Climate Change Authority

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Glossary of terms

Term Acronym/Abbreviation Explanation
Australian Energy Market Operator AEMO The Australian Energy Market Operator was established in 2009 and is responsible for the operation of the National Electricity Market which includes the east and south east regions of Australia (Queensland, New South Wales, Victoria, Tasmania and South Australia).
Australian Renewable Energy Agency ARENA The Australian Renewable Energy Agency is an independent statutory authority established under the Commonwealth Authorities and Companies Act 1997 (Cth), tasked with the objectives of improving the competitiveness of renewable energy technologies and increasing the supply of renewable energy in Australia.
1997 baseline   During the process of accreditation for a power station under the Renewable Energy Target, the Clean Energy Regulator determines a baseline value for generation prior to 1997 (when the scheme was first proposed). The baseline is generally calculated by using the average amount of annual electricity generated from eligible renewable energy sources in 1994, 1995 and 1996.
Bankable certificates   Renewable energy certificates for both the large-scale and small-scale market do not have an expiry date. They may be purchased and held for any length of time before they are surrendered.
Clean Energy Finance Corporation CEFC The objective of the Clean Energy Finance Corporation is to overcome capital market barriers that hinder the financing, commercialisation and deployment of renewable energy, energy efficiency and low emissions technologies.
Clean Energy Regulator CER The Clean Energy Regulator is an independent statutory authority that administers regulatory schemes relating to clean energy, including the Renewable Energy Target, the Carbon Pricing Mechanism, the National Greenhouse and Energy Reporting scheme and the Carbon Farming Initiative.
Climate Change Authority ‘the Authority’ Established on 1 July 2012, the Climate Change Authority provides independent advice on the operation of Australia’s carbon price, emissions reduction targets, caps and trajectories, and other Australian Government climate change initiatives.
Compliance period   A full calendar year, the period over which each annual target under the Renewable Energy Target must be achieved.
Council of Australian Governments COAG The Council of Australian Governments is the peak intergovernmental forum in Australia. The members of the Council of Australian Governments are the Prime Minister, State and Territory Premiers and Chief Ministers and the President of the Australian Local Government Association.
Department of Climate Change and Energy Efficiency DCCEE The Department of Climate Change and Energy Efficiency leads the development and coordination of Australia’s climate change and energy efficiency policy. It is responsible for policy advice, policy implementation and program delivery in four areas: reducing Australia‘s greenhouse gas emissions; promoting energy efficiency; adapting to climate change; and helping to shape a global climate change solution.
Deeming   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 allows the owners of these technologies to receive their entitlement to small-scale technology certificates before the system has produced or displaced the electricity.
Emissions-intensive trade-exposed EITE Businesses conducting specified emissions-intensive trade-exposed activities are eligible for assistance through the Jobs and Competitiveness Program under the carbon pricing mechanism and under the Renewable Energy Target scheme.
Energy Savings Initiative ESI Under the Clean Energy Future Plan, the Commonwealth Government committed to do further work to investigate the merits of a national Energy Savings Initiative. An Energy Savings Initiative is a market-based tool for driving economy-wide improvements in energy efficiency.
Gigawatt GW A measure of power (or demand).
Gigawatt hours GWh A measure of electricity generation / use over a period of time (or energy).
Goods and services tax GST The goods and services tax is a broad-based tax of ten per cent on most goods, services and other items sold or consumed in Australia.
Kilowatt kW A measure of power (or demand).
Kilowatt hour kWh A measure of electricity generation / use over a period of time (or energy).
Large-scale generation certificates LGC A large-scale generation certificate represents one megawatt hour of renewable energy generation.
Liable entities   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.
Large-scale Renewable Energy Target LRET The Large-scale Renewable Energy Target encourages the deployment of large-scale renewable energy projects such as wind farms.
Mandatory Renewable Energy Target MRET The Mandatory Renewable Energy Target began operation in 2001. The Mandatory Renewable Energy Target had a target of 9,500 gigawatt hours in 2010 (mandated out to 2020) and interim targets that gradually increased year on year.
Megawatt MW A measure of power (or demand).
Megawatt hour MWh A measure of electricity generation / use over a period of time (or energy).
National Electricity Market NEM The National Electricity Market interconnects five regional market jurisdictions (Queensland, New South Wales, Victoria, South Australia and Tasmania). Western Australia and Northern Territory are not connected to the National Electricity Market.
Partial exemption certificate PEC The Renewable Energy (Electricity) Act 2000 (Cth) and the Renewable Energy (Electricity) Regulations 2001 include provisions to provide partial exemption from Renewable Energy Target liability for electricity used in defined emissions-intensive trade-exposed activities. To obtain an exemption, prescribed persons may apply to the Clean Energy Regulator for a partial exemption certificate.
Renewable energy certificates REC The term used for renewable energy certificates generated under the Renewable Energy Target scheme prior to 2011.
Renewable Energy (Electricity) Act 2000 (Cth) REE Act The legislative framework for the Renewable Energy Target scheme.
Renewable Energy (Electricity) Regulations 2001(Cth) REE Regulation The detailed rules and provisions of the Renewable Energy Target scheme.
Renewable Energy Target RET The Renewable Energy Target operates in two parts – the Small-scale Renewable Energy Scheme and the Large-scale Renewable Energy Target.
Renewable Energy Target review RET review 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).
Renewable power percentage RPP The renewable power percentage establishes the rate of liability for Large-scale Renewable Energy Target and is the mechanism that liable entities use to determine how many large-scale generation certificates need to be surrendered to discharge their liability each year.
Solar Credits   Solar Credits is a mechanism which increases the number of small-scale technology certificates able to be created for eligible installations of small generation units such as solar panels.
Solar photovoltaic panels PV Solar photovoltaic panels produce electricity by gathering and transforming the sun’s energy.
Small-scale Renewable Energy Scheme SRES The Small-scale Renewable Energy Scheme supports the installation of small-scale systems, including solar panels and solar water heaters.
Small-scale technology certificate STC Certificate created by small-scale technologies like solar panels and solar water heaters.
Small-scale technology certificate clearing house STC clearing house The small-scale technology certificate clearing house facilitates the exchange of small-scale technology certificates between buyers and sellers at the fixed price of $40 (excl. GST).
Small-scale technology percentage STP The small-scale technology percentage establishes the rate of liability for the Small-scale Renewable Energy Scheme. The small-scale technology percentage is the mechanism that liable entities use to determine the number of small-scale technology certificates needed to be surrendered to discharge their liability quarterly.
South West Interconnected System SWIS South West Interconnected System is the electricity network that services the majority of Western Australia’s population.