Transitionals for RECs

From 1 January 2011 Renewable Energy Certificates (RECs) will undergo the following transitional arrangements:

• RECs created from 2001 to end 2010 will be reclassified as large-scale generation certificates (LGCs).
• Renewable Energy Power stations will create LGCs from 1 January 2011.
• RECs created for solar water heaters and small generation units installed before 1 January 2011 which are created on or after 1 January 2011 will be reclassified as LGCs.
• RECs for solar water heaters and small generation units installed after 1 January 2011 will be classified as small-scale technology certificates (STCs).

REC Registry

The REC Registry is an internet based registry system that:

• Maintains various registers as set in the Act; and
• Facilitates the creation, registration, transfer and surrender of LGCs and STCs.

The STC Clearing House is a new facility contained within the REC Registry that facilitates the exchange of STCs between buyers and sellers at a fixed price of $40 (excl.GST).

To access the REC Registry you will need to become a registered person or open an account.

The REC Registry is available at – https://www.rec-registry.gov.au/
To apply for a REC Registry account visit - http://www.orer.gov.au/rec-registry/index.html

Other Surrender (for non-mandatory purposes)

Under the Act it is mandatory for liable entities to surrender LGCs and STCs. There are also other surrender options under the Act including choosing to voluntarily surrender certificates to encourage additional generation of electricity from renewable sources. An account in the REC Registry is required to surrender.

Registered persons may also be required to surrender STCs/LGCs under the relevant enforceable undertaking sections of the Act (section 154Q – Part 15 A) throughout the year.

Visit – Other surrender at http://www.orer.gov.au/surrender/index.html

Compliance

All participants of the LRET and SRES must comply with the Act for the creation of certificates, reporting and other requirements. Failure to comply can result in penalties and prosecution where warranted. This could include suspension of your account, being named publically via the ORER website and fines that range from approximately $5000 to $1 million Australian dollars.
Please read the information and documentation on the ORER website carefully and ensure that you follow the correct processes. If you provide any false or misleading information to ORER, an installer or a REC Agent you may be prosecuted under the Act. All participants of the LRET and SRES can be audited at anytime so please keep your paperwork. For more about the penalties under the Act visit Compliance at http://www.orer.gov.au/compliance/index.html

Liable Entities (purchasers of certificates)

The LRET and SRES place a legal obligation on liable entities (usually electricity retailers) under the Renewable Energy Electricity Act 2000 (the Act), to proportionately contribute towards the generation of additional renewable electricity.

Liable entities support additional generation of electricity from renewable energy power stations, solar water heaters and small generation units through the purchase of LGCs and STCs. The number of LGCs to be purchased each year is set by the Renewable Power Percentage (RPP). The number of STCs to be purchased each year is set by the Small-scale Technology Percentage (STP). Both the RPP and STP are set by 31 March for the given year.

• Liable entities can purchase:

– LGCs via the LGC market. Prices and payment are negotiated outside of the REC Registry and LGCs are transferred inside the REC Registry.

– STCs via the STC market or the STC Clearing House at a fixed price of $44 (incl. GST). If liable entities purchase via the STC Market prices and payment are negotiated outside of the REC Registry and STCs are transferred inside the REC Registry. See more information regarding the STC Clearing House above.

If liable entities purchase through the STC or LGC market the process is market driven with the price of certificates determined by supply and demand.

Liable entities are required to surrender the certificates they purchase to ORER via the REC Registry.

• LGCs are surrendered annually for the previous calendar year from 1 January to 14 February.

• STCs are surrendered quarterly. The STC surrender periods are as follows:
– 15 February – 28 April
– 29 April – 28 July
– 29 July – 28 October
– 29 October – 14 February

• Liable entities are more likely to buy certificates closer to the surrender periods.

• Certificates are marked as ‘invalid due to surrender’ and are no longer available to reuse during the life of the LRET or SRES.

Visit – Liable Entities Guide at http://www.orer.gov.au/liable-entities/index.html