Type (ii) project activities
Type (ii) project activities involve energy efficiency improvement project activities which reduce energy consumption, on the supply and/or demand side, by up to the equivalent of 60 gigawatt hours per year.
"Energy efficiency" is defined as:
... the improvement in the service provided per unit power, that is, project activities which increase unit output of traction, work, electricity, heat, light (or fuel) per MW input are energy efficiency project activities (4/CMP.1, Annex II, paragraph (3(b)(i)).
"Energy consumption" is defined as:
... the consumption reduced and measured in watt-hours with reference to an approved baseline. Lower consumption as a result of lower activity shall not be taken into consideration (4/CMP.1, Annex II, paragraph (3(b)(ii)).
Demand-side energy efficiency measures are eligible, as long as they result in a maximum reduction in emissions of 60 gigawatt hours. The Executive Board has provided guidance which should be interpreted as referring to 60 GWh, now that the project categories have been amended by 1/CMP.2:
A total saving of 15 GWh is equivalent to 1000 hours of operation of a 15 MW plant or 15*3.6 TJ = 54 TJ, where TJ stands for terajoules (4/CMP.1, Annex II, paragraph 3(c)).
This is shown in the diagram below (4/CMP.1, Annex II):