Large Scale Generation Certificates (LGCs) are a type of renewable energy certificate that is used in Australia to track the generation of electricity from large-scale renewable energy sources. This Large Scale Generation Certificates are created by power stations that generate electricity from eligible renewable energy sources, such as solar, wind, and hydro power. One LGC is created for every megawatt hour (MWh) of eligible renewable electricity that is generated.
LGCs are traded on a market, and they can be bought and sold by businesses, governments, and individuals. Businesses can use LGCs to meet their renewable energy targets, and governments can use them to support the development of renewable energy projects. Individuals can also buy LGCs to offset their carbon emissions.
How do LGCs work?
LGCs are created by power stations that are accredited by the Clean Energy Regulator (CER). The CER is an independent government agency that is responsible for administering the Renewable Energy Target (RET), which is a scheme that aims to increase the amount of renewable energy in Australia’s electricity grid.
To be accredited, a power station must meet certain criteria, such as the type of renewable energy that it generates and the size of its generating capacity. Once a power station is accredited, it can begin to create LGCs for each MWh of eligible renewable electricity that it generates.
LGCs are traded on the Clean Energy Markets (CEM), which is an online marketplace. Businesses, governments, and individuals can buy and sell LGCs through the CEM.
Why are LGCs important?
LGCs are important because they help to drive the development of renewable energy in Australia. When businesses and governments buy Large Scale Generation Certificates, they are essentially investing in renewable energy projects. This helps to create jobs in the renewable energy sector and it also helps to reduce greenhouse gas emissions.
LGCs help to track the progress of the RET and they also help to ensure that there is a market for renewable energy.
How can I get LGCs?
There are a few different ways to get LGCs. You can buy them on the CEM, you can generate them yourself if you own a large-scale renewable energy project, or you can get them as part of a green power tariff from your electricity retailer.
If you are interested in buying LGCs, you can do so through the CEM. The CEM is an online marketplace where you can buy and sell LGCs. You can also get more information about LGCs on the CEM website.
If you own a large-scale renewable energy project, you can generate LGCs for each MWh of eligible renewable electricity that you generate. To do this, you will need to be accredited by the CER. You can find more information about accreditation on the CER website.
Finally, if you have a green power tariff from your electricity retailer, you may be able to get LGCs as part of your tariff. Green power tariffs are designed to support the development of renewable energy, and they often include LGCs as part of the package. You can find more information about green power tariffs on your electricity retailer’s website.
Conclusion
LGCs are an important part of Australia’s renewable energy market. They help to drive the development of renewable energy projects, they help to ensure that the RET is met, and they provide a way for businesses, governments, and individuals to support the development of renewable energy. If you are interested in getting involved in the renewable energy market, Large Scale Generation Certificates are a good place to start.
