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Large-scale generation certificate validation

18 October 2018

Validation​​​ ​process

Once a power station is accredited, nominated persons may create large-scale generation certificates (LGCs) for eligible electricity generation. Before LGCs can be sold or traded, they are assessed by the Clean Energy Regulator to ensure they are eligible for registration once an LGC creation fee is paid.

The Clean Energy Regulator uses a risk-based approach to the assessment of LGC claims. The Clean Energy Regulator uses a range of third-party information sources and supporting data analytics to determine that a LGC claim made by a nominated person is eligible for registration.

The Clean Energy Regulator will also check that the power station has:

  • a metering arrangement in place which meets all the criteria of the scheme
  • correctly applied the large-scale generation certificate eligibility formula, and
  • claimed the net quantity of eligible renewable electricity generated, excluding ineligible energy sources, auxiliary loss and any marginal loss factor.

It is important to keep a record of your supporting documentation as the Clean Energy Regulator may request it for auditing or compliance activities.

Request for further information (RFI)

The Clean Energy Regulator may from time to time request the submission of additional information to support your LGC claim.

Requests for further information will be sent to you through the REC Registry or through an email and will include a due date for the return of the requested information (not being a period of less than 14 days).

Not providing the requested information by the due date may delay the LGC claim assessment or result in the certificates being determined to be ineligible for registration and failed, or other action being taken.

Failed large-scale generation certificates

The Clean Energy Regulator will notify a power station if it determines that a LGC claim is not eligible for registration, resulting in the failure of LGCs. These failed LGCs will appear on your electricity generation return and will be published on the public register of large-scale generation certificates.

The improper creation of certificates is an offence under the Renewable Energy (Electricity) Act 2000. The response or action resulting from the improper creation of certificates will be in accordance with the agency’s compliance and enforcement approach. See our compliance, education and enforcement policy for more information.

Ongoing compliance reviews

After the registration of an LGC, and through the assessment of electricity generation returns (EGRs), the Clean Energy Regulator conducts ongoing reviews of electricity generation by power stations and previous claims made by nominated persons. As a result of these reviews, the Clean Energy Regulator may request nominated persons to provide further information regarding the creation of an LGC.

The Clean Energy Regulator may take action in response to the over-creation of LGCs that have been registered. This may include making an adjustment of LGC eligibility across months or between years (i.e. reducing the eligibility in a current month to offset for the over-creation in a previous month) or taking action under the relevant provisions of the Renewable Energy (Electricity) Act 2000 with respect to the improper creation of certificates.

The Clean Energy Regulator advises nominated persons regarding any identified under-creation of certificates below a power station’s calculated LGC eligibility. The nominated person may create these certificates at any time up until to the end of the year after the year of generation, or any date allowed by the Clean Energy Regulator.​

Over or under-crediting of certificates

See the Clean Energy Regulator's approach to dealing with over and under-crediting of certificates or units in the Large-scale Renewable Energy Target.

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