SRECTrade, Inc. will be hosting a webinar to review the SRECTrade application and onboarding process for the upcoming Illinois Adjustable Block Program (ABP) on Thursday, December 13th, at 10:00am CST.
To register for the webinar, please click HERE.
SRECTrade is also targeting December 13th as the opening of its ABP application window.
Please note that a webinar recording will be made available on the SRECTrade Blog after the webinar.
TweetNovember 16th Edit: This webinar has been rescheduled for Tuesday, November 20th, at 3:00pm CST. Originally, the webinar was scheduled for November 20th at 1:00pm CST. Please note that a webinar recording will be made available on the SRECTrade Blog after the webinar.
SRECTrade, Inc. will be hosting a webinar to review the parameters for the upcoming Illinois Adjustable Block Program (ABP) on Tuesday, November 20th, at 3:00pm CST.
To register for the webinar, please click HERE.
SRECTrade is targeting to open its ABP application window in early December 2018.
For more information on the ABP, please visit our blog post on the topic here.
TweetSRECTrade has been closely monitoring the development of the Illinois Adjustable Block Program (ABP) since the release of the draft Long-Term Renewable Resources Procurement Plan (LTRRPP). SRECTrade will be applying for the Approved Vendor role in the ABP on November 1st.
Below is a summary presentation of many high-level ABP parameters. Please note that many of the parameters described within are still subject to change and are in the process of being finalized.
Adjustable Block Program Overview – October 18, 2018
Please also see the table below for the final ABP REC prices that were released in the June 4, 2018 Appendix D ‐ REC Pricing Model Description.
On February 26th, the Illinois Commerce Commission (ICC) issued its Proposed Order of the Illinois Power Agency’s (IPA) Long-Term Renewable Resources Procurement Plan (LTRRPP). A range of issues were raised by stakeholders and commented on by the ICC in the draft order.
The ICC has also made a variety of significant changes to the Draft Plan as it was filed on December 4, 2017. One of the most substantial changes is as follows:
A summary of other changes can be found below and as outlined in this article from PV Magazine.
There is reportedly one more round of responses by intervenors and the ICC during March before the Final Plan is released on April 3rd. The changes listed above will not be finalized until the Final Plan is released.
For more information on the original Draft Plan or the revised Draft Plan that was filed with the ICC, please view our previous blog posts on those topics in the links provided.
TweetOn December 4th, the Illinois Power Agency (IPA) filed its Long-Term Renewable Resources Procurement Plan (LTRRPP or the Plan) for approval by the Illinois Commerce Commission (ICC). The Plan is part of the implementation of Public Act 99-0906 (the “Future Energy Jobs Act”), which took effect on June 1, 2017.
The initial ICC Filing, including the Filing Petition, Filed Plan and appendices, and the redline comparison of the draft Plan and the Filed Plan are available on the IPA’s website here.
In response to comments received on the draft Plan, the IPA made several changes to the Filed Plan, including changes to the following:
The IPA provided a summary of the above changes, and those proposals not accepted, in its Filing Petition.
In addition, the revised Block Group REC Price schedule is provided below (Table 6-2 of the Plan):
Block Group REC Prices ($/REC)
Objections were due on December 18, 2017 with responses to objections due on Thursday, January 11, 2018. Replies to responses will then be due on Thursday, January 25, 2018. The ICC is expected to issue its decision by April 3, 2018. The ICC docket for the plan is accessible here.
Visit our blog for previous and future posts about Illinois’ RPS and the Long Term Plan.
TweetIn October 2017, SRECTrade participated in the Fall round of the Illinois 2017 Utility Distributed Generation Procurement. SRECTrade was among the three winning suppliers of the 5-year REC contracts awarded through the Fall 2017 Utility DG Procurement. A summary of average winning bid prices and number of RECs can be found below. Please note that the number of RECs quoted by the IPA is in annual quantities. For the Illinois Power Agency’s official announcement of the results, please click here.
The IPA procured 40,765 RECs during the Fall round, which fulfilled 30% of the 2017 procurement target (138,510 total RECs over five years between both rounds). The remaining volume of 97,745 RECs was accounted for by the Spring round.
There are no future supplemental photovoltaic or distributed generation procurement rounds announced at this time. SRECTrade will be participating in the IL Adjustable Block Program, scheduled to roll out in mid-2018. For more information on this program, please visit our blog post on the topic.
TweetOn September 29, 2017, the Illinois Power Agency (IPA) released its Draft Long-Term Renewable Resources Procurement Plan (the Draft Plan). The Draft Plan has been released for comment pursuant to Section 16- 111.5(b) of the Public Utilities Act and Sections 1-56 (b) and 1-75(c) of the Illinois Power Agency Act as recently modified by Public Act 99-0906, which went into effect on June 1, 2017.
The Draft Plan sets out the procurements and programs that the IPA has proposed in order to meet the Renewable Portfolio Standard (RPS) requirements contained in Section 1-75(c)(1) of the Illinois Power Agency Act, including the Adjustable Block Program and the Illinois Solar for All Program. This post provides a summary of the statutory process and a brief overview of the Adjustable Block Program (ABP) as presented in the Draft Plan, but does not contain detail on other elements of the plan, including competitive procurements, the Illinois Solar for All Program, or the Community Renewable Generation Program. For more details on these elements of the plan, please refer to the Draft Plan here.
The IPA is accepting public comments on the Draft Plan for 45 days. Comments must be submitted to Mario Bohorquez, Planning and Procurement Bureau Chief, at mario.bohorquez@illinois.gov by November 13, 2017.
In addition to accepting public comments on the Draft Plan until November 13, 2017, the IPA will host three public hearings to accept in-person public comments. The dates and locations of these meetings are as follows:
The IPA has 21 days following the end of the 45-day comment period to revise the Draft Plan and to file the Plan with the Illinois Commerce Commission (ICC). Based on the timeline presented by the IPA, April 3, 2018 is the deadline for the ICC to enter its order confirming or modifying the Plan. Please refer to the IPA Cover Letter and Hearing Notice for a full overview of the statutory deadlines and timeline.
The Adjustable Block Program (ABP) features capacity-based blocks set at pre-determined prices for 15-year REC contracts. Key elements of the ABP model include the following, which are detailed in turn:
There are two types of “new” projects that are eligible for the ABP. “New” is defined in the Draft Plan as “energized on or after June 1, 2017”.
The two project types are:
DG solar must be Illinois-sited and interconnected, behind-the-meter, and less than or equal to 2,000 kW AC. Refer to Section 2.5.1.1 of the Draft Plan for full project eligibility requirements.
Section 6.12.1 of the Draft Plan sets forth additional technical system requirements, including system documentation and metering requirements.
The IPA will conduct an RFP for a Program Administrator to run the day-to-day operations of the Adjustable Block Program. The Program Administrator responsibilities will include program and contract management, application review and approval, providing program information for the public, and more.
Participation in the ABP “will take place through, and conditional upon, an Approved Vendor process” proposed by the IPA. Approved Vendors will be required to meet certain criteria and agree to certain terms set forth in the Draft Plan. The use of Approved Vendors will ensure program efficiency and protect Illinois consumers from “bad actors”.
Approved Vendors will submit projects bundled into batches of at least 100 kW and up to 2 MW. Once an Approved Vendor has successfully submitted five batches, the minimum size of a batch for that Approved Vendor will increase to 250 kW. However, the IPA sets forth special exemptions for minority-owned and female-owned businesses. For each project, there will be a non-refundable application fee of $10 per kW, not to exceed $5,000.
Once approved, each batch will result in one contract with one utility. That is, a batch of systems will be contracted with one utility on a portfolio basis. However, the price for the RECs for each system within a batch will be based on the price available within the applicable block on the date of the submittal (see sections below for more on blocks, categories, and pricing). In addition to the non-refundable application fee, there are collateral requirements. See below for information regarding contracting credit requirements.
It is not required that projects be energized or interconnected at the time of application. However, all projects will be subject to the following timelines and extensions (based on the contract execution date):
The IPA sets forth certain permissible extensions under Section 6.15.2.
Each block will be for a specified quantity of nameplate capacity with a specific REC price. When a block reaches its subscription capacity, projects will be eligible for the next block and its block price.
For each Block 1 as summarized in the table below, all projects submitted within 60 days of the program opening date will be included in that Block 1, regardless of subscription to the block.
For subsequent blocks, each block will be held open for 14 days after the block is fully subscribed. The IPA will announce when a block has been filled and when the closing date will be.
The initial REC target for the ABP is to have 1,000,000 RECs delivered annually by the end of the 2020-2021 delivery year (i.e., May 31, 2021). Based on a blended 17% capacity factor, this amounts to roughly 666 MW of new photovoltaic generation. However, the IPA notes in its Draft Plan that this goal is not a cap and that, subject to demand and budget constraints, there is potential for additional capacity.
The blocks will be divided into two groups by service territory/geographic category and then further allocated by project category as follows:
Section 1-75(c)(1)(K) of the Act requires a 25% each allocation for four categories:
Since it is too soon for the IPA to appropriately allocate the “remainder” category in any other manner, the IPA will distribute the 25% remainder amount evenly, for an allocation of 33.3% in each category 1-3. The IPA will revisit, review and reallocate the 25% remainder amount as needed in the Plan Update.
Accordingly, the 666 MW allocation is summarized by the IPA as follows:
Illustrative Block Opening Volumes (MW)
The IPA set a 16.4177% capacity factor for fixed-mount systems and a 19.3149% capacity factor for tracking systems. Accordingly, the estimated REC production would be as follows:
The IPA adapted its REC Pricing Model from the CREST model developed by the National Renewable Energy Laboratory (NREL). The IPA modified the CREST model’s “input assumptions and post processing of the results.” IPA cautions in its Draft Plan that the prices summarized in the table below “should be viewed as preliminary in nature and not necessarily the prices that will be offered once programs launch, and parties should not take actions in reliance on the availability of these preliminary proposed incentive levels.” Parties can review, explore and comment on the data used, assumptions made, and the REC Pricing Model itself through the public comment process.
Block Group REC Prices ($/REC)
For systems in the Large DG PV and Community Solar categories, the IPA set a base price for each category at the >500 kW – 2,000 kW level with adders to differentiate the price for RECs from different sized systems, as summarized above. The IPA proposes these adders in lieu of sub-dividing project categories by project size or type. Adders are discussed in further detail in Section 6.5 (Tables 6-3 and 6-4) of the Draft Plan.
As shown in the table above, REC prices will step down by 4% in each block after Block 1. However, the IPA will monitor performance during the blocks and may modify the price step-down based upon the speed at which each block is filled.
For systems that are accepted into the ABP with an executed contract for 15 years of REC deliveries, payment will be made as follows:
The standard for “energized” as it applies to contract payment is the “completion of the interconnection approval by the local utility and the registration of the system in GATS or M-RETS so that generation data can be tracked and RECs created.”
The Draft Plan sets forth certain credit and delivery requirements to manage performance over the life of the contracts. The Approved Vendor will be required to post collateral equivalent to 10% of the total contract value when each Batch’s contract is approved.
The collateral amount will be maintained for the life of the batch contract, but can be reduced in the later years of the contract when the collateral amount exceeds the remaining value of the contract. This requirement will be maintained at the portfolio level, not the individual system level, to manage the risk of systems that under-perform or have other issues, balanced against projects that over-perform. Under certain conditions, failure to deliver RECs will result in the utility drawing on the collateral to be compensated for undelivered RECs.
SRECTrade intends to participate in the continued statutory process set forth above, and plans to participate in the ABP as an Approved Vendor in a capacity similar to its role in the SPV and DG procurements.
The IPA issued an Errata on the Draft Plan on 10/06/17, which is available here. The Block Group REC Prices ($/REC) table in this post has been updated to reflect these corrected prices.
TweetSRECTrade, Inc. will be hosting a webinar covering the upcoming IL 2017 DG Procurement Round Two on Monday, August 21st, at 1:00pm CST. The October procurement round is the second of two rounds scheduled for 2017.
To register for the webinar, please click HERE.
Our application window for Round Two is open from Monday, August 21st to Friday, September 8th at 5:00pm CDT.
For more information on the upcoming procurement round beforehand, please visit our blog post on the topic here.
TweetOn June 21, 2017, members of the SRECTrade team attended the Environmental Markets Association (EMA) round table event in Chicago. The event featured presentations and discussions on a variety of environmental issues and new developments in Illinois environmental markets. SRECTrade’s Manager of Business Development and Operations, Tom MacKenty was invited to speak about the new IL RPS and upcoming Adjustable Block Program.
Tom’s full presentation can be viewed HERE
While there are many details about the RPS and Adjustable Block Program forthcoming, SRECTrade has been actively monitoring the progress and posting information as it has become available. A recent SRECTrade blog post with an outline of the program can be found HERE.
We will continue to provide updates as the rule making proceeds. As always, please feel free to reach out to us if you have specific questions.
TweetOn May 17th and 18th, SRECTrade attended the Illinois Power Agency’s Renewable Resources Workshops. These workshops centered around the state’s new RPS and its components, including the Adjustable Block Program, Community Solar incentives, and the Illinois Solar For All Programs.
Overview of the New Illinois RPS and the Long-Term Renewable Resources Plan
The new RPS moves to a single compliance regime rather than having separate mechanisms for customers serviced by the alternative retail electricity suppliers (ARES). Under the old RPS, this retail choice lead to budget and target uncertainties. The goal of the new RPS will still be 25% renewables by 2025, but this target will now apply to all retail sales. The Future Energy Jobs Act, Public Act 099-0906, was signed into law on December 6, 2016 and can be read here.
The new law will take effect on June 1, 2017. Please see below for a draft timeline for the implementation of the RPS programs, as provided by the IPA in its Overview presentation:
Under the new RPS, Illinois is moving away from structured procurements for non-utility scale solar. Projects up to and including 2 MW in size will instead be eligible for participation in the new RPS’ Adjustable Block Program, or ABP, which will provide for 15-year REC contracts.
Key components of the ABP are:
The goal of the ABP is to ensure that solar projects are developed in diverse locations and that they are not overly concentrated. The IPA has yet to determine the number, size, categories, and prices of blocks as well as the application, contracting and delivery process. These issues will be resolved during the implementation process.
Community Solar
Community Solar will operate as a subset of the ABP with similar features and the same goal. Under community solar, an electric generating facility credits the value of electricity generated to the subscribers of the facility. A subscriber has a subscription of no less than 200 watts to a community renewable generation project and may total no more than 40% of the nameplate capacity of an individual project. At a high level, the provision for Community Solar Projects will mirror those for larger DG systems, but may differ in project development and application requirements.
Illinois Solar for All Programs
The goal of the Illinois Solar for All Programs is to bring solar PV to low-income communities in Illinois. The programs are distinct but will share aspects with the Adjustable Block Program for DG and Community Solar. The four programs are as followed:
SRECTrade will continue to participate in the implementation proceedings for the new RPS. In addition, SRECTrade will server as an aggregator in the Fall 2017 DG Procurement. You can see the results from the Spring Utility DG Procurement here.
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