The LRET covers large-scale renewable energy projects such as wind and solar farms, hydro-electric schemes and aims to deliver the 2020 target of 41,000 GWh of Australia's energy through renewable resources.
Renewable power stations generate Large-scale Generation Certificates (LGCs) based on the amount of renewable energy they produce above their baseline. Like STCs, liable entities are required to surrender LGCs in order to discharge their liability under the Renewable Power Percentage (RPP). LGCs are purchased through the LGC market and a LGC is equivalent to:
The LRET creates a financial incentive for large-scale renewable power stations such as wind, solar and hydro-electric by providing a mechanism for the creation of large-scale generation certificates (LGCs) by these power stations according to how much renewable energy electricity they produce.
The LRET also places a legal liability on liable entities (typically electricity retailers) to purchase an amount of large-scale generation certificates (LGCs) from these power stations to meet an annual target.
April 1, 2015, 5:01 am