Indexed REC-24: What are the flexibilities related to delivery under the Indexed REC Contract?

There are several flexibilities related to delivery under the Indexed REC Contract; however, including, but not limited to:

  • 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. The Delivery Year Requirement calculation is set forth in Section 1.30 and 1.31 of the Indexed REC Contract.
  • 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 two (2) 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.
  • Any RECs generated by the Project in excess of the Delivery Year Requirement for any Delivery Year (“Excess RECs”) shall remain the exclusive property of Seller, to be utilized in Seller’s sole discretion. Such excess RECs may be transferred for the sole purpose of reducing Shortfall Amounts incurred in one or more prior Delivery Years subject to conditions under Section 4.1(k). Such RECs are not eligible for payment either by Buyer to Seller or by Seller to Buyer; for avoidance of doubt, such RECs are valued at $0 under the Indexed REC Contract.
  • There is no prohibition to Project size changes during the term of the Indexed REC Contract.
  • Additionally, please note that under the Indexed REC Contract, the Seller will specify a Project Committed Percentage. The Project Committed Percentage means the percentage of the Project’s Actual Production to be used for purposes of the Standing Order. The Seller will provide the Project Committed Percentage prior to the establishment of the standing order and after that point this input cannot be modified. Please review Section 2.3(b) of the Indexed REC Contract for information regarding the Project Committed Percentage and the Standing Order.