VIC Energy Innovation Fund – Round 3

Purpose and Program Overview

The VIC Energy Innovation Fund (VIC EIF) – Round 3 is a Victorian Government funding program. It is designed to speed up the commercialisation of renewable energy technologies and industrial electrification solutions. This is an essential step for Victoria’s transition to net-zero emissions by 2045, not 2050. The fund supports innovative projects. These projects must show a big impact on emerging energy technologies. They must contribute to cleaner, more resilient energy systems. They also need to support local jobs and economic growth across Victoria.

Round 3 of the fund has a dedicated focus. It targets industrial electrification within the food and beverage processing and manufacturing sectors. The goal is to help businesses replace gas-fired equipment with more efficient electric alternatives. This round continues the state’s commitment to fostering technological innovation. This is consistent with the Victorian New Energy Technologies Sector Strategy. It promotes diverse and resilient supply chains for Victoria’s future energy needs.

With a total funding pool of $10 million, VIC Energy Innovation Fund plays an important role in supporting Victoria’s clean energy ambitions. It facilitates projects that reduce carbon emissions. It also strengthens the local energy sector. It opens up opportunities for large-scale renewable deployment and industrial transformation.

Key Grant Details

• Grant amount: Fund allocations range from $2 million to $20 million per project. Individual businesses in the food and beverage sector can apply for up to $2 million.
• Application open: Guidelines are expected to be released in August 2025. Applications are anticipated to open in September 2025.
• Application close: The closing date is to be announced. Applications are expected to close in November 2025.
• Eligible entities: Victorian food and beverage processing and manufacturing businesses. This also includes technology developers and project groups (consortia) developing renewable energy and electrification projects.
• Co-contributions: Applicants must show co-investment. Grant funding must be the minimum needed for a project to proceed. Total government funding is generally capped at 50% of the project’s eligible spending.
• Location/state/territory applicability: Victoria only.

Priority Sectors

Round 3 of the VIC Energy Innovation Fund targets industrial electrification. It has a specific focus on:

• Food processing and beverage manufacturing sectors.
• Broader renewable energy and emerging technologies relevant to Victoria’s net-zero targets.
• Projects that align with state energy and economic strategies. The focus is on using electricity to replace fossil fuels.

Funding Scope

• Funding range: $2 million to $20 million per project.
• Categories/streams: The program covers various project stages. These include:
  • Feasibility studies and pre-investment studies.
  • Front-end engineering design (FEED).
  • Pilot projects.
  • Demonstration projects.
  • Large-scale deployments within the industrial electrification context.
• Project timeline: Project milestones and completion periods will be defined in the funding agreement. They generally align with a near-to-medium-term commercialisation horizon.

Grant Amount in Total

The total funding pool for Round 3 is $10 million.

Eligibility Criteria

• Applicants must be registered entities operating in Victoria.
• Projects must show they can contribute to Victoria’s net-zero emissions target by 2045.
• Projects should align with the Victorian New Energy Technologies Sector Strategy.
• Eligible projects require a clear demonstration of renewable resource use and environmental benefits.
• Applicants must show their financial viability, technical competence, and capacity to deliver the project.
• Applicants must have an Australian Business Number (ABN). They must comply with all relevant Victorian laws and regulations.
• Businesses applying for more than $500,000 must submit a Fair Jobs Code Pre-Assessment Certificate or proof of application for one.

Eligible Activities and Expenses

Funding supports specific costs that move a project toward commercialisation.

• Development and commercialisation of renewable energy and storage projects.
• Transitioning industrial systems from fossil fuels to electric systems. This includes equipment upgrades or replacements.
• Feasibility and front-end design work for energy projects.
• Costs for piloting and demonstration installations.
• Related project management, technical studies, and consultancy supporting project delivery.

Ineligible expenses include:

• General business operating costs.
• Routine capital works.
• Costs are already funded by other government grants.

Assessment Process of VIC Energy Innovation Fund

This is a competitive grant process. It is assessed by an independent panel.

Evaluation criteria include:

• Impact: The project’s effect on Victoria’s energy transition and net-zero ambitions.
• Commercial viability and scalability: The project’s market potential.
• Environmental benefits: The project’s alignment with renewable resource use.
• Economic benefits: Job creation and supply chain stimulation.
• Risk assessment and project delivery capability: The team’s ability to deliver the project on time and budget.

Recent Program Updates

Round 3 was announced on 25 June 2025. Program guidelines are expected to be released in August 2025. Applications are anticipated to open in September 2025 and close in November 2025. This round builds on successful projects from Round 2. It has an enhanced focus on industrial electrification in priority sectors. Stakeholder consultations and support are ongoing. They are in place to encourage quality applications.

Application Tips

• Stay updated on official guideline releases and opening dates. Check the Victorian Department of Energy, Environment and Climate Action website.
• Contact industry advisors and government program officers early. This helps to clarify eligibility and application requirements.
• Provide detailed, realistic financial and delivery plans. Include sources of co-funding.
• Align your project focus clearly with Victoria’s net-zero by 2045 target. Also, align it with sector strategies.
• Prepare strong evidence of your technology’s maturity. Show market demand for your product.
• Submit a complete and compliant application well before the deadline.

Where to Get Help

Consider consulting with a professional grant specialist like Pattens Group. They can help with eligibility reviews and application assistance. Visit Victoria’s Department of Energy, Environment and Climate Action website and business.gov.au for official program details and resources.