Solar Renewable Energy Credits

February 16, 2015

Summary

In August 2007, Illinois enacted legislation (Public Act 095-0481) that created the Illinois Power Agency (IPA). The agency’s purpose is to develop electricity procurement plans for investor-owned electric utilities (EUs) supplying over 100,000 Illinois customers to ensure “adequate, reliable, affordable, efficient, and environmentally sustainable electric service at the lowest total cost.” The only EUs that meet these criteria and are therefore subject to the IPA procurement process are Commonwealth Edison (ComEd) and the Ameren Corporation companies (AmerenCILCO, AmerenIPL, and AmerenCIPCO).

The IPA plans and administers the competitive procurement processes that result in bilateral agreements between the utilities and wholesale electric suppliers. The procurement plans must include procurement of cost-effective renewable energy resources per the Renewable Portfolio Standard (RPS) requirements, outlined here. The RPS includes a solar requirement to be met with solar renewable energy credits (SRECs) with benchmarks beginning in Energy Year June 2012-May 2013. Each SREC represents the environmental attributes associated with 1 megawatt-hour of energy produced from solar energy. Selected suppliers are required to utilize either the PJM-EIS-GATS, M-RETS, or NARR tracking system.

In October 2011, the legislature passed S.B. 1652, which requires the IPA to conduct a procurement event for the acquisition of renewable energy credits (RECs) for the period of June 1, 2013 to December 31, 2017. This procurement process will take place throughout calendar year 2012. If needed, future procurement processes will be administered through the program administrators.

Ameren

The procurement process for Ameren is administered by Levitan and Associates here. REC bids for 2012 were due in May 2012. Ameren is seeking SRECs per the schedule outlined below.

Procurement Period	Photovoltaic Target (# of SRECs)
June 1, 2013 - May 31, 2014	13,612
June 1, 2014 - May 31, 2015	27,332
June 1, 2015 - May 31, 2016	57,100
June 1, 2016 - May 31, 2017	58,326
June 1, 2017 - December 31, 2017	34,264

SRECs must be generated during the same time period as the procurement. More information, including application materials, is available on the Levitan and Associates web site.

ComEd

For ComEd, the procurement process is administered by NERA Economic Consulting. Applications for the 2012 procurement event were in February, 2012, and bidding took place in May 2012.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Illinois
Incentive Type:	Performance-Based Incentive
Web Site:	http://www.icc.illinois.gov/electricity/ElectricityProcurement.aspx
Administrator:	NERA Economic Consulting (ComEd); Levitan and Associates (Ameren)
Start Date:
Eligible Renewable/Other Technologies:	Solar Photovoltaics
Incentive Amount:	Negotiated with procurement administrators
Maximum Incentive:	Benchmarks set by procurement administrators
Ownership of Renewable Energy Credits:	Awarded to winning bidder

Authorities

Name:	§ 220 ILCS 5/16-115D
Effective Date:	06/01/2009

Name:	§ 20 ILCS 3855/1-75
Date Enacted:	08/28/2007
Effective Date:	08/28/2007

Name:	S.B. 1652
Date Enacted:	10/26/2011

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.