Small-scale Technology Percentage

The Small-scale Technology Percentage (STP) establishes the rate of liability for SRES.  SRES commenced on 1 January 2011.  The STP is the mechanism that RET liable entities use to determine the number of Small-scale Technology Certificates (STCs) needed to be surrendered to discharge their STC liability quarterly. The STP is designed to remove STCs from the STC Market for the current year liability.

For the 2011 and future compliance years individual STP liabilities can be determined by multiplying the total reduced acquisition or relevant acquisition for a year by the STP.

• For example, in 2011 the STP is 14.80%.  A RET liable entity’s assessment year’s reduced acquisition equals 110,000 MWh of electricity purchased in 2011 (relevant acquisitions) less 10,000 MWh partial exemption certificates received from customers conducting emission intensive trade exposed activities in 2011 – 12.  The RET liable entity in 2012 must have surrendered 14,800 STCs to fully discharge their liability under SRES in 2011 – 2012 for this year or pay the small-scale technology shortfall charge $962,000 (14,800*$65) or less.

The STP must be published in the Renewable Energy (Electricity) Regulations 2001 (regulations) prior to 31 March of the year in which it applies.  This allows RET liable entities time to plan their STC acquisition strategies.  If the STP is not published prior to 31 March then the default formula under Section 40A (2) of the Act applies and can be used to determine the default STP for the given year.  The default formula can only be used for a year starting on 1 January 2012.  For more information visit Legislation.

Under section 40B of the Act the Regulator must publish a non-binding estimate of the STP for the next two years before 31 March of each year. 

In accordance with section 40B of the Renewable Energy (Electricity) Act 2000 (the Act), the Renewable Energy Regulator must publish an estimate of the Small-scale Technology Percentages for 2013 and 2014 by 31 March 2012. An estimate published under section 40B does not bind the Regulator, the Commonwealth or any other person.  Please note that the Office of the Renewable Energy Regulator was amalgamated into the Clean Energy Regulator on 2 April 2012.

30 March 2012 

The non-binding Small-scale Technology Percentage (STP) under section 40B of the Act for:

• 2013 is 7.94 percent (equivalent to 15.07 million Small-scale Technology Certificates (STCs) as a proportion of total estimated liable electricity for the 2013 year)
• 2014 is 6.10 percent (equivalent to 11.81 million STCs as a proportion of total estimated liable electricity for the 2014 year)

The above 2013 and 2014 non-binding STP estimates are based on the modelling prepared for the recently published 2012 STP and do not include any possible surplus or deficit in small-scale technology certificates for 2012. The Clean Energy Regulator will take into account any surplus or deficit from 2012 when preparing the 2013 binding STP.

ORER used the information in the independent consultant reports to estimate the number of STCs that are likely to be created in the future. For more information visit the Reports page.

16 December 2011

The Regulator, after receiving independent data, has issued an update to the non binding estimate published under section 40B of the Renewable Energy (Electricity) Act 2000.  
The non-binding Small-scale Technology Percentage (STP) published on 16 December 2011 under section 40B of the Act for:

• 2012 is 23.95 percent (equivalent to 44.3* million Small-scale Technology Certificates (STCs) as a proportion of total estimated liable electricity for the 2012 year)
• 2013 is 7.87 percent (equivalent to 15.07 million STCs as a proportion of total estimated liable electricity for the 2013 year)

* Includes an estimate of 22.0 million excess STCs to be created in 2011, over the 28 million estimate used in setting the legislated 2011 STP in December 2010. Also includes an updated estimated total of 22.3 million STCs to be created in 2012.

The former Office of the Renewable Energy Regulator engaged three consultants to provide forward estimates of the number of small-scale technology certificates (STCs) likely to be created in the 2012, 2013 and 2014 calendar years. The Office of the Renewable Energy Regulator has received the STC modelling reports from ACIL Tasman, Green Energy Markets and SKM MMA, which are available on the Clean Energy Regulator website.

These reports have been commissioned to provide advice to support the setting of the 2012 Binding STP which the Office of the Renewable Energy Regulator intends to release before the legislative deadline of 31 March 2012.

29 July 2011

On 5 May 2011 the Government announced that the STC multiplier (solar credits) would be reduced to 3 from 1 July 2011. As such, the Renewable Energy (Electricity) Regulations 2001 were amended to reflect the reduction of the multiplier to 3 effective from 1 July 2011. Subsequently the Regulator, after receiving independent data, issued an update to the non binding estimate published under section 40B of the Renewable Energy (Electricity) Act 2000.  
The non-binding Small-scale Technology Percentage (STP) published on 29 July 2011 under section 40B of the Act for:

• 2012 is 20.87 percent (equivalent to 38.5* million Small-scale Technology Certificates (STCs) as a proportion of total estimated liable electricity for the 2012 year)
• 2013 is 6.25 percent (equivalent to 12.1 million STCs as a proportion of total estimated liable electricity for the 2013 year)

* Includes an estimate of 20.1 million excess STCs to be created in 2011, over the 28 million estimate used in setting the legislated 2011 STP in December 2010. Also includes an updated estimated total of 18.4 million STCs to be created in 2012.

The former Office of the Renewable Energy Regulator asked ACIL Tasman, an independent consultant, to provide and update estimates of the number of STCs likely to be created in 2011, 2012 and 2013.  For the full report visit STC modelling reports.

31 March 2011

The non-binding Small-scale Technology Percentage (STP) under section 40B of the Act for:

• 2012 is 16.75 percent (equivalent to 31.1* million Small-scale Technology Certificates (STCs) as a proportion of total estimated liable electricity for the 2012 year)
• 2013 is 10.62 percent (equivalent to 20.2 million STCs as a proportion of total estimated liable electricity for the 2013 year)

* Includes an estimate of 6.4 million excess STCs to be created in 2011, over the 28 million estimate used in setting the legislated 2011 STP in December 2010. Also includes an estimated total of 24.7 million STCs to be created in 2012.  

The former Office of the Renewable Energy Regulator used three independent consultants to estimate the number of STCs that are likely to be created in the future. The Office of the Renewable Energy Regulator asked one of the companies to use the latest REC Registry data and provide updated estimates of the number of STCs that are likely to be created in 2011, 2012 and 2013. The results of the modelling assisted the Regulator in the estimating the number of STCs. For more information visit the STC modelling reports.

The STP is calculated in advance, based on the estimated:

• value, in megawatt hours, of small-scale technology certificates that will be created for the year*;
• amount of electricity that will be acquired for the year; and
• amount of all partial exemptions expected to be claimed for the year

Once the STP is published in the regulations it cannot be changed. If the set STP is found to not exactly match the STC created in a year the Clean Energy Regulator will recommend that the Australian Government adjust a later year STP taking the overall STC creation and liability into account.

*The Clean Energy Regulator engaged three companies to provide forward estimates of the number of small-scale technology certificates (STCs) likely to be created in the 2011, 2012 and 2013 calendar years. The results of the modelling assist the Minister in determining the STP.   For more information visit STC modelling reports.

To view the STPs that have been set in the legislation you can refer to section 40A of the Renewable Energy (Electricity) Act 2000 (the Act) and Regulation 23A of the Renewable Energy (Electricity) Regulations 2001. The Clean Energy Regulator has provided information in the table below for easy reference.

Where the STP for a compliance year is not set under the regulations by the Minister by the 31 March of the year, the default STP applies.  To determine the default STP you need to reference section 40A (2) of the Act. 

Note 1 - Formula to determine default STP is as follows:
[STP for the previous year multiplied by (STC value for the previous year divided by certificate value for the year before previous year]

Note 2 - Due to the nature of the default STP formula the Clean Energy Regulator has only provided a 2015 default STP, despite the SRES operating until 2030.