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Large-scale generation certificates
The nominated person for an accredited power station may create large-scale generation certificates (LGCs) for eligible electricity generated by the power station. Eligible electricity is electricity generated from the power station's renewable energy sources.
One LGC can be created per megawatt hour (MWh) of eligible electricity generated by a power station. The amount of electricity generated by a power station is to be calculated by using the
large-scale generation certificate general formula.
A nominated person can create LGCs by submitting a 'claim' in the REC Registry. The Clean Energy Regulator (CER) determines the eligibility of LGCs created through a 'validation' process. Eligible LGCs will then be registered in the REC Registry.
Registered LGCs can be sold or transferred to entities with liabilities under the Renewable Energy Target or other companies looking to voluntarily surrender LGCs.
Liable entities are companies (mainly electricity retailers) that are required to purchase and surrender LGCs to the CER each year. This is in fulfilment of their obligations under the
Renewable Energy (Electricity) Act 2000 (REE Act).
LGCs are sold to liable entities (and other companies or individuals) in the market at a price agreed by those parties.
Find out more about
buying and
selling LGCs.
LGC claims: 5 steps for creating and registering LGCs
All claims for LGCs must be made through the
REC Registry which facilitates the creation, registration, transfer and surrender of large-scale generation certificates (LGCs) and
small-scale technology certificates (STCs).
The nominated person for an accredited power station can create LGCs for eligible electricity by submitting a claim in REC Registry. Claims are based on monthly electricity generation from the accredited power station components and approved LGC methodology.
All
LGCs must be created by the 31 December of the following year that the electricity was generated. For example, LGCs generated in 2021 must be created by 31 December 2022.
Requirement to change REC Registry account permissions
The account administrator will need to log into the REC Registry and update the permissions for all relevant users needing to create LGCs. Ensure that 'enter generation data' and 'create LGCs' are ticked for all relevant users.
Users without relevant permissions will be unable to enter generation data and will not be able to complete LGC claims.
The steps below set out what is involved in processing an LGC claim. Visit the links in each step for detailed guidance.
Step 1: before submitting a claim for LGCs
Step 2: adding power station generation data
Review the
guide to adding power station generation data in the REC registry.
Step 3: creating LGCs
Review the guide to
creating LGCs in the REC Registry.
Step 4: LGC assessment and validation by the CER
Review information on
LGC validation and
failure of LGCs.
Step 5: registering LGCs by paying LGC creation fee
Review information on
registering LGCs in the REC registry.
Large-scale generation certificate validation process
LGCs are assessed by the CER to ensure they are eligible for registration once an LGC creation fee is paid. This is before the LGCs can be sold or traded.
A risk-based approach is used for the assessment of LGC claims to determine that they are eligible for registration. This includes a range of third-party information sources and supporting data analytics.
The CER 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
- 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 it may be requested for auditing or compliance activities.
It may take up to 28 days to validate a claim for LGCs. You can track LGCs in the REC Registry. You have the ability to see how many LGCs have been passed, failed, are pending or under assessment, or pending validation. For more information watch these
demonstration videos.
Failure of large-scale generation certificates
The CER assesses information, data and documents submitted by nominated persons to determine whether large-scale generation certificates (LGCs) are eligible for registration. LGCs ineligible for registration will be failed in the REC Registry following an assessment under section 26 of the REE Act.
LGCs may be ineligible for registration due to:
- user error of more certificates being created than the power station is eligible for
- certificates being created for the wrong time
- auxiliary electricity, ineligible fuel or supplementary generation not being properly accounted for in calculations
- a claim not supported by generation data (for example, interval meter data) or other evidence
- the electricity produced does not match other reliable, independent sources of information
- an analysis of generation data or other information showing anomalies, challenging the validity of electricity generation.
Ineligible LGCs may be failed without seeking clarification including updating the generation data to reflect the assessment. Valid LGCs in the same claim will be passed.
A record of failed LGCs will appear on your electricity generation return when it is opened for lodgement. A record will also be published on the
public register of LGCs in the REC Registry.
Failure of LGCs does not prevent you from creating more LGCs for that power station in that generation month, in accordance with section 19 of the REE Act. Further LGC creation needs to be supported by the additional information to determine that the newly created LGCs are eligible for registration.
What to do if LGCs are failed
The CER will email the nominated person with details of the failed LGCs including a reason why they were failed and whether any generation data was updated to reflect the outcome of the assessment. The nominated person has until the end of the legislated creation window to re-create the LGCs.
If the nominated person agrees with the outcome of the assessment, no further action is required for that claim. You must review and update your processes to ensure the issues is not repeated in future claims.
If you disagree with the assessment, you may respond to the email or contact
CER-RET-LGCValidations@cer.gov.au to address the identified issues. You may then be advised to re-create the LGC claim in the REC Registry.
It is important when re-creating LGCs that the nominated person provides additional information addressing the issues identified and any other factors that should be considered. They should then update the generation data and re-create the additional eligibility.
Review of decisions
A decision in relation to the registration of a certificate made under section 26 of the REE Act is a
reviewable decision. The person who created the certificate may request in writing that the CER reconsider the decision within 60 days from the date of the initial notification. The CER must then review and confirm, vary or set aside the decision.
If written notice of an intent to review is not given within 60 days of the person’s request, then the original decision will be considered confirmed.
An application may be made to the Administrative Appeals Tribunal to review the CER’s decision to confirm, vary or set aside the original decision.
Improper creation of certificates
The CER’s response or action in respect of the creation of LGCs, including the improper creation of certificates, is taken in accordance with our
compliance, education and enforcement policy.
A person commits an offence if they create a certificate they are not entitled to create.
Ongoing compliance reviews
Ongoing reviews of electricity generation by power stations and previous claims are conducted through the assessment of
electricity generation returns. Further information may be requested regarding the creation of an LGC.
The CER may act in response to the over-creation of LGCs that have been registered. This may include making an adjustment of LGC eligibility between months or years (for example, reducing the eligibility in a current month to offset for the over-creation in a previous month). Other actions may be taken under the relevant provisions of the
Renewable Energy (Electricity) Act 2000 with respect to the improper creation of certificates.
Nominated persons will be advised regarding any identified under-creation of certificates below a power station's calculated LGC eligibility. These certificates may be created at any time before the 31 December of the following year that the electricity was generated, or any date allowed by the CER.
Over or under-crediting of certificates
See the CER's approach to dealing with
over and under-crediting of certificates or units in the Large-scale Renewable Energy Target.