What is a Large-scale Generation Certificate (LGC)?

Large-Scale Generation Certificates (LGCs) are created to quantify renewable energy that has been generated through solar, wind, hydro, and biomass projects (registered as a power station).

This is done under the Large-scale Renewable Energy Target, known as the LRET. Under the LRET, renewable energy power stations can generate LGCs for the energy they produce. 

Each LGC represents one megawatt hour of renewable energy, and one LGC may be created for each MWh of actual energy generated by the project.

These LGCs act like a stock that can be traded to gain a financial benefit, or surrendered to claim the renewable energy benefit.