Small-Scale Technology Certificates in Australia

Designed to avoid small-scale generation crowding out large-scale generation spending, the STC market varies from its kin LGC in more than just the smaller size of the installations.

The first difference is the existence of the Clean Energy Regulator Run Clearing House (CH). The CH is a forum from which Liable Entities can purchase STCs in limitless amounts at a fixed price of $40, thus setting a theoretical price ceiling for the market

Nevertheless, the vast majority of STC operation takes place in the over-the-counter sector where buyers and sellers engage in the spot and forward marketplaces, which is the sector TFS works within.

The second big distinction for the STC industry is the provision that Liable Entities forfeit STCs every quarter, rather than yearly, as is the case for LGCs. To promote competition, quarterly surrender was enforced by pushing sellers into the market more consistently.

The 2019 Small-scale Technology Percentage (STP) has been set at 21.73%, equivalent to approximately 37,500,000 STCs.