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 2019 is set at 18.60%, or 31,244,000 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, all of which we are able to transact at TFS.