How is a VEEC generated?

VEECs are based on the amount of external energy previously consumed by a site that is reduced via a solar array, fuel switching away from fossil fuels, or by onsite energy efficiency upgrades like HVAC, Lighting, BMS and so on. The more energy saved by a facility, the more VEECs you are able to create.

Each VEEC is representative of a volume of energy saved measured in megawatt hours.

1MW/h of reduced grid energy consumption = 0.393 VEEC

To determine how many VEECs can be created from an upgrade, we calculate the amount of energy reduced at a facility over a year in MW/h by the performed upgrades array and multiply it by 0.393. This gives us the volume of VEECs generated for one year. We then claim this volume of VEECs for the calculated asset lifetime of the technology. For example the calculated asset lifetime for solar is 9.91 years, therefore creating 9.91 years of certificates upfront.

This process is different to the creation of Large-Scale Generation Certificates (LGCs) or Australian Carbon Credit Units (ACCUs) which both require site monitoring on an ongoing basis, with the financial incentives spread out over the coming years.