How your large business can benefit from lower LGC prices

Since mid-2025, Large-Scale Generation Certificates (LGCs) have seen a consistent downward trend in price, according to data from the Clean Energy Regulator (CER) (See Figure 2.3).

Voluntary surrender of LGCs is also at an all-time high (See Figure 2.7). Shell Energy’s Renewable Energy Contracting Options (RECO) tool can help you take advantage of periods of lower LGC prices and help you meet your sustainable energy goals faster.

Why have LGC prices been so low?

The main driver of lower LGC spot prices has been sustained investment in renewable energy like wind and solar farms, which has led to an increase in LGC creation and a surplus of LGCs in the market.

Large-scale Generation Certificate (LGC) reported spot and forward prices. Source: Clean Energy Regulator

Environmental certificates are bought, sold and traded via an online registry. When more LGCs are created in the market than are needed for surrender to meet mandatory obligations under the Large-scale Renewable Energy Target (LRET) scheme, or voluntary purchases, the excess remains in the registry. Surplus certificates can be carried forward for future use or traded in the secondary, voluntary market.

How could my business benefit if lower prices continue?

Businesses with renewable energy goals may benefit by purchasing more LGCs at a lower price, helping to meet those goals faster and for a cheaper cost than may have been previously possible.

RECO, our easy-to-use online tool, makes this process as simple as possible, by giving you the flexibility to purchase LGCs in a strategy-driven way that suits both your business’ needs and aligns when LGC prices are low to give your business the best energy value.

RECO enables your business to meet its renewable energy goals simply and flexibly online by either:

• Agreeing to a RECO price and percentage of LGCs up-front;
• Or progressively purchase LGCs via our secure, online Shell Energy Portal.

When you make a RECO purchase on the Shell Energy Portal, Shell Energy matches the agreed percentage of your actual consumption with LGCs from accredited renewable generators and surrenders them on your behalf.

With RECO, you can purchase LGCs from renewable generators in specific states or from individual wind or solar farms. This can make demonstrating your commitment to supporting renewable energy development in your local community easier.

Get started with RECO today

Explore how RECO can help your business meet its environmental and sustainability goals.

Our expert Account Management team can help guide you through the process of getting started with RECO and make achieving your sustainability goals simple.