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), new brownfield site photovoltaic projects, and new or modernized/retooled hydropower projects at existing dams. This procurement was conducted in accordance with Public Act 102-0662 (Climate and Equitable Jobs Act) and Public Act 103-0380.
Procurement targets include 2,700,000 RECs delivered annually from new utility-scale wind or hydropower projects, 666,666 RECs delivered annually from new utility-scale solar projects, and 74,000 RECs delivered annually from new brownfield site photovoltaic projects. The REC procurement was held on July 18, 2024, with results announced on July 24, 2024.
Key dates in the procurement calendar included Part 1 Proposal submission deadline of April 30, 2024 at 12:00 PM CPT, Part 2 Proposal and bid assurance collateral submission deadline of July 9, 2024 at 12:00 PM CPT, and the Bid Date of July 18, 2024 between 10:00 AM and 12:00 PM CPT. The Bidder Information Webcast was held on May 2, 2024. The Illinois Commerce Commission rendered its decision on procurement results on July 24, 2024.
All projects must meet the Minimum Equity Standard of 10% of the project workforce being Equity Eligible Persons or Equity Eligible Contractors. Projects must comply with prevailing wage requirements and project labor agreement requirements. Utility-scale solar and brownfield site photovoltaic projects must be installed by qualified persons in compliance with Section 16-128A of the Public Utilities Act. Projects located in adjacent states must meet public interest criteria and obtain pre-approval from the IPA for Illinois RPS compliance.
Bid assurance collateral requirements vary by utility and project type: AIC required $1,600/MW for wind and $5,500/MW for solar/brownfield/hydropower; ComEd required $4,000/MW for wind and $13,000/MW for other project types; MEC required $400/MW for wind and $1,000/MW for other project types. Performance assurance collateral is required upon contract execution for projects that do not qualify for unsecured credit.