DELWP seeks to expand the range of activities available to households and businesses through the Victorian Energy Upgrades (VEU) program. These activities will increase the pool of opportunity for energy efficient upgrades and help achieve the 2021-2025 VEU program targets.
We have just opened a public consultation on new activities, seeking stakeholder feedback on issues papers which set out options to introduce new activities into the VEU program, and draft regulations and specifications which govern how an activity can be carried out.
Your feedback is invited on 4 potential new VEU activities:
- upgrades to the refrigeration equipment of cold rooms
- installation of Energy Management Information Systems (EMIS) in commercial buildings
- upgrades to install lagging (insulation) on pipework heated by gas appliances
- installation of smart thermostats for residential heating and cooling systems.
Stakeholders can submit feedback through the Engage Victoria website, at https://engage.vic.gov.au/victorian-energy-upgrades-new-activities-consultation.
Feedback from submissions will be used to guide the creation and implementation of the new VEU activities.
This consultation will close on 5 February 2021.
The Hon. Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change, has today announced that the VEU targets for 2022 to 2025 will be:
- 6.7 million certificates in 2022
- 6.9 million certificates in 2023
- 7.1 million certificates in 2024
- 7.3 million certificates in 2025.
The targets will deliver significant benefits to the energy system, help Victoria achieve its climate goals by locking in 28 million tonnes of emissions savings, and reduce energy prices for all consumers, whether they participate or not. On average, participating households and businesses stand to save over $120 and $510 respectively each year.
The targets herald a new phase of the program by expanding incentives to a broad range of crucial energy demand-side technologies that will support the cost-effective transition of the energy sector. They will further support recovery by providing an additional $1.3 billion in investment in the demand-side management industry between 2022 and 2025 and supporting over 2200 jobs annually.
The Department has listened to stakeholder feedback received in response to its consultation on targets, and throughout the coronavirus pandemic. In recognition of the need of an orderly and supported transition, the electricity emissions factors need to be updated to reflect increasing renewable penetration. Introducing this change through gradual decreases in each year to 2025 will support industry transition.
Increases to shortfall penalty rates will support an expanded range of activities and be introduced gradually as part of this support for transition.
Electricity emissions factor
(in tonnes of carbon dioxide equivalent emissions per megawatt hour)
31 July 2021
31 January 2022
31 January 2023
31 January 2024
$90 (subject to 2023 review)
31 January 2025
$90 (subject to 2023 review)
The Department will release a document shortly that outlines the reasons for its decision and responds comprehensively to feedback received from stakeholders.
The Department invites stakeholders to attend the 17 December forum being held by the Essential Services Commission at which it will provide further information on these matters. Stakeholders will have the opportunity to ask questions at this forum.
The coronavirus (COVID-19) restrictions have significantly limited residential lighting upgrade activity in 2020 to date – and some impacts may continue to be felt as this sector restarts following the lifting of the suspension.
Taking account of this disruption to activities, DELWP has revised the date at which the phase down of residential lighting incentives will commence – this change revises the date published in the Victorian Energy Upgrades Lighting Activities – Response to Consultation on 30 September 2020, as follows:
The changes to Incandescent lighting upgrades (Part 21) scheduled for 31 March 2021, will now commence on 30 June 2021.
This change provides program participants with a clear notice period and a further three months of unrestricted activity with current incentives, to address concerns about supporting their ability to deliver significant further upgrades to Victorian households, meet forward contracts and plan for transition of their business models.
DELWP has published the Victorian Energy Upgrades – Lighting Activities Issues Paper – Response to Consultation.
49 stakeholder submissions were received through the consultation, which provided feedback specific to the proposed changes to lighting activities in the program. Thank you to all those who provided input to the consultation process.
We have considered this feedback and the supporting evidence and decided to revise all changes to lighting activities. This decision will support program participant business transition and planning and minimise the impacts on jobs, particularly in consideration of the impacts of coronavirus (COVID-19).
The transition pathways allow bespoke phase out timelines for different categories of lighting, reducing incentives ahead of their removal. The reduction in incentives and removal of activities have also been designed to address technological, market and regulatory changes that mean lighting is becoming less additional.
Other decisions include providing a longer transition for mercury vapour lamp upgrades in all activities, the aligning of Part 34 J6 building based lighting upgrades with the National Construction Code (NCC) 2019 for 10 months, and the inclusion of T5 linear fluorescent and compact fluorescent lamp with non-integral ballast lighting upgrades as eligible activities.
The first round of changes for lighting activities will be made through the Victorian Energy Upgrades Specifications. These Specifications will come into effect on 31 March 2021.
|Activity||*31 Mar 2021||31 Jan 2022||31 Jan 2023|
*Incentives reduced |
(30 June 2021)
|Part 27||Mercury vapour lamps removed|
|Part 34 J6||Align with NCC 2019 IPD||Activity removed|
|Part 34 Non-J6||High Intensity Discharge (HID) Incentive reduced (0.6)|
High Intensity Discharge (HID) Incentive reduced (0.4)
Activities removed |
T5, T8, T12 and CFL remain
Efficacy requirement introduced
Lamp lifetime reduced
|Part 35||Mercury vapour lamps removed|
For more information and to download the Lighting Response to Consultation, please visit Engage Victoria: https://engage.vic.gov.au/victorian-energy-upgrades/lighting.
The Hon. Lily D’Ambrosio, Minister for Energy, Environment and Climate Change and Minister for Solar Homes, has announced that the Victorian Energy Upgrades target for 2021 will be 6.5 million certificates.
The letter from the Minister outlines the details of decisions on the 2021 target and the electricity emissions factor. The decision on targets for 2022 to 2025 and associated changes will be determined before the end of the year.
The Victorian Energy Upgrades (VEU) program is established under the Victorian Energy Efficiency Target Act 2007 to help Victoria reduce its greenhouse gas emissions, reduce the use of electricity and gas and invest in industries that provide energy demand management technology and services. The program provides subsidies for residential and business consumers to reduce their energy use by upgrading appliances, processes or buildings.
The Victorian Energy Efficiency Target Act 2007 requires annual targets for reducing emissions be set for the 2021 to 2025 period by May 2020. Additionally, with changes in Victoria’s lighting market – including decreasing unit costs, consumer demands, economies of scale and new standards from 2020 – there is a need to review the incentives provided to lighting activities through the VEU program.
Following preliminary consultations, the Department of Environment, Land, Water and Planning commenced formal consultations in December 2019, seeking stakeholder views on:
- Target setting for Victorian Energy Upgrades (VEU) as outlined in a regulatory impact statement
- Changes to VEU lighting activities as outlined in an issues paper.
Consultation on these has now closed. The department would like to thank everyone who provided a submission.
Visit the Engage Victoria website to access all relevant documents associated with these consultations and to subscribe to updates on these proposed changes.
We held an information session on 28 May 2019 outlining proposed changes to the M&V method. These changes were supported by stakeholders and have now been incorporated into a new version of the Specifications.
The Department of Environment, Land, Water and Planning would like to thank everyone who provided a submission. A summary of finalised changes to the Specifications and responses to the consultation submissions can be accessed.
In Victoria, regulations must be remade every 10 years. The Victorian Energy Efficiency Target Regulations, which set out the requirements for the Victorian Energy Upgrades program, were made in 2008 and were reviewed and remade in December 2018.
The Department of Environment, Land, Water and Planning would like to thank everyone who provided a submission.
If you require an accessible version of any of these documents, please email email@example.com
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Page last updated: 22/02/21