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What Are Large Scale Generation Certificates?

What Are Large Scale Generation Certificates?

Renewable energy can help businesses build toward a sustainable future. In this era of increased environmental awareness, the demand for cleaner and greener energy sources has given rise to motivational incentives. 

One of these incentives includes Large Scale Generation Certificates (LGCs). These certificates give businesses the power and urgency they need to reduce their carbon footprint. But how do they work? What are the benefits of obtaining them?

Keep reading to learn more about Large Scale Generation Certificates (LGCs) and their benefits for your business.

Understanding Large Scale Generation Certificates (LGCs)

Large Scale Generation Certificates (LGCs) are a form of documentation that verifies the generation of renewable energy on a large scale. For example, the government may create one large scale generation certificate for each megawatt-hour (MWh) of eligible renewable electricity generated by a reliable power station. 

These certificates cover a range of renewable sources, including solar, wind and hydro. This inclusivity ensures that various clean energy initiatives can participate in and benefit from the LGCs.

Governments and environmental agencies often oversee the issuance and trading of LGCs to maintain adherence to renewable energy targets. This structure not only validates the certificates but also fosters a robust system for promoting and monitoring large-scale renewable energy projects.

How Large Scale Generation Certificates Work

LGCs play a crucial role in the renewable energy landscape because they encourage clean energy generation. The simple process of obtaining these certificates encourages further investment in the green energy sector. 

Check out how these certificates work below:

Application and Issuance Process

Renewable energy generators that apply for LGCs want to validate the environmental benefits of their energy production. This application process includes detailed information about the energy source, production methods and associated environmental advantages. 

Once the Clean Energy Regulator has approved this process, the business will receive LGCs as tangible proof of the renewable nature of the generated energy.

Role of Renewable Energy Generators

Renewable energy generators, such as solar or wind farms, actively participate in the LGC system. Beyond producing green energy, they seek LGCs to warrant their commitment to sustainability. These generators are not only contributing to cleaner energy production but also benefiting from the economic incentives associated with the certification.

Trading and Compliance Mechanisms for LGCs

LGCs are not stagnant certificates because businesses can trade them in the market. This trading aspect allows businesses with a renewable energy target (RET) to meet their obligations by purchasing LGCs from the Clean Energy Regulator. This process promotes a market-driven approach to renewable energy production.

Governments also implement compliance schemes that require certain businesses to surrender a specific number of LGCs, ensuring a steady demand for these certificates. This compliance encourages ongoing investment in renewable energy projects.

Benefits of LGCs in Business Sustainability

LGCs are powerful tools that encourage a global change toward sustainable energy. They offer various benefits that extend beyond just environmental stewardship and attracting new consumers.

Here are the benefits of LGCs for the adoption of clean energy sources: 

Environmental Impact and Clean Energy Promotion

LGCs contribute to reducing your carbon footprint. The production of LGCs is expected to increase 7-14% year on year, with a record of 13 million LGCs generated in 2023. This continuous process encourages more businesses to reduce their carbon footprint when starting renewable energy projects. 

These certificates provide a transparent and accountable way for businesses and governments to showcase their commitment to environmentally friendly practices. In turn, this promotes the use of clean energy sources, supporting the fight against climate change.

Incentives for Investment in Renewable Energy

LGCs create a tangible market for renewable energy, providing financial incentives for businesses to invest in green initiatives. Trading these certificates introduces a revenue stream for renewable energy generators, creating economic success and encouraging further investment in sustainable projects.

This benefit not only supports a business’s environmental goals but also boosts economic growth within the renewable energy sector.

Economic Advantages for Businesses and Governments

Businesses that participate in LGC programs can enjoy a competitive edge. Demonstrating a commitment to renewable energy through LGCs enhances corporate social status. This should attract environmentally conscious consumers and may even qualify for government incentives. 

Governments can also achieve renewable energy targets more efficiently by leveraging LGCs, ensuring diversified and sustainable energy generation.

Global Renewable Energy Transition

LGCs contribute to the global transition toward renewable energy sources. By enabling the identification and promotion of clean energy projects, LGCs play a crucial role in reshaping the energy landscape on a large scale. Businesses can also learn from each other when investing in sustainable practices.

5 Steps on How to Obtain LGCs for Your Business

Understanding how to obtain LGCs involves a systematic approach. There are various things to consider before applying for these certificates and investing in projects that enhance your environmental sustainability.

Below is a guide on how to obtain LGCs:

1. Identify Renewable Energy Sources

The first step is to assess the renewable energy sources available for your business. These sources could be solar panels, wind turbines or other green technologies. It’s essential to invest in these sustainable projects to qualify for the application process. 

You can also join programs such as the Energy Efficiency Improvement Scheme (EEIS) or Energy Savings Scheme (ESS) to help your business transition to new energy-efficient solutions.

2. Comply with Certification Standards

You must ensure that your renewable energy projects comply with the certification standards set by relevant regulatory bodies. This involves meeting specific criteria related to energy production, emissions reduction and sustainable practices. Adhering to these standards positions your business for successful LGC applications.

The Clean Energy Regulator has a general formula to help you estimate your renewable energy savings and follow regulatory standards when applying for LGCs. 

3. Start the Application Process

Start the application process by submitting detailed documentation about your renewable energy projects. This includes information about the energy source, production methods and environmental benefits. 

Businesses should make their claims through the REC Registry. This online system allows renewable energy participants to create an account and submit an application for the generation of LGCs. Remember that thorough and accurate documentation strengthens your case during the approval process.

4. Engage with Regulatory Authorities

You should establish communication with regulatory authorities overseeing the LGC certification process. This means seeking guidance, addressing any queries they may have and ensuring a smooth application process. Building a collaborative relationship with government regulatory bodies can streamline the approval process for your business.

5. Monitor and Trade LGCs

Once the government approves your application, you must monitor and manage your LGCs. This process involves tracking the generation of renewable energy and the corresponding issuance of certificates.

Depending on your business needs, consider trading LGCs in the market to optimise the economic benefits associated with these certificates.


Large Scale Generation Certificates (LGCs) are essential for meeting your renewable energy target and transitioning to sustainable and renewable resources. Through their regulatory frameworks, LGCs support the cause of environmental sustainability, which encourages clean energy adoption worldwide.

Are you interested in applying for these certificates? Contact Ecosaver today to talk with an expert about renewable energy systems. Our team can assist you with the application process and suggest the right energy saving schemes for your business.

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