The Large-scale Renewable Energy Target (LRET)
The Large-scale Renewable Energy Target creates a financial incentive for the establishment and growth of renewable energy power stations, such as wind and solar farms, or hydro-electric power stations. It does this by legislating demand for Large-scale Generation Certificates (LGCs). One LGC is equivalent to 1 MWh (megawatt hour) of eligible renewable electricity generated above the power station’s baseline.
These LGCs are created based on the amount of eligible renewable electricity produced by the power stations. LGCs can be sold or traded to liable entities, in addition to the power station’s sale of electricity to the grid. RET Liable entities have a legal obligation to buy LGCs and surrender them to the Clean Energy Regulator on an annual basis.
In 2009, legislation was passed to give effect to the Commonwealth Government’s policy commitment that the equivalent of at least 20 per cent of Australia’s electricity supply will come from renewable sources by 2020.
More information can be obtained via:http://ret.cleanenergyregulator.gov.au/about-the-schemes
Current LGC prices can be accessed via our Market Prices page.