Our role and responsibilities under the scheme
Under the CE Act we regulate the market-related aspects of thermal waste to energy processes as part of Victoria’s Waste to Energy Scheme.
We're responsible for:
- receiving and assessing applications for waste to energy cap licences in accordance with the CE Act
- ensuring that any cap licences issued fall under the cap limit
- ensuring that facilities only process certain types and amounts of waste
- monitoring and compliance activities to ensure the Waste to Energy Scheme rules and cap licence conditions are adhered to.
Regulation of thermal waste to energy facilities
In addition to a cap licence under the scheme, anyone who wants to develop and operate a thermal waste to energy facility in Victoria must obtain all required regulatory approvals before they can commence construction and operation.
The following approvals are required:
- Development and operating licences under the Environment Protection Act 2017. In assessing these licence applications, we consider the environmental and human health impacts of the facility.
- Planning approvals from responsible authorities, such as local governments or the Minister for Planning. Responsible authorities consider the appropriateness of the facility for the specific location, including amenity and other considerations.
Other agencies also have a role in regulating thermal waste to energy facilities, including:
- Australian Energy Market Operator, Australian Energy Regulator and Australian Energy Market Commission, who are responsible for regulating National Electricity Market (NEM) participation.
- Energy Safe Victoria – responsible for regulating energy safety.
- WorkSafe – responsible for regulating worker safety at all sites and dangerous goods at workplaces, including waste to energy facilities.
Community consultation
The Victorian government requires waste to energy facility operators to undertake early and effective community consultation as part of the approval processes for a development licence from us and relevant planning authorities. These processes also consider the specific location of the proposed facilities.
Why we need waste to energy
Landfills are filling up and Victoria will start to run out of landfill capacity in the mid-2030s.
Waste to energy provides an alternative to landfills for most types of residual waste, reducing the state’s reliance on landfills for non-recyclable or non-recoverable waste.
Under a circular economy using waste that can’t be recycled to recover energy is a better outcome than disposal in landfill.
The Waste the Energy Scheme supports the establishment of waste to energy facilities to:
- ensure recovery of recyclable materials
- contribute to an efficient waste, recycling and resource recovery system
- reduce the likelihood of requiring new landfills.
For more information visit, the Victorian Recycling Infrastructure Plan.
Guidance on the scope of the scheme
The guidance explains how the scheme applies to proposed waste to energy facilities, including:
- whether your proposed facility needs a waste to energy licence to operate
- what you need to do if your proposed facility is within scope of the scheme.
View or download the guidance:
Scope overview
The Waste to Energy Scheme regulates thermal waste to energy facilities. The purpose of the scheme is to ensure only specific amounts and types of waste are used in thermal waste the energy processes.
Whether a facility falls within the scope of the scheme is determined by all of the following:
- The type of technology/process it will use.
- The type of waste it will process.
- The outputs from the process.
Determining whether your proposed facility is in or out of scope
The table below outlines whether a proposed waste to energy facility is in or out of scope of the scheme. More detailed information and guidance is contained in the Guidance on the scope of the scheme. Please read the guidance to ensure you understand whether your proposed facility requires a Waste to Energy licence.
| Technology / process | Input | Output | In or out of scope? | Waste to Energy licence required? |
|---|---|---|---|---|
| Thermal waste to energy processes as defined in section 74M(1) of the CE Act. | ||||
| A thermal process such as gasification, pyrolysis or incineration | Permitted waste only | Heat (converted to steam or electricity) or fuel | In scope | Yes |
| *Exempt waste only | Heat (converted to steam or electricity) or fuel | In scope | No | |
| Permitted and exempt waste | Heat (converted to steam or electricity) or fuel | In scope | Yes | |
| Banned waste only | Heat (converted to steam or electricity) or fuel | In scope | Banned - must not operate | |
*Where a process is outside of the scope of the Scheme, other regulatory approvals may still be required, such as an EPA development licence or planning permit for the construction and operation of a waste processing facility.
The following non thermal processes are not in scope of the scheme and do not require a Waste to Energy licence.
| Technology / process | Input | Output |
|---|---|---|
| A process that treats waste biomass through a pyrolysis process or gasification process to sequester carbon | Waste biomass, as defined in regulation 4 of the Regulations | Sequestered carbon such as biochar that is applied to land |
| Advanced recycling process that changes the chemical structure of a material or substance through cracking, gasification, pyrolysis or depolymerisation | A material or substance | Monomer or chemicals intended for production of polymer materials, other than fuel |
| Biological waste to energy process that uses microbial action to recover energy from waste, such as anaerobic digestion and fermentation. | All types of waste | Any energy, such as biogas or fuel products |
| Landfill gas collection and combustion | Landfill gas | With or without energy recovery |
| Incineration of waste without energy recovery | All types of waste | No energy recovery |
| A process that recovers energy from a material other than waste | Materials other than waste, such as coal | Energy |
| A thermal waste to energy process for which a pilot project licence has been issued under the Environment Protection Act 2017 and is in force | - | - |
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