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The Victorian Energy Upgrade (VEU) Program is the state’s largest energy efficiency program and a key measure in Victoria’s Climate Change Strategy.

Encouraging investment and employment in the energy efficiency sector is an objective of the program – certainty in the program is a key to achieving this.

Market statement

In October 2021, to assist with market understanding and certainty, the Department of Energy, Environment and Climate Action (DEECA) issued a market statement. DEECA committed to updating this page with the following information:

  • monthly publication of information in relation to the Victorian Energy Efficiency Certificate (VEEC) market
  • quarterly publication of information on the pipeline of new and revised activities for the VEU program.

Market update – covering December 2023

This market information will be updated every month. Last update 21 December 2023.

Participation numbers

Monthly participation numbers as of 2 December 2023:

  • 72 active accredited providers (a decrease of 7% from 6 months ago)
  • 97 sellers (an increase of 3% from 6 months ago)
  • 58 buyers (a decrease of 9% from 6 months ago).

VEEC supply and spot price

Graph showing historic VEEC price between 2019 and 2023, mapped against the excess supply of VEECs against VEU targets for each year.

  • This graph previously showed figures going back to 2009, but from May 2023 has been updated to reflect a more current time period of 2019–2023.
  • If the line showing excess VEEC supply were at zero, the program would be perfectly on schedule to meet the targets. As the graph shows, the VEU program is well ahead of its targets.
  • A small percentage of VEECs over the years do not go towards targets, due to voluntary surrenders, withdrawals, etc. This has been adjusted for at the 2018–2022 surrender dates.

VEEC registration by activity type

Graph showing number of registered VEECs between August 2021 and December 2023.

  • Overall VEEC registrations increased from August to November, primarily driven by an increase in weather sealing and other activities.

New and revised activities – as at December 2023

This information will be updated on a quarterly basis. Last update 21 December 2023.

The Department of Energy, Environment and Climate Action is working on a range of new and revised activities for the VEU program, which will increase the supply of certificates. Information on the new and revised activity work program is provided below.

Please note that these timeframes are indicative only and are subject to change. Stakeholders are advised not to make any commercial decisions based on future timeframes.

    • Refrigerated Cabinets – response to consultation paper will be released in January. Updated Regulations and Specifications will be developed prior to coming into effect from 1 July 2024.
    • Water Heating (residential and commercial, industrial) and Space Heating/Cooling review – release of issues paper for public consultation on product quality, warranties, co-payments and incentive levels.
    • Project Based Activities – release of issues paper for public consultation.
    • Induction Cooktops – release of issues paper for public consultation to inform new activity development and implementation.
    • Telemarketing – Release of RIS and response to consultation in early 2024.

Shortfall penalty - The penalty price for post-2026 will be reviewed in 2024 as part of the 2026-2030 target setting process. The penalty price for 2024 and 2025 was not reviewed in 2023, and is not expected to change.

    • LEU Exemption Framework – release of issues paper for public consultation.
    • VEET Act Amendments – release of consultation in Q2/2024.
    • 2026 – 2030 Target Setting – release of consultation in the second half of 2024.
    • Induction Cooktops – following public consultation in early 2024, a new activity to incentivise induction cooktops will launch in the second half of 2024.
    • Energy Management Information Systems – release of issues paper for public consultation.

Where we are going

A graphic depicting the VEU's work for Q1 and Q2 2024

Page last updated: 05/01/24