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When determining the extent of energy saving, the energy use is compared against a baseline, which is an estimate of the energy use in the absence of any attempt at saving energy. This approach was developed over 20 years ago and is the basis for measurement and verification (M&V) of energy savings. It is fully described in the International Performance Measurement and Verification Protocol (IPMVP) and maintained by the Efficiency Valuation Organization (EVO). A succinct version of the IMPVP is found in the IPMVP Generally Accepted Principles published by EVO in October 2018
In environmental policy, white certificates are documents certifying that a certain reduction of energy consumption has been attained. In most applications, the white certificates are tradable and combined with an obligation to achieve a certain target of energy savings. Under such a system, producers, suppliers or distributors of electricity, gas and oil are required to undertake energy efficiency measures for the final user that are consistent with a pre-defined percentage of their annual energy deliverance. If energy producers do not meet the mandated target for energy consumption they are required to pay a penalty.[1] The white certificates are given to the producers whenever an amount of energy is saved whereupon the producer can use the certificate for their own target compliance or can be sold to (other) parties who cannot meet their targets.[1] Quite analogous to the closely related concept of emissions trading, the tradability in theory guarantees that the overall energy saving is achieved at least cost, while the certificates guarantee that the overall energy saving target is achieved.
A white certificate, also referred to as an Energy Savings Certificate (ESC), Energy Efficiency Credit (EEC), or white tag, is an instrument issued by an authorized body guaranteeing that a specified amount of energy savings has been achieved. Each certificate is a unique and traceable commodity carrying a property right over a certain amount of additional energy savings and guaranteeing that the benefit of these savings has not been accounted for elsewhere.
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