The Illinois Power Agency (IPA) conducted a competitive procurement event to procure renewable energy credits (RECs) from new solar photovoltaic projects in Illinois. The procurement sought to procure 2 million RECs delivered annually from new utility-scale solar projects (projects over 2 MW) and 80,000 RECs delivered annually from new brownfield site photovoltaic projects. Brownfield site photovoltaic projects are defined as projects located at sites regulated by the U.S. Environmental Protection Agency under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the Resource Conservation and Recovery Act (RCRA) Corrective Action Program, or the Illinois Environmental Protection Agency under the Illinois Site Remediation Program or Illinois Solid Waste Program. Projects must be interconnected to an electric utility and be energized after June 1, 2017.
The procurement event consisted of a two-part proposal process. Part 1 proposals were submitted by October 18, 2018, establishing project qualification based on site control documentation, project certifications, and financial information where applicable. Part 2 proposals, due November 14, 2018, included bid assurance collateral submission and project details. Bids were submitted on November 4, 2018. All proposals were submitted online through the procurement administrator's secure system.
Projects selected by the Illinois Commerce Commission for REC contracts were required to deliver at least one REC to each of the three utilities (Ameren Illinois Company/AIC, Commonwealth Edison Company/ComEd, and MidAmerican Energy Company/MEC) by May 31, 2021, with an option to extend to May 31, 2022 by posting increased collateral. RECs would be delivered for a multi-year term with annual delivery quantity requirements and banking provisions for excess generation.
No successful bids were received from brownfield site photovoltaic projects in this procurement event. The average winning price for utility-scale solar projects selected was $5.01/REC, though this information was later clarified to apply only to utility-scale projects. Results were publicly released on December 4, 2018, consistent with Public Utilities Act Section 16-111.5(h), disclosing only the names of successful bidders and weighted average winning bid prices.