Victorian Government Sets New Target For Victorian Energy Upgrades
Announcement posted by Ecofin Solutions ForU Pty Ltd 16 Dec 2020
The Hon. Lily D’Ambrosio MP, Minister for Energy, Environment and Climate Change, has today announced that the Victorian Energy Upgrades Program targets for 2022 to 2025 will be:
- 6.7 million certificates in 2022
- 6.9 million certificates in 2023
- 7.1 million certificates in 2024
- 7.3 million certificates in 2025.
The targets will deliver significant benefits to the energy system, help Victoria achieve its climate goals by locking in 28 million tonnes of emissions savings through rebated or free LED lighting replacements, and reduce energy prices for all consumers, whether they participate or not. On average, participating households and businesses stand to save over $120 and $510 respectively each year.
The targets herald a new phase of the program by expanding incentives to a broad range of crucial energy demand-side technologies that will support the cost-effective transition of the energy sector. They will further support recovery by providing an additional $1.3 billion in investment in the demand-side management industry between 2022 and 2025 and supporting over 2200 jobs annually.
The Department has listened to stakeholder feedback received in response to its consultation on targets, and throughout the coronavirus pandemic. In recognition of the need of an orderly and supported transition, the electricity emissions factors need to be updated to reflect increasing renewable penetration. Introducing this change through gradual decreases in each year to 2025 will support industry transition.
Increases to shortfall penalty rates will support an expanded range of activities and be introduced gradually as part of this support for transition.
Commencement Date | Shortfall Penalty | Electricity emissions factor (in tonnes of carbon dioxide equivalent emissions per megawatt hour) |
31 June 2021 | $70 | 0.9546 |
31 January 2022 | $80 | 0.8142 |
31 January 2023 | $90 | 0.6738 |
31 January 2024 | $90 (subject to 2023 review) | 0.5334 |
31 January 2025 | $90 (subject to 2023 review) | 0.393 |
The Department will release a document shortly that outlines the reasons for its decision and responds comprehensively to feedback received from stakeholders.