Indexed Wind, Solar, Brownfield, and Hydropower FAQs

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General

FAQ-Indexed REC-31
Q: Is the RFP for bundled energy and RECs from the Project?

Renewable Energy Credits (“RECs”) are the sole product being procured in the Indexed REC RFP.  Upon the effective date of Public Act 102-0662, as described in Section 1-75(c)(1)(G)(v), “for all competitive procurements and any procurements of renewable energy credit from new utility-scale wind and new utility-scale photovoltaic projects, the Agency shall procure indexed renewable energy credits and direct respondents to offer a strike price.”

The 2024 Long-Term Renewable Resources Procurement Plan (“2024 Long-Term Plan”), issued on April 19, 2024 in accordance with the Illinois Commerce Commission order, discusses the indexed REC model enacted through Public Act 102-0662. In particular in Section 5.4.4, the IPA states that “from a bidder’s standpoint, this Indexed REC approach offers clear advantages. Given the limited market for energy-alone off-take agreements in Illinois and the inability for the IPA to offer bundled Power Purchase Agreements, an Indexed REC price structure offers bidders the revenue certainty of a bundled contract without exposing default supply rates to potentially uneconomic hedges. From the standpoint of developing the most possible renewable energy at the lowest possible cost, this approach offers advantages back to the state of Illinois as well; if bidders receive full revenue certainty at the Strike Price amount, then risk premiums built into bids should be reduced relative to a fixed-price REC delivery contract, allowing for the development of more renewable energy generation at a lower RPS budget impact”

For more information, please refer to the 2024 Long-Term Plan, available on the IPA’s website here and the Final Materials for the Indexed REC RFP here.

05-09-2024

FAQ-Indexed REC-27
Q: Is there a competitive procurement planned for battery storage under the 2024 Long-Term Renewable Resources Procurement Plan?

The Illinois Power Agency (“IPA”) develops procurement plans and conducts competitive procurement processes in accordance with the requirements of Section 1-75 of the Illinois Power Agency Act and Section 16-111.5 of the Public Utilities Act. The IPA issued their final Long-Term Renewable Resources Procurement Plan (“2024 Long-Term Plan”) on April 19, 2024. Chapter 5 of the 2024 Long-Term Plan covers the IPA’s competitive procurement activities relevant to Ameren Illinois Company (“Ameren Illinois”), Commonwealth Edison Company (“ComEd”), and MidAmerican Energy Company (“MidAmerican”) for 2024 and 2025.

A competitive procurement related to battery storage offtake agreements is not contemplated under the 2024 Long-Term Plan. Please see Chapter 5.6. of the 2024 Long-Term Plan for the schedule of procurement events for 2024 and 2025: https://ipa.illinois.gov/energy-procurement/current-approved-plan.html

05-09-2024

FAQ-Indexed REC FAQ-22
Q: Where can I find the posting of the Bidder Information Webcast materials for the Summer 2024 Indexed REC RFP?

The Procurement Administrator posted the presentation materials and the audio recording from the bidder information webcast held on May 2, 2024 to the Final Materials page of the Indexed Wind, Solar, Brownfield, and Hydropower section of the website.

05-07-2024

FAQ-Indexed REC-4
Q: Where can I find more information on Appendix B. RPS Budget and REC Portfolio Spreadsheet from the 2024 Long-Term Renewable Resources Plan?

Information regarding Appendix B. RPS Budget and REC Portfolio Spreadsheet is provided in Chapter 3 of the 2024 Long-Term Renewable Resources Plan available on the Illinois Power Agency’s (“IPA”) website. Also, in April 2023, the IPA posted information on inputs in the spreadsheet along with their Renewable Portfolio Standard Budget Update. Please note that an updated version of Appendix B. RPS Budget and REC Portfolio Spreadsheet will be posted with the final 2024 Long-Term Plan in April 2024.

Please direct specific questions related to the RPS Budget Model to the Illinois Power Agency through their Contact Us page: https://ipa.illinois.gov/contact-us.html

03-20-2024