Queensland Gas Scheme

How the Queensland Gas Scheme works

In this guide:

A power station that does or will generate electricity from an eligible fuel can apply to become an accredited generator under the scheme. The electricity generated from eligible fuels is 'eligible electricity'.

Accredited generators may create Gas Electricity Certificates (GECs). Each GEC represents one megawatt-hour (MWh) of eligible electricity generated.

The GECs are sourced and purchased through the GEC registry by a liable person (usually an energy retailer). The liable persons are required to surrender the appropriate number of GECs to the regulator on an annual basis to demonstrate they have met their liability.

If insufficient GECs are surrendered, a penalty is imposed on the liable person.

In order to calculate the amount of eligible electricity generated by an accredited generator, a specific method is applied. The approved methods use factors such as Queensland Usage Factors (QUF) (PDF, 62KB) and loss factors (PDF, 90KB). QUFs and loss factors are fixed for each financial year.

Transition into a national emissions trading scheme

In the ClimateSmart 2050 (PDF, 719KB) strategy (released in June 2007), the Queensland Government announced its intention to transition the Queensland Gas Scheme into a national emissions trading scheme as soon as practicable.

Given the delay in the introduction of a national emissions trading scheme, the gas scheme will continue in 2011 with the target maintained at 15%.