Determining liable grids, liable purchases of electricity and REC liabilities, and discharging liabilities
Fact sheet - Version 1
Office of the Renewable Energy Regulator, March 2006
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About the document
Determining Liable Grids under the Renewable Energy (Electricity) Act 2000 (Act)
The Mandatory Renewable Energy Target (MRET) applies to all wholesale acquisitions of electricity (relevant acquisitions) on grids with an installed capacity of 100 MW or more. A grid is defined as a network of transmission and/or distribution lines that connects a generator to an end-user. This means that all grids across Australia and isolated grids supplying regional areas above this size are covered by the implementation of the MRET.
To calculate the installed capacity of a grid, the liable parties should identify all of the power stations that are connected to the grid and sum the installed capacity of the power stations. Liable parties can exclude standby or emergency plants and privately owned grid connected domestic generators. A standby plant must for the immediately proceeding three years:
- produce less than 50 GWh per annum; or
- has less than a 5% load factor. For example, if a power station generates less than 5% of its generation capacity.
As soon as a grid reaches the installed capacity of 100 MW or more, all relevant acquisitions on the grid become liable. Grid operators are obliged to inform the Renewable Energy Regulator (Regulator), within 28 days, of any changes to an existing grid that make the grid exceed the 100 MW threshold.
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