The objects of this Act are:

(a) to encourage the additional generation of electricity from renewable sources; and (b) to reduce emissions of greenhouse gases; and (c) to ensure that renewable energy sources are ecologically sustainable.

This is done through the issuing of certificates for the generation of qualifying electricity and requiring certain purchasers (called liable entities ) to surrender a specified number of certificates for the electricity that they acquire during a year. Where a liable entity does not have enough certificates to surrender, the liable entity will have to pay renewable energy shortfall charge.