Measurement and verification method

The project-based activities, measurement and verification method is used for energy-saving projects at business and non-residential sites, typically with large energy use. Savings are determined by comparing energy use before and after the project implementation,using industry-standard measurement and verification techniques.

A single project can include a variety of technologies, techniques and upgrades. This is not possible for deemed Victorian Energy Upgrades (VEU) activities.

The steps for participating in the measurement and verification (M&V) method are outlined below, and in the measurement and verification process map.

Ensure your project is eligible

Measurement and verification projects under the Victorian Energy Upgrades program must take place in Victoria in either a business or non-residential premises, unless it meets eligibility criteria for residential premises.

All measurement and verification projects must show that they:

• are not required by law
• are not also claiming benefits under a prescribed greenhouse gas scheme
• are not underway before scoping plan approval
• reduce the site's energy consumption (kWh for electricity or GJ for gas).

If the project creates certificates by switching to a source of renewable energy generation, no certificates can be claimed for energy exported beyond the measurement boundary. Refer to the Measurement and Verification Method Activity Guide or contact us for more information.

Submit scoping and project plans

The approval process is in two parts – scoping plan and project plan. This allows you to get conditional approval in-principle for the scoping plan before proceeding to collect the information required for the project plan. However, you can submit them both at the same time using a Scoping and Project Plan Approval Form.

Scoping plan

The scoping plan covers project ownership and purpose.

Project plan

The project plan builds on the description of the scoping plan. It is key in our assessment of a project's eligibility to create and register Victorian energy efficiency certificates (VEECs). 

Gather baseline data

Baseline data is the main piece of evidence required to demonstrate the conditions on the project site before the project commences. Getting the right baseline data is essential in measuring genuine abatement.

For most projects, you must measure the baseline to establish the energy use before any works are undertaken on site.

Commence work

To be eligible, a project must not begin before:

• you are accredited for project-based activities
• the scoping plan application is approved and we have received a project plan for approval.

You may start work on procurement, off-site work, or even some types of on-site work before getting scoping approval, as long as that is not in-situ and it does not affect any other equipment within the measurement boundary in any way.

Submit an impact report

The impact assessment determines the abatement achieved by the project and therefore, how many VEECs can be created.

The impact of the change is determined by measuring energy consumption after the change. Once the project has been implemented, you can lodge an impact report with us using the Impact Report Approval Form.

Please note that depending on the nature of the project, these measurements may take some time to complete. Twelve months is not uncommon, and you are able to measure for up to 24 months if you choose.

The impact report contains a detailed description of the method and data modelling used to determine the energy savings calculated from measuring the baseline and the impact. It also includes the VEEC calculations resulting from these energy savings.

Validating impact reports

For each activity, the accredited person must nominate an approved measurement and verification professional to:

• validate the approach taken in the project plan
• validate the approach taken in the impact report
• check and report that the project plan and impact report are consistent.

They are an independent third party assessor and must be approved by us, and can only be involved after the impact report has been produced. The approved measurement and verification professional’s report is submitted to us along with the impact report.

An approved measurement and verification professional does not need to review or sign off on the M&V plan submitted at the project plan stage. However, if you choose to have someone who is an approved measurement and verification professional review the M&V plan at the project plan stage, this same person cannot be used as the independent third party at the impact report stage.

Guidance on applying to become an 'approved measurement and verification professional' is detailed in the Guide for Approved Measurement and Verification Professionals.

Calculate VEECs

There are three methods for calculating and creating VEECs for measurement and verification projects:

• forward creation method using normal year energy savings
• annual creation method using measured annual energy savings
• forward creation with 'top up' method, which uses forward creation, followed by the annual creation method.

The choice between the three methods will depend on:

• the risk factors of the upgrade
• project cash-flow requirements
• the administration required
• the accredited person’s business preference.

The process for VEEC creation and registration is outlined on the Victorian energy efficiency certificates page.

After the first year certificate creation and registration, subsequent certificate creations for annual or 'top up' creation do not require the baseline measurement to be repeated.

For measurement and verification projects, VEECs can be claimed for a maximum of ten years.