Under the Large-scale Renewable Energy Target, large-scale generation certificates (LGCs) are a financial incentive for the generation of renewable energy from a power station.
About LGCs
LGCs are tradable certificates created for eligible large-scale renewable energy power stations. The certificates represent the amount of renewable energy generated by these facilities.
An LGC is equal to 1 megawatt-hour (MWh) of renewable electricity generated or displaced by a power station.
Create and trade LGCs
Renewable energy power stations, like wind farms or solar farms, create LGCs for each MWh of eligible renewable energy they produce.
These certificates can then be sold or traded to entities with liabilities under the Renewable Energy Target (RET), such as electricity retailers. By purchasing LGCs, entities can meet their renewable energy obligations under the RET.
LGCs can also be sold to private buyers on the secondary market to meet voluntary corporate ambition.
The renewable power percentage
The renewable power percentage is a target set by the Australian Government. It's aimed at increasing the proportion of Australia's electricity generated from renewable sources.
Liable entities must surrender a certain number of LGCs to meet their obligations under the RET. This creates a market for LGCs so that renewable energy power stations can sell their certificates to electricity retailers and other liable entities.
Find out more about the renewable power percentage.