This methodology applies to project activities that involve the construction and operation of new gas fired cogeneration facilities, where all electricity produced other than that required to operate the cogeneration facility, is exported to an electrical grid. Emission reductions result from the displacement of electricity supplying the grid, which would have been produced from more carbon intensive sources.

The steam and/or hot water that is displaced by the project activity would have been either produced for export to a steam/hot water grid or drawn from a steam/hot water grid. Emission reductions are achieved by the displacement of steam and/or hot water, which in the absence of the project activity, would have been produced in a more carbon intensive manner.