How does the cogeneration adjustment work?
Where a generating system makes use of its waste heat to replace an existing fossil fuel derived heat source at an adjacent process or activity, the generating system is able to adjust its total greenhouse gas emissions in recognition of the notional greenhouse gas emissions avoided. For example, if a landfill gas fuelled generating system supplies its waste heat to a nearby swimming pool that previously used a natural gas fired boiler to provide its heat supply, the generating system’s waste heat is effectively replacing emissions associated with the use of natural gas. As such, the total greenhouse gas emissions for the generating system are adjusted downwards by the accordant notional emissions avoided, resulting in a reduced emissions intensity for the generating system and an accordant increase to abatement certificates created. If, however, the waste heat is used to replace a heat supply that was previously provided by renewable energy, the cogeneration benefit is zero.
