SPV-38: Why is Performance Assurance required if Buyer can terminate the SPV Contract at any point if Buyer is unable to pay for the RECs?

The Performance Assurance requirement provides the Buyer with assurance that the Seller will Energize and register the System by the Energized Guaranteed Date, and that the Seller will identify System(s) associated with a Forecast REC Quantity by the Guaranteed System Identification Date.

This requirement is intended to provide a disincentive for bidders to bid on quantities of RECs in the procurement event (that could be speculative or associated with identified systems) that are unlikely to come to fruition, and is distinct from the Buyer’s ability to pay for RECs.