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Clean Energy Regulator Releases 2017 Surrender Percentages

The Clean Energy Regulator has released the 2017 environmental certificate requirements. The number of Large-scale Generation Certificates (LGCs) which must be surrendered each year is fixed. However, the surrender percentage depends on the expected consumption of electricity across Australia less any applicable exemptions for energy intensive trade exposed industries.

The surrender percentage for LGCs in 2017 is set at 14.22%. This is higher than the 2016 surrender percentage of 12.75%, but lower than what was widely expected in the market.

The STC percentage was set at 7.01% which is lower than the 2016 target of 9.68%. Each year, the Clean Energy Regulator must determine how many STCs will be created during the year and divide this number by the amount of power expected to be consumed. With the rate of installation of solar PV in decline and electricity demand increasing, the STC percentage is lower. It was widely expected that the percentage would be lower in 2017 than in 2016, though not to this level. Earlier in the week we saw the price of STCs fall from the clearing house price of $40.00/certificate to $39.90/certificate. This is the first time since April 2016 that the price has fallen below $40.00/certificate.

All consumers who has been accruing STCs and LGCs should be checking with their retailer on how they are going to recover their accrued amounts.

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