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Market-based Scope 2: LGCs, GreenPower and on-site solar

Market-based Scope 2 reflects the electricity you contracted for. Location-based Scope 2 reflects the grid you drew from. Most Australian reporters disclose...

Written by Misha Cajic

Market-based Scope 2 reflects the electricity you contracted for. Location-based Scope 2 reflects the grid you drew from. Most Australian reporters disclose both.

Avarni provides a guided calculator for Australia and New Zealand.

Record a market-based entry

  1. Go to Emissions Hub and select Add emission.

  2. Set the scope to Scope 2 and the GHG category to Market based.

  3. Set the country to Australia or New Zealand.

The Market-based adjustment (renewables) panel appears.

  1. Enter Grid electricity purchased, in kWh.

  2. For Australia, enter Exempt load and the Jurisdiction / State. Most sites have no exempt load.

  3. Add each certificate you procured.

  4. Select a residual mix factor.

  5. Select Add Emission.

The activity amount is calculated for you. It is the residual electricity, which is the grid electricity left after your renewables are deducted.

Do I need a market-based entry for every invoice or every month?

No. One entry covers the dates you give it. Monthly entries are not necessary.

Avarni does not copy an entry forward to later months. Avarni also does not create market-based entries from your electricity invoices.

Create one entry for each facility for each reporting period:

  1. Set Date to the first day of the reporting period.

  2. Set End Date to the last day of the reporting period.

  3. Enter the grid electricity purchased at that facility across those dates.

For the next reporting period, create new entries. To create many entries at once, use a market-based Method. See "Upload market-based entries in bulk" below.

What grid electricity figure do I enter for a site?

Enter the total grid electricity purchased at the facility for the entry dates, in kWh. Include every meter at the facility.

Do not enter the load that you used to decide how many certificates to buy.

Each entry holds one grid electricity figure, one state and one facility. Create a separate entry for each facility and select it in the Facility field. In a bulk upload, put the facility in the Facility column.

Avarni calculates each entry separately. If renewables exceed grid electricity in one entry, the surplus does not reduce another entry.

Which residual mix factor do I select?

Select the market-based residual mix factor for Australia or New Zealand that matches your reporting period. It is a national factor. There is no state factor.

Do not select a custom zero factor. Avarni multiplies only the residual electricity by this factor, after it deducts the RPP and your certificates. A zero factor makes market-based emissions zero for every entry.

What you can enter

Three instrument types are supported:

Type

Country

Status applies

LGC

Australia

Yes

GreenPower

Australia

No

NZEC

New Zealand

No

Enter certificate volumes in MWh.

Only surrendered LGCs are deducted. LGCs you hold or sold do not reduce your market-based figure. GreenPower and NZECs always count.

Avarni does not support US RECs, I-RECs, REGOs, or PPAs as an instrument type. If you have a PPA, enter the certificates it delivers.

On-site generation you consume yourself

Enter electricity you generate and consume on site under On-site generation · self-consumed.

This is rare. Use it only when you both generate and consume the electricity at the site. It nets against your certificates rather than adding to them.

What does on-site generation do to my result?

Avarni adds on-site generation back to residual electricity. It cancels out the same amount of certificates. It does not reduce emissions by itself.

The Working panel shows it as + On-site generation netting.

Enter on-site generation only when your certificates include certificates created from that same generation. If you enter on-site generation without those certificates, residual electricity and market-based emissions go up.

How do I record solar generation outside a market-based entry?

Upload the solar data through its own Method. Do not use a market-based Method for it.

  1. Create a Method for the solar data. Do not set its calculation type to Scope 2 and Market based.

  2. Map the solar electricity to an emission factor of zero.

  3. Upload the solar file through that Method.

A market-based Method always needs grid electricity. If a row has no value in Grid electricity purchased Q (kWh), the upload stops with the error "Grid electricity purchased Q (kWh) is required for market-based entries." This is not an organisation setting.

If you loaded the same solar both as activity data and on a market-based entry, keep the activity data with the zero factor. To fix rows you already uploaded, select them in the Emissions Hub and set the zero factor on all selected rows at once. You do not need to upload them again. Then check the on-site generation line on the market-based entry against the previous section.

What Avarni deducts for you

Avarni applies the Renewable Power Percentage and, where relevant, the jurisdictional percentage for your state, before your certificates. Those rates are published per reporting period and you do not enter them.

Open the Working panel to see each step of the calculation.

If your renewables exceed your grid draw, residual electricity is held at zero and market-based emissions are zero. Avarni shows a warning and still saves the entry.

Which Renewable Power Percentage applies to a financial-year reporting period?

Avarni uses the Date and End Date of the entry to select the Renewable Power Percentage (RPP). You do not enter it.

Entry dates

RPP that Avarni applies

Inside one Australian financial year (1 July to 30 June)

The published RPP for that financial year. It is the average of the two calendar-year rates.

Across more than one financial year, for example 1 January to 31 December

The calendar-year rates, weighted by the number of days in each calendar year.

An entry dated 1 January to 31 December 2025 uses the 2025 calendar-year rate only.

If you report by financial year, set the entry dates to your financial year. For 1 July 2025 to 30 June 2026, Avarni applies the FY2025-26 rate. That rate is the average of the 2025 and 2026 calendar-year rates.

To change the dates of an existing entry, open the entry, change Date and End Date, and save. Avarni calculates the entry again.

To see how Avarni got the rate, select the information icon next to the RPP line in the Working panel.

In the ACT, the jurisdictional percentage follows the same dates. Across financial years, Avarni weights the published financial-year figures by days.

If a rate is not yet published for part of the dates, Avarni shows "Market-based rates aren't published for this activity date's reporting period yet." You cannot save the entry until the rate is available.

Upload market-based entries in bulk

Create a Method with the calculation type set to Scope 2 and Market based. The importer then asks for these columns:

  • Grid electricity purchased Q (kWh), required

  • Exempt load (kWh)

  • Jurisdiction (AU state)

  • Certificate type, one of LGC, GreenPower or NZEC

  • Certificate volume (MWh)

  • Certificate status

  • On-site generation (MWh)

One row produces one entry with at most one certificate and one on-site line. If a site has several certificate types, use the entry dialog instead.

Evidence documents cannot be attached through a bulk upload.

Can I attach certificate surrender evidence to an entry?

Yes, in the entry dialog. Evidence is optional. Avarni does not need it to calculate the entry.

  1. Open the market-based entry in the Emissions Hub.

  2. In the certificate row, select Attach evidence document.

  3. Upload the file, for example a registry export that shows the surrender.

  4. Optionally, type the registry reference in Reference / note (optional).

  5. Save the entry.

You can attach documents to an on-site generation row in the same way. For entries from a bulk upload, open each entry to attach documents.

Can I change location-based entries to market-based with Bulk Edit?

No. Bulk Edit does not calculate residual electricity. If you change Scope & GHG Category to Market based, the entry keeps its full kWh. It gets no RPP deduction and no certificate deduction.

Create market-based entries in the entry dialog or through a market-based Method.

For the same reason, do not use Bulk Edit to change the Date or Activity Amount of market-based entries. Open each entry and change its dates or grid electricity there. Avarni then calculates the entry again.

Location-based and market-based together

Record both. They are separate entries, and Avarni does not check one against the other.

Avarni does not prevent double counting between them. Both are Scope 2, and totals that are not split by GHG category add them together. The Overview page does this.

To see them separately, group or filter by GHG category in the Emissions Hub or on a custom graph.

Do market-based entries add kWh to my electricity graphs?

Yes. Each market-based entry stores its residual electricity in kWh as the activity amount. A consumption graph that includes both GHG categories adds this kWh to your location-based kWh.

For consumption graphs, filter to the Location based GHG category.

Outside Australia and New Zealand

The guided calculator is limited to Australia and New Zealand.

For other countries, record a Scope 2 market-based entry manually. Enter the electricity amount and select a market-based factor, such as a European residual mix factor. You calculate the residual electricity yourself.

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