The Renewable Energy Certificates Registry (REC-registry) is an internet-based registry system established by the Australian Renewable Energy (Electricity) Act 2000 (the Act), and maintained by the Clean Energy Regulator.
- facilitates the creation, registration, transfer and surrender of large-scale generation certificates (LGCs) and small-scale technology certificates (STCs),
- tracks the ownership and status of all certificates,
- provides access to the STC clearing house, and
- maintains various public registers as required by the Act.
Prior to 1 January 2011, the primary mechanism in the renewable energy target (RET) was the renewable energy certificate (REC). From 1 January 2011 RECs were split into small-scale technology certificates (STCs) and large-scale generation certificates (LGCs). RECs are still used as a general term covering both STCs and LGCs.
All certificates must be created in the REC-registry before they can be bought, sold, traded or surrendered. Participants must hold an account and be registered as a REC-registry user to create, view or transfer certificates.
Large-scale Generation Certificates (LGCs) and Large-scale renewable Energy Target (LRET)
The LRET creates financial incentive for the creation or expansion of renewable energy power stations by awarding certificates to produce electricity (over 100 MWh).
- One LGC is created for each megawatt-hour (MWh) generated above the site’s baseline each calendar year. This can be sold to entities (usually retailers) who surrender them annually to the Clean Energy Regulator to demonstrate their compliance with the RET scheme.
- The LRET includes legislated annual targets which will require significant investment in new renewable energy generation capacity in coming years. The large-scale targets ramp up until 2020 when the target will be 33,000 gigawatt-hours of renewable electricity generation.
- It acts as a currency for renewable energy, and prices therefore fluctuate with supply and demand.