• $100m in community funding released under CEUF
• DEECA releases Discussion Paper on VEU Strategic Review
• DEECA extends VEECs surrender deadline

Federal Government Announces $100m CEUF Funding.

The Federal Government has announced $100 million in funding under the Community Energy Upgrades Fund (CEUF). Aimed to help local governments lower energy bills, cut emissions, and make their communities more sustainable, grants range from $25,000 to $2.5 million and cover up to 50% of project costs.

The first round of $50 million in funding has seen grants provided to 58 local governments – including;

• • replacing gas equipment with electrical systems at a leisure centre in Victoria
  • installing solar power and battery storage at council sites in Western Australia
  • providing smart EV chargers to support electric vehicle fleets in Tasmania.

The second round of funding is expected to be released in early 2025.

For more information, visit the Community Energy Upgrades Fund Program page.

Discussion Paper on Strategic Review of VEU Program Released.

The Department of Energy, Environment and Climate Action (DEECA) has invited stakeholder feedback regarding the ongoing Strategic Review of the Victorian Energy Upgrades (VEU) Program via response to a Discussion Paper, released last week.

The Review is seeking to explore options for refining and updating the Program to ensure it remains fit-for-purpose in delivering on the Victorian Government’s policy objectives – namely, electrification, energy affordability, emissions reduction targets, and reliability.

This comes following the recent confirmation of the Program’s extension to 2045, as the VEU continues to move away from simple, low-cost upgrades to more complex electrification upgrades in Victorian homes and businesses.

Evidence-based feedback can be submitted via the Engage Victoria webpage.

VEECs Surrender Deadline Extended to June 30 2025.

In a recent announcement, DEECA confirmed the deadline had been extended for liable entities to meet their VEECs surrender obligations. Annual energy acquisition statements must be audited in accordance with the Victorian Energy Efficiency Target Guidelines and lodged with the commission annually by 30 April each year but a provision allows for leniency, at the discretion of the commission.

The deadline has been extended to June 30 in a move aimed at affording energy retailers additional time to meet their surrender obligations. This is expected to place downward pressure on a VEEC price that has remained at the upper limits of the penalty price for the duration of the financial year.

This comes in addition to legislation currently sitting with parliament to allow for the removal of the ‘vintage rule’ – again, a move aimed at affording retailers more flexibility in meeting their targets and to relieve pressure on the historical highs seen in the VEEC market.

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.