October 4 (Solar) – The Clean Energy Regulator in Australia said today it expects more than 3.4 GW of large-scale renewable power plants to get accredited under the Renewable Energy Target (RET) this year, and up to 4.3 GW to follow in 2019.
So far in 2018, 2.28 GW of new large capacity has been accredited and there are 1.31 GW under application. The regulator expects no less than 200 MW to apply for accreditation through the remainder of the year. The year-to-date result is well above 2017’s record of 1.09 GW.
When a power plant gets accredited under Australia's RET, it starts getting large-scale generation certificates (LGCs) for the electricity it produces. "Liable entities" have to buy these certificates. LGC spot prices ranged between AUD 76 (USD 54./EUR 46.9) and AUD 89 apiece in 2017, but they have now fallen to their lowest price levels since October 2015. On September 27, 2018, spot LGCs closed at AUD 71.9.
Since 2016, almost 10.07 GW of large renewable energy projects have been firmly announced, with 8.33 GW either built or under construction now, mainly wind and solar parks. This is more than enough to meet the country’s 2020 RET of 33,000 GWh renewable power. The Clean Energy Regulator has estimated that 6.4 GW are needed to reach the target.
The regulator said 15.7 million LGCs have been validated up to September 27, and 1.4 million more are pending validation. Its previous estimate of 24 million LGCs validated for 2018 may be exceeded. It now expects the surplus after the surrender date in February to surpass 5 million certificates.