Renewable Energy Target liability and exemptions

Overview

Under the Renewable Energy Target (RET), liable entities (usually electricity retailers) are required to buy and surrender a certain number of renewable energy certificates to comply with their statutory reporting and surrender obligations. Some industries and activities that are emissions-intensive trade-exposed (EITE) may be eligible for an exemption.

The demand for renewable energy certificates gives them their value. This supports the growth of renewable energy in Australia while maintaining economic competitiveness for EITE industries.

Exemptions certificate data

We publish a range of data on EITE activities. This includes details on exemption certificates we issue to companies to help reduce their liability for LGCs and STCs.

How liabilities and exemptions work

Liable entities under the RET are acquirers of wholesale and notional wholesale electricity. They can include electricity retailers, wholesale electricity buyers and large-scale electricity users.

To meet their obligations under the RET, liable entities must:

• lodge an energy acquisition statement on or before the 14 February each year
• acquire a sufficient number of LGCs and STCs, proportional to the electricity they supply or use each year
• surrender these certificates by a specified deadline each year
• pay any applicable shortfall charges by the invoice due date.
   

The renewable power percentage and small-scale technology percentage is used to determine the amount of LGCs and STCS liable entities must surrender each year.

Entities engaged in emissions-intensive trade-exposed (EITE) activities may be eligible for exemptions under the RET. These are entities that release large amounts of greenhouse gases but face significant national or international trade competition. If eligible, EITE entities can apply for an exemption certificate. Exemption certificates can be offered to their liable entity in exchange for a discount to their electricity supply charges. Exemptions are designed to recognise the competitive disadvantages these sectors might face due to the high cost of transitioning to renewable energy sources.

Key dates

Be aware of key dates to ensure your ongoing compliance.

Reporting

Energy acquisition statement due on or before: 

14 February

Renewable power percentage and small-scale technology percentage released by: 

30 March

Surrender periods

Large-scale generation certificates: 

1 January to 14 February

Small-scale technology certificates: quarterly surrender periods

• Q1: 15 February to 28 April 
• Q2: 29 April to 28 July
• Q3: 29 July to 28 October
• Q4: 29 October to 14 February

Surrender amounts

Estimated required surrender amounts for Q1 to Q3: 

April 15

Last date to apply to vary surrender amounts for Q1 to Q3: 

30 September

Last date to apply set surrender amounts for Q1 to Q3 under section 38AG: 

31 December

EITE entities

Apply for an exemption certificate: 

1 August to 30 March

Submit metering data for certifiable amount: 

by 15 January

Apply to change liable entities by: 

31 December

The REC Registry

The REC Registry is a secure online system for transactions under the target. It's where liable entities lodge their energy acquisition statement and where certificates are created, registered, sold, traded and surrendered.

Legislation

• Renewable Energy (Electricity) Act 2000
• Renewable Energy (Electricity) Regulations 2001