Offset Projects
How do these offset projects work?
When you choose to offset some of your greenhouse gas emissions through TRUenergy Planet Neutral, we purchase certificates which are created by the following accredited offset projects.
Based on the amount of greenhouse gas emissions (in tonnes) that you elect to offset, TRUenergy Planet Neutral calculates the dollar amount to be invested in the above offset projects.
What are certificates?
Certificates are either NSW Greenhouse Gas Certificates (NGACs) or Renewable Energy Certificates (RECs) that are purchased with your funds.
The amount of certificates that are purchased represents the amount of greenhouse gas emissions you have elected to offset. These certificates are traded in an open market and are supplied by accredited offset project providers.
TRUenergy voluntarily surrenders these certificates to government regulators. NGACs are surrendered to the NSW regulator, the Independent Pricing and Regulatory Tribunal (IPART) and are used for offset projects such as tree planting, energy efficiency and low emitting generation. RECs are surrendered to the Federal Office of the Renewable Energy Regulator (ORER) and are used for renewable energy offset projects. Once surrendered, these certificates are retired from the market and cannot be reused for other offsetting activities, which encourages continued investment in certificates.
For more information on how this process works, please see the section below.
1) NSW Greenhouse Gas Certificates (NGAC)
There are a number of accredited providers implementing tree planting and energy efficiency offset projects (in NSW and ACT) or operating low emitting generation facilities (across Australia). These providers are accredited under the NSW’s government’s Greenhouse Gas Abatement Scheme (GGAS).
For each tonne of carbon dioxide that these projects remove or save from being emitted into the atmosphere, a NSW Greenhouse Gas Certificate (NGAC) is created. TRUenergy purchases and trades NGACs with other energy retailers and accredited parties involved in offsetting programs.
When you elect to offset your greenhouse gas emissions generated from gas usage, car or plane travel, TRUenergy voluntarily surrenders NGACs on your behalf to the NSW regulator, the Independent Pricing and Regulatory Tribunal (IPART).
The NGACs surrendered represent the equivalent amount of tonnes of carbon dioxide that you have elected to offset. For example if you’re offsetting five tonnes of carbon dioxide, TRUenergy will surrender five NGACs on your behalf.
2) Renewable Energy Certificates (RECs)
There are accredited generators who produce electricity from renewable energy sources such as wind farms. These generators are accredited under the Commonwealth’s Mandatory Renewable Energy Target (MRET) scheme which is administered by the Federal Office of the Renewable Energy Regulator (ORER).
For each megawatt hour (MWh or 1,000 KWh) of electricity that is produced by an accredited renewable energy generator, a Renewable Energy Certificate (REC) is created. Much like NGACs, TRUenergy purchases and trades RECs with other energy retailers and offset projects companies. The purchase of RECs drives demand for renewable energy and as such, accelerates further investment in renewable energy across Australia.
When you elect to offset greenhouse gas emissions generated from your electricity usage, TRUenergy voluntarily surrenders RECs on your behalf to the ORER.
The RECs surrendered represents the equivalent amount of electricity you have used and elected to offset. For example, if you have used and elected to offset 5,000 KWh (or 5 MWh) of electricity, TRUenergy will surrender five RECs on your behalf.
What Offset Projects do TRUenergy use?
Accredited tree planting projects create NGACs that we then purchase and surrender to offset your elected greenhouse gas emissions from your gas usage, plane and car travel.
By selecting tree planting to offset your greenhouse gas emissions, you will contribute to the planting of trees which help absorb greenhouse gas emissions in the atmosphere.
Tree planting occurs within forests which absorb greenhouse gases from the atmosphere as part of their natural growth. This process is known as photosynthesis. For more information on how tree planting works in offsetting greenhouse gas emissions, visit the Green Gas Abatement Scheme website.All tree planting projects under the Greenhouse Gas Abatement Scheme are conducted in accredited forests located in New South Wales.
To find out more about tree planting offset projects, visit the Green Gas Abatement Scheme website. Energy EfficiencyAccredited energy efficiency projects create NGACs that we then purchase and surrender to offset your elected greenhouse gas emissions from your gas usage, plane and car travel.
Your carbon offset investment contributes to energy efficiency projects that help reduce the amount of energy consumed by businesses and the general public to produce the same output. An example of this is using energy efficient light globes, which achieve the same amount lighting output as standard light globes but with much less energy.
Examples of these projects include:
- the distribution of energy efficient light globes to households and businesses, which helps them reduce energy consumption and lowers their environmental impact
- upgrading and improving business and factory processes by employing energy efficiency measures to help reduce energy use for producing the same output
- helping businesses switch their energy consumption source from electricity to natural gas which produces less greenhouse gas emissions.
To find out more about energy efficiency offset projects, visit the Green Gas Abatement Scheme website.
Renewable Energy ProjectsAccredited renewable energy projects create RECs that we then purchase and surrender to offset your elected greenhouse gas emissions from your electricity usage.
Your carbon offset investment will pay for electricity generated from renewable energy sources equivalent to the emissions you produce. This activity increases demand for renewable energy sources and encourages investment in renewable energy projects.
RECs are purchased from a range of renewable energy sources including wind farms and bioenergy plants.
TRUenergy currently has agreements in place to purchase electricity from two major wind farms, Cathedral Rocks and Wattle Point in South Australia. Cathedral Rocks is a 66 MWh wind farm located 30 km south west of Port Lincoln and consists of 33 turbines. Wattle Point is a 91 MWh wind farm is located in Yorke Peninsula and consists of 55 turbines. These agreements have underpinned the construction of both wind farms, enabling these wind farms to obtain project financing.
TRUenergy also has agreements to purchase electricity from bioenergy plants. For example, since 2001, TRUenergy has been in contract with VISY who operates a biomass cogeneration plant at Tumut, New South Wales. TRUenergy purchases all RECs that are created by this plant.
To find out more about renewable energy projects, visit the Federal Office of the Renewable Energy Regulator website.
Low Emitting GenerationAccredited low emitting generation projects generate NGACs that we then purchase and surrender to offset your elected greenhouse gas emissions from your gas usage, plane and car travel.
By offsetting your carbon emissions in low emitting generation projects, you are investing in energy efficiency processes and technological developments at existing power stations.
Your investment helps projects such as gas fired power stations that use clean burn natural gas and produce significantly less greenhouse gas emissions than other conventional coal fired power stations.
To find out more about low emitting generation projects, visit the Green Gas Abatement Scheme website.