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Voluntary surrender

 

All registered owners of certificates can choose to make voluntary certificate surrender offers for any reason under Section 28A of the Act.

As one example, individuals or companies may choose to make voluntary surrender certificate offers to encourage additional generation of electricity from renewable energy sources and to meet GreenPower obligations.1 If offers are made for this, or similar reasons, they are considered to be voluntary surrender offers.

As another example, individuals or companies may choose to make voluntary surrender certificate offers. Offers may be made in order to offset the impacts of improper creation of certificates under the civil penalties and other remedies provisions of the legislation, or to enforceable undertaking obligations under Section 154Q of the Act. If offers are made for these reasons they are considered to be non-compliance surrender offers.

Any certificate accepted for voluntary surrender is permanently removed from the market and cannot be transferred to another party or be used to discharge a mandatory surrender liability under the Act. Once certificates are accepted by the Clean Energy Regulator they are marked as 'invalid due to voluntary surrender’ in the REC Registry.

As at 31 December 2012 a total of 11,914,413 certificates, representing 803 offers, had been accepted for voluntary surrender in the REC Registry. Table 7 confirms the number of certificates accepted for voluntary surrender. Graph 9 represents the number of voluntary surrender offers made per month in the REC Registry between 2011 and 2012 calendar years.

Table 7: Certificates accepted for voluntary surrender from 2007 to 31 December 2012

Calendar
Year
LGC
Voluntary
Non
compliance
STC2
Voluntary
Non
compliance
Total number of
certificates and offers
accepted for other
surrender
20123 4 2,582,385 26,251 319 9,395 2,618,350
representing 214 offers
2007–2011 9,243,806 44,855 29 7,373 9,296,063
representing 589 offers
Total 11,826,191 71,106 348 16,768 11,914,4135
representing 803 offers

Graph 9: Number of voluntary surrender certificates accepted by month in 2011 and 2012

Graph 9: Number of voluntary surrender certificates accepted by month in 2011 and 2012
January 1646 196089 197735
February 1637 1750 3387
March 1838736 1626274 3465010
April 274475 475 274950
May 96572 211401 307973
June 59617 102656 162273
July 5747 138721 144468
August 6429 210479 216908
September 43258 16732 59990
October 1066 15562 16628
November 52520 12 52532
December 1802 98199 100001
Grand Total 2383505 2618350 5001855

1 For more information on GreenPower see the GreenPower website.

2 STCs were first created from 1 January 2011.

3 The busiest month for voluntary surrender was March, with 1,626,274 LGCs offered, representing 89 offers. One of the driving factors that increases the number of certificates surrendered annually is GreenPower participants’ voluntary surrender of certificates to meet their annual obligations by 31 March for the previous year. Voluntary surrender for GreenPower purposes represents approximately 80.5 per cent for 2012 and 91.7 per cent for 2011.

4 On 28 June 2010 civil penalty and other remedies, including enforceable undertaking provisions, were introduced into the legislation. The busiest month in 2012 for non-compliance surrender was October with 15,562 certificates offered, representing 11 offers, closely followed by May with 15,193, representing 16 offers.

5 This total assumes that LGCs and STCs offered at 31 December 2012 with a status of pending voluntary surrender will be accepted for voluntary surrender in early 2013.

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