Large-scale feed-in tariffs and reverse auctions

Large-scale energy generators

The ACT sources most of our 100% renewable electricity from large-scale generators located across eastern and southern Australia as part of the National Electricity Market.

We have fixed price contracts with several large-scale renewable generators as part of the Electricity Feed-in (Large-scale Renewable Energy Generation) Act 2011 (the Act).

Large-scale renewable generators use a renewable source, such as solar or wind, and have a capacity of more than 200 kW.

Reverse auctions

Canberra’s renewable electricity that is supplied by large-scale generators was selected through a series of innovative ‘reverse auctions’. The operator of the large-scale generators receive a fixed price feed-in tariff entitlement, which helps stimulate investment in renewable energy. Contracts are defined in a Notifiable Instrument under the Act.

Each generator must meet certain conditions and milestones, such as:

• delivering minimum generation amounts
• engaging with the community
• investing in the ACT renewable energy industry.

As of June 2021, the ACT Government has run 5 reverse auctions, resulting in 840 MW worth of contracts, contributing to around three-quarters of Canberra’s 100% renewable electricity target.

Feed-in tariffs

In the ACT, renewable energy power stations or generators get a feed-in tariff entitlement. These payments are based on a 'contract for difference' basis.

Evoenergy, as the ACT’s electricity distributor, pays the generator the difference between the generator's feed-in tariff price and the value of each MWh in the wholesale market.

Where wholesale market prices are below the agreed fixed price, a top-up payment is made to the generator to honour the agreed contract price. This may increase your electricity bill. However, when market prices are high, generators return earnings above the agreed fixed contract price, so your electricity bill should be lower.

See the ACT’s large-scale feed-in tariff payments and costs and 5-yearly reviews.

Certificates

The ACT’s renewable electricity generators create Large-scale Generation Certificates (LGCs) for all eligible generation and transfer them to the ACT.

LGCs provide proof that the generation is from a renewable energy source with each LGC representing one MWh of eligible generation. LGCs are administered by the Clean Energy Regulator.

The ACT Government uses the LGCs to achieve compliance in meeting its 100% renewable energy target.

Why it’s important

We need to continue to meet our 100% renewable electricity target as our population grows and remain on our pathway to net zero emissions by 2045.

Contact us

Email EnergyPolicy@act.gov.au