Market Update | 7 June

• Victorian minimum rental standards proposed
• Measurement and Verification business impacts explained
• $190 Million in Industrial Funding released under ARENA

This week in the certificate markets, VEECs rose to a new all-time high of $115.20 five weeks following the implementation of the telemarketing ban. ESCs and PRCs continued to soften amid creation exceeding target levels, and LGCs saw a downward trend as creation routinely rises toward the end of the financial year.

Victoria Proposes New Minimum Rental Standards

This week saw Victoria propose new rules to improve rental properties. These rules aim to set minimum standards for basic technologies like ceiling insulation, draught proofing and efficient electric hot water heaters for all Victorian renters. This would make rentals warmer in winter, cooler in summer, and cheaper to run. Supporters say this is important for renters’ health and wallets, especially during a cost of living crisis. The Energy Efficiency Council’s (EEC) CEO, Luke Menzel, said these changes are a game changer for millions of renters around the state: “With more and more Victorians renting, it is more important than ever that those rentals pass the pub test in terms of health, comfort and affordability.” Those proposing the changes believe most landlords want to do the right thing and will be happy to follow the proposed changes on the basis that the upgrades are affordable and the changes provide clear guidance on what the minimum requirements are.

Measurement and Verification Business Impacts Explained

Ecovantage’s Arlen East recently presented to industry peers and State Government on the impacts Measurement and Verification claims can have on Commercial and Industrial Upgrades at the ESIA VEU Seminar. This week saw Arlen’s presentation published into an article unpacking the influence of measurement and verification (M&V) on project finances, particularly those undertaken under Victoria’s energy upgrade program, the Victorian Energy Upgrades (VEU). M&V, which assesses a project’s actual energy savings, is often a poorly understood concept by first-time decision makers, this article clarifies its role in ensuring a project’s financial viability. Understanding how M&V impacts financial returns is crucial, especially for Victorian businesses contemplating energy efficiency upgrades. The article explores and demonstrates how accurately measuring the energy saved through these upgrades can significantly impact the project’s financial attractiveness. With record-high VEEC prices occurring, M&V projects are becoming highly rewarding for educated participants. Read the full article here.

$190 Million in Industrial Funding Released Under ARENA

Industrial facilities, particularly those in regional areas, have a new round of funding available to them. Applications are now open for the first funding round of the $400 million Powering the Regions – Industrial Transformation Stream (ITS). ARENA is managing this program, with $150 million being made available to support regional industries that want to reduce emissions from their heating processes and off-road transportation. The funding round is expected to run until the end of 2024. Industrial facilities not located in regional areas can access funding through the separate $40 million set aside under the National Industrial Transformation Program. For full details and application resources, visit the ARENA ITS webpage.

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.

Katie Tebbatt | Business Development Manager, Energy & Carbon Services
Katie specialises in Commercial Lighting (NSW, VIC & SA), Measurement & Verification, and energy certificates including LGCs & ACCUs.