IN FOCUS: What impact will the Renewable Electricity Guarantee of Origin (REGO) scheme have on LGC prices?

The introduction of the Renewable Electricity Guarantee of Origin (REGO) scheme in the second half of 2025 will bring new complexity to Australia’s Large-scale Renewable Energy Target (LRET) and the market for Large-scale Generation Certificates (LGCs). Specifically, the new REGO scheme will allow almost all entities who currently generate renewable energy at scale to choose which certificates they want to produce, subject to broader demand side signals. In this article we explore the different certification schemes, and examine how market dynamics may vary when the REGO scheme becomes active, including the potential impact on LGC prices.

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Recapping the current LRET framework

The Large-scale Renewable Energy Target (LRET) requires high-energy users, such as electricity retailers, to acquire a fixed proportion of their electricity from renewable sources. This occurs in the form of Large-scale Generation Certificates (LGCs), which are created by accredited large-scale renewable energy power stations – e.g., utility-scale solar and wind farms – and then sold to high-energy users who must surrender them to meet their obligations under the LRET. While the LRET’s 33,000 GWh