Under the Large-scale Renewable Energy Target, the
large-scale generation certificate (LGC) eligibility formula is used to determine the amount of generated electricity eligible for large-scale generation certificates.
Each whole megawatt hour of eligible electricity generated above the
power stations baseline is entitled to one large-scale generation certificate.
The large-scale generation certificate eligibility formula is:
TLEG – [(FSL + AUX) + DLEG x (1 – MLF)]
TLEG TLEG is the total amount of electricity, in megawatt hours (MWh), generated by the power station in the calendar year—measured at all generator terminals.
FSL FSL is the total amount of electricity in MWh generated by the power station comprised of ineligible energy sources, such as fossil fuels. FSL will only apply to power stations that use a combination of fossil fuels and renewable energy sources to generate electricity. Where a mixture of renewable and fossil fuels is used, the fossil fuel component must be netted from the generation output, as it is not eligible for large-scale generation certificates.
AUX AUX, or auxiliary loss is the electricity used in the process of generating electricity, and electricity used in the operation and maintenance of all components of the power station. Auxiliary loss is not eligible for large-scale generation certificates.
When available, metered data should be used to calculate auxiliary loss, and when metered data is not available, a proportion of the total output (which has been identified and agreed with the Clean Energy Regulator in advance) may be used.
DLEG DLEG is the net eligible electricity generated and exported to a distribution network, transmission network or a point of use.
MLF MLF, or marginal loss factor, is applied to the amount of exported electricity to allow for electricity losses in transmission networks.
MLF is calculated for each power station by the Australian Energy Market Operator in the National Electricity Market (NEM) regions. Power stations not located in a NEM region should contact their State or Territory government for this information.
Note: if all of the electricity generated by a Renewable Energy Target power station is used within the power station and/or the local distribution network, the MLF value is taken to be 1.
When metered data of sufficient quality (refer to regulation 4 of the
Renewable Energy (Electricity) Regulations 2001) is submitted to Clean Energy Regulator, large-scale generation certificates can be created for renewable electricity generation. In cases when meter quality is not of a sufficient standard, the number of large-scale generation certificates a power station is entitled to create may be reduced—to ensure that there are none created for ineligible electricity.
A Renewable Energy Target power station with a 'nil', or 0 megawatt hours (MWh) baseline generates 100 MWh of electricity. Of the 100 MWh generated:
Using the formula:
100 MWh – 0 – 5 MWh – [50 MWh x (1 – 0.9)]
= 95 MWh – 5MWh
= 90 MWh
As one large-scale generation certificate is equal to 1 MWh, this power station can create 90 large-scale generation certificates.
The Clean Energy Regulator has created the following tools and resources to calculate eligible electricity entitled to large-scale generation certificates:
A formula for determining the eligible renewable components of municipal and commercial wastes for use by electricity generation plants that use waste as a fuel source.
A formula to calculate electrical output, in megawatt hours from a renewable energy source when co-fired with coal.
A series of guides and assessment sheets to build and keep appropriate record sets to demonstrate the eligibility of wood waste as part of the accreditation process.
Read more information on wood waste guide and assessment sheets.
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The Clean Energy Regulator is a Government body responsible for accelerating carbon abatement for Australia.