. However, this will only provide ex post information, not ex ante. Before we actually get started, we can only guess how much energy we will safe, and how much certificates we generate (and, hence, how much money we’ll get).

2. Speaking of which: Money. We all agree that the constructor is also benefiting from the project, as it gets better equipment that produces smaller energy bills. They should therefore bear the major share of the costs for the upgrade. We will then give him the money for the certificates minus our own expenses and a compensation for the work involved with the project filing. By the way, under the current legal status of emisciency, we are only bound by a contract if we ALL express our consent.

We still need to look for an existing approved baseline methodology that takes into account the special requirements of our project (i.e. the lack of consumption data).

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