Victoria
New South Wales
South Australia
QueenslandIn case you missed it, here’s a recap on what’s been happening in the energy market over the last month.
- VEU Telemarketing Ban Recap
- PDRS Rule Change Update Announced 05 April
- CER Data Shows Extent of Hot Water Heat Pump Installation Surge
- Shadow Carbon Price to be Introduced – Demonstrating the Value of Emissions Reduction (VER)
- Solar Contributed 67% of New Large-Scale Generation Capacity Approved by the CER in 2023
- ESC Announce Amendments to Activity 35 (Non-Building Based Commercial Lighting)
- AEMC Draft Rules for CER Flexible Trading Extended
- Victorian Government Bans Gas Companies from Providing Incentives
- ESS Refrigerated Cabinet Activity Compliance Notice
- Peak Industry Groups Support Mandatory Climate Disclosure
VEU Telemarketing Ban Recap
On Wednesday next week (1 May 2024), the ban on cold-calling customers to spruik products under the Victorian Energy Upgrades (VEU) Program will come into effect.
The ban is part of a raft of changes aimed to clean up the image of the VEU program in the eyes of customers, with a similar ban to door knocking due to take place later this year, from 1 August.
The telemarketing ban will require Accredited Persons (APs) to maintain clear evidence that customers have provided express consent to be contacted about the specific VEU product being sold prior to calling them.
For access to the industry webinar held by the VEU, please click here.
Ecovantage will work with its partners to tailor their existing customer acquisition processes to ensure compliance with the regulator’s requirements.
PDRS Rule Change Update Announced 05 April
On April 5th DCCEEW announced three changes to come into effect in the new PDRS which were not consulted on. The changes are designed to prevent the over incentivisation of hot water heat pumps (HWHP) and to remove redundant activities. The changes will be announced in the PDRS release this month, and will take effect 3 months after publication. This is estimated to be between 01 July to 01 August.
- Limiting the commercial water heater activity to larger units that cannot receive Small Scale Renewable Energy Scheme incentives
- Removing the removal of old fridges and freezers activity
- Removing the installation of high efficiency motors activity.
CER Data Shows Extent of Hot Water Heat Pump Installation Surge
In April the Clean Energy Regulator released its Quarterly Carbon Market Report, which demonstrated the surge in hot water heat pump (HWHP) installations seen throughout 2023. A total of 159,848 systems were installed in the year, rising just shy of 50% from 2022’s 80,859 systems installed. The step up may largely be attributed to the notable increase in incentives under both the Victorian Energy Upgrades (VEU) program and the NSW Energy Savings Scheme (ESS) within the year. Though install volumes have slowed in Victoria as of late, new mandatory copayment amounts coupled with reduced certificate creation per unit are likely to see NSW follow a similar reduction.
Shadow Carbon Price to be Introduced – Demonstrating the Value of Emissions Reduction (VER)
A ‘Shadow Carbon Price’ has been included in the National Energy Objectives in April, which will demonstrate the Value of Emissions Reduction (VER). The price is designed to assist regulatory decision-making in lieu of a formalised national carbon price. The 2023 VER starts at $66.00 for 2023, and follows a somewhat linear increase of 6-9% per annum, with the higher percentage increases weighted toward 2030-2036. The price is set to settle at $420 by 2025 in the current forecast.
Solar Contributed 67% of New Large-Scale Generation Capacity Approved by the CER in 2023
In 2023 a total of 2.2 GW of large-scale renewable capacity was approved by the CER for the purpose of creating LGCs. Solar power stations made up approximately 67% (1.5 GW) of the 2.2 GW of Power Station approvals, a 10% growth from 2022. NSW accounted for almost half of this amount, closely followed by QLD contributing over 30% of the approved capacity.
In 2023, there was substantial change within the policy landscape for the renewables sector in Australia, most namely including:
- On 3rd December, Australia joined the global renewables and energy pledge to be a part of the initiative to triple the world’s installed renewable energy capacity by 2030 and double the global average annual rate of energy efficiency improvements.
- In November, the Government expanded the Capacity Investment Scheme (CIS) to 32 GW nationally.
- Also in December, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) published the Annual Climate Change Statement 2023, which prioritises increasing renewables.
ESC Announce Amendments to Activity 35 (Non-Building Based Commercial Lighting)
The Essential Services Commission this week announced changes to Activity 35 non-building-based lighting requirements. An amendment was made to remove references the year in the required lighting standards, and instead the wording has been updated to reference the ‘current’ standard relevant to the lighting design.
AEMC Draft Rules for CER Flexible Trading Extended
Earlier this year in February the Australian Energy Market Commission (AEMC) created a draft determination seeking to improve flexibility and trading of consumer energy resources (CER). Unlocking flexible trading suggests that the integration will present a secure energy system for consumers to rely on.
Designed to create a mechanism for retailers and aggregators, the draft rule opens opportunities for households and businesses to develop the value of their assets and drive opportunities for innovation in energy products and services optimising CER value.
The AEMC has provided an extension with a ‘notice of rule not made within 12 months and the commencement of the rule change’ is now expected to be published by 11 July 2024. The proposed extension allows additional time for stakeholder response and feedback to finalise the draft determination.
Victorian Government Bans Gas Companies from Providing Incentives
Further to gas connection bans in newly constructed homes and government businesses, the Victorian government has banned gas companies from offering households cash incentives or rebates on new connections or gas appliances. As part of the Allan government’s updated Gas Substitution Roadmap, Lily D’Ambrosio, the state energy minister on Thursday gazetted an order under the Gas Industry Act to prohibit distribution networks from the practice.
Despite government efforts and evidence that suggests gas being a higher cost to electricity and an unhealthy option, gas companies have been reported to be encouraging consumers to connect to the network for the first time and purchase gas appliances.
As the state winds down the gas network and households disconnect from gas, energy finance analyst, Jay Gordon says that customers are at risk of exposure to higher energy costs and being left stranded.
ESS Refrigerated Cabinet Activity Compliance Notice
The Independent Pricing and Regulatory Tribunal (IPART) has released a compliance notice in response to concerns raised by stakeholders, including the Energy Savings Industry Association (ESIA), regarding potential non-compliance under Activities F1.1 and F1.2 of the Energy Savings Scheme (ESS).
The two main points addressed in the notice were;
- The replacement of units under the same class as the installed product under F1.2 and
- The provision and installation of units that are fit-for-purpose for the intended use by customers under F1.1.
In both instances, IPART have reiterated the need for installations to reflect the expected energy savings implicit in the energy savings calculations that underpin the activity.
Accredited Certificate Providers (ACPs) are expected to maintain and provide upon request clear evidence of each installation meeting the upgrade environment requirements.
Also included in the notice was a reminder that regulatory action includes accreditation suspension, civil penalties and prosecution for ACPs found to have conducted wilful, serious or repeated non-compliance.
Potential non-compliance can be reported to ess.compliance@ipart.nsw.gov.au.
Peak Industry Groups Support Mandatory Climate Disclosure
A group of 15 peak industry bodies spanning across business, finance and retail have banded together to support the passage of the proposed amendments to the Federal Government’s Climate Reporting Bill.
Representing over $80 trillion in assets under management, the group has highlighted the importance of a high-quality climate reporting framework that aligns with international standards.
While acknowledging the significant investment and upskilling required, a total of 56 nationally significant risks have been identified that could result in large-scale financial risks during the transition to a net zero economy.
This comes as this financial year’s reporting period will see many organisations to prepare the first of year-end reports required to comply with climate-related disclosure standards.
At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.
