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26 August 2025
Updates to Regulations under Project-Based Activities (PBAs)
The Department of Energy, Environment and Climate Action (DEECA) has undertaken a reform on project-based activities (PBAs) in the Victorian Energy Upgrades (VEU) program following extensive consultation that identified opportunities to improve PBAs.
An amendment to the Victorian Energy Efficiency Target (Project-Based Activities) Regulations 2017 (the ‘PBA Regulations’) is effective from 26/08/2025.
Key changes
The PBA Regulations have been updated to:
- Establish four unique pathways under PBA to appropriately balance the administrative requirements with the complexity of the project. They include:
- Measurement and Verification (M&V): the M&V method is the most commonly utilised approach for PBA and has existed in the VEU program since 2017. This method remains relatively unchanged.
- Specified measurement method (SMM): this new method will reduce administrative complexity for low-risk projects by adopting a prescribed approach for greenhouse gas (GHG) reduction calculations. Key project types in this method will include electrification, solar PV, non-seasonally affected electric equipment and whole-of-site electricity or gas measurement.
- Benchmark Rating (BR): the BR method uses the National Australian Built Energy Rating System (NABERS) for commercial buildings to determine GHG reduction and has seen limited uptake in the program since its introduction in 2018. The proposed changes will align accredited provider qualifications and project reporting requirements with NABERS to reduce participation barriers.
- Advanced Measurement and Verification: this new approach provides the program administrator, the Essential Services Commission (ESC), with the ability to reduce administrative burden for skilled accredited providers with a proven track record of delivering high-quality PBA projects under the M&V method.
- Support energy consumers to transfer projects between accredited providers.
- Allow projects who have requirements for disclosure of energy efficiency or GHG emissions performance to participate in the VEU.
- Increase the flexibility for M&V and advanced M&V projects to make variations to expand the scope of services and/or the scope of energy sources prior to works having formally commenced.
For full details on the changes, visit: Victorian Energy Efficiency Target (Project-Based Activities) Regulations.
These regulatory changes support the recent amendments to the PBA Specifications. Specifically, the introduction of streamlining and simplifying approaches which will encourage the growth and uptake of these important VEU activities.
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Page last updated: 26/08/25