Overview
Overview
The Large Energy User Electrification Support Program provides funding for electrification feasibility assessments for large commercial and industrial business facilities that use between 10 and 100 terajoules of gas per annum.
The Expression of Interest for approved suppliers will identify and approve a list of energy efficiency and electrification specialist suppliers eligible to undertake these feasibility assessments under the program.
Objectives
The objective of the program is to:
- accelerate electrification in the commercial and industrial sectors,
- reduce energy use, emissions and energy costs
- build industry capability in electrification and energy efficiency.
The Approved Supplier List will identify and approve energy efficiency and electrification specialists who have demonstrated experience, qualifications and capacity to undertake electrification feasibility assessments through the program. Large energy users who receive funding under the Program must select a supplier from the approved supplier list to complete the assessments.
The projects will identify electrification opportunities and provide a business case, including technical and economic assessment, for these facilities to transition some or all of their fossil-gas use to electricity. Business cases will include information on available incentives for project-based activity (PBA) upgrades under the Victorian Energy Upgrades (VEU) program.
Funding details
Funding of up to $60,000 ($66,000 for regional facilities) is available to large energy user facilities who receive program funding to engage Approved Suppliers to complete electrification feasibility assessments.
The funding support provided to large energy user facilities to engage suppliers will be aligned to the technologies and upgrade opportunities to be assessed by the approved suppliers at the facility.
Approximately 35 electrification feasibility assessment projects will be funded as part of the program.
Feasibility assessments must be completed by 20 December 2024.
| Eligible technology | Grant funding | Regional bonus |
|---|---|---|
| Electrification of heating, ventilation, and air conditioning (HVAC) | $10,000 | $1,000 |
| Heat pumps to replace low temperature gas boilers | $15,000 | $1,500 |
| Multi-stage heat pump to replace medium or greater temperature gas boilers | $20,000 | $2,000 |
| Electrification of furnaces, ovens, dryers, and similar gas-fired appliances | $25,000 | $2,500 |
| Site process and energy consumption assessment | $4,000 | $400 |
How to apply to be an approved supplier
For technical help with Grants Online, contact the grants online team.
Expressions of Interest to become an approved supplier close at 5pm Australian Eastern Standard Time (AEST), Friday 19 April 2024.
Successful applicants are expected to be notified of assessment outcomes by early May 2024.
The Approved Supplier List will be published shortly after suppliers are notified and confirmed.
What to demonstrate
The Approved Supplier List will identify and approve energy efficiency and electrification specialists who have demonstrated experience, qualifications and capacity to undertake electrification feasibility assessments through the program.
The Expression of Interest (EOI) requires potential suppliers to demonstrate their eligibility, experience, qualifications and capacity to undertake feasibility assessments.
Through the EOI, a merit-based assessment and selection process will be undertaken to select suppliers for inclusion on the Approved Supplier List.
Electrification feasibility assessments under the Large Energy User Electrification Support Program can only be completed by approved suppliers determined by this EOI process.
Next steps
Following publication of the approved supplier list, the Program will open for large energy users to apply for funding for electrification feasibility studies in May 2024.
Large energy user applicants will select approved suppliers to complete the feasibility assessments.
The feasibility assessment funding will be provided on a rolling basis until funding is exhausted or until Monday 30 September 2024, whichever occurs earlier.
Frequently asked questions
Who can apply to become an approved supplier?
Suppliers will be required to prove capability and capacity in delivering electrification feasibility assessments at commercial and industrial sites.
Applicants that have Certified Measurement and Verification Professionals as part of their project team will be regarded favourably.
In addition, approved suppliers must fulfil minimum eligibility criteria outlined in the supplier guidelines.
Who are Victorian Energy Upgrades accredited persons or accredited providers?
Approved suppliers for this Program will have similar skills and experience as those VEU accredited oersons or accredited providers (APs) already delivering measurement and verification activities (or ‘project-based activities’).
APs support commercial and industrial businesses to access incentives for bespoke energy efficiency upgrades (PBAs), under the VEU program.
Existing VEU APs who are already familiar with these requirements in their capacity under the VEU program are encouraged to apply to become approved suppliers.
However, eligibility to be included on the Approved Supplier List is not restricted to APs.
If approved suppliers are not yet APs, suppliers are encouraged to consider accreditation as APs with the Essential Services Commission, to enable them to support facilities to access incentives through VEU project-based activities.
Will large energy users be required to provide a co-contribution to feasibility assessment projects?
No. Large energy user applicants are not required to provide a funding co-contribution to the feasibility assessment.
Applicants may, on a voluntary basis, provide a co-contribution and potentially extend the scope of the feasibility assessment. If applicants intend to provide a co-contribution, they must inform Sustainability Victoria and provide full information on the feasibility assessment.
How many eligible large energy users are anticipated to be eligible?
There are more than 135 large energy users who may be eligible for the Program.
Approved suppliers cannot be provided with a list of these businesses due to commercial considerations.
However, suppliers are encouraged to proactively contact large energy user facilities and, if they are eligible, support them to apply.
Who should I contact for questions or feedback about the program?
For any questions or feedback about the program, please contact energy.upgrades@delwp.vic.gov.au
Who should I contact for assistance in submitting the online application?
If you require assistance submitting your application online, email grantsinfo@delwp.vic.gov.au.
Page last updated: 02/04/24