The Illinois Power Agency (IPA) conducted a competitive procurement for indexed renewable energy credits (RECs) from new utility-scale wind projects (over 5 MW), new utility-scale solar projects (over 5 MW), and new brownfield site photovoltaic projects under twenty-year contracts in accordance with Public Act 102-0662 (the Climate and Equitable Jobs Act). The procurement targeted 5,600,000 RECs delivered annually from utility-scale wind projects, 1,100,000 RECs delivered annually from utility-scale solar projects, and 127,000 RECs delivered annually from brownfield site photovoltaic projects.
Bidders submitted proposals in two parts. Part 1 Proposals were submitted to demonstrate project maturity and site control, with the Part 1 deadline occurring approximately 7-8 weeks before the final bid date. Part 2 Proposals included submission of bid assurance collateral to three utilities (AIC, ComEd, and MEC) and other supporting documentation. Bid assurance collateral requirements were $1,600/MW for wind and $5,500/MW for solar/brownfield projects for AIC; $4,000/MW for wind and $13,000/MW for solar/brownfield projects for ComEd; and $400/MW for wind and $1,000/MW for solar/brownfield projects for MEC.
Key dates included an August 4, 2023 draft release with a comment period through August 18, 2023, finalization of contract documents by September 29, 2023, a bidder information webcast on October 3, 2023, Part 1 proposal submissions by November 17, 2023, Part 2 proposals due by December 1, 2023, and final bid submission on December 8, 2023. The Illinois Commerce Commission approved the procurement results on December 14, 2023. RECs from winning projects were allocated to the three utilities in proportions of 27.318% to AIC, 72.445% to ComEd, and 0.237% to MEC.
Eligible projects were required to meet a Minimum Equity Standard of 10% of project workforce comprised of Equity Eligible Persons if the Date of First Operation was on or after December 15, 2022. Sellers were required to submit MES Compliance Plans at the start of each delivery year, Mid-Year Confirmations by December 1 of each delivery year, and MES Reports by July 15 following each delivery year in which construction activities were performed. Projects located in adjacent states to Illinois (Wisconsin, Iowa, Missouri, Kentucky, Indiana, and Michigan) were eligible if pre-approved by the IPA to meet public interest criteria. All projects were required to comply with Project Labor Agreement requirements and obtain executed agreements prior to construction.