2 December 2024

The Department of Energy, Environment and Climate Action (DEECA) has today opened consultation on proposed targets for the Victorian Energy Upgrades (VEU) program for 2026 and 2027 and is seeking stakeholder feedback.

The VEU program is the Victorian Government’s flagship energy savings and emissions reduction program. Discounts are available for energy consumers to reduce their energy use by upgrading appliances, processes or buildings.

The VEU program operates through setting a greenhouse gas (GHG) reduction target which is met through the uptake of prescribed upgrades which result in energy savings. The Victorian Energy Efficiency Target Act 2007 (the Act) currently sets out annual greenhouse gas reduction targets until 2025. The Act requires that the next program targets are set in the Victorian Energy Efficiency Target Regulations (the Regulations) by 31 May 2025. The targets determine the level of greenhouse gas reduction achieved by the program.

DEECA has prepared a regulatory impact statement (RIS) and draft regulations outlining the proposed target option for 2026 to 2027, with alternative options outlined in the RIS. Targets are set in Victorian Energy Efficiency Certificates (VEECs). One VEEC represents one tonne of greenhouse gas emissions abated.

The target options set out in the RIS are as follows:

  • Option 1:
    • 2026: 4 million VEECs
    • 2027: 4 million VEECs
  • Option 2:
    • 2026: 5 million VEECs
    • 2027: 6 million VEECs
  • Option 3:
    • 2026: 6 million VEECs
    • 2027: 7.3 million VEECs

Additionally, the RIS proposes 2 alternative target options in the event that proposed mandatory electrification upgrades do not proceed:

  • Alternative option 1:
    • 2026: 4 million VEECs
    • 2027: 4.5 million VEECs
  • Alternative option 2:
    • 2026: 4.5 million VEECs
    • 2027: 5 million VEECs

DEECA is seeking feedback from stakeholders to inform which target option proceeds as the program targets for 2026 and 2027.

Participate in the consultation survey or make a submission

Interested parties and stakeholders are invited to make a submission with feedback on the RIS and draft regulations by 11:59 pm on Thursday 16 January 2025.

Page last updated: 02/12/24