The 2017 small-scale technology percentage is 7.01%.
This means liable entities (generally electricity retailers) will be required to surrender approximately 12.4 million
small-scale technology certificates.
The number of certificates each liable entity needs to source and then surrender to us each year is in proportion to the amount of electricity they acquire. Liable entities calculate the exact number of certificates they need to surrender each year by multiplying the amount of electricity they acquire (minus any exemption certificates) by the small-scale technology percentage Unlike the large-scale certificates that are surrendered annually, small-scale certificates are surrendered on a quarterly basis.
The percentage for a year is set in regulation by 31 March of that year.
renewable power percentage which is set to meet a legislated annual target, the small-scale technology percentage balances the supply of small-scale technology certificates by setting an equivalent demand each year. This means
liable entities will be required to surrender to the Clean Energy Regulator the same number of certificates in a year as the estimated number of certificates that will be created in that year.
The Clean Energy Regulator has engaged qualified consultants to provide estimates of the small-scale technology certificates that will be needed for the following three years. The
consultants modelling reports are underpinned by analysis of the market.
In 2017, the
deeming period for small-scale technology certificates decreased from 15 years to 14 years, and it will continue to decline by one year in each subsequent year. This has been taken into account in the setting of the estimates.
Each year the Minister for the Environment and Energy must consider a number of matters when setting the percentage:
*Since June 2015 Emissions -Intensive Trade-Exposed (EITE) activities have had full exemption from Renewable Energy Target obligations, compared with partial exemptions in earlier years. Full EITE exemptions have been included in the percentage calculations since 2016.
A key consideration when setting the small-scale technology percentage is estimating the number of small-scale installations in the following year. When installations end up being higher or lower than predicted, over supply or under supply of small-scale technology certificates can form in the market.
In setting the small-scale technology percentage, an adjustment is made for any over or under supply of small-scale technology certificates in a previous year. Due to the high rate of small-scale technology certificates that have been created so far in 2017, the 2018 small-scale technology percentage is expected to increase, which will increase demand for STCs next year.
The Renewable Energy (Electricity) Regulations 2001 can be amended up to 31 March each year to set the small scale technology percentage. The Clean Energy Regulator publishes the percentage when the amendment is made.
If the amendments are not made by 31 March, a default formula will apply for that year, as stated in the
Renewable Energy (Electricity) Act 2000. For more information about the default formula refer to
section 39 (2) (b) of the Renewable Energy (Electricity) Act 2000.
The Clean Energy Regulator must also publish a non-binding estimate forecasting the small-scale technology percentage for the next two years. These estimates indicate what the percentage could be in future years, allowing liable entities time to budget and plan their certificate acquisition strategies each year.
The small-scale technology percentage estimates for the next two years are shown in the table below.
All previous small-scale technology percentages are available in the table below.
The following table provides information on the small-scale renewable energy scheme nominal target and small-scale technology percentage for each year, the legally binding amounts for the year.
It also provides the non-binding percentages which provide a guide for future small-scale technology percentages but which cannot take account of differences between estimates and actual amounts that occur after they are estimated.
Data as at 24 March 2017.
documentAsset:Small-scale technology percentage
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