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Large-scale generation certificate validation

16 July 2019

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.

Failure of large-scale generation certificates

Nominated persons are responsible for ensuring they create the correct number of LGCs that reflect the eligible electricity generation for their power station, calculated in accordance with its LGC methodology under the general formula.

During the assessment process, the Clean Energy Regulator may require the submission of additional information to support your LGC claim and enable us to be satisfied certificates are eligible for registration. We may also determine that certificates are ineligible for registration, and therefore will be failed in the REC Registry.

See Failure of large-scale generation certificates for more information.

Communication made by the Clean Energy Regulator regarding LGC claims is conducted through the "Power station generation data and apportioning of LGCs" page in the REC Registry for each generation month. This generates an automated email to the power station’s nominated person account users providing notification of a request for further information. Account administrators should ensure that permission for event-driven "renewable energy power stations" emails have been set for account users, and power station users should monitor their email inbox for these messages.

Ongoing compliance reviews

After the registration of a 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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