Large-scale Generation Certificates

The LGC market operates in a manner similar to that of the old Renewable Energy Certificate (REC) market. Liable Entities, generally electricity retailers, must acquire a number of LGCs equal to the target that is prescribed in legislation, and surrender them annually.

The target for 2018 is set at 16.06%, or 28,637,000 and will rise to 33,850,000 by 2020 following the agreement between the  Abbott Government and Shorten Opposition in 2016 to reduce it from a peak of 41,850,000..

LGCs are created by large-scale renewable energy power stations and represent one MWh of electricity generated. There are more than 15 types of approved renewable energy sources including wind, solar, hydro and landfill gas.

Year Current LRET Target
2018 28,637,000
2019 31,244,000
2020 33,850,000
2021-2030 33,000,000
Solar Panels | TFS Green

For more information on the Renewable Energy Target, visit:

www.cleanenergyregulator.gov.au/RET

Or if you would like tailored information on its impact on your business, please call our desk on +61 2 9251 4422 or +61 3 9614 2700.
Alternatively, you can send an email via the Contact Us page.