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Frequently asked questions

Are RECs generated from wood waste sources eligible for delivery?


No, only RECs generated from non-wood waste sources will be eligible for delivery. RECs generated from wood waste sources are specifically excluded to mitigate price disparity as these certificates are typically priced at a discount to non-wood waste sourced RECs. Please note that the criteria set with regards to RECs generated from wood waste sources is determined under the Renewable Energy (Electricity) Regulations 2001 and as indicated on the register of large-scale generation certificates as defined in the Renewable Energy (Electricity) Act 2000 (Cth) as of 1 January 2011.

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How do I commence trading ASX REC (Renewable Energy Certificate) Futures?


For information on how to access the ASX market for ASX REC Futures please contact an ASX 24 Participant (PDF 140KB).

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Are the ASX REC Futures contracts deliverable or cash settled?


ASX REC Futures contracts are deliverable via the Register of Large-Scale Generation Certificates operated by the Office of Renewable Energy Regulator (ORER).

For further information regarding the delivery process please refer to the ASX REC Futures Brochure (PDF 1.29MB) or the ASX24 Operating Rules and Determinations.

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Are Small-Scale Technology Certificates (STC’s) able to be delivered


No, only RECs deemed Large-Scale Generation Certificates (LGC’s) as defined in the Renewable Energy (Electricity) Act 2000 (Cth) will be eligible for delivery.

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What happens if delivery of RECs does not occur at the expiry of the ASX REC Futures contract?


There are a number of remedies available to ASX to deal with the instance where deliveries are delayed or unable to be completed. The following table outlines the process ASX will undertake to deal with such matters if they arise.

Circumstances delaying delivery If the transfer of RECs cannot be accomplished on time due to the unavailability or temporary suspension of the LGC Registry, such transfer shall be made as soon as possible and in accordance with any instructions which may be given by the Exchange in consultation with the Approved Clearing Facility.
Circumstances preventing delivery (a) If, due to circumstances beyond the control of the Buyer or Seller (as applicable) the Seller is permanently unable to arrange delivery of RECs to the Buyer or the Buyer is permanently unable to take delivery from the Seller, the Exchange will cancel the delivery process and the contracts of the Buyer and Seller will be cash settled at a price advised by the Exchange.


(b) “Circumstances beyond the control of the Buyer or Seller” are limited to the following:
  1. the relevant provisions of the Renewable Energy (Electricity) Act 2000 (Cth) (as amended from time to time) are suspended;
  2. if the REC Registry (as defined under the Renewable Energy (Electricity) Act 2000 (Cth)) is repealed or amended in a manner which prevents the performance of delivery obligations in accordance with these Operating Rules and Determinations;
  3. any other circumstance which the Exchange determines to be beyond the control of the Buyer or Seller prevents delivery in accordance with the Operating Rules and Determinations.

 

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Are ASX24 participants required to hold an account on the ORER Register of Large-Scale Generation Certificates to transact ASX REC Futures?


ASX REC Futures contract specifications have been structured such that there is inherent flexibility regarding the ultimate transfer of RECs at expiry.

The delivery process, as outlined in the ASX REC Futures Brochure (PDF 1.29MB), allows the Clearing participant to either hold an account on the Register of Large-Scale Generation Certificates to effect the transfer of RECs or elect to require their client to hold an account for the purposes of REC transfers.

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Are there incentives for making markets in ASX REC Futures?


ASX offers attractive incentives for entities wishing to be a market maker in ASX REC Futures. Contact Business Development on futures@asx.com.au.

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