Target setting for Victorian Energy Upgrades

Update – 2 June 2020

The Hon. Lily D’Ambrosio, Minister for Energy, Environment and Climate Change and Minister for Solar Homes, has announced that the VEU target for 2021 will be 6.5 million certificates. The letter from the Minister (available here) also 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 Efficiency Target Act 2007 requires annual targets for reducing emissions be set in the Victorian Energy Efficiency Target Regulations 2018 for the 2021 to 2025 periods by May 2020.

In order to establish these future targets, the Department of Environment, Land, Water and Planning is required to prepare a Regulatory Impact Statement (RIS) to assess the costs and benefits of different target options. A RIS is required under the Subordinate Legislation Act 1994 for regulatory proposals that are ‘likely to impose a significant economic or social burden on a sector of the public’.

The RIS assesses five different target options. The preferred option proposes a set of annually increasing targets to be met by an expanded range of upgrades.

The preferred option also proposes specific eligibility criteria for large energy users who choose to opt out of the program, including a requirement to implement best practice energy management systems. In total, the proposed option will avoid 40.6 million tonnes of carbon dioxide equivalent emissions.

An overview of the RIS is provided here:

Regulatory Impact Statement Executive Summary

The Department has prepared short factsheets to assist readers in understanding key issues:

Large Energy Users Factsheet

Gas in VEU Factsheet

New Activities in VEU Factsheet

Renewables in VEU Factsheet

Frequently Asked Questions

Have your say

The Department invites you to comment on the proposed changes. Submissions can be made here and are open until 31 January 2020. Submissions can also be sent to or posted to:

Energy Demand, Programs and Safety

Victorian Energy Upgrades Consultation 2019

PO Box 500, East Melbourne, VIC, 3002

The following questions may be useful to consider as part of your submission:

  • What is your view on the expansion of the program to a larger set of activities?
  • What is your view on the new exemption process for trade-exposed large energy users?
  • What is your view on the costs and benefits of the proposed target?
  • What is your view on how the proposed target will stimulate innovation?
  • What is your view on how the proposed target will stimulate participation?