LIP-16: How will REC payments from a 15-year contract be spread out over 10 years?

The contract terms have not yet been finalized at this time. However, it is possible that payments in an earlier period of the delivery term (e.g., during the first 9 years) may track closely to actual eligible RECs delivered and payments in later years may feature accelerated payments (e.g., remaining payments made in year 10) for estimated REC deliveries based on a standard capacity factor and an assumed percentage of actual capacity subscribed so that payments under the 15-year REC delivery contract may be made over the first 10 years of the REC delivery term. The REC Contract will feature clawbacks for underperformance relative to the estimated REC deliveries for which payment is based.