One objective of the bid assurance collateral is for the bidder to show that the bidder will be able to meet the Collateral Requirement under the REC Contract. Not meeting the Collateral Requirement would lead to supplier default, termination of the REC Contract, and failure of the procurement event to procure the number of RECs intended.
The Collateral Requirement under the Brownfield and Utility-Scale Solar RFP increased for two reasons. First, there was an increase in the Collateral Requirement under the REC Contract and the increase in bid assurance collateral is consistent with this fact. Second, the target of 2,000,000 RECs is substantially larger than the target under the New Solar RFP and thus the maximum amounts have increased to be consistent with the higher Collateral Requirement that could be due under the REC Contract.