DG-23: If the scope of a project changes slightly due to the utility company restrictions, what is the consequence under the applicable supplier contracts?

Under the applicable supplier contracts, the Seller must provide at least 80% of the RECs contracted for a Size Class for a given Delivery Year (or, if there are less than 10% of the RECs under contract from a given Size Class or if the Delivery Year Quantity for both Size Classes for a Delivery Year is less than 100 RECs, at least 80% of the aggregate quantity across both Products must be delivered). Failure to meet this requirement is considered a default under the terms of the applicable supplier contracts.

Importantly, the 80% requirement is not imposed on each system separately.  Rather, the requirement is imposed on all the systems of a certain Size Class under the applicable supplier contract.  The number of RECs to be delivered cannot be modified once the applicable supplier contract is signed.  That quantity  is calculated using the capacity factors specified in the RFP, namely:  14.38% for solar thermal energy, photovoltaic cells and panels; 11% for Small Size Class wind; 16% for Large Size Class wind; 31.06% for hydropower that does not involve new constructions or significant expansion of hydropower dams; and 47.74% for biodiesel, crops and untreated and unadulterated organic waste biomass, and tree waste. The quantity to be delivered in the first Delivery Year for a new system may be specified by the Bidder to be less than the quantity calculated using these capacity factors.