Announcements


Indexed REC-65: Does the Indexed REC Contract account for degradation in the calculation of the Delivery Year Requirement with respect to utility scale solar projects and brownfield site photovoltaic projects?

For purposes of calculating the Delivery Year Requirement under the Indexed REC Contract for the Summer 2024 Indexed REC RFP, the annual quantity in the Indexed REC Contract related to a utility-scale solar project or a brownfield site photovoltaic project is subject to a degradation factor that is calculated using the Degradation Rate designated by the Bidder within the Part 2 Proposal. For utility-scale solar and brownfield site photovoltaic Projects, the Bidder must provide a Degradation Rate up to 1% for the Project, rounded to two decimals. This Degradation Rate will be an input to the Product Order of the Indexed REC Contract and used for purposes of calculating the Delivery Year Degradation Factor. The Delivery Year Requirement calculation is set forth in Section 1.31 of the Indexed REC Contract. The degradation adjustment described in the foregoing is only applicable to utility scale solar and brownfield site photovoltaic projects, not utility scale wind or hydropower projects. Please see Exhibit F-1 of the Indexed REC Contract that provides an illustrative example of the Delivery Year Requirement calculation for a utility-scale solar or brownfield site photovoltaic Project using a Degradation Rate of 0.5%.

A 20-year schedule indicating the Delivery Year Requirement for each Delivery Year will be provided in the Product Order of the Indexed REC Contract for each winning project. Please note that while the Seller must deliver a quantity of RECs that meets the Delivery Year Requirement in each deliver year, the failure to meet any Delivery Year Requirement through the first two (2) full Delivery Years (i.e., first and second full June through May periods as well as any prior stub period) shall not constitute a Shortfall Amount. As described in Section 9.2 it is an event of default under the Indexed REC Contract if: (i) Seller fails to meet the Delivery Year Requirement for five (5) or more years, and (ii) the Shortfall Amounts (as the term is defined in the Indexed REC Contract) cumulatively equals or exceeds the annual quantity.