This Part   provides for the creation, trading and extinguishing of renewable energy certificates.

There are 2 types of renewable energy certificates:

  (a)   large - scale generation certificates, which are created in relation to the generation of electricity by accredited power stations; and

  (b)   small - scale technology certificates, which are created in relation to the installation of solar water heaters and small generation units.

The certificates are used to avoid or reduce the amount of renewable energy shortfall charge that liable entities who acquire electricity have to pay. The liable entities will generally acquire the certificates by purchasing them.

The certificates are created by people who generate power from accredited power stations using eligible energy sources where the amount generated exceeds the relevant 1997 eligible renewable power base line. The certificates are also created for approved installations of solar water heaters or small generation units.

A person needs to be registered under Division   2 before they can create a certificate.

Division   2A provides for provisional accreditation of power stations.

A power station needs to be accredited under Division   3 before a certificate can be issued in relation to power generated by it.

A certificate must be registered when it is created. Every transfer of the certificate must also be registered.

When a certificate has been surrendered by a liable party, it ceases to be valid.

See also Part   2A (clearing house for small - scale technology certificates), which:

  (a)   provides a clearing house facility for the transfer of small - scale technology certificates; and

  (b)   gives the Regulator a limited power to create or cancel small - scale technology certificates.