Victorian Energy Upgrades (VIC)
The Victorian Energy Upgrades (VEUVictorian Energy Upgrades is a Victorian government energy efficiency program that gives every Victorian household and business the opportunity to receive rebates or discounts on energy saving products. More) is driving energy efficiency upgrades in Victoria by providing financial incentives, based on greenhouse gas emissions saved, to make implementation more affordable and attractive.
Also known as the Energy Saver Incentive or the VEETVictorian Energy Efficiency Target, under the VEET Act 2007 More Scheme, it is administered in accordance with the VEU Regulations 2018 by the Essential Services Commission.
Victorian Energy Efficiency Certificates (VEECS) can be created by an Accredited Person (APAccredited Provider – a person accredited under the Victorian Essential Services Commission (ESC) to create VEECs for Prescribed Activities. More) and sold to a liable party (Energy Retailer) when a legitimate activity takes place.
The scheme places an obligation on Energy Retailers to purchase certain quantities of Victorian Energy Efficiency Certificates (VEECs) every year, and through a wholesale certificate market, this creates the incentive for energy efficiency activities.
NSW Energy Saving Scheme (ESS)
The NSW Energy SavingsElectricity or gas savings or both. More Scheme (ESSThe NSW Energy Savings Scheme (ESS) provides financial incentives to install, improve or replace energy savings equipment and appliances in NSW households and businesses. The ESS was established in 2009. Financial incentives are in the form of tradeable certificates, called energy savings certificates (ESCs). Generally, householders and businesses who fund energy savings activities transfer the right to create ESCs to Accredited Certificate Providers (ACPs) in return for a discount on the cost of the energy savings activity. The MWh savings from the project determines the number of ESCs that can be created. The ESS works by allowing ACPs to create and register ESCs for energy savings that are supported with appropriate evidence. ESCs are then purchased each year by mainly electricity retailers operating in NSW to meet their share of a legislated annual energy savings target. More) is driving energy efficiency upgrades in NSW by providing financial incentives to make implementation more affordable and attractive.
The ESS places an obligation on energy retailers to purchase Energy Savings Certificates (ESCs). These certificates are generated by an Accredited Certificate Providers (such as Northmore Gordon) by performing eligible activities.
It is administered and regulated in accordance with the ESS Savings Scheme Rule 2009 (or the ESS Rule) by the Independent Pricing and Regulation Tribunal of NSW (IPARTIndependent Pricing and Regulatory Tribunal More).
Federal Renewable Energy Target (RET)
The Federal Government Renewable Energy Target (RETThe Renewable Energy Target is an Australian Government scheme designed to encourage the additional generation of electricity from sustainable and renewable sources. The Renewable Energy Target works by allowing both large-scale power stations and the owners of small-scale systems to create large-scale generation certificates (LGCs) and small-scale technology certificates (STCs) for every megawatt hour of power they generate. Certificates are then purchased by electricity retailers (who supply electricity to householders and businesses) and submitted to the Clean Energy Regulator to meet the retailers’ legal obligations under the Renewable Energy Target.) is driving renewable energy by providing financial incentives to make installation more affordable and attractive.
The RET is split into two targets the Large-scale RET (LRETThe Large-scale Renewable Energy Target (LRET) incentivises the development of renewable energy power stations in Australia through a market for the creation and sale of certificates called large-scale generation certificates (LGCs). More) for larger solar, wind, hydro “Power Stations” and the Small Scale Renewable Energy Scheme (SRESSmall-Scale Renewable Energy Scheme More) that supports the installation of rooftop solar systems that are less than 100kW, solar water heaters, and other small renewable generators.
Both targets are highly focused on increasing and improving renewable energy sources.
The SRES provides an upfront incentive based on the nominal generation through to 2030.
Federal Emissions Reduction Fund (ERF)
The Emissions Reduction Fund (ERFThe Emissions Reduction Fund is a voluntary scheme that aims to provide incentives for a range of organisations and individuals to adopt new practices and technologies to reduce their emissions. More) provides a government funded incentive for organisations in a range of sectors to reduce or ‘store’ carbon emissions.
The Emissions Reduction Fund (ERF) provides a government funded incentive for organisations in a range of sectors to reduce or ‘store’ carbon emissions.
Through the implementation of energy efficiency and emissions reduction projects, Australian Carbon CreditA certificate that is equivalent to 1 tonne CO2-e. Credits often refer to instruments issued under a cap and trade scheme, where companies are allocated credits up to their emission cap. If they exceed the cap they need to purchase more credits. More Units (ACCUs) can be created and subsequently sold to the government through the ERF reverse auctions.
ACCUs can be created under one of the 34 methods approved under the Carbon Farming Initiative (CFIThe Carbon Farming Initiative (CFI) is a voluntary carbon offsets scheme. It is an integral component of the Emissions Reduction Fund and allows land managers to earn carbon credits by changing land use or management practices to store carbon or reduce greenhouse gas emissions. More) legislation, regardless of a sale contract with the government. ACCUs can also be sold in the secondary market to help ‘make up’ ERF contracts that not fulfilled, to high emissions facilities that have exceeded their emissions baselines as defined under the safeguard mechanism, or to a range of commercial entities looking to voluntarily offset their emissions through carbon credit purchases.
In 2019, the government expanded the ERF with the addition of the $2 billion Climate Solutions Fund.
Current Targets
| Scheme | Tradable Certificate | Sectors Covered | 2019 Retailers Obligation | 2020 Retailers Obligation | 2021 Retailers Obligation | Legislated End Date | Northmore Gordon Accredited |
|---|---|---|---|---|---|---|---|
| State Energy Efficiency Schemes Comparison | |||||||
| VIC VEU | VEECVictorian Energy Efficiency Certificate More | Lighting Activities (Commercial, Industrial, Residential, Outdoor & Public Lighting). Project Activities for Commercial & Industrial Equipment | 6.3 M VEECs | 6.5 M VEECs | 6.5 M VEECs | 2030 | Yes |
| NSW ESS | ESCAn energy savings certificate (ESC) is a tradeable certificate created under Division 7 of Part 9 of the Electricity Supply Act 1995. Each ESC represents one notional megawatt hour (MWh) of energy. More | Lighting Activities (Commercial, Industrial, Outdoor & Public Lighting). Project & Metered Baseline Activities for Commercial & Industrial Equipment. Business Appliances. | 4.8 M ESCs (8.5%) | 4.8 M ESCs (8.5%) | 5.5 M ESCs (8.5%) | 2050 | Yes |
| SA REES | Direct obligation | Commercial, Residential | 2300 TJ | 2300 TJ | 2500 TJ | 2030 | No |
| ACT EEIS | Direct obligation | Commercial, Residential | (8.6%) | (8.6%) | 2030 | No | |
| Federal Schemes (Renewable Energy Target and Emissions Reduction Fund) | |||||||
| RET Small | STC | Solar PVSolar Photovoltaic More, Solar Hot water | 37.5 M STCsSmall-scale Technology Certificate under the Australian Renewable Energy Target. | 42.6 M STCs | 50.6 M STCs | 2030 | Yes |
| RET Large | LGCLarge-scale Generation Certificate under the Australian Renewable Energy Target. | Large Solar (>100kW) Wind, Hydro, Biogen | 31.2 M LGCs | 33.8 M LGCs | 33.0 M LGCs | 2030 | Yes |
