Industry market update and work program

The Victorian Energy Upgrade (VEU) Program is the state’s largest energy efficiency program and a key measure in Victoria’s Climate Change Strategy.

Encouraging investment and employment in the energy efficiency sector is an objective of the program – certainty in the program is a key to achieving this.

Please find the following information included within this statement:

• monthly publication of information in relation to the Victorian Energy Efficiency Certificate (VEEC) market.
• quarterly publication of information on the pipeline of new and revised activities for the VEU program.

Market update - November 2024

This market information will be updated every month. Last update 17 December 2024.

Participation numbers

Participation numbers (only available for full months):

• 57 buyers (a decrease of 11% from 6 months ago).
• 101 sellers (an increase of 6% from 6 months ago).
• 101 active accredited providers (an increase of 14% from 6 months ago).

VEEC supply and spot price

Graph showing historic VEEC price between 2019 and 2024, mapped against the excess supply of VEECs against VEU targets for each year.

• This graph previously showed figures going back to 2009, but from has been updated to reflect a more current time period of 2019–2024
• if the line showing excess VEEC supply were at zero, the program would be perfectly on schedule to meet the targets. As the graph shows, the VEU program is well ahead of its targets
• a small percentage of VEECs over the years do not go towards targets, due to voluntary surrenders, withdrawals, etc. This has been adjusted for at the 2018–2022 surrender dates.

VEEC registration by activity type

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Graph showing number of registered VEECs between January 2021 and November 2024.

• VEEC registrations have seen a steady increase in 2024 following a dip in December 2023.
• Two spikes in VEEC registrations were observed in January and July 2024. These are attributed to an uptake across all activities, with the exception of residential lighting, which was phased out of the VEU program in 2023.
• VEEC registrations under the space heating activity have increased overall in recent months, while in home displays and weather sealing have seen a steady decrease in VEEC registration since July 2024.
• Other lighting saw a spike in July and October 2024 but are now declining towards the end of 2024.
• Residential water heating and commercial and industrial water heating have been steadily declining toward the end of 2024.

New and revised activities – December 2024

This information will be updated on a quarterly basis. Last update 17 December 2024.

The Department of Energy, Environment and Climate Action is working on a range of new and revised activities for the VEU program, which will increase the supply of certificates. Information on the new and revised activity work program is provided below.

Please note: the department will be delaying the reintroduction of incentives for plug-in refrigerated cabinet activities until further notice. Timelines will be confirmed at a later date.

These timeframes are indicative only and are subject to change. Stakeholders are advised not to make any commercial decisions based on future timeframes.

Where we are going

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Adding and revising activities

The department regularly reviews the range of energy efficiency upgrades available to receive incentives, ensuring they continue to reduce emissions and save consumers money.

A typical process for introducing or amending a VEU activity is outlined below. Please note that this is a guide only and the time involved and steps may vary considerably depending on the scale of the work.

Please note: an activity is not an eligible activity under the Victorian Energy Upgrades program until final regulations and specifications are in effect, and these have been communicated publicly.

Stakeholders are strongly advised not to make any decisions related to new or revised activities under the VEU program until final Regulations and Specifications have been approved and published.

The department does not make any representation that any proposed changes set out will (i) take effect, (ii) will take effect on or by a particular date, or (iii) will take effect in the form proposed.

Page last updated: 18/12/24