25 May 2022

The Department has commenced a public consultation to review the two Project-based Activities (PBA) methods available under the Victorian Energy Upgrades (VEU) program.

This consultation aims to improve and streamline VEU PBA methods to remove unnecessary barriers and encourage greater uptake.

Stakeholders can submit feedback through the Engage Victoria website.

This consultation will close on 1 July 2022.

24 May 2022: Victorian Energy Upgrades: Consultation on the use of a discount factor for Refrigerated Cabinet (Part 32) activities

On 16 February 2022, the DELWP commenced investigating the Part 32 - Refrigerated Cabinet (RC) activity. This was undertaken in response to concerns from Victorian Energy Upgrades (VEU) program stakeholders that:

  • high incentives for RC units may be inaccurate, leading to rapid growth in the activity that does not reflect genuine greenhouse gas (GHG) abatement
  • RC units are being installed in business premises that have no pre-existing need to display or store food and/or drink
  • some RC units being installed are not fit for purpose.

DELWP’s investigation into these concerns has found that the current GHG abatement awarded for some RC product classes is inaccurate and that these upgrades are being awarded higher GHG abatement than they are likely to achieve.

Under section 19(2) of the Victorian Energy Efficiency Target Act 2007(the Act), discount factors can be used to consider any uncertainty associated with reducing GHG emissions resulting from a VEU activity.

As an interim measure to address GHG abatement concerns associated with the RC activity, the Minister for Energy, Environment and Climate Change has released a notice of intention to declare a discount factor under section 19(3) of the Act.

Notice of intention to declare a discount factor

A discount factor of 0.5 is a 50% reduction in incentives) is proposed for Part 32 – Refrigerated Cabinet upgrades, where the product installed is listed on the Essential Services Register as belonging to product class 1 to 11 (inclusive) under the Greenhouse and Energy Minimum Standards (Refrigerated Cabinets) Determination 2020 (Cth) ('GEMS 2020 Determination').

Stakeholders are invited to provide feedback on the notice of intention and proposed discount factor. Further information can be found on Engage Victoria, which includes a short consultation paper with a further background to the proposed discount factor and rationale.

Please note that the consultation closes on 6 June 2022.

Stakeholders will be informed of the Minister’s final determination following the consultation period. The anticipated response to this consultation will be released by 30 June 2022.

DELWP is committed to a further review of the RC activity to ensure that the activity can meet the objectives of the VEU program and appropriately incentivises the upgrade and installation of RC products. This review will consider decommissioning requirements, installation limits, fit-for-purpose requirements, baselines and suitability of products.

Page last updated: 20/09/22