Glossary
Term
Acronym/Abbreviation Explanationn
The Australian Energy Market Operator was
established in 2009 and is responsible for the
operation of the National Electricity Market,
Australian Energy
AEMO
which includes the east and south-east regions
Market Operator
of Australia (Queensland, New South Wales,
Victoria, Tasmania and South Australia).
Renewable energy certificates for both the
large-scale and small-scale market do not have
an expiry date. They may be purchased and
bankable certificates)
held for any length of time before they are
surrendered.
The amount passed on by liable parties
(generally electricity retailers) to end-users to
account for the costs of purchasing and
certificate costs
surrendering Large-scale Generation
Certificates (LGCs) and Small-scale
Technology Certificates (STCs).
The carbon pricing mechanism created a price
on emissions by requiring large emitters to
report on and surrender emissions units for
carbon pricing
their covered emissions. The carbon pricing
mechanism
mechanism commenced operation on 1 July
2012 and was abolished with effect from 1
July 2014.
The Clean Energy Regulator is an independent
statutory authority that administers regulatory
schemes relating to greenhouse gas emissions
Clean Energy
CER
reductions, including the Renewable Energy
Regulator
Target, the Carbon Farming Initiative and the
National Greenhouse and Energy Reporting
Scheme.
Established on 1 July 2012, the Climate
Change Authority provides independent expert
Climate Change
'the Authority'
advice on Australian Government climate
Authority
change mitigation initiatives.
Larger capacity rooftop solar PV installed on
commercial-scale PV
non-residential premises.
A full calendar year, the period over which
each annual target under the Renewable
compliance period
Energy Target must be achieved.
Term
Acronym/Abbreviation Explanationn
The peak intergovernmental forum in
Australia. The members of the Council of
Australian Governments are the Prime
Council of Australian
COAG
Minister, State and Territory Premiers and
Governments
Chief Ministers and the President of the
Australian Local Government Association.
The estimation of the amount of electricity a
solar panel or small-scale wind or hydro
system generates, or the electricity a solar
water heater or heat pump displaces. Deeming
deeming
allows the owners of these technologies to
receive their entitlement to small-scale
technology certificates before the system has
produced or displaced the electricity.
Businesses conducting specified emissionsemissionsEITE
intensive trade-exposed (EITE) activities are
intensivetradeeligible for assistance under the RET scheme.
exposed
A measure of electricity generation or use over
GWh
gigawatt hours
a period of time (or energy).
Scientific intergovernmental body that
produces reports that support the United
Intergovernmental
IPCC
Nations Framework Convention on Climate
panel on climate
Change, which is the main international treaty
change
on climate change
kW
A measure of power.
kilowatt
A measure of electricity generation or use over
kWh
kilowatt hour
a period of time (or energy).
An agreement adopted under the United
Nations Framework Convention on Climate
Kyoto Protocol
Change in 1997. It entered into force in 2005.
Large-scale
Represents one megawatt hour of renewable
LGC
Generation
energy generation.
Certificate
Encourages the deployment of large-scale
Large-scale
LRET
renewable electricity projects such as wind
Renewable Energy
farms.
Target
A common tool for measuring and comparing
power generation costs across different
technologies. It represents the per kilowatt
levelised cost of
LCOE
hour cost (in real dollars) of building and
electricity
operating a generation technology over an
assumed financial life and duty cycle.
Term
liable entities
Mandatory
Renewable Energy
Target
megawatt
megawatt hour
merchant generator
mothballing
multiplier credits
National Electricity
Market
native demand
net present value
Acronym/Abbreviation Explanationn
Entities that make wholesale acquisitions of
electricity and are required by the legislation
to surrender a specified number of renewable
certificates or pay a renewable energy shortfall
charge.
The Mandatory Renewable Energy Target
began operation in 2001. It had a target of
MRET
9,500 gigawatt hours in 2010 (mandated out to
2020) and interim targets that gradually
increased year on year.
MW
A measure of power (or demand).
A measure of electricity generation/use over a
MWh
period of time (or energy).
A stand-alone electricity generator that does
not have a power purchase agreement (PPA)
with an electricity retailer, but rather sells its
production to the spot and short-term forward
markets.
The preservation of a production facility
without using it to produce. Machinery in a
mothballed facility is kept in working order so
that production may be restored quickly if
needed.
Credits that are a multiple of the number of
certificates that an eligible technology would
generally be able to create. Previously in place
under the Small-scale Renewable Energy
Scheme.
The National Electricity Market interconnects
five regional market jurisdictions (Queensland,
New South Wales, Victoria, South Australia
NEM
and Tasmania). Western Australia and the
Northern Territory are not connected to the
National Electricity Market.
Electricity load serviced by scheduled
electricity generation, semi-scheduled
generation and embedded generation
(including rooftop solar PV).
Net present value is a standard method for
using the time value of money to estimate
NPV
future costs. It compares the present value of
money today to the present value of money in
the future, taking inflation into account.
Term
partial exemption
certificate
power purchase
agreement
‘real’ 20 per cent
target
Renewable Energy
Certificate
Acronym/Abbreviation Explanationn
The Renewable Energy (Electricity) Act 2000
and the Renewable Energy (Electricity)
Regulations 2001 include provisions to
provide partial exemption from Renewable
PEC
Energy Target liability for electricity used in
defined emissionsintensive trade-exposed
activities. To obtain exemption, prescribed
persons may apply to the Clean Energy
Regulator for a partial exemption certificate.
A long-term agreement between an electricity
generator and electricity retailer to purchase
PPA
electricity generated (and in the case of
renewable generators, LGCs).
A 2020 LRET target based on 20 per cent of
either current estimated or actual electricity
demand in 2020. The current 2020 LRET
target is for a fixed amount of generation
(41,000 GWh).
The term used for renewable energy
REC
certificates generated under the Renewable
Energy Target scheme prior to 2011.
Renewable Energy
(Electricity) Act 2000 REE Act
(Cth)
Renewable Energy
REE Regulation
(Electricity)
Regulations 2001
Renewable Energy
Target
RET
Renewable Energy
Target review
RET review
shortfall charge
solar photovoltaic
PV
The legislative framework for the Renewable
Energy Target scheme.
The detailed rules and provisions of the
Renewable Energy Target scheme.
The Renewable Energy Target operates in two
parts—the Small-scale Renewable Energy
Scheme and the Large-scale Renewable
Energy Target.
The Climate Change Authority’s review of the
Renewable Energy Target. The review is
defined in Section 162 of the Renewable
Energy (Electricity) Act 2000 (Cth).
A charge that applies to the outstanding
amount when a liable entity surrenders less
than the required number of certificates to
meet obligations under the LRET or SRES.
The shortfall charge under both the LRET and
SRES is currently set at $65.
A method of generating electricity by
converting the sun’s energy into electricity.
Term
small-scale PV
Small-scale
Renewable Energy
Scheme
Small-scale
Technology
Certificate
Small-scale
Technology
Certificate Clearing
House
thermal generators
Warburton review
Acronym/Abbreviation Explanationn
Rooftop solar PV installed on by households.
Also referred to as ‘household PV’.
Supports the installation of small-scale
systems, including solar photovoltaic systems
SRES
and solar water heaters, and small generation
units.
Certificates created by small-scale
STC
technologies like solar panels and solar water
heaters.
Facilitates the exchange of small-scale
technology certificates between buyers and
STC Clearing House
sellers at the fixed price of $40 (excluding
GST).
A power station in which electricity is
generated by the production of steam. The
steam is typically produced by burning fossil
fuels such as gas and coal.
A review of the Renewable Energy Target
conducted in 2014 by a panel headed by Dick
Warburton AO LVO, supported by a
secretariat located within the Department of
the Prime Minister and Cabinet.