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Greenhouse gas conversion factors for company reporting

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2012 Guidelines to Defra / DECC's GHG Conversion Factors <strong>for</strong> Company Reporting<br />

Annex 3 - Converting from purchased electricity, heat and steam use to carbon dioxide equivalent emissions<br />

Last updated: Apr-12<br />

How to use this Annex<br />

Electricity<br />

The <strong>factors</strong> presented in the three tables below (3a, 3b and 3c) are a timeseries of electricity CO 2e emission <strong>factors</strong> per kWh GENERATED (Table 3a, i.e. be<strong>for</strong>e losses<br />

in transmission/distribution), electricity CO 2 emission <strong>factors</strong> per kWh LOSSES in transmission/distribution (Table 3b) and per kWh CONSUMED (Table 3c, i.e. <strong>for</strong> the<br />

final consumer, including losses from the national transmission and local distribution grids).<br />

In the majority of cases, the 'Grid Rolling Average' factor from Table 3c should be used. Tables 3a and 3b are included to assist companies <strong>reporting</strong> in a manner<br />

consistent with the <strong>Greenhouse</strong> Gas Protocol <strong>for</strong>mat, which requires separate <strong>reporting</strong> of GHG emissions due to transmission and distribution losses.<br />

To calculate emissions of carbon dioxide equivalents associated with use of UK grid electricity :<br />

1) Identify the amount electricity used, in units of kWh;<br />

2) Multiply this value by the <strong>conversion</strong> factor <strong>for</strong> UK Grid Rolling Average electricity. Use Table 3c <strong>for</strong> calculating GHG emissions resulting from electricity provided<br />

from the national/local grid.<br />

Heat and Steam<br />

The <strong>factors</strong> presented in the Table 3d below are a timeseries of CO 2e emission <strong>factors</strong> per kWh supplied heat or steam based on in<strong>for</strong>mation from the UK CHPQA<br />

scheme, and are new <strong>for</strong> this 2012 update to the <strong>conversion</strong> factor Annexes. In most cases this energy will be provided directly, however in cases where district heating<br />

is utilised an additional correction factor of 5% is applied to reflect average energy losses in the supplied heat distribution.<br />

To calculate emissions of carbon dioxide equivalents associated with use of purchased heat/steam:<br />

1) Identify the amount heat or steam used, in units of kWh;<br />

2) Multiply this value by the <strong>conversion</strong> factor <strong>for</strong> heat or steam.<br />

3) If the heat used is provided via a district heating scheme, add an additional 5% to the calculated CO 2e emissions to reflect distribution losses.<br />

Annex 3 Scopes & Boundaries:<br />

Scope 2 : Direct emissions of CO 2, CH 4 and N 2O from the combustion of fuel in power stations to generate electricity (Table 3a Direct GHG, i.e. excludes losses in<br />

transmission and distribution) and Heat/Steam (Table 3d Direct GHG).<br />

Scope 3: In electricity generation, this includes indirect GHG emissions associated with the extraction and transport of primary fuels as well as the refining, distribution<br />

and storage of finished fuels (Table 3a, 3b and 3c). The <strong>Greenhouse</strong> Gas Protocol also attributes direct GHG emissions associated with losses from electricity<br />

transmission and distribution (Table 3b) to Scope 3.<br />

Direct GHG emissions given in Table 3c are a combination of (Scope 2) Direct GHG emissions from Table 3a and (Scope 3) Direct GHG emissions from Table 3b.<br />

How are the <strong>factors</strong> calculated?<br />

Electricity<br />

The electricity <strong>conversion</strong> <strong>factors</strong> given in Table 3c represent the average carbon dioxide emission from the UK national grid per kWh of electricity used at the point of<br />

final consumption (i.e. electricity grid transmission and distribution losses are included), factoring in net imports of electricity via the interconnectors with Ireland and<br />

France*. This represents a combination of the emissions directly resulting from electricity generation (Table 3a) and from electricity grid losses (Table 3b). The Direct<br />

GHG emission <strong>factors</strong> include only carbon dioxide, methane and nitrous oxide emissions at UK power stations (plus those from the proportion of imported electricity),<br />

with the Indirect GHG emission <strong>factors</strong> including the emissions resulting from production and delivery of fuel to these power stations (i.e. from <strong>gas</strong> rigs, refineries and<br />

collieries, etc).<br />

This factor changes from year to year, as the fuel mix consumed in UK power stations changes, and the proportion of net imported electricity also changes*. Because<br />

these annual changes can be large (the factor depends very heavily on the relative prices of coal and natural <strong>gas</strong> as well as fluctuations in peak demand and<br />

renewables), and to assist companies with year to year comparability, a 'grid rolling average' factor is presented which is the average of the grid Conversion factor over<br />

the last 5 years. This factor is updated annually.<br />

From 2011, imported electricity has been accounted <strong>for</strong> in the calculations of the emission <strong>factors</strong>. The UK is a net importer of electricity from the interconnector with<br />

France, and a net exporter of electricity to Ireland according to DUKES (2011). More details on the methodology, its impacts and the rationale can be found in the<br />

methodology paper <strong>for</strong> the 2011 update, on Defra's website at:<br />

http://www.defra.gov.uk/environment/economy/business-efficiency/<strong>reporting</strong>/<br />

Heat and Steam<br />

The heat and steam <strong>conversion</strong> <strong>factors</strong> given represent the average emission from the heat and steam supplied by the CHPQA scheme operators <strong>for</strong> a given year. This<br />

factor changes from year to year, as the fuel mix consumed changes. This factor is updated annually. No statistics are available that would allow the calculation of UK<br />

national average emission <strong>factors</strong> <strong>for</strong> the supply of heat and steam from non-CHP operations.<br />

I generate my electricity onsite. How do I calculate emissions from this?<br />

If you generate electricity from 'owned or controlled' renewable sources backed by Renewable Energy Guarantee of Origin (REGOs) within the UK, you should account<br />

<strong>for</strong> these emissions using the 'Renewables' factor. Please see Annex G in Defra's Guidance on how to measure and report your GHG emissions <strong>for</strong> an explanation of<br />

how to report on-site generated renewable energy:<br />

http://www.defra.gov.uk/environment/economy/business-efficiency/<strong>reporting</strong>/<br />

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