The versatility of an EUA
Earlier this month saw City of Sydney’s first ever EUA deal signed – a $26.5m trigeneration plant installation in Central Park. This is a promising move for the EUA marketplace in Australia, adding to the growing stockpile of environmental upgrade deals made in Parramatta and Melbourne.
Our unwaning enthusiasm for environmental building upgrades only increases as we discover the myriad ways an EUA can be used to pay for building works that combat rising energy prices, improve assets and even create new revenue streams for owners.
Take City of Parramatta’s first EUA for instance. Signed in December last year, this $800,000 project demonstrated that a full lighting upgrade alone can cut tenant power bills by a whopping 70 per cent (see the full case study here). The tenant (The NSW State Property Authority) is contributing to EUA finance repayments that are effectively offset by their energy bill savings, while unlocking the building owner’s cash flow.
Low Carbon Australia’s website states the two-megawatt trigeneration plant at Central Park will produce low-carbon thermal energy, provide heating and cooling for 3,000 residences and 65,000sqm of retail and commercial space in 14 buildings.
As the first mixed use property an EUA has been applied to, the plant is expected to cut greenhouse gas emissions by 7,600 tonnes per year – the same effect as removing 2,500 cars from the roads (see the full case study here).
In Melbourne, we’ve seen 4 EUAs signed for a variety of retrofit activities since legislation was established in 2010. More interestingly, with a total of $5.62 million, EUAs have enabled projects that cut greenhouse gas emissions by 5,660 tonnes and saved businesses half a million dollars ($491,000) in utility bills annually (see our case studies here).
So what can an EUA pay for exactly?
- End of life or maintenance of plant equipment (boilers, chillers)
- Fuel switching upgrades
- Water upgrades
- Solar panel roofing
- Lighting upgrades
- Installation of trigeneration plants to produce low-carbon thermal energy
- And much, much more…
To find out more about what an EUA is and how it works – check our ‘what is an EUA’ infographic.
Image credit: pennuja via Flickr Creative Commons