Accredited power stations can use the methods on this page to calculate how many large-scale generation certificates (LGC) they are eligible to create.

Find out more about creating LGCs.

Use the general formula:

  • to calculate the eligible electricity generated by your power station
  • for all calculations each calendar year from the accreditation date.

The general formula is:​

$|TLEG - [(FSL + AUX) + DLEG x (1 -​​​​ MLF)]|$


  • All electricity amounts are in megawatt hours (MWh)
  • All generated amounts calculated are for the calendar year


The total amount of electricity generated, measured from all generator terminals.


The total amount of electricity generated using ineligible energy sources, such as fossil fuels.

To calculate, convert the ineligible energy content into MWh.

FSL may apply if you're using:

  • fossil fuel as an energy source for auxiliary electricity used in the operation of the power station
  • a mixture of fossil fuel and renewable energy sources in generating electricity.

If you have both eligible and ineligible sources, don't include the ineligible component in the generation output. You can't create LGCs for ineligible components.

If your power station doesn't use ineligible sources, your amount is zero.


Auxiliary loss (AUX) is the electricity used in the:

  • process of generating electricity
  • operation and maintenance of all components.

You may need to divide auxiliary loss between eligible and ineligible energy sources. Ensure the auxiliary loss only accounts for eligible energy sources.


The amount of electricity transmitted or distributed, measured at the point determined:

  • by an authority of the relevant state or territory
  • under the National Electricity Rules, if your power station is a part of the National Electricity Market.


The marginal loss factor allows for electricity losses in transmission networks. The following will determine the MLF:

  • the Australian Energy Market Operator, if your power station is a part of the National Electricity Market
  • an authority of the relevant state or territory.

The MLF is one if all electricity generated is used in:

  • the power station
  • the local distribution network
  • both the power station and local distribution network.

The Australian Energy Market Operator registers generators unless an exemption applies. Generators are generating systems connected to a transmission or distribution system.

We apply generator MLFs to electricity dispatched by market generators operated by accredited power stations. These MLFs are:

  • calculated and published by the Australian Energy Market Operator
  • equivalent calculations by other market operators.

The Australian Energy Market Operator may classify a registered generator as a non-market generator. They won't calculate an MLF for non-market generators. We apply the default MLF (one) when calculating their eligible electricity amount.

There are similar MLFs outside of the National Electricity Market. Loss factors apply to electricity supplied through the Wholesale Electricity Market to the South West Interconnected System in Western Australia.

We can apply equivalent loss factors as MLF in the general formula.

A generating unit is a non-market generator if a retailer or customer buys the entity of the sent-out generation.

General formula example

An accredited power station generates 100 MWh of electricity and has an MLF of 0.9. Within the 100 MWh generated, the power station:

  • used 45 MWh to power machinery to manufacture products
  • used 5 MWh to generate renewable electricity (auxiliaries)
  • dispatched 50 MWh to the national electricity grid (DLEG)
  • lost 5 MWh in transmission – due to the MLF of 0.9.

Using the formula:

$|TLEG – [(FSL + AUX) + DLEG x (1 – MLF)]|$
= $|100 MWh –​ [(0 + 5 MWh) + 50 MWh x (1 – 0.9)]|$
= $|100 MWh – [5 MWh + 50 MWh x 0.1]|$
= $|100 MWh – [5 MWh + 5 MWh]|$
= $|100 MWh – 10 MWh|$
= $|90 MWh |$

If the power station's baseline is zero, you could create 90 LGCs. If the power station's baseline is 27 MWh, you could create 63 LGCs.


You can create one LGC for eligible electricity generated between 0.5 MWh and 1 MWh. If your calculated amount is over one MWh and not a whole MWh, you must round down to the nearest MWh.

LGC Methodology Builder

You can use the LGC methodology builder to help you create your LGC method for non-complex power stations:

  • at accreditation
  • for power station component variations
  • for temporary variations.
LGC Methodology Builder