2022 Fall Indexed Wind, Solar, and Brownfield REC RFP (AIC, ComEd, and MEC)

The Illinois Power Agency (IPA) is conducting a competitive procurement of indexed renewable energy credits (RECs) from new utility-scale wind projects (greater than 5 MW), new utility-scale solar projects (greater than 5 MW), and new brownfield site photovoltaic projects under twenty-year contracts. In accordance with Public Act 102-0662 (Climate and Equitable Jobs Act), the IPA filed its 2022 Long-Term Renewable Resources Procurement Plan with the Illinois Commerce Commission (ICC), which was approved with modifications on July 14, 2022.

The procurement targets 1,750,000 RECs delivered annually from new utility-scale wind projects, 1,000,000 RECs delivered annually from new utility-scale solar projects, and 65,000 RECs delivered annually from new brownfield site photovoltaic projects. This RFP seeks to procure renewable energy credits only, not energy or other products. Sellers bid a strike price ($/MWh) which is used in conjunction with hourly real-time energy settlement prices at either the MISO-IL or PJM-NIHUB trading hubs to calculate monthly REC prices. Payment to or from the buyer varies based on whether the REC Monthly Price is positive or negative.

Proposals consist of two parts: Part 1 (qualification standards) and Part 2 (bids and financial guarantees). Key dates include: Part 1 Window opening October 13, 2022 with submission deadline November 3, 2022 at 12 PM (noon) CPT; Part 2 Window opening November 18, 2022 with submission deadline December 2, 2022 at 12 PM (noon) CPT; Bidder Information Webcast held October 12, 2022; and ICC Commission decision on procurement results December 15, 2022. Contracts are for twenty-year terms with performance requirements including annual REC delivery quantities and maximum contract quantities.

Projects must demonstrate adequate maturity through interconnection documents, system impact studies, or site control documentation (40 acres per MW for wind, 4 acres per MW for solar, 3 acres per MW for brownfield). Bidders must post bid assurance collateral with each of the three utilities (AIC, ComEd, MEC) based on project size and preliminary RFP project percentage. Winning bidders must meet creditworthiness requirements and post performance assurance collateral unless eligible for unsecured credit. The Minimum Equity Standard (MES) applies, requiring commitment to equity-level employment and community benefits.