A
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Term |
Definition/Explanation |
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|
AAU | An assigned amount unit (AAU) means an assigned amount unit issued in accordance with the Kyoto rules. |
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| ACCU | See
Kyoto Australian Carbon Credit Unit. |
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| AEAS (Annual Energy Acquisition Statement) |
Liable entities under the Renewable Energy Target who acquired electricity must lodge an Annual Energy Acquisition Statement or Renewable Energy Shortfall Statement for the compliance year, reporting relevant acquisitions, exemption certificates, reduced acquisitions, large-scale generation certificate and small-scale technology certificate liabilities and shortfalls. |
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| AEMO | Australian Energy Market Operator
AEMO was established in 2009 and is responsible for the operation of the National Electricity Market which includes the eastern and south-eastern regions of Australia (Queensland, New South Wales, Victoria, Tasmania and South Australia). |
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| AFP | Australian Federal Police |
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| Agents | In relation to the Renewable Energy Target, agents are registered persons who can create renewable energy certificates on behalf of owners of eligible small-scale installations, when the owners have assigned their right to create certificates to the agent. |
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| Aggregation | Aggregation is the process of bringing multiple sources of carbon abatement together. Aggregation can be undertaken by individuals or organisations. |
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| Agreed quantity |
The total quantity of ACCUs to be delivered over the duration of the Contract. The agreed quantity is specified in Item 1 of the Delivery Terms. |
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| Air source heat pump | Air source heat pump water heaters transfer heat from air outside the unit to water stored inside the unit. The air heats a special type of refrigerant (not a CFC) and the energy is used to heat the water. |
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| ANREU |
Australian National Registry of Emissions Units
The registry in which all transactions of Australian carbon credit units takes place. A Seller must have an Australian National Registry of Emissions Units account to participate in the Emissions Reduction Fund. |
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| ANREU Act | Australian National Registry of Emissions Units Act 2011 |
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| ANREU Regulations | Australian National Registry of Emissions Units Regulations 2011 |
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| Assessment year | The period over which each annual target under the Renewable Energy Target must be achieved, which is a full calendar year and relates to the surrender of certificates by liable entities. |
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| Assessment year's reduced acquisition | Assessment year’s required acquisitions has the meaning given by section 38AA (2) of the Renewable Energy Act |
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| Auction |
See
Carbon Abatement Purchasing Process. |
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| Australian Carbon Credit Unit | See
Kyoto Australian Carbon Credit Unit. |
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| Australian National Registry of Emissions Units | See
ANREU. |
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| Authorised representative | In respect of the Seller any person who is nominated by the Seller by notice to the Buyer accompanied by a certified copy of the nominated person's signature.
In respect of the Buyer, the Chair or any other official of the Clean Energy Regulator whose title contains the word "Manager" (or a person performing the functions of any such person) or any attorney or other person nominated by the Buyer as an "Authorised Representative". |
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B
| Bagasse | Bagasse is the fibrous waste left from the crushing of sugar cane, which is used as a fuel source to generate renewable energy under the Renewable Energy Target. |
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| Baseline | The baseline is the amount of electricity above which an accredited large-scale renewable energy power station can begin to create large-scale generation certificates. We determine baselines under the Renewable Energy (Electricity) Regulations 2001. |
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| Baseline determination | Umbrella term for all baseline determinations made by the Clean Energy Regulator, as opposed to ‘default baselines’ which exist in the absence of a determination.
Baseline is based on best practice benchmark and estimated production. |
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| Baseline emissions number | See Baselines. |
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| Baselines | ‘Baselines’ is the umbrella term used for all safeguard baseline numbers. Emissions baselines represent the reference point against which future emissions performance will be measured under the safeguard mechanism. |
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| Benchmark baseline | See Baseline determination. |
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| Benchmark-emissions baseline determination | See Baseline determination. |
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| Biomass | Biomass is a consolidation of a number of fuel types including agricultural waste, bagasse, biomass-based components of municipal solid waste, black liquor, energy crops, food processing waste, food waste, landfill gas, sewage gas and biomass-based components of sewage, waste from processing agricultural products and wood waste. |
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C
| Calculated baseline | Baseline based on audited emissions forecast provided by responsible emitter. |
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| Calculated-emissions baseline determination | See Calculated baseline. |
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| Capacity factor | Capacity factor of a power station is the ratio of actual electricity generated (output) over a given period of time to the maximum possible electricity generation (output) over the same period of time. |
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| Carbon abatement | Carbon abatement refers to both reducing carbon emissions released into the atmosphere, or reducing carbon already in the atmosphere through carbon sequestration. |
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| Carbon abatement contract |
A Carbon Abatement Contract (Contract) is a contract between each participant successful at an Auction (the Seller) and the Clean Energy Regulator (the Buyer).
The contract is a standardised sale and purchase agreement that obligates the seller to deliver a quantity of Kyoto Australian Carbon Credit Units (ACCUs) to the Clean Energy Regulator and the Regulator to purchase those ACCUs at the contracted price over a set Delivery Schedule for the duration of the contract.
Note that the contract is made up of four separate documents – the Code of Common Terms, the Commercial Terms, the Delivery Terms and the Financial Terms. |
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Carbon abatement purchasing process | An Auction, the process conducted by the Clean Energy Regulator where a participant bids to receive a contract to sell ACCUs to the Clean Energy Regulator at the bid price for the duration of the contract. |
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| Carbon dioxide equivalence (CO2-e) | A measure of greenhouse gas emissions. Carbon dioxide equivalence is estimated by multiplying the amount of gas by the global warming potential of the gas. |
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| Carbon Maintenance Obligation (CMO) | If land is subject to a CMO, a person must not do anything that results, or is likely to result, in a reduction in the carbon stores below the benchmark sequestration level unless the activity has been expressly permitted in the CMO declaration. The benchmark sequestration level is the amount of carbon sequestered in the area at the time the carbon maintenance obligation declaration is made. If there is a reduction below the benchmark sequestration level, the owner or occupier of the land must take all reasonable steps to ensure that carbon stores recover to the benchmark level. The CMO can be revoked once the requirement to relinquish ACCUs is met. |
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| CDM | Clean Development Mechanism |
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| CEC | The Clean Energy Council (CEC) manages the accreditation of installers of small generation units and is the peak body representing Australia's clean energy sector. |
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| CER | Clean Energy Regulator |
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| Certificate | Certificate typically refers to both large-scale generation certificates (LGCs) and small-scale technology certificates (STCs), and is connected to the previously used term renewable energy certificate (REC). Amendments to the Renewable Energy Act, which took effect from 1 January 2011, split RECs into two types: LGCs and STCs. |
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| Certificate spot price | Certificate spot price refers to the current market price for certificates. Large-scale generation certificates are generally traded through the wholesale market in parcels, of 5000 certificates.
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| CFI | Carbon Farming Initiative |
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| CFI Act | The
Carbon Credits (Carbon Farming Initiative) Act 2011. The legislation that establishes and administers the Emissions Reduction Fund. |
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| Charge Acts |
The Renewable Energy (Electricity) (Large-scale Generation Shortfall Charge) Act 2000 and the
Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Act 2010 |
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| Clean Energy Act | Clean Energy Act 2011 |
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| CNG | Compressed natural gas |
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| CO2-e | See Carbon dioxide equivalence. |
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| COAG | Council of Australian Governments |
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| Code of Common Terms | The Code of Common Terms is one component of the Contract. It contains the standard rights and obligations of the parties under the Contract and is non-negotiable. |
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| Compliance period | A full calendar year over which each annual target under the Renewable Energy Target must be achieved. |
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| Commercial Terms | The Commercial Terms is one component of the Contract. It primarily sets out the details of the Seller, the details of the project(s) covered, each parties ANREU account and any agreed Conditions Precedents. |
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| Committed projects | Committed projects refers to large-scale renewable energy projects that have received all development approvals and reached a final investment decision according to the commercial understanding of the term. |
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| Commencement Date | If there are no Conditions Precedents the Commencement Date of the Contract is the Contract Date (5 business days after an Auction). If there are Conditions Precedents then it is five (5) business days after the receipt of notice of the fulfilment or waiver of the Conditions Precedents, provided that date is prior to the Conditions Precedent Expiry Date, otherwise the Conditions Precedent Expiry Date. |
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| Conditions Precedent | A condition that must be fulfilled or waived before the obligation to deliver and purchase ACCUs under the contract comes into effect. That is, the contract will not commence until certain conditions such as financing or regulatory approvals for the project have been met. Conditions Precedents are specified in Item 3 of the Commercial Terms. |
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| Conditions Precedent Expiry Date |
The Conditions Precedent Expiry Date is the date by which any Conditions Precedents must be fulfilled or waived or the Contract terminates. It is the earlier of the date specified in Item 4 of the Commercial Terms, or such other date agreed between the parties. |
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| Contract | See Carbon Abatement Contract. |
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| Contract Date | Five (5) business days after an Auction. The Auction date and Contract Date are found in Items 2 and 3 of the Financial Terms. |
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| Contract Units | See
Kyoto Australian Carbon Credit Unit. |
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| Controlling corporation | An entity that must register and report under the National Greenhouse and Energy Reporting Act 2007, as defined in section 7 of the Act. A controlling corporation is a constitutional corporation that does not have a holding company in Australia (section 7 National Greenhouse and Energy Reporting Act 2007). It is generally the corporation at the top of the corporate hierarchy in Australia. It can be a 'non-operational' holding company. It may also be a foreign incorporated entity that operates directly in Australia (that is, does not operate through an Australian incorporated subsidiary). Controlling corporations have reporting responsibilities under the NGER legislation. |
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Crediting Period Start Date | The date when the crediting period for a project begins which is when the project is declared an eligible offsets project under the
CFI Act or another time specified when the declaration is made |
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| Covered emissions | For the purposes of the safeguard mechanism covered emissions are defined as scope 1 emissions, including direct emissions from fugitive emissions and emissions from fuel combustion, waste disposal and industrial process such as cement and steel making. Some scope 1 emissions are not covered by the safeguard mechanism. These include: - legacy emissions from the operation of a landfill facility (that is, emissions from waste deposited at the landfill before 1 July 2016),
- emissions which occur in the Greater Sunrise unit area or Joint Petroleum Development Area,
- emissions from the operation of a grid-connected electricity generator in a year covered by the sectoral baseline, and
- emissions not covered under the
National Greenhouse and Energy Reporting (Measurement) Determination 2008.
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D
Deeming period
| The estimation of the amount of electricity a small-scale solar power system or small-scale wind or hydro system generates, or the electricity a solar water heater or heat pump displaces. Deeming allows the owners of these technologies to receive their entitlement to small-scale technology certificates before the system has produced or displaced the electricity. |
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| Delivery | The transfer of an amount of ACCUs by a Seller to the Clean Energy Regulator. |
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| Delivery Failure | Failure, for any reason, of the Seller to deliver the quantity of ACCUs due on a Scheduled Delivery Date. |
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| Delivery Shortfall | The quantity of ACCUs that is not delivered on a Scheduled Delivery Date that exceeds 20 per cent of the quantity due by that date. |
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| Delivery Schedule | The schedule, including dates and quantities, for the Delivery of ACCUs agreed between the Seller and the Clean Energy Regulator. The Delivery Schedule is specified in Item 3 of the Delivery Terms. |
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| Delivery Terms | The Delivery Terms is one component of the Contract. It sets out the total quantity of ACCUs to be delivered, the contract period and the Delivery Schedule. |
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| Designated large facility | Facilities covered by the safeguard mechanism. |
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| Direct current isolator switch | Direct Current (or DC) isolators are switches used to stop electrical currents from being supplied to or from certain equipment, such as solar panels and inverters, during installation and repairs. |
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| Displaced/displacement | The estimated reduction in demand for electricity from the grid that results from the installation of a solar water heater or air source heat pump. |
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| Displacement | The estimated reduction in demand for electricity from the grid that results from the installation of a solar water heater. |
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| DLF |
Distributional loss factor |
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E
EERS
| Emissions and Energy Reporting System
All reporters under the National Greenhouse and Energy Reporting Act must submit their energy and emission reports and interim and final emission reports in EERS. |
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| EGR | Electricity generation return |
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| EITE | Emissions-intensive trade-exposed |
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| Electricity market | The Australian electricity market is a virtual market which facilitates the purchase, sale and trade of all types of power and energy (including renewable energy) for consumption by businesses and householders. |
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| Electricity retailers | See liable entity. |
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| Emissions avoidance | Emissions avoidance refers to projects that generate abatement by reducing or avoiding emissions of methane (CH4) and nitrous oxide (NO2), or convert methane into carbon dioxide (CO2) which is a less potent greenhouse gas. |
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Emissions Reduction Unit
ERU | An emission reduction unit (ERU) means an ERU issued in accordance with the relevant provisions of the Kyoto rules. For more information about ERUs, see the Concise Description of Emission Reduction Units. |
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| Energy | Under the National Greenhouse and Energy Reporting Act 2007 (section 7), energy includes fuel or any other energy commodity listed in Schedule 1 of the NGER Regulations. |
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| Energy acquisition statement | Entities liable under the Renewable Energy Target are required to report all relevant acquisitions of energy (relevant electricity use) they have made throughout the previous calendar year. These energy acquisition statements are due between 1 January and 14 February each year. |
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| Energy consumption | Under sub regulation 2.23(4) of the NGER Regulations, the consumption of energy, in relation to a facility, means the use or disposal of energy from the operation of the facility including own-use and losses in extraction, production and transmission. |
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| Energy production | Under sub regulation 2.23(3) of the NGER Regulations, the production of energy, in relation to a facility means one of the following:
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extraction or capture of energy from natural sources for final consumption by or from the operation of the facility or for use other than in the operation of the facility, or
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the manufacture of energy by the conversion of energy from one form to another form for final consumption by or from the operation of the facility or for use other than in the operation of the facility.
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| Enforceable undertaking | An enforceable undertaking is a voluntary binding agreement that allows an individual or organisation to mitigate, avoid or compensate for a contravention of the law, without going through litigation. |
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| ERF | Emissions Reduction Fund
The Emissions Reduction Fund is a scheme where the Government purchases the lowest cost abatement (in the form of Australian carbon credit units) from a wide range of sources, providing an incentive to businesses, households and landowners to proactively reduce their emissions. |
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| Excess emissions situation | Where net emissions for a facility exceed the facility’s baseline. |
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| Exemption certificate | The
Renewable Energy (Electricity) Act 2000 and the Renewable Energy (Electricity) Regulations 2001 include the provision for exemption from liability under the Renewable Energy Target. To receive exemption, individuals and businesses who conduct eligible emissions-intensive trade-exposed activities must apply to the Clean Energy Regulator for an exemption certificate. |
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| Expiry Date | The date by which the final Delivery under the Contract is to be completed and the contract period ends. The Expiry Date is specified in Item 2 of the Delivery Terms. |
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F
| Facility | Registered corporations are required to report all greenhouse gas emissions, energy production and energy consumption from facilities under the operational control of the registered corporation or a member of its group. Defining a 'facility' and determining a facility's boundaries are therefore central to reporting under the Act. In some cases, greenhouse gas emissions, energy production and energy consumption data from the operation of facilities may be provided by a member of the registered corporation's group.
Under section 9 of the National Greenhouse and Energy Reporting Act 2007 a facility is an activity, or a series of activities (including ancillary activities), that involve the production of greenhouse gas emissions, the production of energy or the consumption of energy and that: -
form a single undertaking or enterprise and meet the requirements of the NGER Regulations, or
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are declared to be a facility under section 54
but does not include an activity, or a series of activities, in the exclusive economic zone, except to the extent that it is an oil or gas extraction activity or series of activities. |
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| FAQs | Frequently asked questions |
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| Financial Terms |
The Financial Terms is one component of the Contract. It sets out the price that the Clean Energy Regulator will pay the Seller per ACCU, the auction date and the Contract Date. |
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| FOI | Freedom of information |
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| Force Majeure | The occurrence of any event or circumstance beyond the control of a party that could not, after using all reasonable efforts, be overcome and which results in or causes the failure of that party to perform its obligations under the Contract. |
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| Forward abatement estimate | The best estimate of the number of Australian carbon credit units likely to be issued for a project for the total crediting period. |
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| Fugitive emissions | The release of emissions that occur during the extraction, processing and delivery of fossil fuels. |
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G
| Generation from accredited renewable energy power stations | Accredited renewable energy power stations can report their renewable energy generation and create large-scale generation certificates no later than 12 months after the calendar year in which the generation occurred. The above baseline generation number published in this report refers to generation for the calendar year that has had large-scale generation certificates validated against it. This number will continue to rise due to the 12-month creation rule. |
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| Gigajoule | 1 gigajoule = 1,000 megajoules |
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| Gigawatt (GW) | A gigawatt is a unit for measuring power that is equivalent to one thousand megawatts. |
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| Gigawatt hour (GWh) | A gigawatt hour (GWh) is equal to 1,000 megawatts of electricity used continuously for one hour. |
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| Global warming potential (GWP) | GWP is a measure of how much a given mass of greenhouse gas is estimated to contribute to global warming. It is a relative scale that compares a gas with the same mass of carbon dioxide and is calculated over a specific time interval. Emissions factors and methods, as described in the NGER (Measurement) Determination 2008, take the GWP of different gases into account. More information on GWP values and how they are used with prescribed methods for calculating greenhouse gas emissions is provided in the NGER Technical Guidelines. |
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| Greenhouse and energy audit | A greenhouse and energy audit means an audit under section 73 to 74A of the National Greenhouse and Energy Reporting Act 2007. |
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| Greenhouse gas | Under the National Greenhouse and Energy Reporting Act 2007 (section 7), a greenhouse gas means:
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carbon dioxide, or
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methane, or
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nitrous oxide, or
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sulphur hexafluoride, or
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a hydrofluorocarbon of a kind specified in the NGER Regulations, or
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a perfluorocarbon of a kind specified in the NGER Regulations.
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| Greenhouse gas emissions | Greenhouse gas emissions refers to gases produced from human activity, such as carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). These emissions alter the natural greenhouse effect and encourage atmospheric warming. The greenhouse effect is created by naturally occurring gases such as water vapour (H2O) that insulate the Earth, preventing the sun’s heat from escaping and keep the Earth at liveable temperatures. |
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| GreenPower | GreenPower is the only voluntary state and territory government accredited program that enables electricity providers to purchase renewable source electricity on behalf of households or businesses. A joint initiative of the governments of the Australian Capital Territory, New South Wales, South Australia, Victoria and Tasmania, GreenPower guarantees that the renewable source electricity consumers buy from energy suppliers meets stringent environmental standards. |
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| Grid-connected electricity generator | Electricity generator connected to one of the five major electricity grids. |
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| Group member | A controlling corporation's group may include; subsidiaries, joint ventures or partnerships in addition to the controlling corporation itself.
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I
| IMO | Independent Market Operator |
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J
| Joint Implementation Project | A Joint Implementation Project refers to whether the project is being undertaken jointly between Australia and another developed country for the purpose of the Kyoto Protocol. |
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K
| Kilojoule | 1 kilojoule = 1,000 joules |
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| Kilotonne (kt) | kt = kilotonne (106 kilograms) CO2-e equivalent of greenhouse gases emitted
1 kilotonne = 1,000 tonnes |
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| Kilowatt (kW) | A kilowatt is a measurement of power. Power is the rate at which the energy is generated or used. One kilowatt is equal to 1000 watts. |
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| Kilowatt hour (kWh) | A kilowatt hour is a measure of electrical energy equivalent to a power consumption of 1000 watts for one hour. |
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| Kyoto Australian Carbon Credit Unit (ACCU) | The units in which transactions between the Buyer and Seller take place.
Transactions of ACCUs occur through the ANREU.
ACCUs are credits that represent one tonne of verified carbon emissions or equivalent abatement achieved by eligible offsets projects. ACCUs are created and issued by the Clean Energy Regulator in accordance with Section 147 of the
CFI Act. |
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| Kyoto Protocol | An international agreement on reducing greenhouse gas emissions, established under the United Nations Framework Convention on Climate Change. |
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| Kyoto unit | Emissions trading units defined under the Kyoto Protocol of the United Nations Framework Convention on Climate Change. |
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L
| Large-scale generation certificates validated | This represents the number of certificates assessed and approved by the Clean Energy Regulator in a relevant period. This does not account for when certificates were created or when the renewable energy generation (above baseline) occurred. This is used to track progress towards the 33 000 gigawatt target, as validated certificates can then be used by electricity retailers to meet their obligations against the target, after the fee is paid for registration. |
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| LCharge Act | Renewable Energy (Electricity) (Large-scale Generation Shortfall Charge) Act 2000. This relates to the Large-scale Generation Shortfall Charge. |
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| LGC (large-scale generation certificate) | Large-scale generation certificates may be created by power stations who generate electricity from renewable sources. Each certificate represents one megawatt hour of renewable energy generation. |
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| LGCF | Large gas consuming facility |
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| LGSC | Large-scale Generation Shortfall Charge |
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| LGSS | Large-scale Generation Shortfall Statement |
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| Liability | The liability to surrender certificates or pay a renewable energy shortfall charge by liable entities. |
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| Liable entity | A person who, during a year, makes a relevant acquisition of electricity is called a liable entity. Liable entities are required by legislation to surrender a specified number of renewable certificates or pay a renewable energy shortfall charge. |
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| LNG | Liquefied natural gas |
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| LPG | Liquefied petroleum gas |
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| LRET | The Large-scale Renewable Energy Target encourages the deployment of large-scale renewable energy projects. |
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M
| MDA | Meter Data Agent |
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| Megajoule | 1 megajoule = 1,000 kilojoules |
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| Megawatt (MW) | A megawatt is a measurement of power. Power is the rate at which the energy is generated or used. One megawatt is equal to 1000 kilowatts. |
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| Megawatt hour (MWh) | A megawatt hour is a measure of electrical energy equivalent to a power consumption of 1000 kilowatts for one hour. |
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| Method / methodology determination | Legislative instrument that explains how to carry out an Emissions Reduction Fund project and measure the resulting reductions in emissions. |
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| Multi-year period declaration | The responsible emitter for a facility may apply to the Clean Energy Regulator for declaration of a specified period as a declared multi-year period for a facility (a
multi-year period declaration). |
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| Multi-year monitoring period | A
multi-year monitoring period, allows safeguard compliance to be monitored over two or three years. A facility could exceed its baseline in one year, so long as average emissions over multiple years remain below the baseline emissions number. |
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N
| NPC | National Police Check |
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| NEM (National Electricity Market) | The National Electricity Market interconnects five regional market jurisdictions (Queensland, New South Wales, Victoria, South Australia and Tasmania). Western Australia and Northern Territory are not connected to the National Electricity Market. |
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| NGER | National Greenhouse and Energy Reporting
The National Greenhouse and Energy Reporting scheme is a single, national framework for corporations to report on greenhouse gas emissions, energy use and energy production. |
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| NGER Act | National Greenhouse and Energy Reporting Act 2007 |
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| NGER Regulations | National Greenhouse and Energy Reporting Regulations 2008 |
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| NWIS (North West Interconnected System) | The NWIS supplies electricity to communities in the north west of Western Australia including the Pilbara region. |
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O
| Offtake agreement | See
power purchase agreement. |
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| Operational control | Operational control identifies the corporation with reporting obligations in regards to a facility. Operational control is defined in Section 11 of the National Greenhouse and Energy Reporting Act 2007.
An entity is considered to have operational control over a facility if it has authority to introduce and implement operating, health and safety, and/or environmental policies. If there is uncertainty about which corporation has operational control over a facility, the corporation deemed to have operational control will be the one with the greatest authority to introduce and implement operating and environmental policies. |
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P
| Payment Due Date | The date by which the Clean Energy Regulator is to pay the Seller for a Delivery of ACCUs. The date is twenty (20) business days after the later of the date which the Clean Energy Regulator receives an invoice of a Delivery or the date on which a Delivery occurs. |
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| Periodic Quantity |
The number of ACCUs due on a Scheduled Delivery Date in the Delivery Schedule |
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| Permanence period | A length of time that a sequestration project must maintain carbon stores. |
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| Photovoltaic system (PV) | A photovoltaic system, also known as a solar PV power system or PV system, is a power system designed to convert sunlight into usable electrical power by means of photovoltaic cells. |
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| Power purchase agreement (PPA) | A power purchase agreement is a contract between two parties, one which generates electricity (the seller) and the other looking to purchase electricity (the buyer). Under the Renewable Energy Target the seller is often the operator of a large-scale renewable energy power station, and the buyer is often an electricity retailer (liable entity). |
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| Power station | Renewable energy power stations generating electricity from at least one of the eligible renewable energy sources under Section 17 (1) of the Renewable Energy Act. Individuals and companies must be registered before they can seek accreditation of renewable energy power stations and create certificates above the renewable energy power station’s baseline. Power stations must apply to the Clean Energy Regulator for accreditation in order to participate in the Large-scale Renewable Energy Target. |
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| Probable projects | Probable projects have a high degree of confidence that they will proceed following a public announcement of a power purchase agreement with a strong counter party or other evidence of funding. |
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| Production-adjusted baseline | Baseline corrected for actual production levels. |
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| Production-adjusted baseline determination | See Production-adjusted baseline. |
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| Project | The project specified in Item 2 of the Commercial Terms, which at the date specified in Item 2 of the Financial Terms is an eligible offsets project under the
CFI Act. |
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| Project status | Project status refers to whether a declaration made under section 27 of the CFI Act is in effect or has been revoked. |
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| PYRA (previous year's reduced acquisitions) | The previous year’s reduced acquisitions is used to determine a liable entity's required surrender amount for quarters 1 to 3 and has the meaning given by section 38AA (3) and (4) of the Renewable Energy Act (see also sections 38AF, 38AG and 38AH of the Renewable Energy Act). This definition is part of the requirement mentioned in definition 'RSA - required surrender amount'. |
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R
| RA (relevant acquisition) | Relevant acquisitions are a wholesale or notional wholesale acquisition of electricity. |
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| RE Act | Renewable Energy (Electricity) Act 2000 |
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| RE Regulations | Renewable Energy (Electricity) Regulations 2001 |
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| Reasonable assurance audit | A type of greenhouse and energy assurance engagement conducted by a qualified assurance practitioner to provide an independent conclusion as to the reliability, accuracy and completeness of the matters being audited. Reasonable assurance means a high, but not absolute, level of assurance. |
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| REC (renewable energy certificate) | From 1 January 2011, renewable energy certificates were divided into two certificate types and reclassified as large-scale generation certificates (LGCs) and small-scale technology certificates (STCs). This change was reflected with an amendment to the Renewable Energy (Electricity) Act 2000. |
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| REC Registry | Renewable Energy Certificate Registry
The REC Registry is an online system where scheme participants can create, trade and surrender large-scale generation certificates (LGCs) and small-scale technology certificates (STCs). |
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| Reduced acquisitions | Relevant acquisitions of electricity minus exemption certificates. In this report we mainly refer to relevant electricity used. |
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| Register of projects | Public register of approved projects under the Emissions Reduction Fund, available on the Clean Energy Regulator website. |
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| Registered agent | Retailers, traders and installers who wish to help individuals and small businesses install a small-scale system at their premises and claim the small-scale technology certificates must apply to us to become a registered agent. |
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| Registered person | Individuals and companies must apply to us to become a registered person in order to create renewable energy certificates, apply for accreditation of a large-scale renewable energy power station, or apply to be an agent. |
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| Regulator created STCs (RCTCs) | The Clean Energy Regulator can create small-scale technology certificates if there are no small-scale technology certificates listed on the STC Clearing House. |
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| Renewable energy certificate | Renewable energy certificate refers to both large-scale generation certificates and small-scale technology certificates. |
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| Renewable power percentage (RPP) | The basis, set out in the Renewable Energy (Electricity) Regulations 2001, for calculating the number of large-scale generation certificates that a liable entity must purchase in a given year. |
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| Reported baseline | Baseline based on historical data reported under the National Greenhouse and Energy Reporting scheme. |
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| Reported-emissions baseline determination | See Reported baseline. |
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| RESC | Renewable Energy Shortfall Charge |
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| Responsible emitter | The person with operational control of a safeguard facility, who is responsible for meeting safeguard requirements. The responsible emitter may be an individual, a body corporate, a trust, a corporation sole, a body politic or a local governing body. |
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| RESS | Renewable Energy Shortfall Statement |
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| RET (Renewable Energy Target) | The Renewable Energy Target is designed to encourage investment in new large-scale renewable power stations through the Large-scale Renewable Energy Target, and the installation of new small-scale systems through the Small-scale Renewable Energy Scheme. |
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| RMU | A removal unit (RMU) means an RMU issued in accordance with the Kyoto rules. For more information about RMUs, see the Concise Description of Removal Units. |
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| ROE | Recognised offsets entity |
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| RPP | See Renewable power percentage. |
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| RTC | Reporting Transfer Certificate |
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| Safeguard threshold | The level of covered emissions a facility must produce more than to be covered by the safeguard mechanism (100,000 tonnes of CO2-e). |
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| SCharge Act | Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Act 2010. This relates to the STSC |
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| Scheduled Delivery Date | The date by which each Delivery of a quantity of ACCUs is to be completed under a carbon abatement contract. The Scheduled Delivery Dates are outlined in the Delivery Schedule. |
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| Scope 1 emissions | Scope 1 emissions are emissions released into the atmosphere as a direct result of the activity or activities that make up the facility, such as fuel combustion for electricity generation or cement production. |
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| Scope 2 emissions | Scope 2 emissions are emissions released into the atmosphere as a direct result of one or more activities that generate electricity, heating, cooling or steam that is consumed by the facility but do not form part of the facility. National Greenhouse and Energy Reporting scheme reporting covers both Scope 1 and scope 2 emissions. |
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| Section 19: Energy and emissions report | Controlling corporations who exceed either a corporate group or a facility threshold must report their scope 1 and scope 2 emissions and energy production and consumption data to the Clean Energy Regulator under section 19 of the NGER Act. |
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| Section 22G: Reporting Transfer Certificate Energy and Emissions report | A person that holds a reporting transfer certificate (RTC) must complete a final emissions report under s22G of the NGER Act. This report contains information about the RTC facility's scope 1 and scope 2 emissions and energy production and consumption. |
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| Section 22X: Group member Energy and Emissions report | A group member that has agreed with its controlling corporation (and notified the Clean Energy Regulator of this agreement), to take on the controlling corporation's section 19 reporting obligations, must complete a final emissions report under s22X of the NGER Act. This report contains information about the agreed facility's scope 1 and scope 2 emissions and energy production and consumption. |
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| Sectoral baseline | Sector-wide baseline applied to the electricity sector. |
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| Sequestration | Sequestration refers to abatement generated by removing carbon dioxide from the atmosphere and storing it as carbon in plants as they grow. Examples of sequestration activities could include:
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reforestation
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revegetation
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restoring rangelands
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protecting native forest or vegetation that is at imminent risk of clearing
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| Small generation unit (SGU) |
A device that uses a hydro, wind or solar energy source to generate electricity within limits set out in the Regulations. It is the generic term used when referring to small-scale solar panel, wind and hydro systems. |
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| SGU return / SWh return | Solar water heater and small generation unit return. |
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| Shortfall charge | Liable entities who fail to meet their compliance obligations under the Renewable Energy Target are required to pay a shortfall charge. This charge is non-tax deductible, and must be paid at the rate of $65 per megawatt hour of the shortfall amount. |
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| Small-scale systems | Small-scale systems are solar hot water heat pumps and small-scale solar panels, wind and hydro systems. They are potentially eligible for the creation of renewable energy certificates. |
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| Small-scale technology certificate | A renewable energy certificate that may be created by the owner of a small-scale system, or their agent, for the generation of electricity by that system. |
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| Small-scale technology percentage | The basis, set out in the Regulations, for calculating the number of small-scale technology certificates that a liable entity must purchase in a given year. |
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| Solar credits | A mechanism that provided an additional financial incentive for solar panel installations by multiplying the number of certificates the systems could create. It operated between 9 June 2009 and 30 June 2013. |
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| Solar panels | A panel designed to absorb the sun’s rays as a source of energy for generating electricity or heating. |
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| Solar water heater (SWh) | A device that heats water using solar energy and satisfies the conditions set out in the Regulations. Includes solar hot water systems and air source heat pumps. |
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| SRES | Small-scale Renewable Energy Scheme |
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| STC | Small-scale Technology Certificate |
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| STC clearing house | Small-scale Technology Certificate clearing house
The STC clearing house facilitates the exchange of small-scale technology certificates (STCs) between buyers and sellers at the fixed price of $40 (excl. GST). |
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| STP | Small-scale Technology Percentage |
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| STSC | Small-scale Technology Shortfall Charge |
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| STSS | Small-scale Technology Shortfall Statement |
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| Subsidiary | Under the National Greenhouse and Energy Reporting Act 2007 a 'subsidiary' has the same meaning as that expressed in Section 46 of the Corporations Act 2001. Any subsidiary under the Corporations Act would be considered part of the controlling corporation's group. A body corporate (in this section called the first body) is a subsidiary of another body corporate if, and only if, the other body:
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controls the composition of the first body's board, or
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is in a position to cast, or control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of the first body, or
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holds more than one-half of the issued share capital of the first body (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital), or
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the first body is a subsidiary of a subsidiary of the other body.
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| Sub-standard | A sub-standard small-scale system does not meet key clauses in the Clean Energy Council standards and requirements for installation, or relevant Australian Standards, and may lead to premature equipment failure or other issues. The installation work and or equipment should be improved. The system owner should contact the installation company or a qualified installer to rectify the items listed for improvement. |
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| Surrender | The act of returning renewable energy certificates to the Clean Energy Regulator, at which point they are removed from the certificate market. May be ‘mandatory’ surrender to acquit liability or ‘voluntary’ surrender for any reason. |
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| SWIS | South West Interconnection System |
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| Terajoule (TJ) | TJ = terajoule (1012 joules) of energy consumed or produced.
1 terajoule = 1,000 gigajoules |
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| Threshold (NGER) | There are two types of thresholds to determine which corporations are required to participate in the NGER scheme. These are facility thresholds and corporate group thresholds.
For a facility, the threshold is: • 25 kilotonnes (kt) or more of greenhouse gases—carbon dioxide equivalence (CO2-e) • production of 100 terajoules (TJ) or more of energy, or • consumption of 100 TJ or more of energy. For a corporate group, the threshold is: • 50 kt or more of greenhouse gases (CO2-e) • production of 200 TJ or more of energy, or • consumption of 200 TJ or more of energy. These amounts have reduced over time to include more reporters and therefore capture more information about Australia’s emissions and energy. |
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| Undelivered Carry-Over Amount | The quantity of ACCUs that is due to be delivered, but is not delivered because of a Delivery Failure, that does not exceed 20 per cent of the quantity of ACCUs due on that date. |
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| UNFCCC | United Nations Framework Convention on Climate Change |
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| Unit Price |
The price per Australian Carbon Credit Unit at which the Clean Energy Regulator agrees to purchase them from the Seller. The unit price is specified in Item 1 of the Financial Terms of the carbon abatement contract. |
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| Unsafe | An unsafe system has a safety hazard which poses an imminent risk to a person or property. The inspector shuts down the system and renders it safe. The inspector also advises the relevant state or territory regulatory authority of the nature and extent of the safety risk. The system owner should contact the installation company or a qualified installer to rectify the items listed for improvement. |
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| Voluntary Automatic Unit Cancellation Regime | Projects that elect this regime have any Australian carbon credit units (ACCUs) issued immediately cancelled. This arrangement prevents proponents receiving both ACCUs and a separate payment for the same action to abate greenhouse gas emissions. |
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| Voluntary surrender | Section 28A of the Renewable Energy Act allows a registered owner to offer certificates for surrender for any reason other than to comply with mandatory liabilities under section 44 or 95. A certificate that is accepted for surrender under section 28A is permanently removed from the certificate market. |
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