wind turbine

Large-scale generation certificates

Accredited renewable energy power stations are entitled to create large-scale generation certificates (LGCs) based on the amount of renewable electricity they produce above their baseline.

What is an LGC?

  • A LGC is an electronic form of currency created in the REC Registry by eligible entities. 
  • One LGC is equivalent to 1 MWh (megawatt hour) of eligible renewable electricity generated above the power station’s baseline.
  • LGCs are created in the REC Registry by the registered person for the accredited renewable energy power station. The LGC record, including ownership and status is available in the REC Registry. To be eligible to create LGCs, power stations must generate their electricity from approved renewable energy sources such as solar energy, wind, ocean waves and tides, geothermal-aquifers, wood waste, agricultural waste, bagasse (sugar cane waste), black liquor (a by-product of the paper-making process), or landfill gas.
  • A full list of eligible renewable energy sources is included in Section 17 of the Renewable Energy (Electricity) Act 2000 (the Act). There are currently more than 17 different types of eligible renewable energy sources being used in accredited power stations.
  • Electricity that is generated from fossil fuels, or waste products derived from fossil fuels, is not eligible for LGCs.
  • During the accreditation process of a power station, the Regulator determines the baseline – generally the average amount of electricity generated from eligible renewable energy sources over the 1994, 1995 and 1996 years. Eligible parties can only create LGCs for electricity generated above the baseline.
  • Power stations which generated electricity for the first time after 1 January 1997 have a nil baseline.
  • LGCs must be correctly created and validated in the REC Registry before they can be made available for purchase and/or surrender.
  • LGCs are sold through the open LGC market, where the price will vary according to supply and demand. Payment for LGCs is completed outside of the REC Registry.
  • LGCs are usually sold to liable entities. The liable entities are required by law to surrender a set number of LGCs to the Clean Energy Regulator in each calendar year.
Date last updated: 28 Mar 2012