2024 Fall Indexed Wind, Solar, Brownfield, and Hydropower REC RFP (AIC, ComEd, and MEC)

The Illinois Power Agency (IPA) conducted a competitive procurement for indexed renewable energy credits (Indexed RECs) from new utility-scale wind projects (over 5 MW), new utility-scale solar projects (over 5 MW), new brownfield site photovoltaic projects, and new or modernized hydropower projects at existing dams. The procurement was held on December 2, 2024, with procurement targets of 5,041,483 RECs annually from wind or hydropower projects, 666,666 RECs annually from utility-scale solar projects, and 148,000 RECs annually from brownfield photovoltaic projects. RECs were allocated to three utilities: Ameren Illinois Company (AIC) at 27.09%, Commonwealth Edison Company (ComEd) at 72.67%, and MidAmerican Energy Company (MEC) at 0.24%.

The procurement was conducted pursuant to Public Act 102-0662 (Climate and Equitable Jobs Act) and Public Act 103-0380 (hydropower projects). Bidders were required to meet minimum equity standards of 10% for project workforce comprised of Equity Eligible Persons, with opportunities for additional equity level commitments. Key deliverables included Part 1 Proposals (due October 18, 2024) demonstrating site control and project qualifications, and Part 2 Proposals (due November 15, 2024) with detailed project information and bid assurance collateral.

Bidders were required to submit bid assurance collateral ranging from $400 to $13,000 per MW depending on project type and utility. The strike price for indexed RECs was fixed throughout the contract term and used for calculating the REC Monthly Price based on the difference between the strike price and hourly real-time locational marginal prices (LMP) at the selected index hub (either MISO-IL or PJM-NIHUB). Winning bidders were required to execute Indexed REC Contracts and post performance assurance within specified timeframes after Commission approval, with initial creditworthiness requirements met by December 17, 2024.

The procurement included extensive documentation requirements covering contract execution, financial assurances, equity compliance plans, and project labor agreements. Results were approved by the Illinois Commerce Commission on December 5, 2024. Contracts contained flexibility provisions including degradation factors for solar projects, exemptions for delivery shortfalls in the first two years, force majeure provisions, and options for sellers to commit a portion of project output to third-party off-takers.