Energy Demand Management Grant · Web viewOFFICIAL-Sensitive Energy Demand Management Grant OFFICIAL-Sensitive OFFICIAL-Sensitive Application Guidelines 3 OFFICIAL-Sensitive OFFICIAL-Sensitive

Insert Division/Sub heading/Date/etc. Delete this text box if not needed.

delwp.vic.gov.au

Business Recovery Energy Efficiency Fund

Energy Demand Management Grant

Application Guidelines

OFFICIAL-Sensitive

Minister’s Foreword..........................................................................................................

1. Overview.........................................................................................................................

2. Objectives......................................................................................................................

3. Who can apply?.............................................................................................................

4. What will be funded?.....................................................................................................

5. How will projects be assessed?...................................................................................5.1 Assessment criteria.................................................................................................................................

5.2 Supporting documentation.....................................................................................................................

6. How to apply?................................................................................................................6.1 Application process and key timing.......................................................................................................

6.2 Program timing........................................................................................................................................

6.3 Applicant questions.................................................................................................................................

7. Funding conditions.......................................................................................................7.1 Funding agreement..................................................................................................................................

7.2 Project monitoring and delivery.............................................................................................................

7.3 Acknowledgement...................................................................................................................................

7.4 Cost...........................................................................................................................................................

7.5 Probity for application procedures........................................................................................................

7.6 Confidentiality..........................................................................................................................................

8. Contacts and further information.................................................................................

Contents

Energy Demand Management GrantApplication Guidelines

OFFICIAL-Sensitive

Minister’s ForewordIn the current economic climate, government investment needs to be mobilised quickly to support jobs and employment, free up capital for businesses and households, and reduce costs of living.

The Energy Demand Management Grants program (the Program) is one of two grant programs being delivered as part of the $31 million Business Recovery Energy Efficiency Fund. It provides for rapid delivery with tangible short-term benefits. It proposes a suite of strategic investments in energy efficiency and demand management that will help deliver these outcomes and have enduring benefits for Victorians.

The Program will deliver emissions reductions and supports Victoria’s transitioning energy system. The proposed rapid response measures will provide a foundation for energy management systems and demand response capability across Victoria. Large energy users implementing energy management systems will benefit from improved energy productivity and lower energy bills, and those taking advantage of the demand response grants will be prepared for new opportunities in the demand response markets. This will help maintain a secure, reliable and affordable energy system for all Victorians.

Energy management has strong foundations in Victoria, with deep local expertise and capability and established programs and delivery models that are uniquely positioned to quickly and safely deliver new measures at scale.

The Hon. Lily D'Ambrosio MPMinister for Energy, Environment and Climate Change


1

OFFICIAL-Sensitive

The $7 million Energy Demand Management Grant program aims to support the implementation of energy efficiency projects by Victorian businesses recovering from the impacts of COVID-19. In the current economic climate, government investment needs to be mobilised quickly to support recovery from the economic effects of COVID-19 (coronavirus). The $7 million Energy Demand Management Grant (the Program) is one of the two grant programs being delivered as part of the $31 million Business Recovery Energy Efficiency Fund (BREEF), supporting Victoria’s energy transition and emissions reduction targets through implementation of energy demand management projects by Victorian businesses.

The Program supports the installation of energy management systems, energy assessments and implementation of demand management solutions, for businesses to increase their energy savings and reduce their energy bills. Businesses that are ready to commence immediately after contract execution will be looked upon favourably during this assessment process.

The aim of the Program is to provide economic recovery for eligible large energy users from the impact of COVID-19 and to position businesses to prosper as Victoria’s energy system transitions.

Victoria’s largest 100 energy users consume more than 20% of Victoria’s total energy use. Energy management systems support large energy users to reduce their energy use and navigate the energy transition.

The Program is overseen by the Minister for Energy, Environment and Climate Change and administered by the Department of Environment, Land, Water and Planning (DELWP).

1. ObjectivesThe objectives of the Program are to:

increase energy productivity and reduce energy costs for Victoria’s large energy users

accelerate the uptake of innovative energy efficiency and demand management technologies in the Victorian industrial and commercial sectors and participation in demand-side opportunities

create jobs through the implementation of equipment, systems and process upgrades that manage energy costs, supporting new sustainable employment.

The Program will fund projects that involve:

capital investment in technology needed to enable demand response, including communications and control technology

professional advice to support uptake of demand-side opportunities

feasibility studies

energy audits

cost-benefit analysis

implementing steps under/or formal accreditation to the ISO 50001 Energy Management Systems framework.

A total of $7 million is being provided toward the Program, which will fund multiple projects. Therefore, projects under $500,000 will be considered favourably.

1. Overview


2

OFFICIAL-Sensitive

2. Who can apply?In addition to meeting the Program objectives, eligible organisations must:

operate in Victoria

have an Australian Business Number (ABN)

have a site using over 40 megawatt hours (MWh) of electricity or over 1 terajoule (TJ) of gas per year, demonstrated by 12 months’ worth of energy bills or meter data, or evidence from their energy provider, representing pre COVID-19 usage.

3. What will be funded?The Program will fund the implementation of energy saving projects that:

are located in Victoria

contribute only to the organisation’s business activities

will be commenced1 immediately after contract execution

utilise proven technologies that are commercially ready

include one or more of the following:

o capital investment in technology to enable demand response, such as:

implementation of communications technology to enable provision of demand response services to market (energy and ancillary services markets, reserve trader and/or network support services)

implementation of SCADA where not available to enable participation in demand response markets.

o professional advice to support uptake of demand response opportunities, such as:

feasibility studies and cost-benefit analysis of demand response opportunities

staff training and developing new processes

audits to identify demand response opportunities

assessment of the suitability of loads and/or onsite generation to provide demand response services, including technical characteristics such as accurate baseline determination, and maximum quantity and duration of flexible capacity that can be provided.

o for organisations that use above 100 TJ of combined electricity or gas per year, support for implementation of energy management systems, such as:

feasibility studies and energy audits relating to energy management systems

installation of meters or sub-metering equipment to monitor energy usage in the premises, as part of implementation of an energy management system

enlisting professional service provider to establish (or improve an existing) energy management system (in part or whole), integrate it into broader management system/s or train personnel responsible for energy

1 ‘Commencement’ refers to the date at which activities relating to demand response projects and implementation of energy management systems, including equipment installation, construction or system upgrades, are initiated. This does not include the preparation of business plans or feasibility plans and can only occur after contract execution.


3

OFFICIAL-Sensitive

implementing steps under/or formal accreditation to the ISO 50001 Energy Management Systems framework.

Exclusions

The Program will not fund:

projects that have already commenced construction*

works that are funded under the BREEF Capital Works Grant

land acquisition

recurrent operating costs

salaries.

*For projects that have multiple phases or are an expansion of an existing project, please contact the Program team at [email protected] prior to applying.

4. How will projects be assessed?Applications will be assessed against the criteria detailed below. Applications should address all relevant criteria and provide supporting documents set out in section 5.2.

Scores of 1-5 are provided as a guide to the relative importance of criterion in the assessment process, with a higher score indicating greater importance. Participants who can demonstrate that they are able to comply with each of the criterion will receive a higher score.

Information contained in the applications may be shared with other State or Commonwealth Government agencies to seek clarification on an application or applicants.

The department will review applications for completeness and to check that they meet the eligibility requirements. Applications that do not meet the eligibility requirements will not be considered further in the assessment process.

All eligible applications will be assessed on merit against the assessment criteria.

4.1 Assessment criteria

Criterion 1 – Why are you doing this project? (Score: 3)Applications will be required to describe:

the problem or opportunity that this project is addressing

the economic benefits to the business and the broader economy, including how it creates or maintains employment in the company or region, or how it supports recovery effort from the impacts of COVID-19 (coronavirus)

why this project is a priority and why this is a realistic and achievable project

what alternatives were considered

the expected direct benefits of the project (financial, energy, greenhouse gas savings, demand reduction etc.).

For demand response projects, applicants are requested to:

o describe previous experience with demand response


4

mailto:[email protected]

OFFICIAL-Sensitive

o state if there has been a contracted capacity with AEMO or demand response service provider at the time of application

o describe what else has been undertaken to make the business demand response ready e.g. previous energy audit, assessment of suitability of loads to provide demand response services, assessment of technical characteristics such as determination of baseline, feasibility studies, installation of SCADA, and implementation of energy management systems

o detail how grant funding with create new opportunities and support building capacity for demand response in Victoria e.g. how staff will gain experience they will use on future projects, and outcomes or case studies that will be promoted or shared with business network.

For energy management system projects, applicants are requested to state whether:

o a feasibility assessment or energy audit was previous undertaken

o there is a written policy or statement that describes the business’ commitment to improving energy performance (or possibly as part of an environmental policy), and provide a copy of this policy

o ISO 50001 or similar standard energy management system certification has been achieved

o a quality management system and environmental management system in place

o there is an energy strategy and/or projected energy performance

o ongoing monitoring is being undertaken to identify whether energy performance targets are being met, and a description of how this is undertaken

o there is sub-metering or energy monitoring undertaken at the site where the project will be implemented.

Criterion 2 – What will be delivered? (Score: 3)

Applications will be required to provide:

project objectives

detailed description of works, including proposed activities and site location

equipment specifications e.g. description of the equipment, maintenance requirements, and standards conformed to

a description of the activities completed to date to ensure the project is ready for implementation (quote from suppliers, business case, feasibility studies or other evidence).

A strong application will include additional information relevant to the type of project, which may include product specifications, assumptions and/or engineering calculations, site plans, engineering diagrams.

Criterion 3 – How will the project be delivered? (Score: 4)

Applications will be required to:

include a project budget with breakdown of costs (including completing the attached project cash flow)

state the expected return on investment or payback

describe why this project is financially viable, providing financial reports for the past three years

describe how the project will be implemented, including key milestones, internal expertise or allocated personnel etc.


5

OFFICIAL-Sensitive

describe how risks will be managed (including completing the attached project risk management template).

Application are requested to:

include supplier quotes (if any)

state whether there is a preferred vendor/supplier. If yes:

o list key personnel for the project and the relevant experience

o outline vendor/suppliers’:

track record demonstrating the necessary experience

technical, commercial and financial capability.

Criterion 4 – When will the project be delivered? (Score: 5)


demonstrate works can be commenced immediately after contract execution

complete the attached project delivery schedule template.

Criterion 5 – Does the project go beyond Business as Usual? (Score: 3)

Applications will be required to state whether the:

project was planned to be undertaken at a future date, without grant funding. If so, whether:

o grant funding allows the project to occur sooner than planned, or avoids delayed cause by the impacts of COVID-19

o grant funding allows for a larger or more innovative project

o grant funding improves the project payback

o grant funding supports the project meeting an internal funding threshold

project will assist in any legal or regulatory requirements in being met

project will assist in meeting corporate social responsibility goals or commitments.

Criterion 6 – Do you agree to use the project contract? (Score: 2 for projects less than or equal to $250k, and 3 for projects above $250k)


state whether they are prepared to accept the attached funding agreement, without any amendments.

Criterion 7 – Will you co-contribute to the project? (Score: 1)


state whether there will be an in-kind contribution. If so, state the type of in-kind contribution

state whether there will be a co-contribution. If so, state the percentage of the project cost.


6

OFFICIAL-Sensitive

4.2 Supporting documentationThe following supporting documentation must be included or attached (in addition to any documentation relevant to addressing the assessment criteria in Section 5.1):

project cash flow template

project risk management template

project delivery schedule template

evidence of energy use (12 months’ worth of energy bills or meter data, or evidence from an energy provider, representing pre COVID-19 usage)

financial reports for the past three years

any other documents to support and provide context for the application.

Templates for supporting documents can be downloaded from https://www.victorianenergysaver.vic.gov.au/energy-advice-for-business/business-recovery-energy-efficiency-fund.

5. How to apply?5.1 Application process and key timingApplications for eligible projects must be made via the online grant management portal. Applications must be received by the department no later than 2pm, Thursday 31 December 2020 for Phase 1 and 2pm Sunday 31 January 2021 for Phase 2. The link to the online portal can be found at https://www.victorianenergysaver.vic.gov.au/energy-advice-for-business/business-recovery-energy-efficiency-fund .

5.2 Program timingIndicative program timing is summarised below.

Date

Phase 1 applications close 2pm 31 December 2020

Phase 1 applications assessed Upon receipt of application

Phase 2 applications close 2pm 31 January 2021

Phase 2 applications assessed Upon receipt of application

Applications will be assessed as they are received, with all applicants notified in the first quarter of 2021.

Applicants with projects ready to commence are encouraged to apply during Phase 1 applications.

5.3 Applicant questionsApplicants can submit clarification questions in relation to the application guidelines, the application process and the broader program to the department. Questions must be lodged no later than Thursday 24 December 2020 for Phase 1 and Monday 25 January 2021 for Phase 2. Any information provided by the department in response to any question raised by a potential applicant, may be uploaded onto the “Frequently Asked Questions” webpage. Clarification questions can be submitted to: [email protected]


7


https://www.victorianenergysaver.vic.gov.au/energy-advice-for-business/business-recovery-energy-efficiency-fund




OFFICIAL-Sensitive


8

OFFICIAL-Sensitive

6. Funding conditions6.1 Funding agreementSuccessful applicants must enter into a funding agreement with DELWP. Funding agreements establish the parties and outline their commitments and obligations to each other, as well as setting out the general funding terms and conditions. It is recommended that applicants review the terms and conditions before applying (https://www.victorianenergysaver.vic.gov.au/energy-advice-for-business/business-recovery-energy-efficiency-fund ) .

No funding will be released until DELWP and the applicant have executed the funding agreement and the appropriate milestone evidence identified in the funding agreement has been met. DELWP reserves the right to withhold payments in cases where evidence has been provided but the department deems that there are concerns relating to the delivery of the project. In this instance, the department will release funding when appropriate actions have been taken to ensure the project is delivered within the agreed timeframes.

Successfully funded projects will be offered funding as a GST exclusive amount. However, for organisations with an ABN and who are GST registered, payment will be made GST inclusive.

Recipients are responsible for determining their tax liabilities for grant payments.

Grants provided by DELWP are classified as income and tax may be payable by recipients. Each applicant is responsible to investigate their own tax structure and treatment.

6.2 Project monitoring and delivery Funding recipients are required to comply with project monitoring and reporting requirements to be outlined in the funding agreement. Proponents are responsible for project delivery, including any project cost overruns should they occur. In cases where a project is delayed for an unreasonable length of time, where substantive changes to scope are made after funding has been approved, or where a project fails to be delivered, DELWP reserves the right to cancel the grant and, if applicable, recoup any payment that has already been provided.

6.3 Acknowledgement Successful applicants are expected to acknowledge the Victorian Government’s support and promotional guidelines will form part of the funding agreement. Successful applicants must consult the department prior to the publication of any project promotional materials and liaise with the departmental program area to coordinate any public events or announcements related to the project. Successful applicants may be required to contribute information on activity outcomes for use in program evaluation or in the department’s communication materials.

6.4 CostThe department is not liable for any costs, expenses, losses, claims or damages that may be incurred by applicants in connection with the application Process, including in preparing or submitting an application, providing further information to the department, or participating in negotiations with the department.

6.5 Probity for application proceduresThe applicant and any of its associates must not offer any incentive to, or otherwise attempt to influence any of the persons who are either directly or indirectly involved in the application process, or in awarding any subsequent contract. If the department determines that the applicant or any of its associates have violated this condition, the applicant may be disqualified from further consideration, in the department's absolute discretion.


9



OFFICIAL-Sensitive

By submitting an Application, the Applicant consents to the Department performing probity and financial investigations and procedures in relation to the Applicant or any of its associates. The Applicant agrees, if requested by the Department, to seek consents from individuals to allow such probity checks.

6.6 ConfidentialityThe department will, to the extent permitted by law, treat all information as strictly confidential and commercial-in-confidence where relevant. Any personal information will be managed in accordance with the published Privacy Policy, which can be found at www2.delwp.vic.gov.au/privacy.

7. Contacts and further informationFor more information:

Refer to the Capital Works Grant webpage: https://www.victorianenergysaver.vic.gov.au/energy-advice-for-business/business-recovery-energy-efficiency-fund

Email the Program team at [email protected]

Contact Grants online support at [email protected]

If you experience difficulty downloading information or technical difficulties with the online application, please contact Grants online support on [email protected].


10





Documents

Energy Demand Management Grant · Web viewOFFICIAL-Sensitive Energy Demand Management Grant OFFICIAL-Sensitive OFFICIAL-Sensitive Application Guidelines 3 OFFICIAL-Sensitive OFFICIAL-Sensitive