Industrial Heat Decarbonisation Activities Now Available Under M&V

The Victorian Department of Energy, Environment and Climate Action (DEECA) has updated the Victorian Energy Upgrades (VEU) Measurement and Verification Specifications under the Project-Based Activities (PBA) method to include Industrial Heat Decarbonisation activities. 

Taking effect from 1 October 2026, these changes unlock significant new incentive opportunities for commercial and industrial facilities to reduce emissions and lower energy costs.

Key Updates & Eligible Activities.

The PBA method rewards verified, real-world energy savings. Under the updated specifications, businesses can now create Victorian Energy Efficiency Certificates (VEECs) across four key industrial heat decarbonisation pathways:

1. Electric Thermal Energy Storage (eTES)

Replace (either wholly or partially) gas-fired heat above 100°C with eTES systems featuring at least 1MW peak charging capacity and 4 hours of storage.

2. Heat Demand Reduction

Implement long-lasting demand reduction measures, including equipment insulation, flash steam recovery, and removing unnecessary steam tracing.

3. Gas Efficiency Improvement

Upgrade gas equipment through heat recovery or reduced losses.

4. Behind-the-Meter Biogas

Produce on-site biogas to displace natural gas/LPG or generate renewable electricity.

Ecovantage is Your Ideal M&V Partner.

This expansion provides gas-dependent industries with practical pathways and financial backing to accelerate their clean energy transition.

Unlocking value under the VEU’s PBA method requires robust, compliant M&V methodologies to ensure every gigajoule of saved energy translates into maximum certificate value.

As long-standing experts in M&V and complex VEU project creation, Ecovantage is perfectly positioned to help facility managers, engineers, and sustainability leads navigate these new specifications. From establishing baseline energy models to managing regulatory approvals and certificate creation, our end-to-end expertise ensures your industrial heat projects deliver maximum financial return and seamless compliance.

Ready to Decarbonise Your Industrial Heat?

Whether you are exploring large-scale thermal storage, upgrading steam systems, or looking into on-site biogas solutions, the upcoming VEU changes provide the financial backing needed to make these capital-intensive projects a reality.

Reach out to explore how your business can benefit from these upcoming VEU incentives.

Get Started.

Speak with a specialist about energy certificates and consulting services, boosting your bottom line.

Get Started.

Speak with a specialist about energy certificates and consulting that boost your bottom line.