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

The Illinois Power Agency (IPA) conducted a competitive procurement for Indexed Renewable Energy Credits (RECs) from new utility-scale wind projects (projects over 5 MW), new utility-scale solar projects (projects over 5 MW), and new brownfield site photovoltaic projects, authorized under Public Act 102-0662 (the Climate and Equitable Jobs Act), effective September 15, 2021. The procurement was held in May 2022, within 240 days of the Act's effective date, as required by statute.

Target procurement quantities were 2,500,000 Indexed RECs annually from new utility-scale wind projects, 2,000,000 Indexed RECs annually from new utility-scale solar projects, and 125,000 Indexed RECs annually from new brownfield site photovoltaic projects. All RECs procured must meet the statutory definitions of Renewable Energy Credit and Indexed Renewable Energy Credit. Winners are required to establish long-term contracts with three utilities: Ameren Illinois Company (AIC), Commonwealth Edison Company (ComEd), and MidAmerican Energy Company (MEC), with REC quantities allocated in pre-specified proportions (27.793% to AIC, 71.925% to ComEd, and 0.282% to MEC).

Key dates include: Stakeholder Workshop on February 7, 2022; first comment period deadline December 18, 2021; second draft contract comment period ending February 23, 2022; final RFP rules posted March 29, 2022; Part 1 Proposal deadline April 30, 2022 at 12:00 PM (noon) CPT; bid assurance collateral due April 29, 2022 at 12:00 PM (noon) CPT; Part 2 Proposal and final bids due May 3, 2022; Illinois Commerce Commission approval May 12, 2022.

Bidders must demonstrate adequate project maturity through interconnection agreements or system studies, establish site control, comply with prevailing wage requirements, and execute Project Labor Agreements. Successful bidders must post performance assurance (collateral requirement) within five business days of Commission approval, with amounts of $4 per annual REC for wind projects and $10 per annual REC for solar and brownfield projects. Bidders are evaluated on price only, with bids submitted in indexed REC format using strike prices ($/MWh) referenced against either the MISO-IL Hub or PJM-NIHUB index prices. The REC Monthly Price is calculated as the difference between Index Price and Strike Price multiplied by hourly generation, which may be positive or negative with payments flowing accordingly between Seller and Buyer.