Indexed REC-51: When will the next Indexed REC procurement event be held? Will the IPA hold procurements for both energy and RECs from utility-scale renewable projects?

The Summer 2023 Indexed REC RFP for new utility-scale wind projects, new utility-scale solar projects, and new brownfield site photovoltaic projects is currently ongoing. Please see the Calendar posted on the procurement website for deadlines regarding the Summer 2023 procurement event.

Please note that while a Fall 2023 Indexed REC RFP has not been scheduled at this time, the IPA’s Final 2022 Long-Term Renewable Resources Procurement Plan (“2022 Long-Term Plan”) states that “With this 2022 Long-Term Plan being approved in July 2022, the Agency expects to conduct the 2022 procurements late in the calendar year to allow for time to implement any changes to the procurement requirements resulting from the approval of this plan. For 2023, the Agency proposes to hold the procurement in late spring or early summer—and if procurement volumes are not filled, the IPA would consider holding a subsequent procurement in late 2023.”

The 2022 Long-Term Plan covers the IPA’s renewable energy resources procurement activities for 2022 and 2023. The IPA will next update the Long-Term Plan starting in 2023 for approval in 2024 to cover activities including future Indexed REC RFPs for 2024 and 2025.

Please note that Renewable Energy Credits (“RECs”) are the sole product being procured in the Indexed REC RFP. At this time, there are no RFPs planned for the procurement of bundled RECs and energy from utility-scale solar or wind projects. As discussed in Section of the 2022 Long-Term Plan in regard to the Indexed REC pricing approach enacted under Public Act 102-0662 (the “Climate and Equitable Jobs Act”), “the Agency understands this new Indexed REC pricing approach to offer revenue certainty back to renewable energy project developers in a manner that functions similarly to a bundled fixed price REC + energy off-take agreement. In times when energy revenues are low, REC prices are high; in times when energy revenues are high, REC prices adjust downward accordingly. The end result is revenue certainty regardless of wholesale energy market conditions, hopefully solving financing and development barriers for entities seeking to develop new utility-scale wind and utility-scale solar projects under the Illinois RPS.”