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Victorian Energy Efficiency Target (VEET) Proposed Activity Regulation Changes October 2015 Department of Economic Development, Jobs, Transport and Resources

VEET proposed activity Regulation changes … Energy Efficiency Target (VEET) Proposed Activity Regulation Changes - October 2015 5 Table 1.Current certificate allocation for Schedule

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Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes

October 2015

Department of Economic Development, Jobs, Transport and Resources

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

1

Table of contents 1. Introduction ................................................................................................ 2

2. Stakeholder input ....................................................................................... 2

3. Greenhouse abatement coefficients ........................................................ 3

4. Overview of proposed amendments ........................................................ 4

4.1. Schedules 7, 8, 9 and 10 – Space heating .................................................. 4

4.1.1 Schedule 7 – High Efficiency Ducted Reverse-Cycle Air-Conditioner Replacing Existing Unit ................................................................................ 4

4.1.2 Schedule Schedule 8 – High Efficiency Ducted Reverse-Cycle Heating Replacing Central Electric Resistance Heater ............................................. 6

4.1.3 Schedule 9 – Gas or Liquefied Petroleum Gas Space Heater..................... 7

4.1.4 Schedule 10 – Space Air to Air Heat Pump ................................................. 9

4.2. Schedule 21 - Incandescent Lighting ........................................................ 10

4.2.1 Schedule 21A - Installation of low energy GLS in place of mains voltage GLS ............................................................................................................ 11

4.2.2 Schedule 21C – Installation of low energy 12 volt lamp to replace 12 volt halogen ....................................................................................................... 12

4.2.3 Schedule 21D – Installation of mains voltage low energy downlight in place of existing 12 volt halogen downlight ......................................................... 14

4.2.4 Schedule 21E – Installation of mains voltage low energy downlight with GU10 base in place of existing halogen downlight with GU10 base. ........ 16

4.3 Schedule 31 - High Efficiency Motor Replacing An Electric Motor ............ 16

4.4 Schedule 32 - High Efficiency Refrigerated Display Cabinet Replacing A Refrigerated Display Cabinet ..................................................................... 20

4.5 Schedule 33 - Refrigeration Fan Replacement .......................................... 22

4.6 Schedule 34 - Commercial lighting ............................................................ 23

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

1. Introduction As part of the ongoing process of strengthening the Victorian Energy Efficiency Target (VEET) scheme, the Victorian Government is seeking your input on a number of changes to the VEET Regulations 2008. These changes aim to improve access to existing energy saving activities and to ensure that all activities are correctly rewarded. Activities have been targeted because they are: • Activities that have had little uptake to date, and have an obvious barrier to uptake. For

these activities, a limiting barrier is being removed. • Activities that have undergone significant market or technological change. For these

activities, the baseline is being updated.

The VEET scheme is a baseline and credit scheme. Credit is awarded in the form of certificates when activities are undertaken that reduce energy consumption more than would be achieved under business as usual conditions (the baseline). As the market and technologies change, including changes in the stringency of minimum energy performance standards (MEPS), the baseline needs to be adjusted to ensure that activities are being correctly rewarded. We will consider your feedback on these changes before any Regulation amendments are made. We intend to make these proposed regulatory amendments ahead of adding any new VEET activities. We currently have a separate consultation process underway on introducing project-based methodologies to the scheme. Please see energyandresources.vic.gov.au/esi for further information and timings.

2. Stakeholder input We are currently seeking your feedback on our proposed regulatory changes designed to continue making the VEET scheme stronger. The Victorian Government is determined that this scheme provide even greater support to delivering energy efficiency improvements for Victorians, and your feedback on how we achieve this is welcome. A summary of the changes to each activity is described below. Stakeholders should also consult the relevant sections of the proposed Regulations. These are available online at: energyandresources.vic.gov.au/esi For each activity, please provide feedback on the following questions, where relevant:

• Do you have any comment on the proposed amendments? • Is the timing of the proposed Regulation amendments appropriate? Why/why not? • Do the changes remove the appropriate barriers to uptake? Why/why not? • Are any other changes warranted? Please provide details.

Responses should clearly state the issue and, where relevant, reference specific sections of the Regulations.

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

3

Submissions may be emailed to [email protected]. Please reply with subject: Proposed VEET Activity Regulation Changes October 2015 Alternatively responses may be provided in writing to: Proposed VEET Activity Regulation Changes October 2015 Energy Policy and Programs Department of Economic Development, Jobs, Transport and Resources GPO Box 4509 Melbourne VIC 3001 Activity Timing Submissions close for consultation on Proposed Activity Regulation Changes October 2015

Please see energyandresources.vic.gov.au/esi

Proposed changes to Schedules 7, 8, 9, 10, 31, 32, 33 and 34 come into effect

1 January 2016

Proposed changes to Schedule 21 come into effect

1 March 2016

3. Greenhouse gas abatement coefficients We propose to update the coefficients used in calculating the greenhouse gas abatement of each activity, so that they reflect the latest available information. Recent modelling by Jacobs Group Australia found that the marginal greenhouse gas coefficient for electricity use avoided by VEET (ex-generator) is 1.03 kg CO2-e/kWh. As this value is ex-generator, the impact of transmission and distribution losses needs to be incorporated to create an end-use abatement coefficient. (The process of transmitting and distributing electricity results in power being lost over the journey. This should be accounted for as part of the emissions reductions achieved through VEET activities). The statewide loss factor is assumed to be 1.06, leading to an overall greenhouse coefficient for electricity of 1.095 kg CO2-e/kWh. The coefficient value previously used was 0.963 kg CO2-e/kWh. As power often has to travel further to reach regional areas, losses are generally greater than in metropolitan areas. As a result, a regional loss factor is applied, with a multiplier of 1.04 for regional areas and 0.98 for metropolitan areas. The abatement value for natural gas is based on the National Greenhouse Accounts Factors December 2014, incorporating scope 1 and scope 3 emissions and is 55.23 kg CO2-e/GJ. The current abatement value for natural gas is 57.3 kg CO2-e/GJ. In the absence of any other regulatory changes, the overall impact of these changes will be that electricity savings delivered through the scheme will create slightly more certificates, while gas savings will create slightly less certificates. The recently announced VEET scheme

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

targets take this increase into account. The revised coefficients will be incorporated into other activities as they are updated.

4. Overview of proposed amendments

4.1. Schedules 7, 8, 9 and 10 – Space heating The primary change proposed for space heating activities (7, 8 and 10) is to remove the restriction which prevents certificates being awarded in postcodes with access to a natural gas connection. This change is proposed because high performance heat pumps now have similar greenhouse gas abatement and energy efficiency performance to high efficiency gas heaters. These heaters are increasingly being chosen by households as a main form of heating and are a viable alternative across Victoria. In addition the basis of the calculations and minimum eligibility requirements have been updated to reflect increases in the average energy efficiency of reverse-cycle air conditioners. The abatement factors and regional factors will be updated in Schedules 7, 8, 9 and 10. The regional factors take account of increased electricity distribution losses outside metropolitan Melbourne, as well as different climate types. For schedules 9 and 10 these factors also take into account the mix of existing heater types installed in regional and metropolitan areas. These proposed changes are based on the latest available information on the penetration of different heater types.

4.1.1 Schedule 7 – High Efficiency Ducted Air To Air Heat Pump Replacing A Ducted Air To Air Heat Pump

We propose increasing the minimum required performance for ducted reverse-cycle air-conditioning, given the significant increase in the market average performance since we introduced these the activities in 2008.The proposed regulations also update references to the current relevant standards. The impact of the proposed changes is that the certificate allocation is reduced. The certificate allocation is based on the difference in energy consumption between the high-efficiency unit to be installed (in defined bands) and the average efficiency of new units currently available on the market. As the average efficiency of available units has risen, the abatement achieved by replacing the average unit with a higher-efficiency unit has reduced. These changes are proposed to commence on 1 January 2016. Note that in the tables below, CoP refers to coefficient of performance, and ACOP refers to annual coefficient of performance as defined in AS3823.2:2013. Certificates for activity = Abatement Factor x Regional Factor The appropriate regional factor is determined from a postcode lookup table in the Regulations

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

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Table 1.Current certificate allocation for Schedule 7 – High Efficiency Ducted Air To Air Heat Pump Replacing A Ducted Air To Air Heat Pump System size Abatement Factor

CoP - 3.5 to 3.99

CoP - 4.0 to 4.49

CoP - 4.5 to 4.99

CoP - 5+

Small (10 - 18 kW) 3.22 8.45 12.51 15.77 Medium (18.1 - 28 kW)

4.07 10.68 15.83 19.94

Large (> 28 kW) 5.08 13.33 19.75 24.88

Location / Climate Regional Factor Melbourne / Mild 1.00 Regional Victoria / Mild 1.06 Regional Victoria / Cold 1.71 Regional Victoria / Hot 0.74 Table 2. Revised certificate allocation for Schedule 7 – High Efficiency Ducted Air To Air Heat Pump Replacing A Ducted Air To Air Heat Pump System Size Abatement Factor

ACOP - 3.7 to 3.99

ACOP - 4.0 to 4.29

ACOP - 4.3 to 4.59

ACOP - 4.6 +

Small (10 to 18 kW) 1.25 4.62 7.52 10.04 Medium (>18 to 28 kW) 3.25 7.51 11.18 14.37 Large (> 28 kW) 6.26 11.58 16.15 20.13 Location / Climate Regional Factor Melbourne / Mild 1.00 Regional Victoria / Mild 1.06 Regional Victoria / Cold 1.72 Regional Victoria / Hot 0.75

How are certificates for this activity affected? In general, the number of certificates per air-conditioner installed will be lower because the market average performance of new ducted reverse-cycle air conditioners has improved since 2008. Example: Regional Victoria/Cold, ACOP 4.2 (CoP 4.0 to 4.9), Medium size

Previous certificates = 10.68 x 1.71 = 18.26 certificates Revised certificates = 7.51 x 1.72 = 12.9 certificates

What equipment specification changes are proposed? We propose increasing the minimum performance of installed ducted reverse cycle air-conditioner units to an ACOP of 3.7. This is expressed as an annual coefficient of performance in compliance with Minimum Energy Performance Standards (MEPS) and AS3823.2:2013

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

What does the gas-reticulation limitation change mean? Under the proposed changes, VEET incentives for installing ducted reverse-cycle air-conditioning will no longer be limited to areas that do not have reticulated mains gas. This activity is proposed to be eligible across Victoria.

4.1.2 Schedule 8 – High Efficiency Ducted Air To Air Heat Pump Replacing Central Electric Resistance Heater

We propose increasing the minimum required performance for ducted reverse-cycle air-conditioning, given the significant increase in the market average performance since we introduced these the activities in 2008.The proposed regulations also update references to the current relevant standards. It is proposed that the abatement calculations are updated, incorporating changed assumptions in the cooling performance of the ducted air conditioner to reflect the latest available information, adjusting the assumed cooling load to reflect a change in the understanding of the way cooling is used and also taking into account the duct losses which had previously not been taken into consideration. These changes are proposed to commence on 1 January 2016. Certificates for activity = Abatement Factor x Regional Factor The appropriate regional factor is determined from a postcode lookup table in the Regulations Table 3. Current certificate allocation for Schedule 8 – High Efficiency Ducted Air To Air Heat Pump Replacing Central Electric Resistance Heater System size Abatement Factor

CoP - 3.5 to 3.99

CoP - 4.0 to 4.49

CoP - 4.5 to 4.99

CoP - 5+

Small (10 - 18 kW) 98.0 104.2 108.9 112.7 Medium (18.1 - 28 kW)

124.1 131.9 137.9 142.7

Large (> 28 kW) 156.6 166.1 173.4 179.2 Location / Climate Regional factor Melbourne / Mild 1.00 Regional Victoria / Mild 1.06 Regional Victoria / Cold 1.75 Regional Victoria / Hot 0.67

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

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Table 4. Revised certificate allocation certificate allocation for Schedule 8 – High Efficiency Ducted Air To Air Heat Pump Replacing Central Electric Resistance Heater RAC / House size Abatement Factor

ACOP - 3.7 to 3.99

ACOP - 4.0 to 4.29

ACOP - 4.3 to 4.59

ACOP - 4.6 +

Small (10 to 18 kW) 102.0 107.0 111.2 114.8 Medium (18 to 28 kW) 129.9 136.0 141.2 145.8 Large (28 kW +) 165.4 172.7 179.0 184.5 Location / Climate Regional Factor Melbourne /Mild 1.00 Regional Victoria / Mild 1.06 Regional Victoria / Cold 1.79 Regional Victoria / Hot 0.61 How are certificates for this activity affected? In general, the number of certificates per installation will be slightly higher because of an increase in the underlying greenhouse gas abatement factor for electricity and the net impact of the other changes made to the calculation algorithms. Changes to the regional factor will tend to make certificates lower in the Regional Victoria/Hot climate area. Example: Regional Victoria/Hot, ACOP 4.2 (CoP 4.0 to 4.9), Medium size

Previous certificates = 131.9 x 0.67 = 88.4 certificates Revised certificates = 136.0 x 0.61 = 83 certificates

What equipment specification changes are proposed?: We propose increasing the minimum performance of installed ducted reverse cycle air conditioner units to an ACOP of 3.7. ACOP is the annual coefficient of performance defined in AS3823.2:2013 What does the gas-reticulation limitation change mean? Under the proposed changes, this activity will no longer be limited to areas that do not have reticulated mains gas. This activity is proposed to be eligible across Victoria.

4.1.3 Schedule 9 – Gas or Liquefied Petroleum Gas Space Heater

It is proposed that the abatement calculations are updated to incorporate changed assumptions, based on the latest available information, about the mix of installed heating in houses in Melbourne and regional Victoria and the efficiencies of these heaters. In addition, the greenhouse coefficients have been updated. These changes are proposed to commence on 1 January 2016.

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

Certificates for activity = Abatement Factor x Regional Factor The appropriate regional factor is determined from a postcode lookup table in the regulations Table 5. Current certificate allocation for Schedule 9 – Gas or Liquefied Petroleum Gas Space Heater System size

Abatement Factor

4.0 to 4.9 Stars 5.0 Stars + Small (2 - 3 kW) 4.32 4.83 Medium (3.1 - 6.0 kW) 8.19 9.17 Large (> 6 kW) 10.22 11.44

Location / Climate

Regional factor

4.0 to 4.9 Stars 5.0 Stars + Melbourne / Mild 1.00 1.00 Regional Victoria / Mild 0.32 0.39 Regional Victoria / Cold 0.51 0.63 Regional Victoria / Hot 0.22 0.27 Table 6. Revised certificate allocation for Schedule 9 – Gas or Liquefied Petroleum Gas Space Heater System size Abatement Factor

4.0 to 4.9 Stars 5 Stars + Small (2 to 3 kW) 5.36 5.86 Medium (3.1 to 6 kW) 9.61 10.55 Large (6 kW +) 13.22 14.39

Location / Climate Regional Factor 4.0 to 4.9 Stars 5 Stars +

Melbourne / Mild 1.00 1.00 Regional Victoria / Mild 0.22 0.29 Regional Victoria / Cold 0.36 0.46 Regional Victoria / Hot 0.15 0.20 How are certificates for this activity affected? For this activity the change in certificates generated will vary depending on where the heater is installed. In Melbourne, certificates will increase slightly, while in other areas they will fall. This reflects the higher incidence of electric heating in Melbourne compared to Regional Victoria. Example: Regional Victoria/Mild, 5 stars, Medium size

Previous certificates = 9.17 x 0.39 = 3.6 certificates Revised certificates = 10.55 x 0.29 = 3.1 certificates

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

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What equipment specification changes are proposed? There are no proposed changes to equipment requirements.

4.1.4 Schedule 10 – Space Air to Air Heat Pump We propose increasing the minimum required performance for reverse-cycle air-conditioning, given the significant increase in the market average performance since we introduced these the activities in 2008.The proposed regulations also update references to the current relevant standards. Changes are proposed to the abatement calculations, incorporating changed assumptions in the cooling performance of air conditioners to reflect latest available information and adjusting the assumed cooling load to reflect a change in the understanding of the way cooling is used. These changes are proposed to commence on 1 January 2016. Certificates for activity = Abatement Factor x Regional Factor The appropriate regional factor is determined from a postcode lookup table in the Regulations Table 7. Current certificate allocation Schedule 10 – for Space Air to Air Heat Pump System size

Abatement Factor

CoP - 3.5 to 3.99

CoP - 4.0 to 4.49

CoP - 4.5 to 4.99

CoP - 5+

Small (2 - 3 kW) 5.21 6.13 6.85 7.42 Medium (3.1 - 6.0 kW)

9.89 11.65 13.01 14.09

Large (> 6 kW) 12.55 14.68 16.33 17.65

Location / Climate

Regional factor CoP - 3.5 to 3.99

CoP - 4.0 to 4.49

CoP - 4.5 to 4.99

CoP - 5+

Melbourne / Mild 1.00 1.00 1.00 1.00 Regional Victoria / Mild

0.07 0.22 0.34 0.44

Regional Victoria / Cold

0.18 0.39 0.58 0.72

Regional Victoria / Hot

0.00* 0.09 0.20 0.29

* No net greenhouse saving is generated in this case

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

Table 7. Revised certificate allocation certificate allocation Schedule 10 – for Space Air to Air Heat Pump.

RAC / House size

Abatement Factor ACOP 4.0 to 4.49

ACOP 4.5 to 4.99

ACOP 5.0 to 5.49 ACOP 5.5 +

Small (2 to 3 kW) 4.64 5.48 6.14 6.69 Medium (3.1 to 6.0 kW) 8.33 9.91 11.17 12.20 Large (6.0 kW +) 11.51 13.42 14.95 16.20

Location / Climate

Regional Factor ACOP 4.0 to 4.49

ACOP 4.5 to 4.99

ACOP 5.0 to 5.49 ACOP 5.5 +

Melbourne 1.00 1.00 1.00 1.00 Regional - mild 0.12 0.27 0.39 0.50 Regional - cold 0.24 0.44 0.63 0.79 Regional - hot 0.02 0.16 0.29 0.38 How are certificates for this activity affected? In general, the number of certificates per installation will be lower for the same equipment because the market average performance of new room reverse-cycle air conditioners has increased. Example: Melbourne, ACOP 4.2 (CoP 4.0 to 4.49), Medium size

Previous certificates = 11.65 x 1.0 = 11.65 certificates Revised certificates = 8.33 x1.0 = 8.33 certificates

What equipment specification changes are proposed? The proposed changes will increase the minimum performance of reverse cycle air-conditioner units in line with greater market availability of high-performance units and increased MEPS (Minimum Energy Performance Standard) levels. The proposed minimum is an ACOP of 4.0. Performance will be expressed as annual coefficient of performance in compliance with MEPS and AS3823.2:2013. What does the gas-reticulation limitation change mean? Under the proposed changes, this activity will no longer be limited to areas that do not have reticulated mains gas. This activity is proposed to be eligible across Victoria.

4.2. Schedule 21 - Incandescent Lighting We propose several changes for this activity, to update it in line with recent improvements in lighting technology and to account for the implementation of MEPS for incandescent and extra low voltage (12 volt) lighting since the commencement of the VEET.

• Abatement factors are proposed to be revised to reflect changes in business as usual performance of the lamp being replaced. This is based on changes in the market penetration of pre- and post-MEPS lamps assumed in the calculations and an increase

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

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in the assumed rate of business as usual replacement of the existing lamps with low energy lamp types.

• We propose to update the minimum performance criteria for lighting equipment so they reflect improvements in equipment lighting technology, especially LED lighting.

• Schedule 21B will be removed, lighting technology development has meant that there is no longer a need in the market for this activity.

• Schedule 21E will be introduced to allow the replacement of mains voltage halogen lamps with GU10 bases with a low energy alternative.

The regional factor and PF (Power Factor) factor for all aspects of Schedule 21 remain unchanged. As with the other revised measures the new, higher, greenhouse coefficient for electricity will be used when calculating the number of certificates allocated.

Recognising the potential lead time for procuring and testing new lamps, we propose that these amendments come into effect on 1 March 2016.

4.2.1 Schedule 21A - Installation of low energy GLS in place of mains voltage GLS

Certificates for activity = Abatement Factor x Regional Factor x PF factor Table 8. Current certificate allocation for Schedule 21A - Installation of low energy GLS in place of mains voltage GLS

Rated Life of Low Energy Lamp (Hrs)

Abatement Factor Minimum Efficiency

High Efficiency 1

High Efficiency 2

8,000 to < 10,000 0.25 0.27 0.29 10,000 to < 12,000 0.32 0.34 0.36 12,000 to < 15,000 0.38 0.41 0.43 15,000 to 20,000 0.47 0.51 0.54 20,000+ 0.63 0.69 0.72

Table 8. Revised certificate allocation for Schedule 21A - Installation of low energy GLS in place of mains voltage GLS

Rated Life of Low Energy Lamp (Hrs)

Abatement Factor Minimum Efficiency

High Efficiency 1

High Efficiency 2

8,000 to < 10,000 0.20 0.22 0.23 10,000 to < 12,000 0.25 0.27 0.29 12,000 to < 15,000 0.30 0.33 0.34 15,000 to 20,000 0.37 0.41 0.43 20,000+ 0.50 0.55 0.57

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

How are certificates for this activity affected? In general, this activity will create fewer certificates per installation due to changes in the certificate calculation assumptions around business as usual replacement of existing lamps and the impact of lighting MEPS. Example:

15,000 hour rated life, High Efficiency 2, Melbourne region, power factor less than 0.9 Regional factor=0.98 (Melbourne region) PF factor=1.00 (power factor less than 0.9) Previous certificates = 0.54 x 0.98 x 1.00 = 0.53 certificates Revised certificates = 0.43 x 0.98 x 1.00 = 0.42 certificates

What equipment specification changes are proposed? No equipment changes are proposed for this activity

4.2.2 Schedule 21C – Installation of low energy 12 volt lamp to replace 12 volt halogen

Proposed equipment specification changes

Current Requirements Proposed Requirements Reason for change Minimum lighting source efficacy of 25 lumens/watt.

Minimum lighting source efficacy of 52 lumens/watt.

Higher efficacy provides for more efficient lighting.

95% of lamps installed through the VEET scheme in the last year were 52 lumens/watt or better.

Minimum light output of 350 lumens in the forward direction.

Minimum light output of 420 lumens in the forward direction.

Higher light output provides better customer acceptance.

More than 99% of lamps installed through the VEET scheme in the last year could achieve this.

Minimum rated lifetime is 8,000 hours.

Minimum rated lifetime is 15,000 hours. Add a 25,000 hour plus category.

Longer lifetimes provide greater energy savings and improve customer acceptance.

All approved products are 15,000 hours plus and good quality LEDs should have a lifetime of at least 25,000 hours.

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

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Minimum beam angle of 36 degrees.

Minimum beam angle of 50 degrees.

A wider beam angle is more appropriate in residential lighting applications.

73% of products installed and 95% of the models installed in the VEET scheme in the last year could achieve this.

Table 9. Current certificate allocation for Schedule 21C – Installation of low energy 12 volt lamp to replace 12 volt halogen Rated Life of Low Energy Lamp (Hrs)

Abatement Factor Minimum Efficiency (25 lm/W)

High Efficiency 1 (30 lm/W)

High Efficiency 2 (36 lm/W)

High Efficiency 3 (43 lm/W)

High Efficiency 4 (52 lm/W)

High Efficiency 5 (62 lm/W)

8,000 to < 10,000

0.20 0.24 0.27 0.29 0.31 0.33

10,000 to < 12,000

0.25 0.30 0.33 0.36 0.39 0.41

12,000 to < 15,000

0.30 0.35 0.40 0.44 0.47 0.50

15,000 to 20,000

0.37 0.44 0.50 0.55 0.59 0.62

20,000 + 0.50 0.59 0.67 0.73 0.78 0.83

Table 10. Revised certificate allocation for Schedule 21C – Installation of low energy 12 volt lamp to replace 12 volt halogen Rated Life of Low Energy Lamp (Hrs)

Abatement Factor Minimum Efficiency (52 lm/W)

High Efficiency 1

(62 lm/W)

High Efficiency 2

(75 lm/W)

High Efficiency 3

(90 lm/W) 15,000 to 20,000 0.44 0.47 0.49 0.51 20,000 to < 25,000 0.59 0.63 0.66 0.68 25,000 + 0.74 0.78 0.82 0.85

How are certificates for this activity affected? In general, this activity will create fewer certificates per installation for the same equipment due to changes in penetration of pre and post-MEPS halogen lamps assumed in the certificate calculation and an increase in the assumed rate of business as usual replacement

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

of existing lamps with low energy lamp types. However, the maximum number of certificates for the highest efficiency, longest lasting lamps will increase. Example:

15,000 hour rated life, 52 lm/W, Melbourne region, power factor less than 0.9 Regional factor=0.98 (Melbourne region) PF factor=1.00 (power factor less than 0.9) Previous certificates = 0.59 x 0.98 x 1.00 = 0.58 certificates Revised certificates = 0.44 x 0.98 x 1.00 = 0.43 certificates

4.2.3 Schedule 21D – Installation of mains voltage low energy downlight in place of existing 12 volt halogen downlight

Proposed equipment specification changes

Current Requirements Proposed

Requirements Reason for change

Minimum lighting source efficacy of 40 lumens/watt.

Minimum lighting source efficacy of 48 lumens/watt.

Higher efficacy provides for more efficient lighting.

All currently approved lamps could meet this.

Minimum light output of 350 lumens in the forward direction.

Minimum light output of 400 lumens in the forward direction.

Higher light output provides better customer acceptance. 70% of products and 90% of models installed through the VEET scheme in the last year could achieve this.

Minimum rated lifetime is 8,000 hours.

Minimum rated lifetime is 15,000 hours Add a 25,000 hour plus category.

Longer lifetimes provide greater energy savings and improve customer acceptance.

All but one of the currently approved products are 15,000 hours plus and good quality LEDs should have a lifetime of at least 25,000 hours.

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Proposed Activity Regulation Changes - October 2015

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Minimum beam angle of 36 degrees.

Minimum beam angle of 40 degrees.

A wider beam angle is more appropriate in residential lighting applications.

72% of the products installed and 84% of the models installed through the VEET scheme in the last year could achieve this.

Table 11. Current certificate allocation for Schedule 21D – Installation of mains voltage low energy downlight in place of existing 12 volt halogen downlight Rated Life of Low Energy Lamp (Hrs)

Abatement Factor Minimum Efficiency (40 lm/W)

High Efficiency 1 (48 lm/W)

High Efficiency 2 (58 lm/W)

High Efficiency 3 (69 lm/W)

High Efficiency 4 (83 lm/W)

8,000 to < 10,000 0.30 0.32 0.34 0.35 0.36 10,000 to < 12,000 0.38 0.40 0.42 0.44 0.45 12,000 to < 15,000 0.45 0.48 0.51 0.53 0.54 15,000 to < 20,000 0.56 0.60 0.63 0.66 0.68 20,000 + 0.75 0.80 0.84 0.88 0.90

Table 12. Revised certificate allocation for Schedule 21D – Installation of mains voltage low energy downlight in place of existing 12 volt halogen downlight Rated Life of Low Energy Lamp (Hrs)

Abatement Factor Minimum Efficiency (48 lm/W)

High Efficiency 1 (58 lm/W)

High Efficiency 2 (69 lm/W)

High Efficiency 3 (83 lm/W)

High Efficiency 4 (100 lm/W)

15,000 to 20,000 0.46 0.48 0.50 0.52 0.53 20,000 to < 25,000 0.61 0.64 0.67 0.69 0.71 25,000 + 0.76 0.80 0.83 0.86 0.88

How are certificates for this activity impacted? In general, this activity will create fewer certificates per installation of the same equipment due to changes in penetration of pre and post-MEPS halogen lamps assumed in the certificate calculation and an increase in the assumed rate of business as usual replacement of existing lamps with low energy lamp types. Example:

15,000 hour rated life, 58 lm/W, Melbourne region, power factor less than 0.9 Previous certificates = 0.63 x 0.98 x 1.00 = 0.62 certificates Revised certificates = 0.48 x 0.98 x 1.00 = 0.47 certificates

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

Schedule 21E – Installation of mains voltage low energy downlight with GU10 base in place of existing halogen downlight with GU10 base.

Proposed equipment specifications

Parameter Proposed Requirements Minimum lighting source efficacy

48 lumens/watt.

Minimum light output 400 lumens in the forward direction Minimum rated lifetime 15,000 hours

Minimum beam angle 36 degrees.

Certificates for activity = Abatement Factor x Regional Factor x PF factor Table 13. Certificate allocation for Schedule 21E – Installation of mains voltage low energy downlight with GU10 base in place of existing halogen downlight with GU10 base.

Rated Life of Low Energy Lamp (Hrs)

Abatement Factor Minimum Efficiency (48 lm/W)

High Efficiency 1 (58 lm/W)

High Efficiency 2 (69 lm/W)

High Efficiency 3 (83 lm/W)

High Efficiency 4 (100 lm/W)

15,000 to 20,000 0.56 0.58 0.60 0.62 0.63 20,000 to < 25,000 0.74 0.78 0.80 0.82 0.84 25,000 + 0.93 0.97 1.00 1.03 1.05

4.3 Schedule 31 - High Efficiency Motor Replacing An Electric Motor

The primary change for this activity will be to remove the requirement to decommission and replace an existing unit. As this activity is baselined to the performance of the minimum energy performance standard (MEPS) for new motors, any installation of a complying motor under this activity will be additional abatement against business as usual conditions. In addition to this the new, higher, greenhouse coefficient for electricity will be used in the certificate calculation. These changes are proposed to commence on 1 January 2016. Certificates for activity = Abatement Factor x Regional Factor

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Proposed Activity Regulation Changes - October 2015

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Table 14. Current certificate allocation for Schedule 31 - High Efficiency Motor Replacing An Electric Motor.

31A – High efficiency motor

Minimum rated output (kW)

Abatement factor

0.75 0.25

1.1 0.33

1.5 0.4

2.2 0.54

3 0.91

4 1.12

5.5 1.41

7.5 1.75

11 3.29

15 4.08

18.5 4.77

22 5.38

30 6.82

37 7.66

45 11.72

55 13.33

75 17.16

90 18.07

110 28.77

132 30.71

150 33.71

185 41.58

31B – Super premium efficiency motor

Column 2

Minimum rated output (kW)

Column 3

Abatement factor

0.75 0.48

1.1 0.67

1.5 0.77

2.2 1.1

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

3 1.83

4 2.16

5.5 3.08

7.5 3.67

11 7.53

15 8.81

18.5 10.31

22 12.11

30 13.92

37 15.78

45 24.16

55 27.87

75 30.68

90 33.5

110 48.82

132 51.09

150 50.65

185 68.77

Table 15. Revised certificate allocation for Schedule 31 - High Efficiency Motor Replacing An Electric Motor. 31A – High efficiency motor

Minimum rated output (kW)

Abatement factor

0.75 0.28

1.1 0.38

1.5 0.45

2.2 0.61

3 1.03

4 1.27

5.5 1.60

7.5 1.99

11 3.74

15 4.64

18.5 5.42

22 6.12

30 7.75

37 8.71

45 13.33

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

19

55 15.16

75 19.51

90 20.55

110 32.71

132 34.92

150 38.33

185 47.28

31B – Super premium efficiency motor

Minimum rated output (kW)

Abatement factor

0.75 0.55

1.1 0.76

1.5 0.88

2.2 1.25

3 2.08

4 2.46

5.5 3.50

7.5 4.17

11 8.56

15 10.02

18.5 11.72

22 13.77

30 15.83

37 17.94

45 27.47

55 31.69

75 34.89

90 38.09

110 55.51

132 58.09

150 57.59

185 78.20

How are certificates for this activity affected? In general, this activity will create more certificates per installation of the same equipment, due to the higher greenhouse gas abatement coefficient for electricity.

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

4.2 Schedule 32 - High Efficiency Refrigerated Display Cabinet Replacing A Refrigerated Display Cabinet

The primary change for this activity will be removing the requirement to decommission and replace an existing refrigerated display cabinet. As this activity is baselined to the minimum energy performance standard (MEPS) for display cabinets, any complying display cabinet installed under this activity will create additional abatement as compared to business as usual conditions. In addition, greenhouse abatement coefficients have been updated. These changes are proposed to commence on 1 January 2016. Table 16. Current certificate allocation for Schedule 32 - High Efficiency Refrigerated Display Cabinet Replacing A Refrigerated Display Cabinet

Refrigerated

Display cabinet

type and subclass

Abatement factor

RS 1 - unlit shelves 9.40

RS 1 - lit shelves 16.00

RS 2 - unlit shelves 9.50

RS 2 - lit shelves 12.70

RS 3 - unlit shelves 10.20

RS 3 - lit shelves 13.80

RS 4 - glass door 6.70

RS 6 - gravity coil 9.70

RS 6 - fan coil 9.70

RS 7 - fan coil 11.10

RS 8 - gravity coil 8.40

RS 8 - fan coil 9.00

RS 9 - fan coil 9.10

RS 10 - low 12.80

RS 11 26.10

RS 12 45.40

RS 13 - solid sided 14.60

RS 13 - glass sided 13.40

RS 14 - solid sided 9.10

RS 14 - glass sided 54.50

RS 15 - glass door 21.80

RS 16 - glass door 23.80

RS 18 19.9

RS 19 14.8

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

21

HC 1 6.8

HC 4 9.2

VC 1 19.5

VC 2 15.5

VC 4 - solid door 22.4

VC 4 - glass door 14.7

HF4 15.8

HF6 4.7

VF 4 - solid door 24.6

VF 4 - glass door 24.6

Table 17. Revised certificate allocation for Schedule 32 - High Efficiency Refrigerated Display Cabinet Replacing A Refrigerated Display Cabinet

Refrigerated

Display cabinet

type and subclass

Column 3

Abatement factor

RS 1 - unlit shelves 10.69

RS 1 - lit shelves 18.19

RS 2 - unlit shelves 10.80

RS 2 - lit shelves 14.44

RS 3 - unlit shelves 11.60

RS 3 - lit shelves 15.69

RS 4 - glass door 7.62

RS 6 - gravity coil 11.03

RS 6 - fan coil 11.03

RS 7 - fan coil 12.62

RS 8 - gravity coil 9.55

RS 8 - fan coil 10.23

RS 9 - fan coil 10.35

RS 10 - low 14.55

RS 11 29.68

RS 12 51.62

RS 13 - solid sided 16.60

RS 13 - glass sided 15.24

RS 14 - solid sided 10.35

RS 14 - glass sided 61.97

RS 15 - glass door 24.79

RS 16 - glass door 27.06

RS 18 22.63

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

RS 19 16.83

HC 1 7.73

HC 4 10.46

VC 1 22.17

VC 2 17.62

VC 4 - solid door 25.47

VC 4 - glass door 16.71

HF4 17.97

HF6 5.34

VF 4 - solid door 27.97

VF 4 - glass door 27.97

How are certificates for this activity affected? In general, this activity will create more certificates per installation for the same equipment due to the higher greenhouse gas abatement coefficient for electricity.

What equipment specification changes are proposed? Minor equipment changes are proposed through updated references to AS 1731.14-2003 Amendment 2.

4.3 Schedule 33 - Refrigeration Fan Replacement The primary change for this activity will be removing the requirement to decommission and replace an existing refrigeration fan unit. As this activity is baselined to the performance of typical refrigeration fan units, any installation of a motor/fan under this activity will create additional abatement as compared to business as usual conditions. In addition, greenhouse abatement coefficients have been updated. Note that more complex changes to this activity will be considered in 2016. These changes are proposed to commence on 1 January 2016. Current certificate allocation (IP x 0.7692 + 19.385) x (1+ (1 / COP)) x 0.02952 x Regional factor Where

IP is the input power of the motor that powers the fan COP is the coefficient of performance of the type of refrigerator where the fan is installed from the following table Refrigerator type COP

Refrigerator display cabinet 2·80

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

23

Freezer 1·80

Cool room 2·56

Revised certificate allocation (IP x 0.7692 + 19.385) x (1+ (1 / COP)) x 0.03357

How are certificates for this activity affected? In general, the number of certificates per installation will be higher for the same equipment due to the increased greenhouse gas abatement coefficient for electricity What equipment specification changes are proposed? No equipment changes are proposed.

4.4 Schedule 34 - Commercial lighting The primary changes to this activity are to

• Add variable hours of use to allow for differing building operating times • Add the capability for non-building based lighting projects (eg street lighting) to

participate • Update greenhouse abatement coefficients

These changes are proposed to commence on 1 January 2016. How are certificates for this activity impacted? In general, this activity will create slightly more certificates per installation of the same equipment due to changes in the greenhouse abatement coefficient for electricity. In installations that are able to claim longer hours of use, the more certificates will be created. What equipment specification changes are proposed? We propose that the Essential Services Commission set the standards for some lighting equipment, due to the nature of emerging technologies and the lack of well-established Australian Standards in some areas.

Victorian Energy Efficiency Target (VEET)

Proposed Activity Regulation Changes - October 2015

Department of Economic Development, Jobs, Transport and Resources

1 Spring Street Melbourne Victoria 3000 Telephone (03) 9208 3333

October 2015

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