LIP-54: What happens if the Project is not at least 50% subscribed at the end of the 18-month development period? Will the IPA cancel the Project?

First, as a condition for the Project to be considered energized, at least 50% of the nameplate capacity of the Project must be subscribed. Under the REC Contract, the energization deadline may be extended beyond the 18-month development period under certain circumstances (please see the REC Contract for details). Second, once the Project is energized, RECs generated from the Project will be delivered to the IPA’s account by automatic transfer via a standing order. Once a REC is delivered via the standing order, such REC is the property of the IPA and will not be returned to the Seller regardless of whether such REC is eligible for payment or not. Third, payments made during a delivery year are subject to an annual true-up payment adjustment to ensure that payment is made only for RECs that are delivered and attributable to subscribed shares. While the IPA will not cancel the Project if the subscription falls below 50% during a delivery year during the term of the REC Contract, please note that the Seller will not be paid for any RECs that are delivered but not attributable to subscribed shares.