Energy efficiency improvement activities
For the purposes of Type (ii) small-scale project activities, "energy efficiency improvement activities" are defined according to a list of eligible activities set out in the attachment to 4/CMP.1, Annex II:
The Executive Board agreed to draw up an indicative list of eligible project activities/sectors, as proposed in the attachment to annex 2 of the annotated agenda of its third meeting. In drawing up such a list, the Board shall consider recognized classifications of energy efficiency and take into account experience based on completed or ongoing small-scale projects in relevant fields. Following the CDM "bottom-up" approach, this list shall evolve and be further elaborated over time as new project activities are proposed and registered (4/CMP.1, Annex II, paragraph 3(a)).
The current list of eligible projects that have been approved by the Executive Board are available online. For example, the first category of energy efficiency projects (supply-side energy efficiency improvements - transmission and distribution) lists as examples the upgrading of voltage on a transmission line, relpacement of a transformer, or increased insulation of pipes in a district heating system.
More generally, energy efficiency is defined as follows:
Energy efficiency is 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 follows:
Energy consumption is 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 abatement projects are eligible as energy efficiency improvement activities under Type (ii):
Demand-side, as well as supply-side, projects shall be taken into consideration, provided that a project activity results in a reduction of maximum 15 gigawatt hours (GWh), as illustrated by figure 1. 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)).
However, since the limits for this project type have been revised upwards to 60 GWh, the above definition should be read as referring to 60 GWh (2/CMP.1, paragraph 28).