Posts Tagged ‘Illinois SRECs’

ICC Issues Final Order on IPA’s 2017 Procurement Plan

Posted December 15th, 2016 by SRECTrade.

On December 13, the Illinois Commerce Commission (ICC) issued its Final Order on the Illinois Power Agency’s (IPA) 2017 Procurement Plan. The 2017 Procurement Plan, which will include two DG procurement events, will govern the final series of procurements held under Illinois’ existing RPS provisions, before the state transitions to its new RPS.

The Plan calls for two DG procurement events, with an allocated $40 million budget for the procurement of an estimated 20 MW of DG resources. The DG procurements under the Plan will be unique from previous DG procurements in that the IPA will allow for speculative bids for systems under 25kW for the first time. This change, made in light of the success of the IL SPV Procurement Plan and in response to public support, is combined with a reduced $4/REC letter of credit for both identified and speculative systems.

The DG procurements will be for 5-year REC contracts for systems under 25kw (“small”) and systems 25kW – 2MW (“large”), with a 50:50 procurement split between small and large systems. Any such new and existing systems interconnected with Ameren, ComEd, MidAmerican (Illinois service territory only), Mount Carmel, Illinois municipal utilities or rural co-ops are eligible to participate in the procurement, including “speculative” (unidentified) projects. There is a 1 MW “bid minimum”, and RECs will need to be offered at a single, blended REC price per bid. Interested participants are encouraged to bid through aggregators in order to meet the 1 MW “bid minimum”.

Speculative systems will have nine months to identify systems, and all systems will have between nine months and one year from identification to commence delivery, depending on the system type.

The timing of the DG procurement event rounds will be contingent upon the IPA’s determination regarding an April 2017 contingency procurement under the SPV Plan and other factors. The final version of the 2017 Procurement Plan and future updates on the Plan will be posted on the IPA’s website here.

Illinois Passes New RPS, Comprehensive Energy Package

Posted December 2nd, 2016 by SRECTrade.

Following a whirlwind revival and numerous amendments, both chambers of the Illinois General Assembly voted late on Thursday to pass a comprehensive energy bill to address the state’s RPS, energy efficiency programs, net metering, nuclear plants, and more. SB 2814, the Future Energy Jobs Bill, is a product of nearly two years of negotiations between utilities, renewable energy stakeholders, environmental advocates, ratepayer advocates, and others. The 440-plus page bill underwent nearly 30 rounds of changes before passing 63-38 in the House and 32-18 in the Senate on the final day of the General Assembly’s veto session.

The energy package includes a sizable bail-out for Exelon’s struggling nuclear power plants–providing $235 million a year to Exelon for 13 years to keep the plants up and running. In return, the adjustment will allow Exelon’s utility subsidiary, Commonwealth Edison (ComEd) to spend roughly $400 million a year on energy efficiency programs. Costs to consumers will be capped at 1.3% over 2015 rates for business classes, and at 25 cents per month for ComEd’s residential customers.

In addition to the nuclear bail-out and energy efficiency programs, the Future Energy Jobs Bill will reform the state’s RPS policy. While Illinois’ RPS target will remain at 25% by 2025, the bill provides for new community solar, low-income, and brownfield solar targets. Distributed generation (DG) will be incentivized through an adjustable block incentive program, which will allow DG facilities to receive upfront REC payments in a 15-year contract with the Illinois Power Agency.

Thanks to the advocacy of the solar industry, ComEd’s proposed demand charge was eliminated from the final version of the bill, and retail net metering rates will be preserved with grandfathering up to a 5% statutory cap. Once the cap is hit, net metering rates will be replaced through a commission process to establish fair DG compensation based on locational grid value.

Governor Bruce Rauner (R) has already announced his support of the heavily negotiated bill. After Gov. Rauner signs the bill, it will take effect on June 1, 2017.

The Future of SRECs in Illinois – What Happens after the IL SPV Program?

Posted March 9th, 2016 by SRECTrade.

With the third and final round of the Illinois Supplemental Photovoltaic (SPV) Procurement Program under way, stakeholders are pondering what lies ahead for Solar Renewable Energy Credits (SRECs) in the State of Illinois. The bid for the Spring 2016 SPV Procurement Program (Round 3) will take place on March 31, 2016. The Illinois Commerce Commission (ICC) will issue its final decision on the results of the Procurement on or before April 6, 2016, when we will learn whether the Illinois Power Agency (IPA) spent the entire $15 million allocated for the final round. SRECTrade will publish another blog post with the results of the third round shortly after the ICC releases its decision.

For the Illinois SPV Procurement Program, the State appropriated $30 million of the Renewable Energy Resources Fund (RERF) to procure SRECs from solar photovoltaic (PV) systems energized on or after January 21, 2015. The $30 million budget was divided between the three procurement program rounds, with $5 million allocated for the first round, $10 million allocated for the second round, and $15 million allocated for the third round. The funds appropriated for each of the first two rounds were fully expended by the IPA.

What will happen next for Illinois remains indefinite. If the IPA awards $15 million worth of contracts in the final round, it is uncertain whether there will be a need for a fourth contingency event to take place in Spring 2017. Once the SPV Procurement Program comes to a close, the future of Illinois SRECs will once again destabilize. Although there is potential that solar PV facility owners could participate in other statewide Procurements, there is no long-term certainty for in-state SREC sales, as was made available by the SPV Program. Even more uncertain is whether the Illinois General Assembly will take up any energy bills this year to institute long-term solutions, either before or after the budget for FY2016 is adopted.

SRECTrade encourages PV facility owners in the ComEd utility service territory to apply for the Pennsylvania SREC market. Solar PV facility owners and installers may submit an online application to sell their SRECs in Pennsylvania by creating an SRECTrade account on our home page, and submitting an application for a new facility.

Please feel free to visit our Illinois and Pennsylvania Markets pages for more information on the SREC markets in these states.

If you have any questions about the SPV Program, you can view our introduction webinar and slides online here. You can also email us at clientservices@srectrade.com, or call us at (415) 763-7732 ext 1. SRECTrade is also happy to address inquiries pertaining to our online application and the Pennsylvania SREC Market for Illinois facility owners and installers.