Large Energy User Electrification Support Program: Information bulletin
Questions and answers
Why is energy consumption eligibility restricted to between 10 and 100 TJ gas consumption per annum?
Victoria has a significant number of large gas-using sites that use between 10 and 100 TJ of gas per annum. Many of these sites face technical challenges but can electrify some of their processes and equipment using commercially available technologies. This program is targeted at these facilities.
Facilities that consume more than 100 TJ, or less than 10 TJ, can apply for incentives, where eligible, through the Victorian Energy Upgrades (VEU) Program to complete upgrades.
How much total funding support is available?
$1.58 million in grant funding is available to support feasibility assessments.
There is anticipated to be strong demand and funding support is available until exhausted or until 30 September 2024, whichever occurs earlier.
Are any Commonwealth, state or local government entities eligible?
Facilities that are wholly owned by a Commonwealth, state and local government entity are ineligible for the program.
Where a facility has both a privately-owned space and a government-owned space, the application must be from the private entity and applicable to the privately-owned space.
Are public hospitals eligible?
Public hospitals that are wholly publicly owned, are ineligible.
Public hospitals electrification upgrades are generally supported through the Greener Government Buildings program undertaken with the Victorian Health Building Authority.
Are recreation centres and aquatic facilities eligible?
Recreation centres and aquatic facilities that are wholly owned by a government entity, such as local government, are ineligible. This also applies to wholly government-owned subsidiary entities.
Who can submit the application?
An application must be submitted by the owner of the facility. Third parties, such as facility or building managers where they are a separate organisation, facility occupiers or tenants or Approved Suppliers may not submit the application. However, third parties can support eligible large energy users to apply.
Will the number of feasibility assessments awarded be spread across consultants on the Approved Supplier List?
Approved Suppliers are not guaranteed access to a number of feasibility assessment projects, and projects will not be awarded to achieve a spread across consultants on the Approved Supplier List.
A diversity overlay will be applied to assessment of applications to ensure diversity of sectors, technologies and regions. The diversity overlay may result in projects awarded to a spread of Suppliers reflecting Supplier specialties.
Applications will be assessed on merit and as received on a rolling basis according to criteria published in the guidelines published on the Sustainability Victoria website. There is anticipated to be strong demand and funding support is available until exhausted or until 30 September 2024, whichever occurs earlier.
How can a new Supplier be included on the Approved Supplier List?
The Expression of Interest for inclusion on the Approved Supplier List is now closed. At this stage, it is not planned to re-open the EOI for further applications.
We encourage you to stay connected with Sustainability Victoria and Victorian Energy Upgrades communication channels for updates.
The Program guidelines specify a requirement to focus on processes and equipment that are significant contributors to total gas use in the facility. What does this mean?
For the purposes of this Program, a significant contributor to total gas use means a process or equipment that could feasibly reduce a facility’s gas use by 3% or more if it was electrified.
What is the level of detail expected for feasibility assessments?
The electrification feasibility assessments must be of sufficient detail and sufficient accuracy to support business decision-making. They should enable businesses to evaluate the viability and potential benefits of the identified electrification projects, based on reliable data and information.
On completion of a feasibility assessment by a Supplier, both the facility and Sustainability Victoria are required to review and approve the content of the assessment.
Details of expected contents of feasibility assessments are provided below.
What should the feasibility assessment cover?
The electrification feasibility assessment must cover, at a minimum:
- company and facility details
- facility activity such as basic energy demand profile over a 12-month period. In-scope site process diagram including boundaries and metering points
- process and equipment operating practices (e.g. schedules and setpoints, temperatures, pressures) where relevant to assessment
- specific process and equipment energy assessment, including energy consumption and demand profile
- analysis of electrification opportunities outlining technical and economic feasibility.
Analyses should include, for each identified opportunity:
- electricity costs/savings [Electricity usage change (MWh per annum); Electricity cost savings ($ per annum), Facility electricity usage change (+/- %)]
- gas usage change (GJ per annum); Gas cost savings ($ per annum), Facility gas usage change (+/- %)]
- other costs/savings [e.g. operational expenses/savings ($ p.a.)]
- GHG savings [tonnes of CO2 p.a.]
- outline how the VEU program can support implementing the opportunity (estimate # of VEECs available for creation)
- capital cost of upgrade (NPV,$)
- payback period (years).
Suppliers and large energy users can contact Sustainability Victoria for any clarification or further detail required.
What evidence do I need to provide to identify my facility’s gas consumption?
At least 12 month’s gas usage data should be provided to demonstrate annual gas consumption of 10 to 100 TJ.
An example of acceptable evidence could include a single gas bill that includes a chart showing recent 12 months gas consumption, provided the chart indicates usage within the eligible range of 10 to 100 TJ pa.