2024 renewable power percentage

The 2024 renewable power percentage is 18.48%.

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 2024 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 round the figure to the nearest 100,000 MWh.

We use data that has completed compliance and assessment activities and is unlikely to change. This helps assume electricity demand will remain relatively stable.

Estimated relevant acquisitions of electricity for 2022 used in the 2024 RPP calculation are 214,000,000 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 2022.

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 2024 RPP the cumulative adjustment is -18,120 MWh. This is a negative number, which means the sum of annual targets exceeds 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 2022​, used in the 2024 RPP calculation, are 35,600,000 MWh.

Calculating the renewable power percentage

The formula of matters to consider when setting the renewable power percentage is:

$|RPP = ((Required renewable electricity + Cumulative Adjustment)/Relevant Acquisitions – Exemptions)) x 100|$

In 2024, the percentage calculation is:

$|RPP 2024 = ((33,000,000 – 18,120)/(214,000,000 – 35,600,000)) x 100 = 18.48%|$

Annual targets and previous renewable power percentages