Over 3 Million Tonnes Abated. Many thanks to our Partners.

About this update

This dated news record has been reorganised for clear reading and connected to current guidance.

Publication date: May 23, 2018.

Status note: Present-tense statements, market figures, deadlines and program details in the archived record belong to its publication date. Check current official sources before making a decision.

What this article reported

Wattly is pleased to announce that we've created over 3 million certificates under Victorian Energy Upgrades (VEU). With the help of our partner installation companies, Wattly has ensured that 3 million tonnes less CO2 will go into the atmosphere over the next 10 years.

Sales & Marketing Director, Craig Morgan said "LED lighting technology reduces energy consumption by over 80% compared to most existing lights. The potential for energy and cost savings is available to all sectors of the economy and will generate long-term reductions in carbon emissions. We have seen widespread adoption of LED lighting in retail, hospitality, healthcare, warehouses and factories throughout Victoria and NSW."

"Energy Savings continue to be the most cost effective, and most over-looked way to help meet Australia's commitments under the Paris Accord. The Victorian Energy Upgrades (VEU) program alone is responsible for a reduction of 5% of the total electricity consumed in the state of the Victoria compared to business as usual. This is very significant, and in fact twice the amount of energy produced by behind-the-meter Solar PV. We are looking forward to continuing to accelerate the reduction in emissions through commercial and industrial energy efficiency and the ongoing boom in Solar across Australia.

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What does the 3 million tonne CO2 abatement milestone represent, and what is its timeframe?

Wattly's 3 million Victorian Energy Upgrades (VEU) certificates represent a commitment to prevent 3 million tonnes of CO2 from entering the atmosphere over the next 10 years through energy efficiency improvements. This milestone, achieved with partner installation companies, demonstrates the scale of impact that prescribed energy efficiency activities—particularly LED lighting upgrades—can deliver when implemented systematically across residential and commercial sectors in Victoria. The timeframe reflects the operational life of the installed equipment and the sustained energy savings that accrue across the certificate holding period.

How does the Victorian Energy Upgrades program's electricity consumption reduction compare to renewable energy generation in Victoria?

The VEU program is responsible for a 5% reduction in total electricity consumed in Victoria compared to business-as-usual conditions. This 5% reduction is twice the amount of energy produced by behind-the-meter solar PV across the state. This comparison highlights that energy efficiency improvements—rather than renewable generation alone—represent the largest single contributor to Victoria's grid-level electricity savings. For organisations assessing their decarbonisation pathways, this suggests that efficiency measures should be prioritised alongside renewable procurement when optimising both energy consumption and emissions outcomes.

What is the energy efficiency gain from LED lighting technology compared to existing conventional lighting?

LED lighting reduces energy consumption by over 80% compared to most existing conventional lights. This substantial efficiency gain makes LED upgrades one of the most straightforward prescribed activities under Victorian Energy Upgrades, with wide applicability across retail, hospitality, healthcare, warehouses and factories throughout Victoria and NSW. The high energy-saving percentage, combined with the simplicity of installation and equipment standardisation, contributes to LED lighting's prominence in VEU certificate creation. For businesses operating multiple sites with traditional lighting, LED replacement represents a accessible entry point for generating both energy savings and environmental certificates.

Why does Craig Morgan describe energy efficiency as overlooked, and how does it relate to Australia's climate commitments?

Craig Morgan, Sales & Marketing Director, notes that energy efficiency remains the most cost-effective yet overlooked method for helping meet Australia's Paris Accord commitments. This observation reflects a market reality: while renewable energy procurement and technology innovations receive significant visibility, operational efficiency improvements often deliver faster payback periods and lower implementation risk. Energy efficiency improvements also apply universally across existing facilities without requiring new infrastructure or generation capacity. For organisations developing transition plans, prioritising efficiency can accelerate emissions reductions while managing capital constraints and delivering immediate cost benefits.

What are the prescribed activities and sectors covered under the Victorian Energy Upgrades program?

The VEU program supports prescribed activities with standardised equipment requirements, including LED lighting, solar, cogeneration and heating projects. These prescribed activities have achieved widespread adoption in specific sectors—retail, hospitality, healthcare, warehouses and factories—where the equipment specifications and energy-saving outcomes are well-established and reliably documented. In Victoria, eligible improvements are created as Victorian Energy Efficiency Certificates (VEECs) by accredited providers. The standardisation of prescribed activities enables rapid assessment and certificate creation, contrasting with project-based activities that require individual eligibility assessment and measurement and verification.

How does Northmore Gordon support organisations seeking to understand or implement VEU certificate pathways?

Our knowledge library covers Victorian Energy Upgrades scheme assessment, including guidance on prescribed activities, project-based methods, measurement and verification requirements, and investment case development. For organisations evaluating energy efficiency projects in Victoria, we can assist with energy audits to identify eligible opportunities, feasibility assessment to confirm technical and commercial viability, and measurement and verification planning to establish credible savings documentation. We also provide commercial assessment of certificate eligibility, quantity and value assumptions before they are incorporated into investment decisions, helping clients avoid relying on unconfirmed certificate proceeds.

What distinction should be made between energy savings as a climate strategy and renewable energy generation?

Energy efficiency improvements and renewable generation serve complementary but distinct roles in emissions reduction. Efficiency measures reduce the total electricity consumed (the numerator in grid-level carbon intensity), while renewable generation changes the emissions intensity of electricity produced (the denominator). Both contribute to net emissions outcomes, but energy savings typically offer faster implementation timelines, lower capital intensity and immediate operational cost reductions. Australia's regulatory framework, including NGER and Safeguard Mechanism reporting, treats energy reductions and renewable attributes separately. Organisations developing transition pathways should assess their cost of carbon abatement across both categories and sequence implementation based on capital availability, payback period and operational constraints rather than assuming one pathway alone meets climate commitments.

What evidence and documentation requirements support VEU certificate creation for LED lighting and other prescribed activities?

For prescribed activities like LED lighting under VEU, accredited providers create certificates based on standardised equipment specifications and defined energy-saving calculations. The process requires documented proof that eligible equipment has been installed, that the activity meets venue and capacity conditions, and that relevant baseline or comparison assumptions have been applied. Our project brief template guides the collection of site information, equipment details, project stage confirmation and existing energy data—elements that enable accredited providers to assess eligibility and calculate certificate quantities with confidence. Early measurement planning is particularly important where scheme rules require baseline data collection before equipment installation commences.

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