GreenPower is changing their accreditation program in 2024 to align with relevant sustainability frameworks, while also aiming to recognise the Renewable Power Percentage (‘RPP’) in their products in 2025.
Snapshot
- The following changes will come into effect on 1 January 2024:
- Accreditation dates for renewable electricity generators will align with the Clean Energy Regulator.
- 15-year age limit for GreenPower generators.
- 27-month certificate vintage requirement on Large-scale Generation Certificates (‘LGCs’).
- GreenPower providers will report purchases by postcode every quarter.
- From 2025, GreenPower will include the Large-scale Renewable Energy Target (‘LRET’) and RPP in their products.
Background
GreenPower is a government scheme jointly managed by Australian state agencies which provides accreditation for renewable energy. This promotes renewable energy in Australia by allowing consumers to purchase it from certified electricity retailers. Consumers are charged an extra amount when purchasing GreenPower products, with the retailer investing the additional funds in the renewable energy industry.
Certified retailers must source their energy from electricity generators which have been accredited by GreenPower. Generators are assessed against environmental standards and must reduce greenhouse gas emissions. Once accredited, a generator can start providing renewable energy for GreenPower consumers and creating renewable energy certificates.
The changes to the accreditation program are based on recommendations made in the 2022 GreenPower Program Review Consultation to align with relevant renewable energy standards. At the time of writing, the updated program rules have been announced, but are yet to be published.
Changes in 2024
Accreditation date for generators
Generator accreditation dates for GreenPower will now align with the accreditation dates of the Clean Energy Regulator. However, this will not apply to re-powered generators and co-located additions to existing ones.
This change is intended to streamline the process of purchasing GreenPower LGCs, which help incentivise the development of renewable energy in Australia.
Age limit for generators
GreenPower will implement a 15-year age limit for generators participating in the accreditation program. This is to promote the development of new renewable energy generators. However, there will be limited exemptions, primarily for pre-existing contracts and power purchase agreements.
Certificate vintage requirements
There will be a 27-month certificate vintage requirement for LGCs from GreenPower sales. The vintage of a LGC refers to the date in which the eligible electricity was generated. This is intended to ensure that energy consumption is closer to the date of energy generation.
Reporting
GreenPower providers will be required to report on GreenPower purchases at the postcode level on a quarterly basis. This is intended to enhance targeted marketing and assist local councils in efficiently reducing community emissions. Postcode data will be anonymised and aggregated before publication.
Changes in 2025
GreenPower products in Australia will integrate the LRET into their electricity product percentages starting from January 1, 2025. Afterwards, the percentages of GreenPower products will also include the mandatory RPP, except for customers exempt from the Renewable Energy Target. This adjustment aims to cut costs, enhance transparency in renewable electricity consumption, and align with evolving sustainability and carbon accounting standards.
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