ILLINOIS RENEWABLE ENERGY CERTIFICATE (REC) PROCUREMENTS in 2017

 

 The Illinois Power Agency (IPA) will be running two different REC procurements opportunities in 2017. Both existing systems as well as new and speculative systems have the opportunity to participate and be paid quarterly for clean energy production for 5 years.

What is a REC? 

 

A Renewable Energy Credit (“REC”) is a tradable, environmental asset that represents the clean attributes of solar electricity. (1 REC = 1,000 kWh) This opportunity is different than a net metering agreement with the utility where system owners are credited for excess generation. RECs are valued for the total energy production from an array and therefore represents the carbon or pollution avoided from the grid.  RECs are a way to track and monetize these environmental benefits and compensate owners for the countless benefits to Illinois.  

The IPA requires that procurement bids meet a minimum of 1MW of installed capacity. These can be single projects or bundled together to meet that threshold.  Small projects can work with 3rd party aggregators if they are not able to meet that guideline.  ISEA recommends system owners work through their installer or contact the two preferred national companies listed below: Carbon Solutions Group or SRECTrade.   The procurement functions similar to an auction and bids are reviewed based on system size and price.  The IPA has a target that 50% of the RECs procured are from systems <25kW and will evaluate bids below a confidential benchmark.  Details from past DG procurement events including winning bid prices are listed on the IPA website. 

  

Spring 2017 Program 

 

The IPA Spring 2017 DG Calendar and program details are listed on their website. Winning bids will be announced on May 4th, 2017.  We recommend system owners should contact their for specific questions or go directly to  an aggregator or the IPA.  The total budget for the Spring DG procurement is approximately $20M. 

Fall 2017 Program 

 

Although details have not yet been published, it is anticipated that Part 1 Window for the Fall DG Procurement will open on September 11th.  Please check back for additional details or go to the IPA website for additional support.  

What's up for 2018?  

 

After several years of effort from the renewable energy community, environmental advocates and economic/social justice organizations, the state has passed comprehensive legislation that will accelerate clean energy adoption in Illinois. The legislation will allow for the advancement of wind and solar through various procurement events and a Long Term Plan for DG solar procurement (systems <2,000kW) through 2030.  Rule making efforts are underway for the various programs beginning with a forward procurement in Q3 2017 for new utiltiy scale wind and solar.  The Long Term Plan will include provisions for community solar and brownfield development as well as an Adjustable Block Incentive (ABI) for REC procurement. Details regarding the ABI are expected to be finalized by Summer 2018 pending ICC review and approval.  Entities interested in participating in the rule making process should reach out to Lesley McCain.