Project Based Activities, 2025 Greenhouse Gas Reduction Rate and Large Energy User Grants
12 December 2024
The Department of Energy, Environment and Climate Action (DEECA) has several announcements on the Victorian Energy Upgrades (VEU) program to share this week.
Outcome of consultation on project based activities (PBA): Measurement and verification (M&V) under the VEU program
DEECA has published its Response to Consultation for the PBA M&V consultation, released in March 2024. DEECA would like to thank all stakeholders who participated in the PBA M&V consultation process.
DEECA has carefully considered all stakeholder feedback. The Response to Consultation details the key proposed responses to the feedback provided, including:
- DEECA is proposing to make changes to M&V Specifications to increase project flexibility by:
- making it easier for M&V project to account for changes which happen on site during a project
- including provisions for M&V projects with missing data or projects with multiple energy upgrades occurring on the same site to calculate energy savings
- revising the energy metering requirements for liquid-petroleum-gas (LPG) and other gas sources to support practical data collection for projects.
- DEECA is proposing to make administrative updates to the M&V and Benchmarking Specifications.
Following the implementation of the changes listed above, DEECA is also proposing to undertake further work to make changes to the PBA Regulations to support future growth and certificate creation in the VEU program. These changes will enable improved streamlining of existing methods and support the future development of new approaches under PBA.
Full details on the proposed changes, as well as the responses to consultation, are available on Engage Victoria.
DEECA expects to publish updated M&V specifications in January 2024.
Please note that the proposed changes and any indicative dates are subject to further consideration and final approval.
Stakeholders are advised not to make any decisions related to these changes until final regulations and/or specifications have been approved and published.
Greenhouse gas reduction rates for 2025
The following greenhouse gas reduction rates for 2025 will be fixed under the Victorian Energy Efficiency Target Act 2007:
- 0.15126 for electricity
- 0.02126 for gas.
These rates were recommended by the Minister for Energy and Resources and published by Order of the Governor in Council in the Victoria Government Gazette (refer to page 59 of the General Gazette Number G50 Dated 12 December 2024).
When multiplied by the amount of energy expected to be purchased by energy retailers in 2025, the rates determine the number of certificates each retailer needs to surrender to meet the 2025 target of 7.3 million tonnes of greenhouse gas abated, while adjusting for differences between estimated and actual energy purchases in past years. The greenhouse gas reduction rates were determined in consultation with the Essential Services Commission.
VEU Large Energy User (LEU) Electrification Support Program grant recipients
The Victorian Government is helping commercial and industrial gas users gain valuable insights into cutting their energy bills, future-proofing their operations, and reducing emissions through the VEU Large Energy User Electrification Support Program.
The program, now closed, has provided more than $1.4 million in grants to support Victorian businesses in exploring electrification opportunities within their facilities. For a complete list of successful applicants, please visit our Large Energy User Electrification Support Program webpage.
Eligible businesses have received up to $60,000 in metropolitan areas and $66,000 in regional areas to fund in-depth feasibility assessments to investigate opportunities to electrify industrial processes.
To date, there have been 35 projects undertaken for electrification in facilities across the state. Through these grants, eligible facilities can partner with approved suppliers to explore electrification of up to four different technologies, including heating, ventilation and air conditioning (HVAC), low and medium heat boilers, and industrial process equipment.
Businesses have already completed assessments for various types of industrial equipment such as ovens, furnaces, kettles, fryers, dryers, dehumidifiers, coffee roasters, dye machines, medical processing equipment, and dairy processing machinery.
By facilitating these assessments, the Victorian Government is helping commercial and industrial businesses across Victoria embrace the electrification journey, making energy bills more manageable and supporting a low-emissions economy.
Page last updated: 12/12/24