The 2026 renewable power percentage is 16.67%.
Under the Large-scale Renewable Energy Target, liable entities surrender large-scale generation certificates (LGC) to meet the annual target of renewable electricity each year. The annual target increased each year until 2020 and is now constant at 33,000,000 megawatt hours (MWh) until 2030.
The renewable power percentage (RPP) helps calculate the amount of LGCs liable entities surrender each year.
Learn about how the percentage impacts the carbon market by reading our Quarterly Carbon Market Reports.
Setting the renewable power percentage
Each year, we recommend a percentage to the Minister for Climate Change and Energy. We use data or estimates for matters the minister must consider. These matters are:
- renewable electricity required for the year (annual target)
- estimated relevant acquisitions of electricity for the year
- the cumulative adjustment
- estimated exemptions.
The Minister may also consider other matters when determining the percentage.
The renewable power percentage must be set by 31 March each year, otherwise a default percentage is used.
Renewable electricity required for the year
The Act sets out the amount of renewable electricity required for each year. The 2026 target is 33,000,000 MWh.
Estimated relevant acquisitions of electricity for the year
A relevant acquisition of electricity is when a liable entity buys wholesale electricity. We estimate based on the sum of acquisitions reported by liable entities 2 years before the setting year.
We use data from 2 years before the setting year as this data has been finalised and will not change in the future.
Estimated relevant acquisitions of electricity for 2024 used in the 2026 RPP calculation are 219,610,453 MWh.
Cumulative adjustment
The cumulative adjustment ensures liable entities only surrender the number of LGCs needed to meet the annual target. We subtract the sum of all liable entity obligations from the sum of all annual targets from 2001 to 2024.
Using liability instead of surrendered LGCs ensures one's obligation is not affected by another's. Voluntarily surrendering LGCs does not affect one's obligations.
For the 2026 RPP, the cumulative adjustment is -2,310,071 MWh. This is a negative number, which means the sum of annual targets is below the sum of annual obligations by this amount.
Estimated exemptions
Businesses receive exemption certificates for electricity used in emissions-intensive trade-exposed activities. They exchange these certificates with their electricity retailer to reduce electricity costs. The liable entity surrenders the exemption certificates to reduce its scheme responsibility.
We subtract the estimated exemptions from the relevant acquisitions estimate each year. Like relevant acquisitions, we use data from 2 years before the setting year.
The estimated EITE exemptions for 2024, used in the 2026 RPP calculation, are 35,462,777 MWh.
Calculating the renewable power percentage
The formula of matters to consider when setting the renewable power percentage is:
$|\mathsf{RPP = \left({{Required\,renewable\,electricity\,+\,Cumulative\,Adjustment} \over {Relevant\,Acquisitions\,–\,Exemptions}}\right) \times 100}|$
In 2026, the percentage calculation is:
$|\mathsf{RPP_{2026} = \left({33,000,000\,–\,2,310,071} \over {219,610,453\,–\,35,462,777}\right) \times 100 = 16.67\%}|$