New ESIA report finds energy upgrades are key to tackling Victoria’s gas, power and cost of living pressures
A new report by the Energy Savings Industry Association (ESIA) shows that a strengthened Victorian Energy Upgrades (VEU) program can play a central role in tackling Victoria’s energy challenges while delivering significant savings to households and businesses.
The report, prepared by Green Energy Markets and launched at the ESIA Melbourne Seminar, finds the VEU could support more than 3.7 million household upgrades and over 140,000 business installations by 2040, delivering substantial system-wide benefits. Importantly, the scheme can underpin the roll-out of rental and building electrification regulations, allowing benefits to flow to low-income and rental households.
It also finds that expanded targets could deliver net financial savings of up to $6.5 billion to Victorians, while reducing emissions by up to 4.6 million tonnes per year by 2040. All modelled scenarios deliver benefits that exceed costs, demonstrating the program is cost effective at scale.
The report comes as the Victorian Government progresses reforms to enable new approaches to managing peak demand within the VEU. The ESIA is calling on Government to use this opportunity to set a more ambitious target and expand the scope of eligible activities.
ESIA President Ric Brazzale said the reforms present a critical opportunity.
“The upcoming reforms to unlock peak demand and flexibility are a critical opportunity. Government should use this moment to set a more ambitious trajectory and broaden the range of activities so the scheme can deliver the scale of change the system requires.”
Mr Brazzale said the focus should be on building on a proven framework.
“The VEU is already delivering results. The priority now is to scale it up and modernise it so it can respond to the pace of Victoria’s energy transition.”
He said the VEU program is uniquely positioned to respond to the state’s key challenges.
“Victoria is facing multiple energy challenges at once. Gas supplies are tightening, coal generators are nearing retirement, emissions must fall and cost pressures are rising. This report shows the VEU can address all of these issues in a practical and economically efficient way.”
Access the report here.
Contact: scott.mckenry@esia.asn.au, 0431 133 592
