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LGC Large-scale Generation Certificate Under the Large-scale Renewable Energy Target, the large-scale generation certificate (LGC) eligibility formula is used to determine the amount of generated electricity eligible for large-scale generation certificates.
Accredited renewable energy power stations are entitled to create large-scale generation certificates based on the amount of eligible renewable electricity they produce above their baseline. As a guide, one large-scale generation certificate is equal to one megawatt hour of eligible renewable electricity.
Large scale power generation includes existing technology and infrastructure used to provide electricity in the UK. Current facilities use predominantly fossil fuel based technologies, such as coal and gas.
Once large-scale generation certificates (LCS) have been successfully created and registered through the REC Registry, they may be bought and sold by traders and businesses through the open LGC market.
The use of shortfall by liable entities has shifted demand into future years and likely smoothed and brought forward a fall in LGC prices due to investment exceeding generation levels needed to meet the Renewable Energy Target.
Current market observations LGC spot prices fell from above $71.90 at the date of our last market update on 4 October 2018 to $39 on 14 February 2019. LGC forward prices for 2020 and 2021 have also fallen and are at $23.60 and $14.75 respectively.
An LGC represents one megawatt hour (Mph) of net renewable energy generated and exported to the electricity grid by a solar PV system more than 100kW, or more than 250 MWh. ... As with Sacs an LGC is a tradable unit that acts as a currency for renewable energy, and prices therefore fluctuate with supply and demand.
A Renewable Energy Certificate is a measurement of renewable energy that can be traded or sold. Australia's Renewable Energy Target (RET), requires energy retailers to purchase a set amount of certificates each year, so there is a constant demand for these certificates.
Renewable Energy Certificates (RCS) are a market-based instrument that certifies the bearer owns one megawatt-hour (Mph) of electricity generated from a renewable energy resource. Once the power provider has fed the energy into the grid, the REC receive can then be sold on the open market as an energy commodity.
Australia's Renewable Energy Target (RET) is a Federal Government policy designed to ensure that at least 33,000 gigawatt-hours (GH) of Australia's electricity comes from renewable sources by 2020.
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