The Department of Economic Development, Jobs, Transport and Resources is seeking your input on a proposed new method for determining energy savings for large businesses called the Measurement and Verification (M&V) method. The VEET scheme These are activities where the number of certificates that can be claimed is specific to a The VEET scheme is a market-based scheme given project. They will often involve the direct designed to make energy efficiency measurement of energy consumption and are improvements more affordable, contribute to designed to credit a wide range of the reduction of greenhouse gases, and technologies. The department is seeking your encourage investment, employment and feedback about each of these proposed new innovation in industries that supply energy methods. This document explains one of these efficiency goods and services. methods, known as Measurement and Verification, or the M&V method. Under the scheme, accredited businesses can create certificates for undertaking activities Reading this document prescribed in the VEET Regulations. Each certificate is equivalent to one tonne of This document is intended to be read in greenhouse gas reduced or avoided. conjunction with the proposed amendments to the VEET Regulations to do with the M&V The Victorian Government is strengthening the method. These will be added as new Schedule VEET scheme. As part of this, there is a need 37. Please refer to the proposed amendments to create greater opportunities for businesses to the Regulations before providing any and other consumers to benefit from the feedback. These can be found online at scheme. Project Based Activities The M&V method Until now, the available methods used for The M&V method is a flexible method for determining the energy savings for activities incentivising large upgrades in businesses. It have been methods’. This means that lets businesses claim incentives by calculating ‘deemed the determination of the energy savings of any the energy saved from a specific upgrade given activity has been based on reasonable using industry-standard measurement and averages for such things as the normal verification techniques. efficiency of a certain product and the M&V is the process of using measurement to operating hours for which it is used. reliably quantify the savings at a premises However, some situations need a more from an energy efficiency upgrade. Because detailed and customised approach to accuracy and uncertainty are also quantified, determining energy savings. For this reason the M&V method rewards accuracy and three new measurement methods are being likewise awards fewer certificates when proposed, known as Project Based Activities accuracy is traded off against cost or (PBAs). simplicity. This feature balances scheme risk with method flexibility.
The Department of Economic Development, Jobs, Transport and Resources is seeking your input on a proposed new method for determining energy savings for large businesses called the Measurement and Verification (M&V) method. The VEET scheme The VEET scheme is a market-based scheme designed to make energy efficiency improvements more affordable, contribute to the reduction of greenhouse gases, and encourage investment, employment and innovation in industries that supply energy efficiency goods and services. Under the scheme, accredited businesses can create certificates for undertaking activities prescribed in the VEET Regulations. Each certificate is equivalent to one tonne of greenhouse gas reduced or avoided. The Victorian Government is strengthening the VEET scheme. As part of this, there is a need to create greater opportunities for businesses and other consumers to benefit from the scheme. Project Based Activities Until now, the available methods used for determining the energy savings for activities have been ‘deemed methods’. This means that the determination of the energy savings of any given activity has been based on reasonable averages for such things as the normal efficiency of a certain product and the operating hours for which it is used. However, some situations need a more detailed and customised approach to determining energy savings. For this reason three new measurement methods are being proposed, known as Project Based Activities (PBAs). These are activities where the number of certificates that can be claimed is specific to a given project. They will often involve the direct measurement of energy consumption and are designed to credit a wide range of technologies. The department is seeking your feedback about each of these proposed new methods. This document explains one of these methods, known as Measurement and Verification, or the M&V method. Reading this document This document is intended to be read in conjunction with the proposed amendments to the VEET Regulations to do with the M&V method. These will be added as new Schedule 37. Please refer to the proposed amendments to the Regulations before providing any feedback. These can be found online at The M&V method The M&V method is a flexible method for incentivising large upgrades in businesses. It lets businesses claim incentives by calculating the energy saved from a specific upgrade using industry-standard measurement and verification techniques. M&V is the process of using measurement to reliably quantify the savings at a premises from an energy efficiency upgrade. Because accuracy and uncertainty are also quantified, the M&V method rewards accuracy and likewise awards fewer certificates when accuracy is traded off against cost or simplicity. This feature balances scheme risk with method flexibility.
New-PBA-method-M-and-V.docx