The Victorian Energy Efficiency Target (Project-Based Activities) Regulations 2017 provide for project-based activities in the scheme.

The majority of methods used for calculating Victorian Energy Efficiency Certificates (VEECs) for a given upgrade have been deemed – based on average values for that activity across Victoria. Some situations need a more customised approach. Project-based activities are tailored for a particular site and the level of incentives is based on the measured energy savings achieved at that site.

Project-based activities involve the measurement of energy consumption before and after an upgrade. There are two methods for measuring energy savings for project-based activities:

  • Measurement and Verification (M&V) method where energy savings are determined using before and after measurements of actual energy consumption
  • Benchmark rating method where energy savings are determined using before and after NABERS (which stands for the National Australian Built Environment Rating System) ratings.

Benchmark rating method

A benchmark rating is a measure of the energy performance of a building compared with that of other buildings of a similar size and usage, for example a NABERS rating.

Incentives are based on energy savings measured using before and after benchmark rating.

The incentives are available for upgrades at the following types of buildings:

  • Common areas of apartment buildings
  • Data centres
  • Hospitals
  • Hotels
  • Offices
  • Shopping Centres

Details of the technical requirements for using the benchmark rating method are contained in the publication, Benchmark rating in Victorian Energy Upgrades. (PDF, 232.9 KB)

Benchmark rating in Victorian Energy Upgrades (DOCX, 167.4 KB)

Measurement and Verification method

The M&V method is a flexible way to access incentives and offset the cost of energy upgrades. It allows businesses and other non-residential premises to claim incentives by calculating the energy saved from a specific upgrade using industry-standard measurement and verification techniques.

The M&V method is contained in the Regulations, with details of the methods and variables for the M&V method set out in the Specifications. On 18 December 2020, a new version of the Specifications for the M&V commenced. This is titled:

Measurement and Verification in the Victorian Energy Upgrades – Specifications – Version 4.0 (PDF)

Measurement and Verification in the Victorian Energy Upgrades – Specifications – Version 4.0 (DOCX)

This new version of the Specifications introduces a change to better support generation of renewable energy by allowing projects to export renewable energy generated on site. This version of the Specifications also includes a correction to Equation 2 which improves the accuracy of emissions abatement calculations for bioenergy and other fuel-switching projects, and corrections to some internal section references.

Answers to some common questions about this important change can be found here:

FAQs - M&V export limit removal (DOCX)

Historical versions of the M&V Specifications are still available for download:

Measurement and Verification in the Victorian Energy Upgrades – Specifications – Version 3.0 (PDF)

Measurement and Verification in the Victorian Energy Upgrades – Specifications – Version 3.0 (DOCX)

Measurement and Verification in the Victorian Energy Upgrades – Specifications – Version 2.0 (DOCX, 169.2 KB)

Measurement and Verification in the Victorian Energy Efficiency Target Scheme – Methods and Variables (DOCX, 148.9 KB).

How to participate

The Essential Services Commission (ESC) is the VEU program administrator and is responsible for accrediting providers and assessors.

Organisations wishing to become accredited persons for the M&V method should refer to the ESC’s website at https://www.esc.vic.gov.au/victorian-energy-upgrades-program.

For businesses and other organisations wishing to undertake an upgrade, accredited providers are listed on the Victorian Energy Saver website. You may also choose to become accredited to deliver projects at your own sites.

Persons interested in becoming Approved M&V Professionals to provide third-party reviews of M&V projects should refer to the ESC’s website at https://www.esc.vic.gov.au/victorian-energy-upgrades-program.

M&V training manual and workbook

The department has developed guidance material for stakeholders interested in understanding the practical implementation of the M&V method.

* Calculating Savings using Measurement and Verification – PDF. This non-mandatory manual introduces key concepts to apply the M&V method in the Victorian Energy Upgrades program.

* Measurement and Verification Workbook (Beta) – XLSX. This workbook calculates greenhouse gas savings for Victorian Energy Upgrades projects using the M&V method.

Note: These resources are intended as guidance material only, and are not a substitute for the regulatory and compliance systems of the Victorian Energy Upgrades program managed by the Essential Services Commission (ESC). For more information on the administrative details of the program, visit the ESC website.

The workbook has been published as a beta, making it suitable for user testing and to support reading the manual. It is provided for information purposes only. No warranty is made in respect of the material, including (but not limited to) in relation to the accuracy or currency of the material at any time or its suitability for other purposes.

Page last updated: 18/12/20