We do not engage in unsolicited calls, we are not currently installing any free products. if you receive a call about a free product, please note that it is not us
Large Scale Generation
Certificates (LGC's)
Large-scale generation certificates (LGCs) are a type of greenhouse gas emissions trading scheme. They are used to reduce the cost of renewable energy and encourage the use of clean energy sources. These government-issued certificates can be traded between generators, retailers, and other market participants. It is a form of carbon credit that can be bought and sold.
What are these LGC certificates for and why are businesses in Australia buying them? Below we’ll discuss what is LGC energy, how it works, and how businesses can get them.
What is a Large Scale Generation Certificate (LGC)
The Large-scale Renewable Energy Target (LRET) was introduced by the Australian Government in 2001 to help reduce emissions of greenhouse gases in the electricity sector. This was started to encourage the additional generation of electricity from sustainable and renewable sources.
LRET’s target is to achieve a renewable energy share of 20% (40 000 GWh) in Australia’s electricity supply by the year 2020.
According to Australia’s Clean Energy Regulator, this target should be sustained until the year 2030. This means that although the target is set to be achieved by the year 2020, renewable energy stations can still be accredited until 2030.
To help meet this target, the federal government created LGCs as an incentive for businesses and households to install renewable energy systems. The certificates allow those who generate electricity from solar panels or wind turbines to sell them to retailers and other companies at a higher price than standard electricity costs.
As a result, there has been a shift from fossil fuels to clean energy sources, which has helped reduce Australia’s CO2 emissions.
How do Large Scale Generation Certificates work?
Large scale generation certificates can be purchased to support the development of renewable energy. They can be used by organisations that own a large-scale generation facility and want to sell electricity at a premium price.
In order to trade LGCs, they must be backed by renewable energy production certificates (RECs), which are issued by the Clean Energy Regulator, the government body responsible for carbon reduction in Australia.
The certificates serve as evidence that one megawatt-hour (MWh) of electricity has been generated from renewable energy sources. These certificates can be purchased from REC generators or other sellers.
One LGC is created for each megawatt-hour of eligible renewable electricity generated by a renewable energy power station.Â
Get a Free Commercial Solar Quote Now
Who buys LGC's?
The LGCs are sold by generators of electricity to liable entities like businesses or public sector organisations with a specified renewable or low-carbon target. Generators such as commercial solar farms, large-scale onshore wind farms, and some hydroelectric power stations sell their electricity to retailers who then use it to meet their obligations under the RET.
The generators have to sell their product at a price that is set through an auction process. The price they receive is determined by the market demand for LGCs.
The certificates are issued when a large-scale generator produces electricity from renewable sources, such as solar or wind power. The generators then sell their excess LGCs to other businesses and individuals who want to offset their own carbon footprint.
Eligible renewables include solar power, onshore wind farms, anaerobic digestion, landfill gas, biomass, and marine energy.
LGC’s can be bought by anyone who wants to support the development of renewable energy in the UK and help meet carbon emissions reduction targets. This process helps to reduce Australia’s carbon emissions by encouraging people to switch to renewable energy sources.
Is an LGC an offset?
Purchasing renewable energy offsets your energy consumption but not the entire carbon footprint. This is because the process still consumes other emission sources such as diesel and supply chain emissions. These could be through logistics, paper consumption, and other operational necessities.
When it comes to LGC, they can be used to offset both your own electricity consumption plus the other electricity sources that you have no control over like street lights. Another example is if your company owns a data center that consumes a large amount of electricity, and there is no way for it to reduce its consumption without reducing its capacity or efficiency. You can therefore use LGCs to offset that consumption.
Why businesses are purchasing LGC's
Carbon emissions are a major source of pollution, and businesses are often responsible for a large portion of them. LGC’s are seen as a solution to help offset their carbon emissions by purchasing credits from other organisations that have already reduced their own climate impact through renewable energy investments and reduced fossil fuel consumption.
Carbon emissions are a major problem for the environment, as they contribute to global warming and climate change. For businesses, carbon emissions are also a liability: they can lead to fees and fines from government agencies, as well as deprive the business of valuable tax credits that help it compete with other companies.
That’s why many businesses are turning to LGC’s to offset their carbon emissions. An LGC is essentially a certificate that proves that a company has reduced its carbon footprint by a specified amount—and therefore prevented its emission of greenhouse gases into the atmosphere.
A business can purchase LGC’s as part of an emissions reduction plan, or directly from another company whose emissions were reduced elsewhere, LGC’s are not only useful for mitigating liabilities, but they’re also valuable assets that can be traded in secondary markets, so they can be used as investments or sold off at any time.
LGC’s are an important tool for businesses to offset their carbon emissions. They’re also a great way for individuals to do their part for the environment. When you purchase an LGC, you’re making sure that your company or organisation has reduced its carbon footprint as much as possible.
How can you get LGC's?
Buying large-scale generation certificates from an accredited generator is a great way to support Australia’s renewable energy industry. It also helps you to meet your energy and sustainability goals.
There are three ways that you can purchase LGCs:
1) From a secondary market – find sellers on the REC Registry or look for brokers and traders online
2) From a renewable energy power station – find an accredited power station from the REC Registry and talk to them about a power purchase agreement
3) Source it by establishing a renewable energy project – establish a large-scale renewable energy project that meets the requirements of the Australian Renewable Energy TargetÂ
Large Scale Generation Certificates
When you buy LGCs, you can help create a greener future for our planet by creating new, clean energy sources. You can also get a tax advantage by using LGCs instead of other forms of energy. Lastly, the money you spend on these certificates supports the development of new renewable energy projects, and it’s also an investment in your own future.
For your source of renewable energy and large-scale generation certificates, inquire with Australian Energy Upgrades today. We provide a wide range of services related to sustainable energy and environmental protection. We also work with commercial and residential customers across Australia to optimize the energy efficiency of their homes, businesses, and communities, so we are sure to address all your concerns no matter what industry you are in.
COMPLETED PROJECTS, PARTNERS AND MEMBERSHIPS
Get in touch
Our in-house solar experts are here to help
BRANDS THAT WE CARRY
Australian Energy Upgrades Credentials
Australian Energy Upgrades have signed on to the Clean Energy Council Solar Retailer Code of Conduct – the only solar industry code of conduct authorised by the Australian Competition and Consumer Commission (ACCC).
Australian Energy Upgrades are registered solar installers with Solar Victoria. This allows us to provide eligible households with subsidised solar installations under the Solar Victoria Rebate scheme.
Australian Energy Upgrades is a member of the National Electrical and Communication Association (NECA), recognised nationally as the peak industry body of our field. Our membership ensures our employees have the highest level of training and resources available to fulfil our work to the highest possible standard.
Australian Energy Upgrades holds a Registered Electrical Contracters license (REC:23631). You can be confident your installation is conducted to the highest level of safety and compliance in accordance with all Australian standards and regulations. We don’t just hire qualified people, we are qualified.
COPYRIGHT © 2022 AUSTRALIAN ENERGY UPGRADES
Support Centre    |  Privacy Policy  |  Terms & Conditions