What makes an LGC eligible for NGER market-based reporting?

An LGC counts toward NGER market-based Scope 2 only if it was voluntarily surrendered before you submit your NGER report, was not used for Renewable Energy Target liability, has a generation date within 36 months of the end of the reporting year, and has not been allocated to any facility before. These rules apply to 2025-26 reports.

LGC Eligibility For NGER Market-Based Scope 2

A large-scale generation certificate (LGC) reduces NGER market-based Scope 2 emissions only if it meets the eligibility rules in subsection 7.4(3) of the NGER Measurement Determination. The rules below are those the Clean Energy Regulator sets out for the 2025-26 reporting year. Each reporting year should be checked against the Determination in force for that year.

Key points

LGCs must be voluntarily surrendered in the REC Registry before the NGER report is submitted
LGCs used for Renewable Energy Target liability are ineligible
For 2025-26 the generation date must be July 2023 or later
Each LGC or part of an LGC can be claimed once only
Surrender IDs must be reported and serial numbers kept
Rules apply per reporting year under subsection 7.4(3) of the Measurement Determination

When an LGC is ineligible

An LGC cannot be used for the market-based method if it:

was surrendered to meet a liable entity’s obligations under the Renewable Energy (Electricity) Act 2000
was not voluntarily surrendered in the REC Registry before the NGER report was submitted
was incorrectly created or cancelled
has a generation date more than 36 months before the end of the reporting year, which for 2025-26 means a generation date before July 2023
was surrendered for an energy storage system under the Guarantee of Origin Act 2024
has already been allocated to a facility for any reporting period

The generation date is the date the electricity was generated, not the date the certificate was created.

How LGCs are allocated to facilities

Each LGC, or portion of an LGC, can be claimed only once. A company can allocate LGCs from several surrenders to one facility, split one surrender across several facilities, or split a single LGC. It does not have to allocate every LGC from a surrender. One LGC is equivalent to one MWh of electricity.

Evidence to provide and keep

The surrender ID of every allocated LGC must be entered in the Emissions and Energy Reporting System. The serial number of each LGC must be kept, which records the registered person, the power station accreditation code and the generation month and year. Where a third party surrenders LGCs on your behalf, the REC Registry comment should state your company name and ABN, or you need a written statement from them.

What changed for 2025-26

The surrender deadline moved from 30 June to any time before the NGER report is submitted. REGO certificates can now be allocated alongside LGCs and GreenPower. Surrender IDs must now be provided in the report.

References & sources

Primary regulatory documents and authoritative references underpinning this answer.