The 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 and consultation – October 2021
To assist with market understanding and certainty, the Department of Environment, Land, Water and Planning (DELWP) has issued a market statement and will regularly update the below information in relation to the Victorian Energy Efficiency Certificate (VEEC) market.
DELWP is also seeking stakeholder feedback on further actions that could be considered. Please see our consultation paper and provide any feedback by 25 November 2021.
VEU Market update and work summary (PDF, 34.2 KB)
Market update - where we're at
The market has experienced strong growth in participation from accredited providers as well as certificate traders.
This growth in participation indicates market confidence in the future of the program.
Participation numbers:
63 active accredited providers (an increase of 28% from 2020)
92 sellers (an increase of 15% from 2020)
70 buyers (an increase of 4% from 2020).
VEEC supply and spot price
Graph showing historic VEEC price between 2009 and 2021, mapped against the excess supply against targets for each year excess supply.
Historical VEEC price spikes in 2012 and 2016 were correlated with periods of low certificate supply.
The 2020-2021 price increase is different from this pattern, with high levels of excess certificate supply.
Accredited providers may wish to research options strategies to protect their businesses against risk of rapid collapses or rises in certificate prices.
2021 VEEC creation by activity type
Graph showing number of registered VEECs between January and August 2021.
The market has experienced growth in uptake in non-lighting activities, nearly doubling between February and July in 2021.
This growth is a good sign that the market will adapt to several lighting activities being phased out.
This market information will be updated on a monthly basis. Last update 27/10/2021
New and revised activities – where we're going
The Department of Environment, Land, Water and Planning is fast-tracking work on several new and revised activities for the VEU program, which will increase the supply of certificates. You can find more information on these new and revised activity consultations on the Engage Victoria website.
Quarter 3 (Q3) 2021
Cold rooms (business) - Activity introduced August 2021.
Refrigerated display cabinets (business) - Activity updated Q4 2021.
Commercial and industrial heat pump water heaters (business) - Response to consultation Q4 2021.
M&V review (business) - Stage 1 started Q4 2021.
Gas efficiency consultation (business) - Q4 2021.
Hot pipe lagging (business) - Consultation Q4 2021.
Smart Thermostats (business and residential) - Consultation Q4 2021.
Home energy rating assessment (residential) - Consultation Q1 2022.
Building energy management information systems [EMIS] (business) - Consultation Q1 2022.
Water heating review (business and residential) - Consultation Q1 2022.
Space heating review (business and residential) - Consultation Q1 2022.
Insulation review (business) - Consultation Q2-Q3 2022.
Pool pumps (business and residential) - Consultation Q2-Q3 2022.
This work plan information will be updated on a quarterly basis. Last update 27/10/2021
Considerations which may impact timelines
COVID impacts, complexity of process for each activity, supporting industry discussions/questions, Essential Services Commission (ESC) implementation.