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A relevant acquisition is a purchase of electricity made from the grid or directly from the point of generation. A company becomes a liable entity once they make their first relevant acquisition. Liable entities are required to report their relevant acquisitions annually in an energy acquisition statement.
There are 2 types of relevant acquisitions: wholesale acquisitions and notional wholesale acquisitions.
There can be no ‘double counting’ of electricity. If a portion of electricity has been identified as a relevant acquisition, that electricity cannot be considered in other relevant acquisition calculations.
Section 31 of the
Renewable Energy (Electricity) Act 2000 (the Act) outlines the definition of relevant acquisitions.
A liable entity’s reduced acquisitions are calculated by the relevant acquisitions they make in a calendar year, less any exemption certificates they receive from customers who engage in
emissions-intensive trade-exposed (EITE) activities.
Liable entities can receive exemption certificates from electricity customers who are EITE participants. Liable entities can
report exemption certificates in their energy acquisition statements to decrease their reduced acquisitions. The reduced acquisitions are then used to calculate a liable entity’s
Download a hi-res JPG version of the above LGC required surrender amount per year image
Section 38AA of the
Renewable Energy (Electricity) Act 2000 (the Act) outlines the definition of reduced acquisitions.
The majority of relevant acquisitions are wholesale acquisitions. A wholesale acquisition refers to electricity acquired from the grid or directly from the point of generation, then supplied to the end user.
Wholesale acquisitions cover a range of scenarios, not limited to:
Section 32 of the
Renewable Energy (Electricity) Act 2000 (the Act) outlines the definition of wholesale acquisitions.
A notional wholesale acquisition refers to scenarios where the entity who generated electricity supplies it directly to the end user.
Notional wholesale acquisitions cover 2 types of scenarios:
Section 33 of the
Renewable Energy (Electricity) Act 2000 (the Act) outlines the definition of notional wholesale acquisitions.
Renewable Energy (Electricity) Regulations 2001 (the Regulations), liable entities typically calculate the amount of electricity acquired for all relevant acquisitions at the:
The amount of acquired electricity is calculated in varying ways, if the electricity is:
If these scenarios do not apply, liable entities are required to use a method of calculation to be chosen by the agency after consultation with the liable entity using the amount of metered or calculated electricity:
There are a number of scenarios where electricity acquisitions are not considered relevant acquisitions and would be excluded from liability. A liable entity would not be required to report these in their energy acquisition statement.
If this type of electricity acquisition is the only acquisition a company is making, they would not be considered a liable entity.
If you believe you are making this type of acquisition and should not be liable, please contact the
RET Liability team. You may need to provide evidence to support your case.
Section 31(2) of the
Renewable Energy (Electricity) Act 2000 (the Act) outlines electricity acquisitions excluded from liability.
A remote grid is not considered a liable grid if:
Once the capacity of a grid is 100 MW or greater, the grid becomes a liable entity and the generated electricity is considered a relevant acquisition.
It is not considered a relevant acquisition when the same person generated and used that electricity, if either of the following conditions are met:
The electricity that is sold to or later acquired by AEMO (or a body prescribed by the Renewable Energy (Electricity) Regulations 2001) is not considered a relevant acquisition.
For example, an electricity retailer acquires electricity from a customer-owned photovoltaic system and sells that portion of electricity to AEMO. This would not be considered a relevant acquisition because the portion of electricity has been acquired by AEMO.
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