COMMODITY TRADING

LGCs

The Large-scale Generation Certificates (LGCs) is a federal Government initiative established to promote and encourage energy saving activities for both home owners and commercial entities.

Large-scale projects are classified as any solar installation over 100kWs, Wind installations over 10kWs and Hydro installation over 6.4kWs. For every 1 Megawatt Hour (MWh) of renewable electricity generated by the renewable power station is entitled to one LGC. Liable Entities are bound to purchase LGC’s based on their energy consumption and sales.

If the installation falls under the large scale threshold, they will be entitled to claim small scale technology certificates (STCs).

Large-scale generation certificates (LGC) promote large renewable energy projects including Solar, Wind and Hydro installations. They are administered by the Commonwealth Government as part of the Large-scale Renewable Energy Target (LRET) and sit alongside the SRES in working towards Australia’s 2020 target of clean energy generation.

A major difference between large and small scale is system size. Small Scale Certificates are
calculated on the deeming period and created once the installation has occurred. Large scale power generation is calculated on the renewable electricity produced by the system, therefore LGC’s are created yearly based on the power created.

Large Scale System Size threshold:

Solar PV Larger than 100kW
Wind Larger than 10kW
Hydro Larger than 6.4kW

Small Scale System Size threshold:

Solar PV Less than and including 100kW
Wind Less than and including 10kW
Hydro Less than and including 6.4kW

Frequently asked questions

What type of energy sources are fall under the category of LGCs?

These certificates encompass a much broader range of technologies than their little brother in STCs – which are restricted to Solar PV, Solar Water Heating and Wind. Many emerging technologies for power generation such as tidal power from wave generators, geothermal energy from natural heat sources in the ground and biomass products in growing and burning wood etc.

A full list of technologies can be found under the Renewable Energy (Electricity) Act 2000

How are LGCs created?

One Large-scale Certificate is the equivalent of 1MW of clean, renewable power. Generation data taken directly from a project over a certain period of time is processed by the Clean Energy Regulator (along with other relevant documentation) before tradable certificates are approved. The process form registration to approval for this takes around 28 days.