Yesterday the Clean Energy Regulator (CER) announced the annual 2021 liability percentages for Large-scale Generation Certificates (LGCs) and Small-scale Technology Certificates (STCs).
Yesterday the Clean Energy Regulator (CER) announced the annual 2021 liability percentages for Large-scale Generation Certificates (LGCs) and Small-scale Technology Certificates (STCs).LGCs 18.54%
STCs 28.80%
Each year the CER uses actual data and estimates of rooftop solar PV installations to recommend a percentage to the Minister for Energy and Emissions Reduction as required under the Renewable Energy (Electricity) Act 2000 (the Act) to set the required number of STCs to be surrendered.
For 2021 the CER estimated 42.1 million STCs would be created. Under the Small-scale Renewable Energy Scheme (SRES) supply and demand are balanced, this requires liable entities to meet the demand. Liable entities are generally electricity retailers who pass the liability on to large end users.
As a result of the estimated creation of 42.1 million STCs and an 8.56 million certificate adjustment for the previous year (due to surplus STCs), the CER have calculated that 50.6 million STCs will need to be surrendered by the retailers to meet the SRES obligations, this translates into a Small-scale Technology Percentage (STP) of 28.80%.
The CER had originally estimated that the 2021 SRES liability to be 19.41%. Edge2020 has a number a large users who average 100MW of load. The higher SRES liability will result in cost increases in the order of $3.3m for these clients in 2021.
A similar process occurs for LGCs, but the liability calculation is somewhat different. The Renewable Energy Target (RET) legislation requires 33,000,000 MWh of renewable energy to be produced each year from 2021 to 2030. The liability percentage is set to meet the needs of this target, whilst also considering an aggregate ‘true-up’ for certificates over the life of the scheme, and large users who receive an exemption due to their Emission Intensive Trade Exposed (EITE) activities.
This year the CER have calculated that approximately 32.6 million LGCs will need to be surrendered to meet the RET obligations, which translates into a Renewable Power Percentage (RPP) of 18.54%.
