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Glossary, abbreviations and acronyms

ACCUAustralian carbon credit unit.
Air source heat pumpsAir source heat pump water heaters transfer heat from air outside     the unit to water stored inside the unit. The air heats a special type of refrigerant (not a CFC) and the energy is used to heat the water.
ANREUAustralian National Registry of Emissions Units.
APSAustralian Public Service.
BaselineThe baseline is the amount of eligible electricity that an accredited power station must generate during a year before large-scale generation certificates can be created for that electricity. We determine baselines for power stations that operated before 1997 as prescribed by the Renewable Energy (Electricity) Regulations 2001.
Benchmark priceThe maximum amount we would pay for emissions reductions at an auction.
BiomassBiomass includes the following fuel sources: agricultural waste, bagasse, biomass-based components of  municipal  solid  waste, black liquor, energy crops, food processing  waste,  food  waste, landfill gas, sewage gas and biomass-based components of sewage, waste from processing of agricultural products and wood waste.
Buyer’s market damagesBuyer’s market damages allows the Commonwealth to recover the difference between the contracted price and the current market price for the ACCUs that have not been delivered. It represents the additional cost to the Commonwealth of purchasing abatement from alternative projects and makes up for the shortfall in delivery due to the seller failing to meet the requirements of the contract.
Carbon abatement contractsA contract to sell ACCUs to the Australian Government. Carbon abatement contracts are standard commercial, payment-on-delivery contracts.
Carbon dioxide equivalent (CO2 -e)A measure of greenhouse gas emissions. Carbon dioxide equivalence is estimated by multiplying the amount of gas by the global warming potential of the gas.
Compliance yearThe Renewable Energy Target operates on a calendar year basis, meaning liable entities must surrender large-scale generation certificates for their energy acquisition in the previous calendar year.
Controlling corporationAn entity that must register and report under the National Greenhouse and Energy Reporting Act 2007, as defined in section 7 of the Act.
CreditingParticipants receive one ACCU for each tonne of CO2 -e stored or avoided through registered Emissions Reduction Fund projects.
Delivery under the Emissions Reduction FundThis transaction refers to ACCUs transferred in the ANREU to make a delivery under a carbon abatement contract.
Displaced/displacementThe estimated reduction in  demand  for  electricity  from  the  grid that results from the installation of a solar water heater or air source heat pump.
Enforceable undertakingEnforceable undertakings are written statements from a person or organisation that they will do or stop doing certain things in order to resolve breaches or improve compliance with the legislation.
Generation from accredited renewable energy power stationsAccredited power stations can report their renewable energy generation and create large-scale generation certificates no later than 12 months after the calendar year in which the generation occurred. The above baseline generation number published in this report refers to generation for the financial year that has had large-scale generation certificates validated against it. This number will continue to rise due to the 12 month creation rule.
Greenhouse gas emissionsGreenhouse gas emissions refers to gases produced from human activity, such as carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). These emissions alter the natural greenhouse effect and encourage atmospheric warming. The greenhouse effect is created by naturally occurring gases such as water vapour (H2O) that insulate the earth, preventing the sun’s heat from escaping and keep the earth at liveable temperatures.
IssuanceThe act of issuing units including ACCUs under the Carbon Credits (Carbon Farming Initiative) Act 2011 and international units in accordance with United Nations Framework Convention on Climate Change directions.
KilowattA kilowatt is a measurement of power. Power is the rate at which the energy is generated or used. One kilowatt is equal to 1000 watts.
Kilowatt hourA kilowatt hour is a measure of electrical energy equivalent to a power consumption of 1000 watts for one hour.
Liable entityA person who, during a year, makes a relevant acquisition of electricity is called a liable entity. Liable entities are mainly electricity retailers.
MegawattA megawatt is a measurement of power. Power is the rate at   which the energy is generated or used. One megawatt is equal to 1000 kilowatts.
Megawatt hourA megawatt hour is a measure of electrical energy equivalent to a power consumption of 1000 kilowatts for one hour.
PetajoulesA petajoule is a standard unit of energy. For electricity, one petajoule equals 277.78 million kilowatt hours.
Photovoltaic (PV) systemA photovoltaic system, also known as a solar PV power system or PV system, is a power system designed to convert sunlight into usable electrical power by means of photovoltaic cells.
Power purchase agreementA power purchase agreement is typically a contract between an electricity retailer and the developer of a large-scale renewable energy power station, to source electricity or large-scale  generation certificates created by the power station. Parties can sign a power purchase agreement before a power station is built, as a way to underpin and secure financial backing for the project, or at a later stage.
REC RegistryRenewable Energy Certificate Registry
RelinquishIn certain situations where excess units have been issued, a participant can be required to relinquish units; that is, return them to the Commonwealth. They include situations relating to reforestation, such as the voluntary withdrawal of reforestation projects from the relevant scheme and the issue of units as a result of fraudulent conduct by the recipient.
Renewable energy certificateRenewable energy certificate refers to both large-scale generation certificates and small-scale technology certificates.
Renewable power percentageThe basis, set out in the Renewable Energy (Electricity) Regulations 2001, for calculating the number of large-scale generation certificates that a liable entity must purchase in a given year.
Reporting transfer certificate holdersA person who holds a reporting transfer certificate (RTC) must complete a final emissions report under s22G of the National Greenhouse and Energy Reporting Act 2007. This report contains information about the RTC facility’s scope 1 and scope 2 emissions and energy production and consumption.
Safeguard MechanismThe Safeguard Mechanism ensures that emissions reductions purchased through the Emissions Reduction Fund are not offset by significant increases in emissions above business-as-usual levels elsewhere in the economy.
Scope 1 emissionsThe release of greenhouse gas into the atmosphere as a direct result of an activity or series of activities (including ancillary activities) that constitute the facility. For example, the emissions produced when   coal is burned at a power station are scope 1 emissions.
Scope 2 emissionsThe release of greenhouse gas into the atmosphere as a direct result of one or more activities that generate electricity, heating, cooling or steam that is consumed by the facility but that do not form part of the facility.
Secondary marketThe market for units or certificates issued by the Clean Energy Regulator that occurs between two entities, not including the Clean Energy Regulator.
SESSenior Executive Service.
Small generation unitsSmall-scale systems that generate electricity. These include small- scale solar panel, wind and hydro systems.
Solar panelsA panel designed to absorb the sun’s rays as a source of energy for generating electricity or heating.
Sub-standardA sub-standard small-scale system does not meet key clauses in the Clean Energy Council standards and requirements for installation, or relevant Australian Standards, and may lead to premature equipment failure or other issues. The installation work and or equipment should be improved. The system owner should contact the installation company or a qualified installer to rectify the items listed for improvement.
SurrenderThis transaction allowed eligible units to be surrendered from an ANREU account.
UnsafeAn unsafe small-scale system has a safety hazard which poses an imminent risk to a person or property. The inspector shuts down the system and renders it safe. The inspector also advises the relevant state or territory regulatory authority of the nature and extent of the safety risk. The system owner should contact the installation company or a qualified installer to rectify the items listed for improvement.